Outokumpu, the funds-strapped stainless steelmaker, “may get far less than anticipated for its high-performance alloy unit VDM, as a sector slump weighs on equity prices, three people familiar with the negotiations said,” reports Reuters.
“Bids will likely value VDM at roughly 500 million euros ($685 million) including debt, half of Outokumpu’s initial price expectation of 1 billion euros, and less than the 600-700 million euros that bidders in August signalled they would accept, the sources said.”
The week’s biggest mover on the weekly Stainless MMI® was the nickel 3-month price, which saw a 1.7 percent increase on the LME to $14,030 per metric ton. This week marked the third in a row of rising prices for the metal. The spot price of nickel rose 1.5 percent on the LME this week, closing out the third week at $13,960 per metric ton. The cash price of primary Indian nickel rose 1.4 percent after falling 1.1 percent during the previous week.
Chinese stainless steel prices were mixed for the week. Prices for Chinese ferro-chrome remained constant. Chinese ferro-moly remained essentially flat from the previous week.
Last week, the price of Chinese primary nickel shifted slightly, rising by 0.6 percent to close. Chinese 304 stainless steel scrap prices held steady from the previous week. Prices for Chinese 316 stainless steel scrap remained constant. The week finished with no movement for Chinese 304 stainless coil. Chinese 316 stainless coil traded sideways last week.
Following a steady week, prices for Korean 430 stainless steel coil closed flat. The price of Korean 304 stainless coil did not change since the previous week.
The Stainless MMI® collects and weights 14 global stainless steel and raw material price points to provide a unique view into stainless steel price trends. For more information on the Stainless MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.