This morning in metals news, a new European steel giant could be coming on the scene, that giant could result in the loss of thousands of jobs and aluminum hits a five-year high ahead of further Chinese supply cuts.
Tata Steel, ThyssenKrupp Agree to Merge European Operations
The New York Times reported Wednesday that Tata Steel and ThyssenKrupp had agreed to a deal to merge their European steel operations — a merger that has been in the news for more than a year.
According to the report, while there are still some obstacles to completion of the merger, if it goes through the merged operation would make the second-largest steelmaker in Europe, behind only ArcelorMittal.
Merger Could Yield Loss of 4K Jobs
While the potential merger of the Indian steel giant Tata and German firm ThyssenKrupp’s European operations might be cause for celebration for some, it won’t be for a considerable number of workers, according to one report.
The merger of the two firms’ European operations could lead to the loss of 4,000 jobs, according to CNNMoney.
The merger is expected to cut costs by between €400 million and €600 million ($720 million) a year, according to the report.
Aluminum Soars to Five-Year High
Aluminum continued its strong 2017, hitting a five-year high, Reuters reported.
Not surprisingly, news from China has much to do with the rise, as supply cuts are forthcoming from Chinese producer Chinalco, according to the report.
LME aluminum traded at $2,191 per ton, its highest since September 2012, according to Reuters.