Swiss-based international trader and distributor DP Trade SA and Serbia-based billet producer Sirmium Steel DOO have agreed to extend their exclusive marketing agreement for the sales of steel billets to the export markets.
Under the agreement, which came into effect at the beginning of this year, all the available export volume of billets produced by Sirmium Steel will be sold exclusively through DP Trade, which will be acting as the commercial arm of the mill. DP Trade will also provide working capital financing for Sirmium Steel.
Currently, Sirmium Steel is producing approximately 26,000 mt of concast steel billets per month with 7-8,000 mt delivered to the domestic market, while the rest is exported. The company expects to reach its maximum output capacity of 35,000 mt of billets per month during the first half of 2012. This production growth may allow Sirmium to export billets also outside of the Mediterranean market which has been its main focus up to the present.