According to the data released by the World Steel Association (WSA), global steel output increased to 107 million tons in the month of Sep 2009, down marginally (0.6%) from the same month of the previous year. Month-on-month, steel output improved slightly from 106.5 million tons. World crude steel production has continued to show a steady increase since Apr 2009.  Steel production had reached its highest level in July this year on the back of a moderate rise in demand and the resumption of idled facilities by producers. Total output of 103.9 million tons was an improvement of 4% from 99.8 million tons produced in the last month, but down 11.1% year over year.  All major steel producing countries such as China, Japan, Germany, the U.S., Brazil, Turkey, Russia and Ukraine showed peak monthly figures so far this year. Production in the Middle East, where demand was buoyant ...

Earlier this week, ArcelorMittal (MT) signed a definitive agreement to divest its minority interest in Wabush Mines, Canada, for $34.28 million. ArcelorMittal’s 28.6% stake in the Wabush Mines joint venture is being sold to Consolidated Thompson Iron Mines Ltd. Consolidated Thompson plans to finance the transaction with existing cash and credit facilities. Other terms of the transaction were not released.  ArcelorMittal's stake in Wabush Mines is no longer a core part of the company's mining strategy. The mine represented 31 million tons of iron ore reserve and 1.2 million tons of iron ore produced for ArcelorMittal in 2008.  After the disposal, ArcelorMittal continues to have significant mining operations and resources in Canada including ArcelorMittal Mines Canada, formerly Quebec Cartier Mining. Canada also remains an important jurisdiction for ArcelorMittal's future growth strategy in both mining and steelmaking.  ArcelorMittal expects a surge in steel demand in the ...

Five Ways To Profit From The Commodity Nobody Likes

Tony Daltorio, Investment U Research

Forget Superman… the real man of steel is Lakshmi Mittal, chairman of the world’s biggest steelmaker, Arcelor Mittal ADR (NYSE: MT).

Mittal has built an empire – and a personal fortune – by being optimistic when it comes to the global steel industry. And he still maintains that confidence today, recently going on record to say that global demand could rise by more than 10% in 2010.

Meanwhile, many of his peers in the industry sport trembling lower lips over their present and future.

Believe it or not, that ongoing debate matters to everybody, not just those investing directly in the commodity. Steel demand feeds into a huge range of sectors, so much so that many regard it as an important bellwether of industrial trends.

The Half-Empty, Steel Glass

Other than

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Steel production will probably fall this year by the largest margin since the Second World War. Most folks in the steel business have gray and soggy outlooks for 2010. Most, but not Lakshmi Mittal.

Mittal is the chairman and largest owner of ArcelorMittal (NYSE:MT), the world’s largest steel company. Therefore, his words carry some weight in the steel markets. The fact that these words are so contrary to what everyone else seems to think is significant…

Mittal is singing a rosy tune that has the market atwitter. He thinks steel demand could grow more than 10% in 2010, which would be a strong rebound, indeed.

Whether Mittal turns out to be right or not will hinge on what happens in China. China makes up about half of the world’s steel demand. That’s where the controversy begins, because there is just a lot of uncertainty over China’s economy right now.

I think it’s noteworthy

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International mining and natural resources company Cliffs Natural Resources Inc. (CLF) is expecting increased production and sales volume in its North American Business Unit, which includes its North American Iron Ore and North American Coal business segments.

Cliffs expects the North American Iron Ore business segment to recognize sales volume of about 16 million tons in 2009, higher than the previous guidance of 13 million to 14 million tons. North American Iron Ore equity production volume in 2009 is expected to be 17 million tons, up from a prior projection of 15 million tons.

Cliffs also raised its 2009 expected sales volume for its North American Coal business segment to about 1.8 million short tons from a previous expectation of 1.5 million tons. North American Coal production volume is expected to be 1.8 million tons, up from a previous expectation of 1.3 million tons. Cliffs operates coal mines in West Virginia

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On Friday, ArcelorMittal (MT) said it planned to launch a tender offer for acquiring a 29.4% stake in Uttam Galva Steels Ltd. (“Uttam Galva"), a leading producer of cold rolled steel, galvanized products and color-coated coils & sheets based in Western India.

