Armco Metals Holdings Inc. announced that it entered into a steel scrap supply agreement with Midland Resources (China) Company Limited. Midland serves as the exclusive agent for Shagang Steel for the sale of its steel products in the Hong Kong markets. Midland fulfilled the sale of over 400,000 tons of steel products for Shagang Steel in 2013.

Under the terms of the agreement, Armco Metals will act as a sourcing agent for Midland to import steel scrap into China. The agreement also enables Midland to utilize its import licenses and financing capabilities to import steel scrap for direct processing by Armco Metals. Processing under this method would substantially improve Armco Metal's cash flow and expand its processing capabilities.

Armco Metals sees this as a significant first step in becoming a processing base for both Midland and Shagang Steel.