The coordination council of OJSC Magnitogorsk Iron and Steel Works (MMK), steel producers and a leading Russian metals company, and PAO TMK (TMK) had recently held a meeting in Magnitogorsk. The companies discussed the results of their partnership in 2015. In 2015, overall shipments of MMK’s flat products to TMK’s facilities amounted to 744ths tonnes, while MMK’s share in TMK’s supply structure amounted to 58.9%. The parties discussed various technical and commercial issues linked to their current and future partnership.
This kind of coordination council meeting is usually held twice a year at MMK or TMK facilities. MMK’s hot-rolled steel production capabilities have expanded following the commissioning of the 1.5mln tonnes thick plate Mill 5000 in 2009. In 2015, MMK shipped more than 2.4mln tonnes of metal to the pipemakers. TMK is one of the key consumers of MMK in the pipe industry. At the end of the meeting, ММК and ТМК signed an agreement on the pricing of rolled steel. The agreement is valid for the period between 2016 and 2018 and the parties believe it will allow both companies to gradually develop their partnership, mitigate risks, improve pricing transparency and plan operations more efficiently.
