May 2009 | Steel Raw Materials
Metinvest acquires US-based United Coal Company: Coke and Coking Coal Highlights
India is only major player in coke market
Following on from Russian steelmaker Mechels purchase of Bluestone Coal last week, Ukrainian steel company Metinvest has also announced its acquisition of US coking coal company United Coal Company. The deal is thought to be worth between $1.0-1.4bn, which is lower than the estimated $2.4bn that the deal was speculated to be worth six months ago. As a vertically integrated steelmaker,
Metinvest have been able to better withstand the downturn in the steel industry, compared with other mills, due mainly to its captive iron ore resources. This move will certainly improve efficiency for the company as it will now have access to high quality coking coal.
Mechel switched from using gas in its pig iron production due to rising gas costs as Russian suppliers have raised gas prices every year since 2005. Ukraine paid $360 per 1,000 cubic metres in the first quarter of this...
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