) announced that its subsidiary Mechel Somani Carbon Private Ltd.
has launched a screening facility at the Visakhapatnam coal
terminal in the east coast of India to expand its capacity for
marketing coal in the region. Mechel's shares rose as much as 14%
during the trading hours following the announcement.
Mechel Somani's screening facility, which has a project
capacity of 250,000 tons a year, will allow the company to sort
anthracites supplied by Mechel's mining enterprises. Mechel aims
to increase the sale of coal to India and is planning to market
250,000 tons of anthracites, which will constitute 20% of India's
The Indian market is very promising for Mechel as the demand
for coal continues to grow in that market. Currently, India buys
110 million tones of steam coal and 40 million tons of coking
coal on a yearly basis and it has been estimated that by 2020
India will be importing up to 120 million tons of coking coal of
various grades. Mechel considers this as a good opportunity and
plans to build relations with all kinds of clients as well as
construct necessary infrastructure.
Mechel Somani Carbon is a joint venture between Mechel Carbon
and India's Somani Group, with Mechel Carbon holding a 51% stake.
The company distributes metallurgical coal in the Indian
Mechel currently retains a Zacks Rank #4 (Sell).
Other companies in the steel and related industries with
favorable Zacks Rank are
AK Steel holding Corporation
Worthington Industries, Inc.
). While AK Steel retains a Zacks Rank #1 (Strong Buy), both
Worthington Industries and Timken carry a Zacks Rank #2
AK STEEL HLDG (AKS): Free Stock Analysis
MECHEL OAO ADS (MTL): Free Stock Analysis
TIMKEN CO (TKR): Free Stock Analysis Report
WORTHINGTON IND (WOR): Free Stock Analysis
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