Ruukki to diversify its raw material purchase markets

Finland-based steel producer Ruukki has announced that it has signed a long-term, three-year contract for coking coal and iron pellet supplies with Severstal Resources, a division of the Russian steelmaker Severstal.
 
The contract that will cover up to around 20 percent of Ruukki's coking coal and iron pellet requirement enables Ruukki to reduce its dependency on distant coking coal sources and diversify the markets from which the company purchases raw materials. Pellet deliveries will begin this month, while deliveries of coking coal will begin in July.
 
Ruukki sources most of the iron pellets it needs from the Swedish company LKAB and buys coking coal on the global market from the US, Canada and Australia.