Metinvest and IUD to Increase Price for Iron Ore and Pellets

According to Interfax, Metinvest Holding and the Industrial Union of Donbas agreed 65% price increase for iron ore concentrate and pellets delivered to Alchevsk Iron & Steel (ALMK: BUY) and DMK Dzerzhinskogo Steel (DMKD: BUY), starting from April 1, 2008. As stated by the agreement, the prices were changed in line with the world ones. Eugeniy Chervaichenko: In line with our forecast. We believe this long-term agreement with Metinvest, as supplier of iron ore, will support production growth in IUD steel assets. We reiterate our BUY recommendations for DMKD and ALMK.