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    • 2010 was not a big year for steel mergers and acquisitions. Many company valuations sank to all-time lows, so most businesses battened down the hatches and concentrated on the fight to survive in a volatile market. But the Ukrainian steelmaking sector was one glaring exception.
      Insights
    • Things are looking up for the steel industry. But as mills emerge blinking from the dark days of recession, they face a different world.
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    • On Monday JSW Steel agreed to take control of debt-ridden Ispat Industries, making it India’s largest private-sector steelmaker. The deal is remarkable. In just eight days the two steelmakers have come to an agreement that will see JSW take a 41% share in Ispat for Rs21.57 billion ($474 million). JSW will restructure Ispat’s debt, restart its idled facilities and reengineer its marketing strategy so the two companies no longer sell in the same markets. The deal doesn’t just make sense from Ispat’s point of view. JSW will seriously expand its business through acquisition in a country where greenfield projects have proved extremely difficult to pull off.
      Insights
    • Metal Bulletin’s alumina index fob Australia is $363.81 on December 17.
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    • Acerinox has declared force majeure on shipments of hot rolled products from its Roldan long products facility in Ponferrada in Spain after a fire on November 20 seriously damaged the plant’s hot rolling mill.
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    • Overcapacity is an enormous problem for stainless steelmakers. In flat products, capacity equivalent to 53% of the total market volume still stands idle, according to Steel and Metals Market Research (SMR). In Europe, where overcapacity is easily more than 10 million tonnes, the problem is even greater. So ArcelorMittal’s decision to spin-off its stainless steelmaking business is one small step in the right direction.
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    • Metal Bulletin is the leading independent supplier of market intelligence and pricing to the global metals industries.
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    • Metal Bulletin is pleased to announce the launch of their new Alumina Index, based on loaded prices of smelter grade alumina at Australia.
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    • Top European steel industry executives hardened their stance on the new wave of raw materials supply contracts at MB’s 8th Steel Success Strategies conference last week. The introduction of quarterly, index-linked iron ore contracts has been unpopular with steelmakers around the world. But in Europe, where raw materials are scarce and mills are largely dependent on imports, the new terms have caused outcry. Speaking at the conference last week, ArcelorMittal vp Michael Pfitzner led the charge.
      Insights
    • The top management of ThyssenKrupp Stainless will meet this week to decide the future of the business. The fate of the company’s Benrath mill near Dusseldorf in Germany is in the balance. And how the company will manage its share in Shanghai Krupp Stainless (SKS), a joint venture with Baosteel, will also be up for discussion. ThyssenKrupp’s stainless steel business has fared better than many others. But the past few years have still been hard. All of Europe’s leading stainless steelmakers are laboring with serious overcapacity. So it’s no wonder Thyssen is talking about restructuring. The company’s Benrath facility will probably be shut down.
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