Fri, Sep 19, 2014, 11:54 AM EDT - U.S. Markets close in 4 hrs 6 mins

Recent

% | $
Quotes you view appear here for quick access.

Mechel OAO Message Board

  • krimhumhrim krimhumhrim Oct 17, 2013 2:44 AM Flag

    Don't bet on Chinese Steel production to boost Mechel

    Momentum is growing in China to allow market forces to end a titanic capacity glut in heavy industry that a decade of state interventions has failed to resolve, according to speeches made by high-ranking officials this month at a closed-door event.

    The speeches indicate that China’s reform-minded cabinet is considering a dose of deeper structural reform to remedy bloated, inefficient and debt-laden sectors such as steel.

    China has around 300 million tonnes of surplus steel output capacity, equivalent to nearly twice the output of the European Union last year.

    Encouraged by easy financing and cheap energy supplies, local governments looking to meet job and growth targets have steadily built many more steel mills than the country needs.

    The steel sector is likely to be the first to feel the pain of a new approach based on tighter regulation and market economics. If it works, steel may become a model for how the government deals with other sectors such as aluminum, cement and shipbuilding.

    Beijing has yet to make clear whether it would begin to allow loss-making firms to go bankrupt. Until local governments stop propping up firms, any reform will be slow and partial.

    “The current methods of management do not suit the requirements of the industry,” said Miao Zhimin, vice-head of the raw materials department at the Ministry of Industry and Information Technology (MIIT), which is responsible for the steel sector.

    According to transcripts of speeches made to a China Iron and Steel Association (CISA) gathering last week, Mr. Miao said his ministry had already decided to stop micromanaging the sector and would instead try to ensure the market runs smoothly by establishing a level playing field and stronger rules.

    It has started to implement a new registry to ensure steel mills operate under the same rules and standards, with the aim of making competition fairer across regions. It has also vowed to let the.. (char limit

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • not sure what this persons goal is they wrote about arch being better then MTL, but then say steel will drop? in this event arch would be up the river since it costs more to freight their coal to china then MTL. so in fact arch going down as a supplier, would benefit mtl?

      not that i care i just keep on selling the $3 puts and reaping the rewards...

      • 1 Reply to pipster_1234
      • i never wrote that arch was better than mechel, i asked what peoples opinions were as to why they valued mechel over arch because from a quick glance (never claimed to have a strong position/opinion on this) it appeared arch was the better value. my only "goal" is to hear peoples opinions, but I figured I would share the above news article as I had not seen anyone else mention this and I'm curious to hear what people might say to it.

    • The vast majority of China's coal reserves are low grade thermal coal. They need imports of met coal even at lower steel production levels.

    • Plenty of consumption at 8% growth. Thanks for non-info. MTL deliver coal to China also. Maybe rethink the non-info

      Sentiment: Hold

    • Steel is NOT dead.

      @@@@From BTU earnings annoucnement today...Global metallurgical coal imports are expected to rise nearly 20 million tonnes in 2013 on growing steel demand, led by China's 8 percent increase in steel production through August. China's metallurgical coal imports have risen nearly 40 percent this year, while India and Japan imports are up 12 and 6 percent, respectively

      • 1 Reply to blackoutbuzz
      • i dont know if you missed my opening post in this thread, or didnt bother to read it, let me highlite a small section which you will hopefully read:

        China has around 300 million tonnes of surplus steel output capacity, equivalent to nearly twice the output of the European Union last year.

        Encouraged by easy financing and cheap energy supplies, local governments looking to meet job and growth targets have steadily built many more steel mills than the country needs.

    • Watch the GDP and Industrial Production numbers coming out tonight. Any accelerating growth out of China will take out that 'capacity glut' before you can say 'Uncle'...

 
MTL
1.540.00(0.00%)11:54 AMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.