You are here: Home > Steel News > Latest Steel News > AvtoVAZ...

AvtoVAZ signs one-year steel supply contract with NLMK

Thursday, 24 February 2011 15:30:45 (GMT+3)   |  
       
The Russian steelmaker Novolipetsk Steel (NLMK) has announced that it has signed a one-year contract with Russia's leading car manufacturer AvtoVAZ to supply cold rolled and galvanized steel.
 
Under the agreement, over the next twelve months NLMK will deliver a total 180,000 mt of cold rolled steel including 36,000 mt of galvanized steel, with enhanced mechanical properties for the production of AvtoVAZ car body parts. Steel deliveries to the car manufacturer will commence in April.
 
"The companies have successfully developed a pricing scheme for steel based on applicable market indicators. Prices will be determined using a formula reflecting pricing dynamics in the international steel market," reads NLMK's statement.
 
Previously, AvtoVAZ had bought about 60 percent of required steel products from another Russian steel producer, namely, Severstal; however, since autumn last year the parties have been locked in a dispute over prices. In 2011, Severstal was planning a 30 percent increase for flat steel product prices based on higher production costs, and said that it was ready to halve its deliveries to AvtoVAZ from 200,000 mt in 2010 to 100,000-200,000 mt.
 
The second key supplier of AvtoVAZ, covering the remaining 40 percent of its demand for steel products, is Magnitogorsk Iron and Steel Works (MMK), which, however, had said that it would not be able to increase deliveries to AvtoVAZ as its auto sheet production capacities are fully utilized.

Similar articles

Turkish flats market remains weak, HRC prices soften only slightly

07 Nov | Flats and Slab

Flat steel prices in local Taiwanese market - week 45, 2024

07 Nov | Flats and Slab

Ex-India HDG prices decline amid low trade volume

07 Nov | Flats and Slab

Russia’s MMK to increase rolled steel supplies to DoorHan

06 Nov | Steel News

Egypt launches AD probe on CRC and coated steel from Turkey and China

05 Nov | Steel News

US hot-rolled coil pricing largely flat on the week following recent spot market slump

01 Nov | Flats and Slab

Flat steel prices in local Taiwanese market - week 44, 2024

31 Oct | Flats and Slab

Japan’s steel exports down 3.9 percent in January-September

31 Oct | Steel News

US hot-rolled coil pricing sharply lower on aggressive mill discounting programs as demand wanes

25 Oct | Flats and Slab

CRC and HDG prices in Europe mainly stable amid silent trade

25 Oct | Flats and Slab