As found “Kommersant”, the government discussed measures to support the steel industry, which faced a number of challenges, from demand reduction to the risk of raw material shortage. Market participants offer to increase purchases of Russian pipes for the project of SIBUR and “Gazprom”, but according to experts, in reality, such measures are unlikely to significantly affect the market balance. Discusses options to limit imports of steel and scrap exports: lomozagotovki in April fell significantly. The Ministry intends to include the segment in the list of victims of coronavirus.“B” acquainted with the Protocol of the meeting that the Ministry of industry and trade in late April, held with the participation of the largest Russian metallurgical companies to discuss the situation in the industry. As follows from the document, the basic instructions given at the meeting was lomozagotovki. According to “Russian steel”, because of quarantine measures companies are faced with a reduction in scrap, which leads to a shortage of raw materials and rising prices. According to “Ruslana”, in April the volume of scrap in different regions was reduced by 20-80% compared to March.In the end, the industry associations requested to perform the balance of preparation and consumption. On the basis of these materials the Department of metallurgy and materials of industry and trade will have to prepare proposals for the inclusion lomozagotovki in the industries most affected by the coronavirus. If necessary, the Ministry may propose to the government to introduce a temporary ban on the export of ferrous scrap.According to Maxim Hudalova of an ACRE, of samoborsko are observed not only in Russia but also in Ukraine and other countries—exporters of scrap metal. The expert does not exclude that in the conditions of growing demand in Turkey, the industry will be tempted to increase exports that threatens a shortage of raw materials in Russia.Another set of suggestions related to the pipe industry. Russian steel has proposed to stimulate domestic demand by maintaining the investment programs of FEC companies. In particular, it was proposed to use the Russian pipeline during the construction of the Amur gas-chemical complex of SIBUR. However, said Maxim khudalov, a project which at best will only need 200 thousand tons of pipes, this raises the question whether the industry to produce such a specific pipe. In CIBOURE “Kommersant” said that he will focus “on the rational localization of supply”. “Working through the project the Amur gas-chemical complex, we will definitely consider the Russian pipe market and we hope that the Russian manufacturers will offer conditions not worse than alternative foreign supplies,” the company said.In “Russian steel” told “Kommersant” that the domestic demand can be supported by the project “Power of Siberia-2” and “Baltic WithPG” Gazprom gas-chemical complex in Ust-Luga, programs to Finance replacement of worn-out networks utilities, to bridge construction, strengthening of quay walls in ports. Note that these gas projects are at the initial stage: the timeline can be adjusted, and the “Power of Siberia-2” they are not even marked.There are ideas and to limit imports of steel products. At the meeting it was proposed to restore the antidumping duty on Ukrainian rail solid-rolled wheels (PCP) and to revise the existing quotas on imports of Chinese OCTG in the next five years.CCC on the production of Ukrainian Interpipe operates duty 34.22% — its effect is temporarily suspended, but in may, the Department of domestic market protection of the Eurasian economic Commission has stated that it sees no need to prolong this pause. In “Russian steel” has declared that now the Russian manufacturers of CTC reduce production of wheels due to lack of orders, caused by a decrease in turnover and the construction of new cars and also growth of Chinese imports to 150 thousand wheels a year.According to the Protocol, Kamensk-Uralsky metallurgical plant (KUMZ, belongs to Renova and Vladimir and Alexander Skornjakova), which is the second largest Russian producer of aluminum products with high added value, expects to conclude contracts with the enterprises of rocket-space industry and the defense industry to supply its products on the principle of take or pay for a period of three to five years. These contracts must contain fixed terms for the purchase and the price formula linked to the LME.On Coombs did not respond to a request “b”, however, judging by the Protocol, the Ministry of industry and trade expects the plant to justify the proposals, and discussion of take or pay contracts will continue at the departmental level, the Ministry responsible for defense and aviation.Eugene Zainullin
