Ferrexpo seals deal with Japan's JFE

9th Dec 2010 12:18

Ukrainian iron ore producer Ferrexpo has entered into a long term agreement with the fifth largest steel producer in the world to deliver about 300 thousand tonnes of 65% iron content pellets a year.The deal with JFE Steel, which begins this year, is Ferrexpo's first long term contract in Japan and is part of a plan to build relationships with Asian steel mills ahead of its planned Yeristovo mine expansion. "We believe Ferrexpo is the first iron ore producer in the CIS to negotiate a long term contract with a Japanese steel mill," chairman Michael Abrahams said."Ferrexpo sent trial cargoes to JFE in 2007 and 2009 as part of its strategy to diversify its customer base and to position itself as a credible iron ore pellet supplier to the major steel mills. We look forward to a long and productive relationship with JFE."