ThyssenKrupp AG is still deciding on what to do with its North American automotive steel operation, which it has been trying to sell for over a year, reports The Wall Street Journal.
“To recap: In 2007, the company started building a new blast furnace mill in Brazil and a processing plant in Alabama for $11.8 billion. The idea was to make low cost raw steel in South America, and then ship it to the U.S where it would be rolled into sheets for all the automakers setting up shop in southern states like Mississippi and Tennessee. By the time the two plants were finished in 2010, the financial crisis, Brazil’s inflating currency, and tepid steel demand had thrown a wrench into ThyssenKrupp’s American dream.”
The steel billet cash price experienced the biggest price decline of the day, dropping 5.0 percent on the LME to close at $190.00 per metric ton on Monday, September 23. Also on the LME, the steel billet 3-month price fell 4.3 percent to $220.00 per metric ton.
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India was range bound. The price of Chinese HRC saw little movement. The price of Chinese coking coal continues to hover for the fifth day in a row.
The 3-month price of the US HRC futures contract held steady on Monday, remaining around $625.00 per short ton. The US HRC futures contract spot price saw little price change on Monday at $643.00 per short ton.