FAS finds no violations in Severstal’s price increases for AvtoVAZ and Sollers

The Russian Federal Antimonopoly Service (FAS) has announced that it has found no evidence of violation of antimonopoly legislation in Severstal's settlement of automotive sheet prices for Russia's largest carmakers AvtoVAZ and Sollers for 2011.
 
In late 2010, FAS received a complaint from AvtoVAZ regarding Severstal, saying that the steelmaker was violating antimonopoly legislation by imposing unfavorable conditions in terms of higher prices for cold rolled sheet, hot rolled and galvanized steel coils.
 
During its investigation, FAS concluded that the main reason for the early-2011 price increases for these types of rolled steel products for AvtoVAZ and Sollers was the increase in Severstal's production costs.
 
In addition, FAS said that AvtoVAZ is buying a significant amount of rolled steel products and has the most favorable supply conditions compared to other automakers, which acquire the same products from Severstal.
 
Considering the current growth of steel quotations, Severstal's prices for certain types of rolled steel products are at a level comparable with world prices, FAS said.
 
FAS also noted that it is continuing to monitor the prices of steel products, coking coal and iron ore in the Russian domestic market.