Metallurgical companies manage to reach agreement on prices with car manufacturers

MMK and Severstal have signed long-term contracts with KAMAZ and Ulyanovsk automobile plant (UAZ, a part of Sollers) for the year for the supply of their car rolled metal, but with AvtoVAZ metallurgists have agreement only for the first quarter 2015, according to a reference to the anti-crisis meeting at the First Deputy Prime Minister Igor Shuvalov’s office on support of metallurgists and prices for their products.

The document notes that MMK has an understanding and a willingness to sign a document on the prices for a year with AvtoVAZ. The reference doesn’t point out at what prices MMK and Severstalagreed with automakers, the companies’ representatives don’t say about this, noting that this is a trade secret. Representatives metallurgists and automakers confirm agreements between the companies under long-term contracts.

The reference to the meeting at the Shuvalov’s office, which was released on Tuesday, notes that none of the companies could reach an agreement with GAZ Group "because of the difficult economic situation at the company’s enterprises". GAZ’s representatives declined to comment on the progress of negotiations with steelmakers. A representative of MMK CMI said on Wednesday that the company had preliminary agreements with GAZ, "the contract is in the progress".