ThyssenKrupp Bidders Team Up As LME Steel Billet Price Dives

Turns out that bidders for ThyssenKrupp’s North American and Brazilian operations are teaming up to make the “investment more digestible,” according to a Reuters report.

Looks like the loss-making contingent of the German steel company is still nowhere near the hot commodity the seller is hoping for. Check back in with MetalMiner tomorrow for more commentary on some rather un-econmical choices being made in the US steel industry.

According to sources, Japanese steel major JFE Steel Corp and US Steel are teaming up to bid by the end of February. In another corner, we have ArcelorMittal (having its own helluva time with bottom lines) tag-teaming with another Japanese biggie, Nippon Steel. Meanwhile, Vale – which already has a stake in Thyssen’s Brazil operations – wants nothing to do with buying up Thyssen’s stake.

Current Steel Prices
On Feb. 8, 2013, the steel billet cash price fell by 5.5 percent on the LME, landing at $260.00 per metric ton and making it the day’s biggest mover. A $15.00 decline in the steel billet 3-month price on the LME left the price at $270.00 per metric ton.

Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India remained below $135 per dry metric ton. For the fifth day in a row, the price of Chinese HRC remained essentially flat. The price of Chinese coking coal saw little movement.

The 3-month price of the US HRC futures contract declined 0.8 percent to $630.00 per short ton. The spot price of the US HRC futures contract fell 0.5 percent to $625.00 per short ton.

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