Two of the best of the global steel names are teaming up to serve Asian markets more effectively while sharing access to metallurgical coal and other key raw materials.
It is likely that the alliance will tap Korean capital to develop MTL's significant unexploited Russian coal and other mineral resources.
The companies will also focus on sharing their logistical networks in order to transport their products more effectively.
This is a significant advance for MTL, which is moving more aggressively into Asian markets. The strategic benefits for PKX remain somewhat unclear.
Integrated Steel plant from Posco in India still up in the air
India is still undecided on the fate of a proposed new Posco steel plant. Reviews from forest and environment committees are keeping plans under review or the time being. Three independent bodies are required to review the plans before Prime MinisterManmohan Singh can weigh in on the matter.