“Nizhniy Tagil Iron and Steel Works” OJSC abused dominance on the market of graded rolled metal products

The investigation was opened due to growing prices for metal products in the beginning of FAS Russia 2010.
FAS Russia analyzed the state of competition in the market of hot-rolled Z-type profile for the centre sill of the Н-310 cars in January 2009 – June 2010.
FAS discovered that “NTMK” OJSC is the only producer of Z-type profiles 09G2С and 12G2FD in the Russian Federation. In the period in question, the products were being distributed by “EvrazHolding” TK” Ltd.
The group of persons, including “EvrazHolding” TK” Ltd. and “NTMK” OJSC, has dominant position in the market of Z-type steel profile, grade 09G2С, and in the market of Z-type steel profile, grade 12G2FD.
The FAS Russia’s Commission found that “NTMK” OJSC had set the joint price-list for consumers of 09G2С and 12G2FD Z-type profiles. The price-list was not applicable to the strategic customers of “EvrazHolding” TK” Ltd.
For customers from the Russian Federation, “NTMK” OJSC was fixing different prices of hot-rolled carriage profiles for the centre sill (steel grades 09G2С and 12G2FD).
Price difference in the period in question was between 10% and 66%. Profit margin for the Z-type profiles 09G2С and 12G2FD was from 12% to 200%.
Having investigated the case, the FAS Russia’s Commission found that “NTMK” OJSC violated Clauses 1 and 6 Part1 Article 10 of the Federal Law “On Protection of Competition” by abusing market dominance on the markets of the Z-type profiles 09G2С and 12G2FD. The company fixed and maintained monopolistically high prices and fixed different prices for the same goods without economic, technological or any other justification.
Under Article 14.31 of the Code of the Russian Federation on Administrative Violations, “NTMK” OJSC can be fined for abusing market dominance.