Uralvagonzavod accepts metal prices
2 July 2010 (08:58)
OAO Severstal and OAO Uralvagonzavod reached a compromise on the rolled metal goods delivery in the third quarter of 2010.
‘Under this agreement, the two parties reached an understanding and agreed on the same prices that were set for the second quarter of the year. The monthly deliveries volume was fixed at up to 2,000 tons of metal,’ Severstal reports.
The deliveries in question will comprise some metal boiler sheets for Uralvagonzavod. In fact, Severstal only made one shipment to Uralvagonzavod in the second quarter, the company’s press officer explained. The two parties then signed a contract that provided for a 30% increase in prices and for a 50% increase in the delivery volume. Uralvagonzavod insisted that they had to put up with these terms because they received virtually no goods in April or May 2010 and were faced with the threat of production stoppage, says RBC daily.
During the negotiations on the third-quarter delivery prices, Uralvagonzavod’s dissatisfied management sent a letter to Deputy Head of Russian Federation Government Igor Sechin, complaining about Severstal’s pricing policies. The plant said the complaints focused on the fact that the metal goods provider abused its dominant position on the boiler sheet market by setting unreasonably high prices.
‘Under this agreement, the two parties reached an understanding and agreed on the same prices that were set for the second quarter of the year. The monthly deliveries volume was fixed at up to 2,000 tons of metal,’ Severstal reports.
The deliveries in question will comprise some metal boiler sheets for Uralvagonzavod. In fact, Severstal only made one shipment to Uralvagonzavod in the second quarter, the company’s press officer explained. The two parties then signed a contract that provided for a 30% increase in prices and for a 50% increase in the delivery volume. Uralvagonzavod insisted that they had to put up with these terms because they received virtually no goods in April or May 2010 and were faced with the threat of production stoppage, says RBC daily.
During the negotiations on the third-quarter delivery prices, Uralvagonzavod’s dissatisfied management sent a letter to Deputy Head of Russian Federation Government Igor Sechin, complaining about Severstal’s pricing policies. The plant said the complaints focused on the fact that the metal goods provider abused its dominant position on the boiler sheet market by setting unreasonably high prices.
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