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Severstal set for 3-10% price rise next month

The company reports a better price environment in global steel markets combined with a weakening ruble amid low prices in Russia as reasons for the decision

MOSCOW, January 20. /ITAR-TASS/. Cherepovets Steel Mill operating as part of the Russian steel maker Severstal’s Russian Steel division has announced a 3-10% increase in prices starting from February. The company reports a better price environment in global steel markets combined with a weakening ruble amid low prices in Russia as reasons for the decision.

In particular, thin hot-rolled steel will be 5% more expensive, hot-rolled plate will add in price 6-10%, cold-rolled steel will rise 4% as well as galvanized steel. Pre-painted steel and long products will both add 3%.

“After a series of downward price adjustments Severstal has made over the last several months, the current prices do not provide adequate margins,” Russian Steel’s Director for Marketing and Sales Dmitry Goroshkov said. “In this situation we should make use of the recent improvement in global steel markets and increase the price starting with products manufactured in February. Should conditions improve in the near term, we’ll consider additional price adjustments.”

Severstal is one of the world’s major vertically integrated steel making and mining companies with assets located in Russia and the U.S., as well as Ukraine, Latvia, Poland, Italy, Liberia and Brazil; 79.2% of the company is owned by business tycoon Alexei Mordashov.

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