24 Dec 2010 17:46

Avtovaz, MMK sign metal-roll price agreement for H1

MOSCOW. Dec 24 (Interfax) - Russia's largest automaker Avtovaz and Magnitogorsk Iron & Steel Works (MMK) have signed an agreement as to prices for delivered metal roll in the first half of next year.

"A compromise has been found and sharp metal-price increases avoided," an Avtovaz statement says.

Neither Avtovaz nor MMK would disclose to Interfax the volume of the purchases or the price, citing confidentiality.

At a meeting in Nizhny Novgorod on Thursday, Prime Minister Vladimir Putin directed the Federal Antimonopoly Service (FAS) to investigate auto company complaints about rising costs for sheet metal in 2011, Industry and Trade Minister Viktor Khristenko told journalists.

Avtovaz, Kamaz and Sollers complained about metal prices, he said. Their complaints are currently begin reviewed by the FAS.

Putin called for the review to be completed as quickly as possible in order to avoid disruptions in operations between the steel companies and the automotive industry in early 2011.