Mechel Carbon (Singapore) Pte. Ltd, a unit of mining company
), 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
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
Other companies in the steel industry with favorable Zacks
Gibraltar Industries Inc.
Shiloh Industries Inc.
Companhia Siderurgica Nacional
). 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
GIBRALTAR INDUS (ROCK): Free Stock Analysis
SHILOH INDS INC (SHLO): Get Free Report
CIA SIDERUR-ADR (SID): Free Stock Analysis
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