"Magnitka" does not buy and in the nearest future will not buy pellets from SSPU - MMP's representative

/INTERFAX-KAZAKHSTAN, Almaty, June 8, 05/ - At present Magnitogorskiy metallurgical plant (MMP) does not buy and in the nearest future will not buy pellets from Sokolovsko-Sarbayskoye production unit (SSPU), Alexandr Ushakov a member of MMP's board of directors said on Tuesday. Regarding negotiations with SSPU about resuming of supplies Ushakov said "during the negotiations partners can find a compromise". When journalists asked whether "magnitka" at present has problems concerning raw stuff because since May Mikhailovskiy and Lebedinskiy OMPEs and SSPU interrupted unloading of raw stuff for the plant, Ushakov said "MMP now is entirely provided with raw stuff". He says in June MMP had to change raw stuff suppliers. Among alternative suppliers Ushakov called Karelskiy okatysh JSC, Poltavskiy OMPE (Ukraine), Korshunovskiy and Kachkanarskiy OMPEs. He says MMP's plans on commercial output for year 2005 are unchanged - 10.5 m. tons. MOMPE and MMP can not agree about the price of pellets supply. MOMPE offers raw stuff at the I quarter's prices, MMP considers them too high on the background of stabilization and tendency of the world steel market to fall. SSPU insists in signing of a long-term agreement between MMP and MOMPE and only after that it will resume raw stuff supply. MMP said it would have to close three blast furnaces because of lack of raw stuff. In 2004 SSPU outputted 35.8 m. tons of raw iron ore and produced 14.8 m. tons of commodity ore. In 2005 the plant plans to increase raw ore output to 40 m. tons, commodity ore output - to 16 m. tons. Major consumers of SSPU's raw stuff are Russia's Magnitogorskiy metallurgical plant OJSC, Chelyabinskiy metallurgical plant OJSC, Kazakhstan's Mittal Steel Temirtau JSC, and Chinese metallurgical plants. [2005-06-08]