Russian mining company,
) announced that it has begun supplying coal concentrate to the
People's Republic of China by rail through a new border
checkpoint. The route from Makhalino in Russia goes to Hunchun in
China. The opening ceremony for the new border checkpoint was
attended by over 200 officials representing both countries.
The first 30-wagon train carrying Yakutugol Holding Company OAO's
coal delivered the cargo to Chinese recipients through the new
border checkpoint Makhalino (Russia) to Hunchun. The first cargo
was sent earlier in Aug along the international transport
corridor linking the south of Russia's Primorye Region with
China's Jilin Province.
With the rail route option now available to Mechel, it can now
make more timely deliveries to the customers in China. China has
retained its position as the world's largest consumer of
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 is currently in a position
where it could be jeopardized 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 #4 (Sell).
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Other companies in the steel industry with favorable Zacks Rank
Nippon Steel & Sumitomo Metal Corp.
Kobe Steel Ltd.
). While Nippon Steel and Ternium maintain a Zacks Rank #1
(Strong Buy), Kobe Steel maintains a Zacks Rank #2 (Buy).