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【ferro-alloys.com】

  Baosteel Resources International, the raw material purchasing subsidiary of Baowu Iron and Steel Group, the world's largest steel producer, has signed a strategic cooperation agreement with Sibanthracite group, a large Russian coal producer.

  The Russian company said that under the terms of the agreement, Sibanthracite group will increase its product shipments to Baosteel resources, especially PC materials and high-quality anthracite. Sibanthracite group's new type of coking coal, pciban, which will be produced in 2020, will account for the vast majority of the total shipment.

  The coal producer is currently the only Russian company to sign a strategic cooperation agreement with a Chinese steel giant, the company said in a statement.

  "We are honored to be a strategic partner of Baowu Steel Group, the world's largest steel company, and Baowu Steel Group appreciates the quality of our products," said Sergey Melnikov, President of Sibanthracite group.

  Since October 2020, China has begun to increase its imports of coking coal from Russia and other major producers after the introduction of the embargo on Australia. The ban and the strict quarantine system in Mongolia, China's main supplier, have resulted in a shortage of coking coal in the market, which has led to a long-term rise in domestic coke prices.

  According to a previous report by metal expert, Russia's coking coal loading and transportation to China will increase by 24% to 6.73 million tons in 2020.

• [Editor:Catherine Ren]