ArcelorMittal and Sider are taking advantage of the rising steel demand in Algeria — they have decided to boost steel production at their jointly owned Annaba steel plant.
“ArcelorMittal and Sider said Monday they have signed an agreement to invest $763 million to more than double Annaba’s steel production capacity to 2.2 million metric tons a year by 2017. The companies will also invest in the steel plant’s associated Ouenza and Boukhadra mines which provide iron ore, a key steel making raw ingredient, to the plant,” reports The Wall Street Journal.
“The deal will see ArcelorMittal reduce its holdings in the steel plant and associated mines to 49% while Sider will boost its ownership to 51%. ArcelorMittal previously had a 70% stake in the two mines and steel plant. The investment plan will be funded with equity contributions from both companies and bank financing.”
Chinese steel prices were flat for the day. The price of iron ore 58% fines from India were range bound. The price of Chinese HRC saw little movement. The price of Chinese coking coal was unchanged.
The steel billet cash price showed little movement last Friday on the LME at $219.50 per metric ton. The steel billet 3-month price ended a two-day climb, settling at $240.00 per metric ton on the LME.
Following a two-day rise, the US HRC futures contract 3-month price flattened at $640.00. The US HRC futures contract spot price flattened at $648.00 after two days of improvement.