China accounts for more than 20 percent of the company's total sales volume, Machkevitch stated.

The lease extension will be granted after an application has been made by the state-run company.

He also points out that the deal comes at a weak point in the steel sheet market cycle.

The import price for steel billet in the United Arab Emirates has narrowed over the past week.

Steelmakers were announcing price increases to try to reverse the trend.

COKING COAL on Tuesday: Chinese buyers mildly bullish but market still muted.

Buyers were reluctant to book large tonnages before prices hit a market bottom and end-user demand begins to improve.

It estimates that pellet consumption could increase its proportion of the total raw material mix in blast furnaces from 11% in 2015 to 19% in 2025.