London 15 January 2010 15:12

Russian Railways (RZhD) has raised its freight rates by 9.4% effective January 1, government officials told MB.

The increase was formally announced by Russia’s Federal Tariff Service on December 25, officials said.

“This is an annual adjustment to account for inflation,” an RzhD spokeswoman said.

But shipments of steel products meant for export by rail to Russia’s Far East ports will receive a discount on the increase, a tariff service spokesman told MB, although he did not indicate the size of the concession.

No further adjustments to freight costs will take place for the remainder of 2010, the tariff service spokesman said.

He also quoted the Russian Statistic’s Committee’s recent announcement that inflation in the country was 8.8% in 2009.

The higher freight rates, plus increased raw materials costs, have prompted Russian mills to seek a $15-20 price increase on domestic hot rolled coil prices for January rolling (MB Jan 15).