TMK and Metalloinvest sign an agreement for the supply of hot-briquetted iron
At the 22nd Metal-Expo’2016 International Industrial Exhibition, taking place now in Moscow, TMK and Metalloinvest have signed an agreement for the supply of hot-briquetted iron (HBI) including a formula-based pricing mechanism. The document was signed by Alexander Shiryaev, TMK CEO, and Andrey Varichev, Metalloinvest CEO.
The agreement is for one year and is renewable. Under the contracts, pricing will be based on a formula that takes into account domestic and global indicative prices for metal feedstock.
The agreement provides for HBI shipments by Lebedinsky GOK (part of Metalloinvest) to TMK’s facilities to produce high-strength grade pipes which are used, among other projects, to develop the Chayandinskoye and Kovyktinskoye fields operated by Gazprom.
Alexander Shiryaev, CEO of TMK, commented: "The agreement signed today will enable TMK to diversify its sources of raw materials, and so reduce risks caused by market volatility in the scrap market. In addition, using hot-briquetted iron will improve the quality of our steel, requiring a reduced amount of non-ferrous metals and harmful alloys."