Metalloinvest to supply 21.6 million mt of pellets to NLMK over four years

The Russian steelmaker Novolipetsk Steel (NLMK) has announced that it has signed four-year contracts with the Russian steel and iron ore producer Metalloinvest Holding (Metalloinvest) for the purchase of 21.6 million mt of pellets.
 
"Both companies have successfully developed a pricing scheme for raw materials supplied under long-term contracts based on applicable market indicators," said NLMK in its statement, adding that the pellet prices will be determined using a formula reflecting pricing dynamics in the international iron ore market.
 
Accordingly, the contracts will ensure a stable sales channel for Metalloinvest's developing ore mining assets, as well as a stable pellet supply to NLMK's expanding production facilities in Lipetsk.
 
Pellet supplies to NLMK's main production site in Lipetsk will be delivered from Metalloinvest's Lebedinsky and Mikhailovsky mining and processing plants located in neighboring regions.