In the end of December 2010, Mechel's management adopted a decision to discontinue shipments of stainless steel to traders who had been its large customers, selling Mechel’s steel products to end users.

The intention of making such a decision was to increase direct sales to end users, Mechel's management decides to discontinue shipments to intermediary structures (i.e. traders) of the following product assortment:

1. Stainless steel sheets
2. HR and forged stainless steel long products
3. Stainless steel long products with special finishing
4. Stainless steel tubular billets

The currently placed orders must be cancelled with the refunding of advance payments. Any future sale to traders is now banned.

Spetsstal said “Mechel has divided all buyers for the admitted ones and denied ones. For a monopolist such a behavior looks logical. Though, we wonder for whom did the traders buy stainless steel from Mechel. Obviously, for end users who are compelled to break up their business ties with the traders and go cap in hand to its majesty Mechel. We doubt the Mechel's decision is consistent with the current anti monopolistic regulations in Russia. We think the case is for the Russian antimonopoly service.”

(Sourced from Spetsstal Association)