OREANDA-NEWS. OJSC Magnitogorsk Iron and Steel Works ("MMK") today announces that it has signed a contract with Metalloinvest regarding supplies of hot-briquetted iron (HBI) to MMK. The contract was signed by MMK CEO Pavel Shilyaev and Metalloinvest CEO Andrey Varichev at the 22nd MetalExpo'2016 International Industrial Exhibition in Moscow.

The contract covers a period of one year. During this period, MMK will purchase 200,000 tonnes of HBI from Metalloinvest. Under the contract, pricing will be determined by a formula based on market indicators including domestic and global prices for metallurgical raw materials.

This contract will help MMK to partly substitute metal scrap with alternative raw materials inputs.

Pavel Shilyaev, CEO of MMK, said: "Metalloinvest as a company and as a brand is closely associated with success in the mining business by leading iron ore and steel players, and with strong management and effective modernisation of steel production. By signing this contract today, we are strengthening the long-term and mutually beneficial relationship between our companies."

Andrey Varichev, CEO of Management Company Metalloinvest, said: “HBI has firmly established itself as an effective addition to scrap for the production of high-quality grades of steel. It is very significant for us that key Russian consumers, such as MMK, recognise the advantages of this premium product."