The Russian state-controlled bank, VTB, has decided “to join other creditors in restructuring mining group Mechel’s $9.6 billion debt, a source close to VTB said on Saturday,” reports Reuters.
“The coal-to-steel group, controlled by Igor Zyuzin, borrowed heavily to pay for acquisitions even after the 2008-2009 global economic slump, leaving it dangerously exposed to a global industrial downturn.”
“VTB is one of the lead banks appointed to coordinate a restructuring deal in which Mechel is seeking a waiver of loan covenants and delays to its debt repayments, sources familiar with the negotiations say.”
“New York-listed Mechel owes 60 percent of its debts to state banks, which this week showed impatience over its failure to shore up its balance sheet with asset sales. Panic selling sent Mechel’s stock to all-time lows on Wednesday.”
Chinese steel closed mixed yesterday. The price of iron ore 58% fines from India were range bound. The price of Chinese slab moved on Monday. After a few changeless days, prices dropped 0.3 percent. The price of Chinese HRC remained essentially flat.
Also on the LME, the steel billet cash price showed little movement on Monday, hovering around $225.00 per metric ton. On the LME, the 3-month price of steel billet held steady around $235.00 per metric ton.
After a 0.5 percent increase, the 3-month price of the US HRC futures contract finished the day at $658.00 per short ton. The US HRC futures contract spot price saw little movement on Monday at $668.00 per short ton.