It is reported that domestic automotive producers are going to use price correction for steel to review agreement with steelmakers. In May steel for automotive manufacturers rose averagely by 22%. Now automotive manufacturers expect abatement from steelmakers as market situation in summer has changed.
Mr Sergey Kogogin CEO of Kamaz said negotiations with steelmakers are going on and the automotive plant offers them to be guided by the trends of international market. In the second half of the year the situation should change as steelmakers agree that the prices should be reduced but from September.
Besides Kamaz other automotive manufacturers as GAZ Group and AutoVaz intend to resume negotiations with steelmakers. Only Sollers noticed the company does not negotiate with steelmakers.
In experts’ opinion, automotive manufacturers have good argument for price review as hot rolled sheet in May cost USD 700 per ton and now prices fell to USD 570 per tonne. Simultaneously, analysts notice that automotive plants are hardly to succeed in reduction more than by 5% to 10% and in Q4 prices may go up again.
