Steel Giant ArcelorMittal Attempting to Purchase Zimbabwe Alloys Chrome

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ArcelorMittal, the world’s biggest steelmaker, is considering an offer for Zimbabwe Alloys Chrome Ltd., an insolvent ferrochrome producer seeking investors, according to a person with knowledge of the matter told Blomberg News.

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ArcelorMittal officials will visit the Zimbabwe-based company in the next two weeks and want to carry out due diligence on it, Bloomberg reported. Zimbabwe Alloys’ chrome ore reserves make it of strategic interest to ArcelorMittal, the person said. Ferrochrome, made by processing chrome ore in a smelter, is used in the production of stainless steel. A spokeswoman for Luxembourg-based ArcelorMittal declined to comment to Bloomberg.

Zimbabwe Alloys is 85 percent owned by Benscore Investments, which controls almost 40 percent of the country’s chrome reserves, the biggest in the world after neighboring South Africa.

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Chinese steel prices were flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($134.83) and a low price of CNY 830.00 ($133.22) per dry metric ton. The price of Chinese HRC held steady at CNY 3,360 ($539.30) per metric ton. The price of Chinese coking coal continues hovering around CNY 1,390 ($223.11) per metric ton for the fifth day in a row.

For the fifth consecutive day, the steel billet cash price held flat on the LME at $390.00 per metric ton. The 3-month price of steel billet saw essentially no change on the LME for the fifth day in a row, remaining around $400.00 per metric ton.

The 3-month price of the US HRC futures contract remained essentially flat at $638.00 per short ton. The spot price of the US HRC futures contract showed little movement last Friday at $681.00 per short ton.

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