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Mechel Signs Deal with Baosteel - Analyst Blog
3/22/2013 11:23:00 AM
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 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
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 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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