Steelmaker Rautaruukki has signed a long-term raw-materials contract with Severstal subsidiary Severstal Resources, the Finnish company said on Wednesday May 2.

Russia-based Severstal Resources will directly supply Ruukki with raw materials, enabling it to reduce its dependency on coking coal from more distant sources such as North America and Australia, and to diversify its purchases of raw materials.

The three-year contract will cover about 20% of Ruukki’s coking coal and iron pellet supplies, with deliveries beginning in July and May, respectively.

Ruukki currently sources most of its iron pellet from Sweden-based LKAB and its coking coal from the USA, Canada and Australia.

Alexandra Chapman
achapman@metalbulletin.com
Twitter: @AChapman_metalb