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Pipe companies are counting on a quarterly review of the cost

4 January 2016

«Gazprom» and other pipe products producers will not revise the price TBD every six months. The possibility of quarterly changes in the cost formula. Such negotiations are conducted with metallurgists. MMK and TMK in this matter has come to understand. The cost of metal and the exchange rate in the coming year remain volatile. Experts believe that the change in the formula must be.

Pipe companies are trying to agree with «Gazprom». Tubes believe that change is needed in terms of revising the cost of the LDP. Price, in their opinion, should be adjusted on a quarterly basis. revision formula works since 2012. The revision made in December and June, when six months fluctuations in prices and exchange does not exceed 10%. However, because of price volatility and the formula does not operate courses. Adjustments are made virtually by hand. This was stated by Ivan Shabalov, the owner of the «pipe of innovative technologies» in June 2015. However, he suggested that in IVkvartale be able to re-use formula.

In fact, and «Gazprom», and pipe manufacturers engaged in the revision of the basic value on a quarterly basis. Otherwise, manufacturers would have expected loss on a background of rising prices of ferroalloys and rolled. And to «Gazprom» value drops every six months would be too harsh. In Ikvartale 2015 prices for large-diameter pipes for the «Gazprom» has increased by 15−17%. In IIkvartale changes amounted to 10−13%. If we look at the basic cost of SARs in IIIkvartale decreased by 8%. In IVnablyudalos price increase of 8%. In Russia, «Gazprom» is the leader in consumer-LDP. In 2015, the volume of purchases increased 1.5 times to the level of 2 million. Tons. The total volume of consumption of large diameter pipes in Russia reached 3.35 million. Tons.

Tubes are confident that the adjustment value on a quarterly basis — a reasonable measure during the crisis period. As to the criticism in the early 2015 in relation to the price increase, it is unlikely that it was justified. The problem was to increase the cost. In order to avoid further disputes, adequately revise the conversion formula.

Manufacturers pipes are in talks with steelmakers, ensuring that the quarterly changes in the value. The contract with MMK, TMK is already takes into account the need to change the formula in the 2016−2018 year. MMK supplies 66% of the company's sheet metal. ChTPZ is also considering the possibility of an agreement with MMK formula cost. However, for steelmakers such measures rather forced. Revision of prices they need to supply volumes remained stable.

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