MMK and ChelPipe reach pricing agreement
The agreement is aimed at regulating pricing for wide-format steel sheet based on costs of raw materials, production and delivery, and covers the period between 2016 and 2018.
MMK CEO Pavel Shilyaev said:
“ChelPipe and MMK have a long-standing and mutually beneficial relationship. This agreement means that the needs of Chelybinsk pipemakers for high-quality metal will continue to be met in a timely manner. Moreover, our cooperation is essential for high-quality performance of large-diameter pipes shipments from ChelPipe to leading Russian oil and gas companies responsible for development of major pipelines – both in Russia and beyond. We welcome today’s agreement with our partner, as it will enable both of our companies to adapt to changes in the market to mutual benefit.”
ChelPipe CEO Alexander Grubman said:
“MMK is a key supplier of wide-format steel for production of large-diameter pipes at ChelPipe’s department Vysota 239. Annual volume of shipments to ChelPipe exceeds 400 thousand tonnes. This pricing agreement will allow our companies to minimise risks in a volatile economic environment, and at the same time will make our cooperation more transparent, efficient and mutually beneficial.”
MMK and ChelPipe are long-term partners, with a strategic cooperation programme to supply Russian oil and gas companies with high-quality tubular products. MMK ships 1,500-4,500 mm-wide steel sheet and 500-1,250 mm-wide rolled steel to pipe-making enterprises of ChelPipe Group. Close interaction between MMK and ChelPipe is a successful example of intraregional cooperation, which has been emphasised on numerous occasions at the government level.