The pressure is on. “A new Indian export tax on iron ore pellets is weighing on the sale of the local assets of indebted British steel trader Stemcor, with at least one bidder saying the deal was now less lucrative than they had initially expected,” reports Reuters.
“India began implementing a five percent tax on exports of iron ore pellets on January 27, a week after the deadline for the submission of financial bids for Stemcor’s India assets.”
“At least two major local firms – Jindal Steel and Power Ltd(JNSP.NS) and JSW Steel Ltd – have confirmed they had bid for the assets, which include iron ore mines and a 4-million-tonne a year pellet plant in the eastern Odisha state, collectively valued by an industry source at about $700-$750 million.”
In metal price news for steel…
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India was range bound. The price of Chinese HRC continues to hover for the fifth day in a row. The price of Chinese coking coal held steady.
The cash price of steel billet was unchanged on the LME at $365.00 per metric ton. The steel billet 3-month price saw little movement on the LME at $360.00 per metric ton.
The 3-month price of the US HRC futures contract held steady around $629.00 per short ton. The spot price of the US HRC futures contract saw little movement on Thursday at $658.00 per short ton.