MMK, TMK decide on rolled sheet price

24 December 2015 (09:17)

UrBC, Chelyabinsk, December 24, 2015. Magnitogorsk Iron & Steel Works (MMK) and Pipe Metallurgical Company/TMK signed an agreement on how the price the latter will have to pay for the former’s hot-rolled steel sheets will be determined. The paper was signed by MMK Director-General Pavel Shilyaev and TMK Director-General Alexander Shiryaev, the two companies’ joint press release states.

The price formula is based on direct cost pricing, with such primary variables as the cost of metallurgical raw stuffs and materials and the cost of manufacturing a steel sheet. The formula also provides for inflation and exchange rate fluctuation adjustments and will be used to determine the price once every quarter. The agreement is valid through 2018.

‘This agreement will allow for the gradual strengthening of our cooperation in the next few years. It stands for our mutual interest in a stable relationship. Doing business with TMK is of strategic importance to us, which is why we are trying to build up our ties through such agreements, among other things. A transparent and clear-cut pricing policy is one important aspect of this,’ Shilyayev said.

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