Translated material
On the way to artificial scarcity
State regulation of prices for metal products will cause a crisis in the Russian metallurgy, representatives of the largest trade union warn
State regulation of metal prices will lead to a crisis in the Russian metallurgy. This was stated yesterday by Deputy of the State Duma of the Russian Federation Mikhail Tarasenko, member of the Committee on Labor and Social Policy, Chairman of the Mining and Metallurgical Trade Union of Russia.“The correction in prices for metal products is a consequence of purely market processes,” he noted. -- Prices for raw materials have risen in the country and tariffs of natural monopolies have increased. At the same time, Russian metal prices are still lower than world prices.”
“On behalf of the trade union of ferrous metallurgy workers,” said Mikhail Tarasenko, “I can say that calls from representatives of certain industries for the introduction of state regulation of metal prices can only destabilize the situation in the industry. The only thing we will achieve by trying to limit the natural correction in prices for metal products is to slow down previously announced programs to increase the production of metal products with high added value, the shortage of which is already felt by the market today. Moreover, this may lead to a shortage of metal in the domestic market. Metallurgists cannot work at a loss, therefore, they will be forced to increase sales to the export market.”
“The introduction of export duties on metal, which some hotheads are now calling on the government to do,” said Mr. Tarasenko in this regard, “will lead to metallurgists cutting production - it is impossible to deceive the market and market mechanisms. This will entail a reduction in tax deductions, workers’ salaries and will have serious social consequences, because, for example, almost all ferrous metallurgy in Russia is city-forming.”