SOURCE: Stock Market Alerts

September 29, 2010 09:15 ET

Market News Alert: China Direct Industries -- September 29, 2010

NOTE TO EDITORS: The Following Is an Investment Opinion Being Issued by Stock Market Alerts LLC.

MIAMI, FL--(Marketwire - September 29, 2010) -  Stock Market Alerts' performance stock list includes: China Direct Industries, Inc. (NASDAQ: CDII), Newmont Mining Corporation (NYSE: NEM), Ivanhoe Mines Ltd. (NYSE: IVN) and United States Steel Corporation (NYSE: X).

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Yesterday after the markets closed, China Direct Industries, Inc. (NASDAQ: CDII) issued a press release announcing that it recently received several magnesium contracts valued at approximately $6.5 million to be delivered by the end of calendar year 2010.

Prices of pure magnesium have recently surged to over $2,900 per metric ton FOB China, an increase of over 7% in the past two weeks. This is mainly due to the rising price of ferrosilicon, one of the key raw materials in the magnesium production process. Many ferrosilicon producers are experiencing rolling blackouts as part of the Chinese government's initiative to meet their yearend energy savings target. This has caused a shortage of ferrosilicon supply resulting in a price increase of more than $200 per metric ton. In a market where magnesium supplies have been declining, the uncertainty of ferrosilicon pricing has caused many magnesium producers to refrain from offering long term contracts. International Magnesium Group, our wholly owned subsidiary is, however, able to provide long term magnesium supply contracts based on our innovative cost indexed pricing formula, as we ramp up our production in both Baotou Changxin Magnesium and Taiyuan Chang Magnesium facilities in the coming months.

Commenting on the contracts, Dr. James Wang, Chairman and CEO of China Direct Industries, Inc., stated, "We are excited to receive these recent contracts during a time of uncertainty in the magnesium market. We also believe balance will be restored in the magnesium markets as other metals markets have begun to strengthen due to improving global demand and we see prices returning to more sustainable levels in the range of $3,000 to $3,300 per ton FOB China in the coming months. We are also confident that IMG's cost indexed pricing guarantee and shipment commitments will allow IMG to gain additional market share during this time of price strengthening amid supply disruptions and we intend to aggressively pursue sales opportunities as we position our magnesium operations for future growth."

The stock closed yesterday $1.20 a share.

Newmont Mining Corporation (NYSE: NEM) up 2.5% on 8.5 million shares traded.

Newmont Mining Corporation is one of the leading mining companies in the U.S.

Ivanhoe Mines Ltd. (NYSE: IVN) up 5.3% on 4.2 million shares traded.

Ivanhoe Mines is an international mining company with operations focused in the Asia Pacific region.

United States Steel Corporation (NYSE: X) up 2% on 10.5 million shares traded.

United States Steel Corporation is one of the leading steel companies in the U.S.

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