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Mechel fully fulfills its obligations under the previous contract with the Chinese Baosteel Resources
Mechel has signed a new cooperation agreement with the Chinese steel corporation Baosteel Resources, which envisages an increase in coking coal supplies to 1,4 million tonnes per year for the period from April 2015 to March 2016.
As EastRuassia was informed in the company's press service, Mechel fully fulfills its obligations under the previous contract in the amount of 1,2 million tons of coking coal. Mechel and Baosteel Resources signed a memorandum with the option of further prolongation. The delivery price will be set monthly. The agreement also provides for the possibility of supplying other company products such as thermal coal and pulverized coal.
Mechel is one of the world's top ten exporters of coking coal and supplies over 70% of the mining division's products abroad. In addition to Baosteel Resources, Mechel supplies coal products to about 20 largest metallurgical corporations operating in the Asia-Pacific region.
According to Citigroup analysts, due to the weakening ruble and falling oil prices, the production cost of Russian coal miners has decreased, and Russian coal exporters have an advantage of $ 20 per ton over companies from North America and Australia. The Russian cost of delivering coal among the main exporters of the Asia-Pacific region has moved from one of the highest to the most competitive, reports TASS.