AK&M cited Mr V Rashnikov chairman of MMK as saying that the company managed to decrease iron ore buying price form USD 85 per tonne to USD 50 per tonne down by 41 % from January 2009 despite a long term contract till April 1st 2009.
The main iron ore supplier of MMK is ENRC of Kazakhstan as both sides concluded 10 years contract in 2007 with the price to be revised yearly according to iron ore prices dynamics in global market.
The negotiations between the biggest world iron ore manufacturers and consumers for 2009 have not completed yet.
The report added that “However, for Russian consumers who have not concluded long-term contracts and are oriented on spot shipments, iron ore in Q1 2009 will cost even less as metallurgical raw materials prices in RF now are much lower than global.”