* Iron ore is an essential raw material consumed in the manufacture of STEEL.
* ArcelorMittal's current internal iron ore 'attach' rate is 45%.
* Consistent with the company's above strategy of reducing dependence on external suppliers of its raw materials, Arcelor is also looking to boost internal output of COKING COAL (another essential ingredient for steel). Per my 4/06/08 post labelled 'A Triple for Coking Coal Prices', Coking Coal prices more than tripled from $98/metric ton in 2007 to $300/metric ton in 2008.
* Arcelor's current internal coking coal 'attach' rate is 20%.
ArcelorMittal_to_meet_80%252525_of_iron_ore_needs_from_own_mines_by_2014.html
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* Related to the Always active MT (and iron ore I guess since this involves Brazil and Brazil is the world's largest exporter of iron ore), ArcelorMittal continues to Grow its steel operations in Brazil and recently announced a 70% stake in Brazillian steel processor and distributor, Manchester Tubos e Perfilados S.A. Since Manchester is a privately-owned company financial terms of the deal haven't been disclosed. Per the below link :
arcelormittal-reinforces-its-steel-service/story.aspx?guid=%7B31863225-
- About the TARGET...Manchester was founded in 1989 and is privately owned. It serves the construction segment, which represents 50% of its activity, as well as the industry and automotive segments. Its capacity is 240,000 tonnes per year for end products, and 60,000 tonnes per year for processed products (cut to length and slit products). 2007 net sales were approx $172 million (270 million Reals). The company employs 500 people.
- With the acquisition of Manchester, and with its existing partnership with Gonvarri, ArcelorMittal will widen its product offering in the distribution segment in Brazil...The Group will now offer an extended range of flat products (coils and blanks), profiles, tubes and pipes.
* Lastly, for details related to MT's Gonvarri partnership please refer to my 6/19/08 post labelled 'ArcelorMittal's Voracious Steel Appetite'
Data Courtesy: Thomson Financial, Steel Guru and MarketWatch
Full Disclosure: I own shares of MT.
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