About 100 Russian metal traders agreed to limit the markup on metal products to 12%
The Ministry of Industry and Trade of the Russian Federation has published a list of accredited distributors, trading houses and metal service enterprises that will limit the markup on the sale of metallurgical products to 12%, the ministry said.
“Today, a list of distributors accredited by Russian metal producers is published, with which an agreement has been reached to minimize the margin in the retail sale of metal products. There are currently about 100 organizations on the list, their markup will be from 7 to 12%, depending on the size of the added value that is formed by the distributor. In other words, less added value means less markup,” Manturov said.
The list of metal traders is published on the website of the Ministry of Industry and Trade of Russia and will be sent to the Federal Antimonopoly Service (FAS) to control prices for end consumers of metal products. The list may grow over time.
In March, the Ministry of Industry and Trade announced that metallurgists should present consolidated pricing parameters for domestic consumers by the end of the month. In particular, manufacturers of metal products had to "themselves determine the composition and list of structures that will ensure the delivery of metal directly to the consumer and determine the form of the margin," Manturov told reporters last week. At the same time, he confirmed that the markup would be 7-12%.
“I think it shows effectiveness in terms of gradually lowering prices. And we believe that this mechanism will work,” he noted, adding that now the ministry is not considering the option of fixing domestic prices for metal products.