OREANDA-NEWS. May 31, 2011. The Federal Antimonopoly Service (FAS Russia) initiated a case against ОАО “Magnitogorsk Iron & Steel Works” OJSC (“MMK” OJSC) upon the signs of violating Clause 3 Part 1 Article 10 of the Federal Law “On Protection of Competition”, reported the press-centre of FAS Russia.

The case was initiated upon complaints of “Chelyabinsk Tube-Rolling Plant” OJSC (“ChelPipe” OJSC), “Pipe Metallurgical Company” Trading House” CJSC (“TMK” Trading House” CJSC) against “MMK” OJSC for imposing disadvantageous contract conditions.

“MMK” OJSC and “Severstal” OJSC are the only manufacturers of wide hot-rolled plates in the Russian Federation.

The main consumers of these products are manufacturers of large-size welded tubes – “TMK” OJSC, “ChelPipe” OJSC, “OMK” CJSC and “Izhora Pipe Plant” CJSC.

According to FAS Russia, in January 2011 “MMK” OJSC unilaterally increased prices for rolled plates due to considerable growth of prices for raw materials at the end of 2010 – beginning of 2011. At the same time, under the agreement between “MMK” OJSC and “ChelPipe” OJSC the prices for rolled plates were approved for the period up to 31st March 2011.

In its turn, “MMK” OJSC reported that orders for these products for supply in February 2011 would only be accepted after “ChelPipe” OJSC and “TMK” Trading House” CJSC confirming new ex-works prices.

FAS Russia suspects that “MMK” OJSC violated the antimonopoly law.