Russia Metals and Mining

In H1, MMK made a net profit of $80 million by ISA

In H1, MMK made a net profit of $80 million by ISA compared to $136 million in H1 2013. In Q2, profit was $159 million compared to loss of $79 million in Q1 2014.
EBITDA was $693 million in H1 2014 versus $678 million in H1 2013, taking into account the effect from the sales of MMK-Trans for $131 million. In Q2, EBITDA increased by 35.7% to $399 million.

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The impact of sanctions on Russian oil and oil service companies to be small.

The impact of the EU and the US sanctions on the Russian oil companies will be relatively small, the Standard & Poor's international rating agency’s research report informs.
According to the agency, this is mainly due to the nature of the Russian oil reserves, the structure of the equipment purchase, as well as the structure of the Russian oil companies’ assets.
As S & P analysts state, the Russian oilfield services companies with ratings will also not be too badly affected by the sanctions. They mainly operate the traditional oil reserves and use the traditional techniques, which are currently not affected by the sanctions. These companies purchase most of the equipment from Russia or can switch to the suppliers from China and other countries outside the EU and the United States.

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Igor Zyuzin has unpledged 40.2% of Mechel’s shares

Igor Zyuzin, who owns 67.42% of the deeply indebted Mechel (its net debt is $8.3 billion), has unpledged 14.35% shares of the company. According to the Kommersant, a large part of this package was pledged on a Uralsib loan. The State-owned banks - the lenders to Mechel, on which more than a half of the debt falls, insist on its conversion into capital of the company. Perhaps Mr. Zyuzin releases the pledges trying to protect himself from unfriendly actions, analysts say.
The principal owner and chairman of the Mechel’s Board of Directors Igor Zyuzin has unpledged another 14.35% of shares of his package of 67.42% of the shares, the company reported yesterday. Today, 27.22% of the shares are still pledged on the loans of the businessman. In April, Mr. Zyuzin unpledged 17.8% of the Mechel’s shares on VTB’s loan.

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Tula metal works has achieved yield of 10,000 tons a month

Tula metal works launched last year on the site of the old combine plant has achieved yield of 10,000 tons of hardware with diameter of 10-24 mm a month. The projected monthly capacity is 15,000 tons of minor sort steel. The technology of the enterprise presupposes hardware production of previously used rails.
The length of the national railway network is 120,000 km, and it bears 17 million tons of the metal. Annually, they are dismantled and sent for re-smelting 0.5 million tons from the Russian railways. The rails are heated up to 1,300 degrees, cut in strips and delivered to the rolling mill, N. Borzyonkov, the CEO of Combinemashstroy (the management company, says.

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Severstal starts to dispatch pipes for Power of Siberia

Severstal has started the shipment of large diameter pipes, made by the Izhora pipe plant (a part of the Division Severstal Russian Steel) for the construction of the Power of Siberia gas transmission system.
The shipment is carried out within the framework of the obligations under the results of the first tender, which was held in June of the previous year.
The supplies include pipes with diameter of 1420 mm, made of steel of K60 grade with external and internal anti-corrosion coating, designed for the working pressure of 9.8 MPa. The first consignment in the volume of about 2 thousand tons has already been dispatched from the territory of the Izhora pipe plant and sent to the consumer.

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Mechel transits to account settlement in Chinese yuan

In the near future, Mechel can transit to Chinese yuan instead of USD in account settlement with the Chinese clients, the CEO of the Singapore trade department of Mechel Carbon, B. de Meulemeester. Now the sales are performed by USD letters of credit that can be used in the Singapore banks. If the sides transit to account settlement in yuan

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UC Rusal completes debt restructuring

The largest aluminum producer UC Rusal has completed its debt restructuring for a total sum of $5.15 billion in the courts.
On August 4th, UC Rusal announced about 100% agreement of its creditors for refinancing of the syndicated credits for a total sum of $4.75 billion and $400 million. For formal completion of refinancing, UC Rusal closed with the creditors the Agreement about introduction of additions and amendments that became valid from August 20th 2014.
By the end of March, net debt of UC Rusal was $10.3 billion.

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The volume of the stainless steel manufacturing decreases by 17.8%.

In H1 2014 the volume of the domestic primary stainless steel manufacturing (the flat rolled products, long rolled products and forgings) decreased by 17.8% compared to the same period last year. The production of the flat-rolled products decreased by 49.3%, and the primary preparation - by 22.6%. The production of the long rolled products, in contrast, increased by 12.5%.
The Mechel group faced the largest decline. The Chelyabinsk Metallurgical Plant has reduced its output by 60.0%, Izhstal - by 18.5%, Urals Stampings - by 26.2%, Zlatoust Metallurgical Plant - by 22.8%.

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UC "RUSAL" signs an agreement to refinance the syndicated loans worth $ 5.15 billion.

UC "RUSAL" completed the procedure of refinancing the syndicated loans totaling $ 5.15 billion, the company states on the website of the Hong Kong Stock Exchange. The arrangement with the creditors entered into force on 20th August 2014.
On August 18th, 2014 two loans - in the amount of $ 4.75 billion and $ 400 million - were merged into a single line of credit. The company entered into an agreement to receive the pre-export loan for $ 4.75 billion in 2011. The multicurrency pre-export loan for $ 400 million was drawn in 2013.

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Russia develops aluminium-based material with steel characteristics

Moscow Institute of Steel and Alloys develops a new material. It is based on aluminium and very light, but by 25 times stronger, as steel. The project is being realized on the base of materials strengthening technology with the help of nanotubes of boron nitride, Vesti.ru writes.
“The project is partially dedicated to nano-technologies and to metallurgy in half. We already produce several types of composite materials. 

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