ThyssenKrupp Plans To Keep Its European Steel Unit; Spot Price of Nickel Rises 3.9%

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It doesn’t look like ThyssenKrupp will be letting go of its Steel Europe business anytime soon.

A company spokesman responded “to speculation that a sale could help its current restructuring efforts” on Saturday (Reuters):

“‘We’ve always said that we want to keep the steel business,’ the spokesman said.”

“German magazine Focus, citing no sources, reported that ThyssenKrupp Chief Executive Heinrich Hiesinger had told an internal leadership meeting it was wrong to believe that a sale of the European business could support the company.”

“According to the report, he added that a divestment would not yield a reasonable price in the current economic environment.”

“Hiesinger in August dismissed any speculation on a possible sale of Steel Europe as ‘nonsense’, but such talk has resurfaced due to the conglomerate’s weakening finances.”

“ThyssenKrupp, which has suffered three straight years of losses and racked up debts, is trying to move away from a bulk steel market, hit by weak demand and overcapacity, to more profitable products such as elevators and factory components.”

“In February, ThyssenKrupp said it wanted to cut 500 million euros ($684.2 million) in costs over the next three years at its Steel Europe operations, which could lead to about 14 percent of the division’s workforce leaving the company.”

In metal price news…

The week’s biggest mover on the weekly Stainless MMI® was the spot price of nickel, which saw a 3.9 percent increase on the LME to $13,780 per metric ton. This comes on the heels of a 1.2 percent decline the week prior. The nickel 3-month price rose 3.8 percent on the LME to $13,840 per metric ton after falling 1.2 percent during the previous week. The cash price of primary Indian nickel rose 1.2 percent after falling 1.1 percent during the previous week.

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Chinese stainless steel prices were mixed for the week. Chinese ferro-chrome prices held steady from the previous week. The week finished with no movement for Chinese ferro-moly.

The price of Chinese primary nickel rose 1.2 percent after falling 1.5 percent during the previous week. Chinese 304 stainless steel scrap remained unchanged for the week. The price of Chinese 316 stainless steel scrap did not change since the previous week. Chinese 304 stainless coil remained essentially flat from the previous week. Chinese 316 stainless coil remained unchanged for the week.

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The price of Korean 430 stainless steel coil did not change since the previous week. Korean 304 stainless coil prices held steady from 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.