EVRAZ Sells VGOK; Steel Billet 3-Month Price Rises 34.3% for the Week

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EVRAZ announced plans today to sell its Vysokogorsky Iron Ore Mining and Processing Plant (VGOK) to NPRO URAL for $20 million, calculated on a debt free basis.

Marat Atnashev, EVRAZ’s Vice President for Iron Ore Division and Major Projects, said,
“The current sale of VGOK is in line with EVRAZ’s strategy in mining, whereby we continue to focus our efforts on large scale and low cost operations supporting the efficient vertical integration of the company. VGOK has become a non-core asset for the group, as the iron ore requirements of EVRAZ NTMK are fully met by cheaper supplies from EVRAZ KGOK, while the output of VGOK can be re-directed to the Urals’ regional market. The sale of VGOK represents one step in the ongoing process of optimising our iron ore assets.”

The week’s biggest mover on the weekly Raw Steels MMI® was the 3-month price of steel billet, which saw a 34.3 percent increase on the LME to $235.00 per metric ton. This comes on the heels of a 7.9 percent decline the week prior. The steel billet cash price closed last week at $199.00 per metric ton on the LME after a 32.7 percent rise in its price.

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Chinese steel prices were mixed for the week. The price of iron ore 58% fines from India was range bound. The price of Chinese slab declined 2.5 percent over the past week. The price of Chinese HRC fell 2.2 percent over the past week. This was the fourth week in a row of declining prices. Prices for Chinese coking coal remained constant.

After a 2.2 percent decline, US shredded scrap closed out the week. The 3-month price of the US HRC futures contract rose 0.8 percent to $628.00 per short ton after falling 0.8 percent during the previous week. The spot price of the US HRC futures contract closed at $642.00 per short ton after a flat week.

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Korean steel prices were mixed for the week. The price of Korean steel scrap declined 2.8 percent over the past week. The week finished with no movement for 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.