The U.S. Treasury Department is planning on selling “its remaining shares of General Motors Co by the end of the year, a plan that may leave taxpayers with a shortfall of about $10 billion on the automaker’s 2009 bailout.”
“Treasury on Thursday said it had completed the sale of 70.2 million shares of GM stock and to date had recouped $38.4 billion from the $49.5 billion taxpayer-funded rescue of the Detroit company.”
“At current prices, Treasury would recoup another $1.2 billion from its remaining stake, bringing its total recovery to $39.6 billion.”
“Analysts have said Treasury’s exit from GM would lift the ‘Government Motors’ stigma from the automaker, which would also be able to begin paying dividends for the first time since the restructured company returned to the market with an initial public offering three years ago.”
The week’s biggest mover on the weekly Raw Steels MMI® was the price of US shredded scrap, which saw a 4.3 percent increase. This week marked the third in a row of rising prices for the metal. Closing out the fifth week of rising prices, the spot price of the US HRC futures contract gained 0.5 percent, finishing at $668.00 per short ton. The 3-month price of the US HRC futures contract traded sideways last week, hovering around $655.00 per short ton.
On the weekly Raw Steels MMI®, Korean steel scrap rose 9.5 percent to finish as the week’s biggest mover. Following a steady week, prices for Korean pig iron closed flat.
Chinese steel prices were mixed for the week. The price of iron ore 58% fines from India were range bound. Following a 2.3 percent increase in the week prior, the price of Chinese HRC fell 1.4 percent last week. Chinese coking coal prices held steady from the previous week. For the third week in a row, the price of Chinese slab dropped, falling 0.3 percent.
The steel billet cash price fell to $225.00 per metric ton after a 4.3 percent decrease on the LME from the previous week. Also on the LME, the steel billet 3-month price remained steady from the previous week at $235.00 per metric ton.
The price of US shredded scrap rose 4.3 percent over the past week. This was the third week in a row of increasing prices. The spot price of the US HRC futures contract rose 0.5 percent this week, closing out the fifth consecutive week of elevating prices at $668.00 per short ton. The 3-month price of the US HRC futures contract closed at $655.00 per short ton after a flat week.
The Raw Steels MMI® collects and weights 13 global steel and raw material price points to provide a unique view into global steel price trends. For more information on the Raw Steels MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.