Russia's largest steelmaker, Severstal, is continuing negotiations with AvtoVAZ, the country's largest automaker, on rolled metal supplies in 2011, Severstal said on Friday.
Russian steelmakers raised their prices from the third quarter of the year and their consumers, mostly troubled car makers, complained to the government. Severstal insisted on raising prices for rolled output by 30%.
"Severstal expects understanding and urges consumers to change their view and adhere to the principles of the market economy," the statement said.
AvtoVAZ said it could not agree with terms offered by Severstal.
"A 30% price increase for rolled metal is unacceptable for the company and will increase the price of cars," a spokesman said.
Earlier on Friday, AvtoVAZ said it had agreed the price for metal-roll supplies for the first half of 2011 with one of Russia's largest iron and steel producers, Magnitogorsk Iron and Steel Works (MMK).
MOSCOW, December 24 (RIA Novosti)
