Brazil’s steel and iron ore producer Companhia Siderurgica Nacional’s (CSN’s) subsidiary, CSN Mineração, has signed a long-term deal with global mining firm Glencore International to supply iron ore.
Under the agreement, Glencore will prepay $115mn to CSN Mineração to supply iron ore, the Brazilian steelmaker said in a statement on July 16.
The contract involves the supply of 4mn mt of iron ore for up to five years, CSN said without discussing further details.
This is the third iron ore contract that both companies have signed since the last year. In February 2019, CSN Mineração signed a $500mn deal to supply 22mn mt to Glencore for five years, while the second deal was developed on July 12, 2019, in which CSN Mineração would provide 10mn mt of iron ore to the miner over five years for $250mn.
CSN’s total steel production in Q1 2020 fell by 5pc to 1.92mn mt from 2mn mt in Q1 2019. The steelmaker’s iron ore production in Q1 2020 decline by 39pc to 5.3mn mt from 8.8mn mt in Q1 2019.
Brazil’s crude steel production dropped by 22.6pc to 2.1mn mt in May this year compared the same month last year, according to the World Steel Association data.