The offer price of Rs.120 or $2.46 per share represents a 27% premium over the 2-week volume weighted average and 85% over the 6-month volume weighted average.

Last week, the company had agreed with existing founder, the RK Miglani family, to buy 5.6% shares of Uttam Galva. ArcelorMittal also signed a contract with the RK Miglani family and Uttam Galva in order to become a co-promoter and obtain broad joint control rights in the concern.

Subject to 29.4% of shares being tendered in the offer, ArcelorMittal will hold a 35% equity interest in Uttam Galva. The transaction value for the stake is Rs.5 billion or $103

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Cliffs Natural Resources Inc. (CLF) stated that its subsidiary United Taconite in Minnesota plans to ramp up production of iron ore pellet for the rest of 2009 with a moderate increase in steel demand in the last couple of months.

In its recent release, Cliffs announced plans to produce 15 million tons of iron ore in North America for the full year. The company plans to increase production from this month through October.

Mining operations will increase at the Thunderbird Mine in Eveleth, Minnesota this month and production will increase at the concentrator portion of the facility, located at the Fairland plant in Forbes, Minnesota in October. Full start-up of the Line 1 furnace is expected in November, which was idled in October last year.

The anticipated increase in production will allow more than 400 hourly workers to progress toward a 40-hour work week. United Taconite has been operating under a 32-hour

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Brazil’s largest iron ore miner Vale S.A. (VALE) recently announced plans of resuming its Canadian Sudbury operations with temporary employees. On July 13, about 3,100 employees out of the 5,000 at the company’s Sudbury plant had gone on strike. Another 120 workers at its Port Colborne refinery and 450 at Voisey’s Bay in Newfoundland had also joined the strike.

Vale has decided to stop negotiating with Chinese steelmakers on prices of iron ore. It now plans to offer provisional prices on ore shipments, whenever there is one.

China imported huge volumes of iron ore to build inventories at attractive prices. According to Beijing’s National Bureau of Statistics, China bought 58.1million tons of iron ore, up 32% from a year ago. Due to higher inventories in China, Brazil experienced a 6% drop in iron ore export in July compared to the previous year. The situation can even hurt prices

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Chinese Metals Boosted by Stimulus

Tony Daltorio, The Investment U Research Team

At least one government stimulus package seems to be working right now. But, it’s not the United States. If only our stimulus program was as successful as the “cash for clunkers.” Unfortunately, we’re closer to clunker with the rest of economic stimulus.

The stimulus package we’re talking about is in the country that many pundits love to hate – China. So far this year, China’s economy has accounted for virtually all of the world’s economic growth. Including China, global growth is 1.6 percent. Without it, growth was flat to slightly down.

Here are just a couple examples of China’s successful stimulus:

China’s auto market is now growing at 50% per year and has surpassed the United States as the world’s ...

Brazilian steelmakers, Gerdau S.A. (GGB) and Companhia Siderurgica Nacional (SID) have signed a memorandum of understanding with state-run oil giant Petroleo Brasileiro SA (PBR or Petrobras), to build ports in the state of Rio de Janeiro. The construction is expected to begin in 2014 with a total investment of approx US$500 million.

The steel industry in the US is in distress, but it is on the road to recovery in Brazil. An increase in export price and new domestic projects are helping Brazilian steel industry. Moreover, government’s plan to cut labor costs in the country will in a way boost industrial productivity and growth.

Domestic steel prices are falling, which is likely to facilitate the Real Estate industry. Thus, Gafisa (GFA), one of the largest builders and incorporators of Brazil, will stand to benefit in the medium- to long-term.

In June, General Motors Brazil car sales reached 55.629 vehicles,

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