The agreement will establish a multi-level commodity trading market system and win China more of a say in the pricing of metals.

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

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

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

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.

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

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