China’s Chalco “has put a $2 billion valuation on its stake in the giant Simandou iron ore mine in West Africa, which it sees reaching full capacity in 2023,” reports Reuters.
The appraisal is 73% higher than the book value as of the end of 2012.
“Chalco agreed in September to transfer its stake in the long-delayed project to its parent, state-owned Chinalco, freeing itself from a mine, rail and port project that may cost $20 billion in total, as it looks to shore up its balance sheet.”
The 3-month price of steel billet saw a 12.0 percent drop on the LME on Tuesday, October 15, landing at $220.00 per metric ton and making it the biggest mover of the day. Also on the LME, the steel billet cash price gained 2.2 percent to finish at $230.00 per metric ton.
Chinese steel prices were mixed for the day. The price of iron ore 58% fines from India were range bound. The price of Chinese slab increased 0.3 percent. The price of Chinese HRC held steady.
The 3-month price of the US HRC futures contract saw little movement on Tuesday at $635.00 per short ton. The spot price of the US HRC futures contract saw little movement on Tuesday, closing out around $643.00 per short ton.