The Russian steelmaker and iron ore producer Evraz Group (Evraz) has announced that its Czech-based subsidiary Evraz Vitkovice Steel is preparing its steelmaking facilities for relaunch, as it has reached an agreement over supplies of liquid pig iron with ArcelorMittal Ostrava, Czech-based subsidiary of the world's largest integrated metals and mining company ArcelorMittal. Accordingly, the supplies in question are to be resumed in early November.
The agreement between the two sides, which is based on a price formula that they both consider to be mutually acceptable, will cover approximately the next five quarters and implies a minimum annual volume set at 550,000 mt. As such, ArcelorMittal Ostrava's supplies will cover about 80 percent of Evraz Vitkovice Steel's requirements.
Part of Evraz Vitkovice Steel's rolling needs will still be met by the supply of slabs from Evraz's NTMK plant in Russia, with the remaining slabs acquired from other suppliers in Slovakia, Ukraine, Turkey and other countries.
As SteelOrbis previously reported, as of July 1 this year Evraz Vitkovice Steel halted operations at its steel melting shop due to the failure in negotiations over prices for pig iron supplies with ArcelorMittal Ostrava.
Evraz Vitkovice Steel is one of Europe's top producers of heavy plates and is the only plate producer in the Czech Republic. Annual steel smelting capacity of the plant is 965,000 mt, while its plate mill produces 755,000 mt of plates per annum.