Mechel Signs Deal with Baosteel - Analyst Blog
2013年3月22日 - 8:10PM
Zacks
Mechel Carbon (Singapore) Pte. Ltd, a unit of mining company
Mechel OAO (MTL), announced that it has signed a
deal with Baosteel Group Corporation's wholly-owned subsidiary,
Baosteel Resources Int. Co. Ltd. to supply coking coal. Per the
agreement, Mechel will supply Baosteel with 960,000 tons of coking
coal for one year.
Mechel stated that the one-year contract may be extended and the
price will be adjusted on a monthly basis. Both Mechel and Baosteel
have agreed on exchanging regular semi-annual visits (including
senior executives), and they will discuss mutual interests and
market trends.
With this deal in place, both Mechel and Baosteel plan to extend
their relationship in areas of raw materials and other related
areas, based on principles of joint coordination, close alliance
and common development. The deal also signifies a strategic way of
increasing their long-term relationship.
Mechel is a leading domestic steel and coal producer with a
strong position in key businesses, including production of
specialty steel and alloys. The company has the largest coal
reserve base in Russia and is mainly focusing on growth and
cost-cutting measures.
Mechel owns and controls essential infrastructure, including
ports, rolling stock and power plants, which provide access to the
export markets. However, Mechel could be handicapped because of its
high debt and interest burden, and might not be able to keep up
with its huge capital spending program.
Mechel currently retains a short-term Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks Ranks
are Gibraltar Industries Inc. (ROCK),
Shiloh Industries Inc. (SHLO) and
Companhia Siderurgica Nacional (SID). While
Gibraltar and Shiloh hold a Zacks Rank #1 (Strong Buy) Companhia
Siderurgica carries a Zacks Rank #2 (Buy).
MECHEL OAO ADS (MTL): Free Stock Analysis Report
GIBRALTAR INDUS (ROCK): Free Stock Analysis Report
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis Report
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