July 7, 2020

Brazil becomes Karelsky Okatysh’s latest export market with the start of iron ore pellet deliveries

Karelsky Okatysh, a division of PAO Severstal and Russia’s leading iron ore mining and processing plant, has delivered iron ore pellets to Brazil for the first time in its history. The shipment of more than 100,000 tons is for Brazil’s largest fully integrated steel producer - Companhia Siderurgica Nacional (CSN).

Maxim Vorobyov, Chief Executive Officer of Karelsky Okatysh and Olkon, commented:

"The most suitable products for production at CSN from Karelsky Okatysh’s product line are low-basic fluxed pellets. We worked with our partners at CSN on how the pellets could be used effectively in their blast furnaces in Brazil. I am very pleased that the first batch of products has now been dispatched, signifying an important milestone in our mutually beneficial relationship."

The agreement between Karelsky Okatysh and CSN continues Severstal’s sales diversification strategy to expand the geography of its customer base.

Pavel Nekhvoroshch, Severstal’s Head of Supply Chain and Raw Material Sales, commented:

"Expanding the geographical reach of our pellets deliveries, without compromising the profit margins that we earn in our focal areas, is crucial to our strategy. Commencing deliveries of our products to Brazil marks an invaluable opportunity for us to gain experience and develop our entry strategy to new markets, as well as to receive feedback from new customers on the quality of our products and services."

Before reaching CSN, the pellets have a long way to travel. From Kostomuksha, products are dispatched to the Finnish port of Kokkola, and from there to the port of Sepetiba for unloading in Rio de Janeiro. Previously, the furthest export destinations for Karelian pellets had been the UAE and Trinidad and Tobago.