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Mechel teaming up with Posco

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.

Mechel (MTL ) of Russia and Posco (PKX ) of South Korea are working together on various as-yet-undisclosed projects.

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.

Steel has lagged the broader commodity boom as iron and coal costs have surged faster than demand for finished industrial materials.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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