This morning in metals news, Russian aluminum giant United Company Rusal Plc (MCX:RUAL) had a big third quarter, VALE SA (NYSE:VALE) announced an iron ore supply deal with Emirates Steel and British Steel is potentially looking to make an acquisition in the U.S.
Russian aluminum giant Rusal reported its third-quarter earnings were up 42%, according to a Reuters report.
The firm also announced it had appointed a new CEO.
MetalMiner’s Take: It can’t come as a surprise to see strong financial performance by Rusal.
The company has benefitted from the extension of a sanctions deadline that would have made Rusal the pariah of the aluminum industry. Aluminum prices have held firm, raw materials remain in tight supply (particularly alumina) and the North American market has a real semi-finished material shortfall. It also appears as though Rusal has undergone enough restructuring to place Oleg Deripaska at an arm’s length position from the company, which underpinned the sanctions.
MetalMiner does not expect Rusal to be subject to sanctions come Dec. 12.
Brazilian miner Vale and U.A.E.’s Emirates Steel have signed a four-year deal in which the Brazilian firm would supply iron ore pellets for Emirates’ steel operations, according to Mining.com.
“The agreement with Vale comes in line with Emirates Steel strategy, which aims to secure flexible source of iron ore at competitive, stable and long term prices. This new partnership plays a vital role to further strengthening the growth of our steel production in Abu Dhabi, as well as realizing our vision of being a world class steel manufacturer providing the highest quality products, services and solutions to our customers and maximizing returns to our shareholders,” Emirates Steel CEO Saeed Ghumran Al Remeithi said in a prepared statement.
According to the Financial Times, British Steel is considering a bid for the U.S. carbon and alloy wire producer Johnstown Wire Technologies.
The U.S. firm is based in Johnstown, Pennsylvania, 65 miles east of Pittsburgh.
by Fouad Egbaria
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