mineral exploration project – commodity prices – mining stock- trade and market

OAO Severstal, Russia’s largest steelmaker, is considering whether to sell shares of its gold- mining unit after the price of the metal rose to a record, said two people familiar with the situation.

Severstal may hold an initial public offering late next year or in early 2011, said the people, who declined to be identified because the deliberations are private.

Copper, little changed in New York and London today, may rise after manufacturing expanded at the fastest pace in 18 months in China, the world’s biggest consumer of the metal.

An HSBC Holdings Plc purchasing managers’ index of Chinese manufacturing rose to a seasonally adjusted 55.4 from 55 in September.

The UK’s blue chip index was fluctuating around the opening level today as energy and financial sector were mixed, while miners were strong, helped by increases in metals prices. The market failed to get much of a boost from the Markit Purchasing Managers’ Index, which rose at the strongest pace in two years in September, improving to 55.3 from 54.1, which was also higher than the expected 54.4. The FTSE 100 finished about 20 points higher, getting buoyed by an early rise on Wall Street, where the Dow Jones industrial average tacked on 0.7% shortly after trading commenced.