Mechel signed a long-term coal supply contract with South Korean STX Corporation
Baar, Switzerland - October 19, 2020 - Mechel PAO (MOEX: MTLR, NYSE: MTL ), a leading Russian mining and metals company, announces the renewal of its one-year coal supply agreement with STX Corporation, one of the largest South Korean universal trading companies active in the Asia-Pacific region.
In accordance with with the document, up to 1 million tons of products will be delivered to STX Corporation by December 2021: coking and thermal coal produced by Yakutugol Holding Company JSC and Yuzhny Kuzbass PJSC. Under the terms of the agreement, STX Corporation will provide financing for transactions in the supply of coal products to the APR countries. Prices will be calculated based on market conditions.
Over the past year, under the current contract, Mechel supplied 800 thousand tons of coal to STX Corporation.
“The coal market began to recover after a difficult first half of the year ... As a number of analytical agencies predict, against the backdrop of strengthening demand, prices for coking coal (the main product for Mechel's mining segment) may grow by a quarter within a year and a half. In this sense, 2021 will be indicative. Having signed this agreement, we began preparations for the new year in advance, because in the current conditions it is necessary to be flexible in our sales policy and offer our partners mutually acceptable, long-term cooperation, ”commented Mechel PAO General Director Oleg Korzhov.
Mechel PAO Ekaterina Videman Tel .: +7 495 221 88 email@example.com
Mechel is a global mining and metals company. The company's products are supplied to Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore, steel, rolled products, ferroalloys, heat and electricity. All businesses operate in a single production chain: from raw materials to high value-added products.
Certain statements in this press release may contain assumptions or forecasts regarding future events or the future financial performance of Mechel PAO in accordance with the provisions of the 1995 US Securities Litigation Reform Act. We would like to warn you that these statements are only assumptions, and the actual course of events or results may differ materially from those stated. We do not intend to revise or update these statements. We refer you to the documents that Mechel periodically submits to the US Securities and Exchange Commission, including the Annual Report on Form 20-F. These documents contain and describe important factors, including those identified in the "Risk Factors" section and "Note on the forecasts contained in this document" in Form 20-F. These factors could cause material differences between actual results and our assumptions and forecasts regarding upcoming events, including but not limited to achieving the anticipated level of profitability, growth, cost and effectiveness of our recent acquisitions, the impact of competitive pricing, the ability to obtain the necessary regulatory approvals and confirmations. the state of the Russian economy, the political and legal environment, volatility of stock markets or the value of our shares or ADRs, financial risk management and the impact of the general business situation and global economic conditions.ALL news [/i]