ArcelorMittal is under a bit of stress. The company “is being investigated in the French courts over claims of alleged criminal conduct in an escalating legal row with hedge funds and other investors. No charges have yet been brought,” reports The Telegraph.
“The inquiry relates to a breach of contract claim initially brought by investors in the civil courts relating to Mittal Steel’s €26bn acquisition of rival Arcelor in 2006.”
Consequently, ArcelorMittal reached out to us directly about a statement the company released; we’ll give them some time of day here: “ArcelorMittal believes that the allegations made and claims brought in respect of the merger process are without merit and that the exchange ratio and process complied with the requirements of applicable law, were consistent with previous guidance on the principles that would be used to determine the exchange ratio and that this merger exchange ratio was relevant and reasonable to shareholders of both merged entities.”
Alright, alright – we’ll see how it all shakes out.
Current Steel, Raw Materials Prices
With a 5.3 percent increase over the past day, the cash price of steel billet was the biggest mover on the LME, closing at $200.00 per metric ton on Friday, September 20. The steel billet 3-month price saw little movement last Friday on the LME, closing out around $230.00 per metric ton.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India were range bound. Chinese HRC saw little change in its price last Friday. The price of Chinese coking coal remained essentially flat.
The US HRC futures contract 3-month price saw little movement last Friday at $625.00 per short ton. The spot price of the US HRC futures contract showed little movement last Friday at $643.00 per short ton.