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.