OREANDA-NEWS. In 2006 there was a considerable increase in the price of scrap.

According to the press service of TMK, prices in the Russian market increased by between 25-30% which affected the increase in production costs in the second half of 2006.

The Company believes that the price increase in 2006 closed the gap between Russian and export prices for scrap and it does not expect any significant price increase in 2007 and beyond.

Rises in prices for other raw materials (strips, pig iron and purchased billets) were not more than 15% in 2006.

TMK has balanced the rise in the price of raw materials by increasing its prices for tubular goods.