The Russian steelmaker Magnitogorsk Iron and Steel Works (MMK) has concluded a long-term supply agreement with local pipe producers.
In particular, MMK will supply flats in coils and sheets to Russian pipemakers OMK, TMK and ChTPZ in the period covering July 1, 2008 through April 1, 2009 at fixed prices.
This move is in line with MMK's policy of switching to long-term contracts both with raw material suppliers and with the main consumers of its products.
The MMK decision has been welcomed by the Russian National Antimonopoly Society, which stated that the switch to long-term contracts will ease the situation in the Russian market for metallurgical products and will also effectively resist the establishment of price cartels in the market.