Xstrata Accepts Glencore's Revised Offer, LME Steel Billet Lower

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The day the world gets to see “Glenstrata,” as some are calling it, is ever closer.

Xstrata’s board of directors is basically telling its shareholders that they need to be cool with the existing plan of executives’ incentives, according to the NYT’s DealBook, putting the $90 billion merger of the commodities trading giant and best-bud mining company on a faster track.

What does this mean for us? Having a mining behemoth in the ranks of the world’s biggest iron ore miners could always change the game — for more on that, here’s my colleague Stuart’s recent take on how Glencore/Xstrata matters to metals markets.

On steel and its raw materials inputs markets, the day’s biggest mover on MetalMiner’s price index was the cash price of LME steel billet which dropped by 1.4 percent on Sept. 28, 2012 to close at $340.00 per metric ton.

The steel billet 3-month price saw a 0.3 percent decline on the LME to $345.00 per metric ton.

Chinese steel closed mixed last Friday. The range of high and low prices of iron ore 58% fines from India kept above $130 per dry metric ton. The price of Chinese HRC fell 0.8 percent last Friday after three straight days with no change. The price of Chinese coking coal continues hovering in place for the fifth day in a row.

The US HRC futures contract 3-month price held steady around $609.00 per short ton. The spot price of the US HRC futures contract remained essentially flat at $645.00 per short ton.

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