Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Russian miner Mechel OAO (MTL - Analyst Report) has signed an agreement with BelAZ OAO to form a Russo-Belarusian joint venture that will be responsible for technical maintenance and repairs of BelAZ mining dump trucks in the Republic of Sakha (Yakutia), Russia. The joint venture will be called ElgaBelAvto OAO.

Mechel and BelAZ have decided to utilize Yakutugol Holding Company’s production area for setting up ElgaBelAvto’s plants and they also plan to create a subsidiary at the Elga Open Pit. ElgaBelAvto will provide services to meet the maintenance requirements of Yakutugol Holding Company's two biggest coal open pits — Neryungrinsky and Elga — which include more than 140 mining truck units in the medium run.

The ElgaBelAvto project is expected to create over 330 job opportunities, and will start operating in late 2013-early 2014. Investment in the joint venture is estimated to total $9.5 million before 2018. It is expected that ElgaBelAvto will extend its services to other BelAZ customers in the Republic of Sakha (Yakutia) and its neighboring regions in the future.

Mechel, on June 5, signed another agreement to supply coking coal to China’s Shasteel Group. Per the agreement, Mechel Carbon (Singapore), a trading subsidiary of Mechel’s mining unit, will supply 40,000 to 80,000 tons of coking coal a month from Russian Far East ports to Shasteel group.

Mechel Carbon had already supplied more than 500,000 tons of coking coal to Shasteel's main coke plant in Zhangjiagang, Jiangsu Province. The long-term agreement between Mechel and steel major Shasteel bears testimony to Mechel’s ability to successfully establish long-standing relationship with the world’s largest steel producers while positioning itself in diversified markets.

Mechel currently retains a Zacks Rank #3 (Hold).

Other companies in the steel industry with favorable Zacks Rank are Kobe Steel Ltd. (KBSTY), Shiloh Industries Inc. (SHLO) and LB Foster Co. (FSTR - Analyst Report). While both Kobe Steel and Shiloh Industries hold a Zacks Rank #1 (Strong Buy), LB Foster retains a Zacks Rank #2 (Buy).
 

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%