Mechel Signs Long-Term Contract with China’s Jiangsu Sha Steel Group
Thursday, August 8th, 2019
Mechel PAO (NYSE: MTL, MOEX: MTLR), one of the leading Russian mining and metals companies, reports signing a major contract for coking coal supplies with Jiangsu Sha Steel, China’s largest private steelmaking group.
Jiangsu Sha Steel is Mechel’s longstanding strategic partner in Asia Pacific. The contract notes strong business ties between the two sides, based on mutual profit and trust.
The new agreement will be valid starting September 2019 to August 2020. During this time, Mechel will supply Jiangsu Sha Steel with up to 720,000 tonnes of premium-grade coking coal produced by Yakutugol Holding Company AO. The coal will be shipped through Mechel Group’s Trade Port Posiet. The price will be determined on a monthly basis in accordance with international market trends.
The Chinese company also expressed willingness to make additional purchases of Mechel’s thermal coal if needed.
“We are glad to pursue our cooperation with Jiangsu Sha Steel and will continue to supply our Chinese partners with top-quality coal products. Such long-term contracts enable us to plan the load on our production facilities more efficiently and consolidate Mechel’s position as one of the world’s key coking coal exporters,” Mechel PAO’s deputy Chief Executive Officer Pavel Shtark commented.http://www.mechel.com