Russia-based leading global iron ore and hot briquetted iron (HBI) producer Metalloinvest has announced that it has signed a formula pricing agreement for the current year with the country's largest automotive corporation KAMAZ. The agreement extends the long-term partnership of the two companies and ensures regular supply of products from Metalloinvest to KAMAZ. The formula takes into account changes in steel market conditions. The terms of the agreement also require KAMAZ to purchase a fixed minimum quantity of products in 2016.
Nazim Efendiev, sales director of management company Metalloinvest, stated that the agreement allows Metalloinvest to maintain a sustainable level of utilization rates at its production facilities, while for KAMAZ it reduces the risk of sharp fluctuations in prices, enables the company to make long-term procurement plans, and ensures that it receives high quality materials on time. The product deliveries to KAMAZ’s production facilities will be fulfilled by Metalloinvest’s subsidiary Oskol Metallurgical Plant (OEMK).