ThyssenKrupp, the German steel producer, reported a fresh net loss of €852 million, as reported in the Financial Times, a worse second-quarter loss that from the same period a year ago (€587 million), as global steel and raw materials prices suffered on MetalMiner’s weekly metal price index.
According to the FT article, even though the loss from the writedown was worse this time around, things may be looking up for ThyssenKrupp. The steel company is looking to streamline and become more competitive via 3,000 or so job cuts – which may not go over all too well in the EU, as we’ve seen with ArcelorMittal – resulting in cost savings.
Also, Thyssen should be able to sell its Steel Americas assets for a fairly reasonable price (as MetalMiner reported recently). Although reports have stated that Brazil’s CSN is the most likely buyer, “the talks, though advanced, are complex as they involve Vale, which owns a minority stake in the Brazilian plant, as well as BNDES, the Brazilian development bank. Some analysts had revised lower their expectations for the sale to about €2bn,” according to the FT.
Current Steel and Raw Material Prices
The week’s biggest mover on the weekly Raw Steels MMI® was the cash price of steel billet, which saw a 1.4 percent decline on the LME to $138.00 per metric ton. This comes on the heels of a 27.3 percent increase the week before. This past week, the 3-month price of steel billet kept quiet, holding at on the LME at $160.00 per metric ton.
Chinese steel prices were mixed for the week. The price of iron ore 58% fines from India kept at the higher end of its recent historical range. Chinese HRC saw a 1.4 percent decline over the past week. Prices for Chinese coking coal remained constant. After a 0.5 percent decline, Chinese slab closed out the week down.
The price of US shredded scrap fell 0.3 percent over the past week. This was the fourth week in a row of declining prices. The US HRC futures contract spot price saw a 1.2 percent drop this week, closing at $583.00 per short ton. At $607.00 per short ton, the US HRC futures contract 3-month price remained essentially flat.
Korean steel prices were flat for the week. Korean steel scrap traded sideways last week, as did the price of Korean pig iron.
The Raw Steels MMI® collects and weights 13 global steel and raw material price points to provide a unique view into global steel price trends. For more information on the Raw Steels MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.