Russian steel producer Magnitogorsk Iron and Steel Works (MMK) has negotiated a 41.2 percent decrease of the purchase price of iron ore with its raw material suppliers. Thus, regardless of the long-term contracts effective until April 2009, starting from January 1 the purchase price of one metric ton of iron ore will amount to $50, instead of the previous $85.
In addition, MMK has achieved a decrease of 40 percent in the purchase price of ferroalloys, and expects in February to agree an additional 10 percent drop in the price of this product.
MMK continues to implement its anti-crisis program aimed at reducing its expenses by cutting raw material prices and by decreasing its purchases.