ArcelorMittal’s Czech plant, ArcelorMittal Ostrava, saw a recent investment of $53 million to modernize the plant–buying them two more years of stabilized operations.
“While the investment allows the unit to produce higher-quality steel and increase exports to markets such as Saudi Arabia, its long-term prospects remain uncertain as prices and demand for construction steel in Europe remain low, board member Jan Rafaj said in an interview today,” reports Bloomberg.
“The investment should stabilize the plant for two to three years, but it’s not a long-term solution,” Rafaj said at an industry fair in Brno, Czech Republic. “ArcelorMittal made it clear that it cares about the Ostrava plant, but only in the timeframe of months rather than years.”
The cash price of steel billet saw the biggest decline of the day, dropping 2.3 percent on the LME to close at $215.00 per metric ton on Tuesday, October 8. The 3-month price of steel billet saw a 2.0 percent decline on the LME to $240.00 per metric ton.
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India were range bound. The price of Chinese HRC continues to hover for the fifth day in a row. The price of Chinese coking coal was unchanged.
Tuesday saw the US HRC futures contract 3-month price drift down 0.3 percent after a couple of stagnant days. The US HRC futures contract spot price showed little movement yesterday.