OREANDA-NEWS. January 26, 2011. Alchevsk steel plans to increase monthly crude steel production by 18-26% mom in Jan, implying crude steel output of 295-315 kt. The high value-added hot rolled plate output is to increase by 38% mom to 85 kt in Jan.

The news is POSITIVE for ALMK, since we expected the output increase to be a major catalyst for the company’s stock. The news is more meaningful at the end of the month, as the plans of the company were often corrected downward in past months. On the demand side, the export-oriented Alchevsk Steel should have no problems with selling this additional output, as the global demand looks robust at present.