The leading steel maker, ArcelorMittal (MT) announced that it has agreed to acquire a 13.881% stake in ArcelorMittal Ostrava, a.s. from a subsidiary of PPF GROUP N.V., for approximately $404.3 million.  The company said that this investment is consistent with ArcelorMittal’s commitment to be one of the largest foreign investors in Czech Republic. This deal increases ArcelorMittal’s stake in ArcelorMittal Ostrava, a.s. to approximately 96.4%. The final payment for the transaction is expected to be made in 2010.  The steel maker which recently posted its third quarter results said that it noticed the first signs of recovery during the reported quarter. The company saw a 7% sequential improvement in its shipments in the quarter. ArcelorMittal restarted a number of its facilities in response to the improved demand conditions and now expects crude steel capacity utilization of 70% for the fourth quarter. Also, the company has reinitiated ...

For Immediate Release

Chicago, IL – October 28, 2009 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: BP plc (BP), ExxonMobil (XOM), Chevron (CVX), U.S. Steel Corp. (X) and POSCO (PKX).

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Here are highlights from Tuesday’s AnalystBlog:

BP Tops on Better Cost Control

BP plc (BP) reported its third quarter 2009 results of $1.71 per ADS (American Depositary Share), beating the Zacks Consensus Estimate of $1.14 on the back of stronger cost controls and increased upstream volumes. However, in comparison with the year-earlier results, earnings fell approximately

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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 ...

According to data released by the World Steel Association, global steel output reached its highest level in July on the back of moderate rise in demand and 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 like 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 last year due to booming infrastructure spending, edged up by 2.5% in July. Monthly steel output in China, the world’s biggest producer and consumer of steel, climbed 12.6% to 50.7 million tons. Steel production in India also increased, but only by a modest 4.3% to 4.7 million tons during the month.

However, global steel production was down

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Following the deadly Sayano-Shushenskaya accident, Rusal could lose up to as much as 500,000 tons of aluminium production, which is equal to around 11% of 2008's output.  It is expected that energy tariffs will increase in winter for 'industrial users' meaning cost-cutting will be difficult for the indebted firm.  Alisher Usmanov's mining company Metalloinvest has procured a loan from VTB to refinance its debt to Sberbank.  At the MAKS air show Putin lambasted the aerospace industry for its 'lack of discipline', whilst a 'record sum' for orders was racked up in defense deals between Sukhoi and the Defense Ministry.  Iran has prohibited its airlines from using Russian-made aircraft after two crashes last month by Russian-built planes.  President Medvedev and Lithuanian President Dalia Grybauskaite emphasized the need for secure economic ties following a trade spat concerning dairy products.  ...

Steel maker Nucor Corp.’s (NYSE: NUE) stock has rallied some 51% from its March 3 low of $29.84 a share and has twice bumped against its recent high of $49.91 a share. 

The stock is still a far cry from its record-high level of $83.56, but is only 0% below its 52-week high of $53.46.  Much has changed since then, as the U.S. auto industry is no longer producing the 16 million cars it produced in 2007, nor the 13 million it managed to sell last year.  This year we are looking at some 10 million units sold, according to J.D. Power and Associates, the leading forecaster in the industry.

But there is encouraging news:  The very quick restructuring of both General Motors Corp. (NYSE: GRM) and Chrysler Group LLC, the U.S. Federal Reserve’s efforts to stabilize the financial markets, and

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An article in Reuters looks at the impact the war in Georgia had on the stock market, as a marker of what could potentially happen in the volatile post-Soviet region as a whole.  Fitch ratings has raised its forecast for the fall in Russia's GDP next from 0 to 7%, but the economy is likely to grow by 5%.  Russia's grain harvest may amount to 85 million metric tons in 2009 compared with 108 million metric tons last year, following droughts.  Regions that have suffered from droughts this year will receive up to $3.2 billion in state aid.  GM's opposition to Magna as a buyer for Opel is apparently wavering, as Chancellor Angela Merkel may intervene and step up the pressure to seal a deal.  Sberbank has said it has signed agreements with steel maker Evraz to ...

In an effort to enhance the economy, the Brazilian Government recently announced a reduction in Long-Term Interest Rate (TJLP) and Tax on Industrialized Products (IPI) until the end of 2009.

TJLP, which provides a reference for loans by the Brazilian Development Bank (BNDES) to companies, will drop from 6.5% to 6% a year. Again, IPI will be lowered for 70 items manufactured by the machinery and equipment industry, including wind energy generators, industrial freezers and industrial valves. In 2009, BNDES plans to provide R$120 billion (US$ 61 billion) to enhance economic growth and increase investment in companies.

In order to boost sales in the capital goods industry, the government has reduced the cost of financing purchase of capital goods in the country. The lines of credit to finance capital goods will now see a 5.5% lower interest rate.

Two credit guarantee funds will be established for the

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China has stopped stockpiling metals, according to reports in the Chinese media. Will this put the cap on the recent strength in base metals prices? The AFP reports that, “China has been building its inventories of metals, including 235,000 tonnes of copper, over recent months, Caijing magazine reported on its website over the weekend, citing Yu Dongming, an official with the state economic planner.”

“China also bought 590,000 tonnes of aluminium, 159,000 tonnes of zinc, 30 tonnes of indium and 5,000 tonnes of titanium, said Yu, who works in the National Development and Reform Commission’s industry department.” Now that metals prices have rebounded, though, will the stockpiling continue, even at high prices? Or was it a case of bargain shopping at everyday low prices?

There are several components of demand. There’s real economic demand (you need the stuff to make other stuff). There is investment demand (you’re buying it in order to

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Shares of AK Steel Holding Corp. (AKS) dropped about 10% today as the steel maker projects a wider-than-expected second-quarter loss, owing to the turmoil in the automotive sector.

The company said that it expects to ship about 725,000 tons in the second quarter, down from its earlier outlook of 800,000, in the face of productions cuts at GM and Chrysler.

GM, which is surviving on government aid, plans to idle more than half its North American plants for up to nine weeks, starting in mid-May. Meanwhile, Chrysler, operating under bankruptcy protection, would idle all of its plants.

AK Steel now sees a second-quarter loss between $75 million and $80 million, compared to its prior view for a loss of $50 million.

The company reported a first-quarter loss of $73.4 million last month on the back of lower shipments.

For the current year, the consensus stands at a loss

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