Exec says Russian Railways, Mechel mull rail supplies in 2016

MOSCOW, Dec 10 (PRIME) -- Russian Railways is continuing talks with metals and mining group Mechel on supplies of 100-meter rails and may start the purchases in 2016, the railway monopoly’s First Vice President Anatoly Krasnoshchyok told reporters Thursday.

On Wednesday, Vedomosti business daily reported that Mechel is unhappy about the price, because Russian Railways buys 100-meter rails from U.K. mining giant Evraz.

“We (have not yet purchased 100-meter rails) from Mechel as it has just only launched its mill, which has only produced the first 5,000 kilometers…We are looking at the next purchasing year. In addition to that, its production has not yet passed the pricing commission,” Krasnoshchyok said.

Russian Railways has fulfilled its rail purchase program for 2015. “We will look at next year. We have procedures, have tenders, the one with the smallest price will win a tender…We have held a meeting (with Mechel) this week, we will have another meeting next week,” he said, adding that Evraz’ rails are slightly cheaper.

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