Arcelor Mittal has been growing towards global market leadership, with only few players left. The entry of Chinese players, which have been building business in their home markets and beyond in the last 15 years has been disruptive to the steel markets. If Arcelor Mittal is to regain or keep its dominance in the key markets, it needs to become costleader, for an almost homogenous product category there will not be another way than to become costleader or end up second but better.

if Arcelor would buy the ROF, their vertical integration would provide for double digit margin growth for stainless steel in North American, Africa, Europe and Latin America. Spin-off Eagle's nest in a joint venture to pay for the larger part of the Chromite and the Chromite mine would do the job. 

Arcelor holds a fantastic trackrecord for take-overs (horizontal integration) and would now be able to build up Algoma and upgrade a number of other steel factories feeded by their own chromite at close to zero costs. Arcelor has gone through a steep path, today is doing well and is very well positioned to capture costleadership through vertical integration. Without they will be competing with the Chinese in Asia and Australia, without clear sight of becoming the one on top.

i will send Arcelor Mittal my presentation, substantiated with the correct figures within a fortnight. It is the competitive advantage they currently seek, like back in 2004. The value of the company would increase close to 80% looking at their current margins and costs of goods. Baosteel will ride the wave of success as well. Glencore would hold their breath, as it is their current business slipping away..