Anglo American's Kumba, ArcelorMittal Reach Iron Ore Agreement

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The depute is over! “Anglo American’s Kumba Iron Ore unit reached an agreement to supply the raw material to ArcelorMittal South Africa Ltd.,” reports Bloomberg.

“The price of as much as 6.25 million metric tons of iron ore sold annually to AMSA by Kumba’s Sishen Iron Ore unit will reference costs of production plus a 20 percent margin and will be subject to a ceiling equal to Sishen’s so-called export parity price, the Pretoria-based company said in a statement today. The accord starts on Jan. 1 and replaces a one-year arrangement reached in December last year. It also includes any volumes from Kumba’s Thabazimbi mine.”

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“There is an agreed floor price for 1.6 million tons and and 2 million of iron ore for the first two years of the agreement,” the company said.

With a decline of 3.4 percent on Tuesday, November 5, the Indian nickel cash price recorded the biggest decline of the day. On the LME, the nickel spot price declined 2.2 percent to $14,255 per metric ton. The 3-month price of nickel weakened by 1.9 percent on the LME, settling at $14,345 per metric ton.

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Chinese stainless steel prices were mixed for the day. The price of Chinese ferro-chrome was unchanged. The price of Chinese ferro-moly remained essentially flat.

The price of Chinese primary nickel saw a 0.7 percent decline. For the fifth day in a row, the price of Chinese 316 stainless coil remained essentially flat. The price of Chinese 304 stainless coil held steady. The price of Chinese 316 stainless steel scrap saw essentially no change for the fifth day in a row. The price of Chinese 304 stainless steel scrap continues to hover for the fifth day in a row.