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"Severstal": rental prices increase

10 February 2014

According to the «Severstal» Russian Steel «included in its division» Cherepovets «Iron and Steel Works in February 2014 plans to raise the cost of production of finished rolled products from 3% to 10%. As explained by experts, the rise in prices due to the weakening of the ruble exchange rate and the low level of prices in the Russian Federation, as well as with an increase in the price situation on the world market.

If we consider the price the state as a percentage, the price of cold-rolled steel increased by 4%, in the thick hot-rolled products — from 6% to 10%, on a thin hot-rolled products — by 5% for galvanized steel — by 4%, long products — on 3%, and rental coated polymeric materials — by 3%.

According to Dmitry Gorshkov, holding the position of Director of Sales and Marketing division «Severstal» Russian Steel «, the price level, set in the company at this point, unable to provide a satisfactory level of profitability. This situation is a result of downward price adjustments held company in recent months, and now you should use the improvement in the global steel market, to be able to increase the value of their own products, since February, 2014. In the case of improving the situation — as is likely — the management of «Severstal» plans to consider the additional value adjustments.

Since the beginning of 2014 Open Joint Stock Company «Severstal» has started to work with a group of «Knauf CIS», supplying cold rolled galvanized steel, which is used for the manufacture of metal profiles. Perfectly organized delivery of products: to Krasnogorsk (Moscow region) with the vehicle in order to save delivery time and shipping. Packed products means convenient to the customer, in this case there is a real possibility of reducing the cost of the rolls and the cost of the subsequent removal of the packaging material.

D. Gorshkov said that the implementation of joint projects makes it possible to determine the individual needs of clients and to ensure that orders the most convenient ways.

Alexander Zaitsev, who is the head of the procurement service «KNAUF Gypsum» Still happy with the joint work — in his words, the use of vehicles for the delivery of products made it possible to increase the turnover of raw materials warehouse that to the increased cost of delivery, it is quite compensated simplified packaging material.

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