Russian mining and steel group Mechel has announced the signing a coking coal supply agreement with China's Shagang Group.
According to the agreement, Mechel Carbon (Singapore), trading subsidiary of Mechel's mining division, will directly supply Shagang Group with 40,000 to 80,000 mt of coking coal a month from Russian Far East ports, starting from in the current month of June. Coking coal prices will be determined on a monthly basis.
Up to May this year, Mechel Carbon had supplied more than 500,000 mt of coking coal to Shagang's main coke plant in Zhangjiagang, Jiangsu Province. Shagang Group is the largest private sector steel mill in China, with an annual production capacity of up to 35 million mt of steel.