Bar, Switzerland – 19 October 2020 – Mechel PAO (MOEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, reports extending the year-long coal supply contract with STX Corporation, one of South Korea’s major universal trading companies active in Asia Pacific.
According to the document, until December 2021 Mechel will supply STX Corporation with up to 1 million tonnes of products, including coking and thermal coal produced by Yakutugol Holding Company and Southern Kuzbass Coal Company. STX Corporation will provide funding for coal supply to Asia Pacific. The price will be determined based on the market situation.
Over the past year, Mechel has shipped a total of 800,000 tonnes of coal to STX Corporation as per the current contract.
“The coal market has begun recover after a difficult first half of the year. As several think-tanks have foretold, as demand is getting stronger, prices for coking coal (key product for Mechel’s mining division) may go up by a quarter in the next year and a half. In this sense, 2021 will be indicative. By signing this agreement, we have begun preparing for the next year in advance, as the current situation calls for flexibility in one’s sales policy and offering one’s partners mutually acceptable cooperation aiming for a long-term outlook,” Mechel PAO’s Chief Executive Officer Oleg Korzhov commented.
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