Steel company Nucor is buying Kentucky’s Gallatin Steel Co. for about $770 million, which will expand Nucor’s footprint in the Midwest.
Taking out an anticipated tax benefit, the purchase price is approximately $630 million, the company said on Monday. Strategically located on the Ohio River in Ghent, Kentucky, the flat-rolled products mill, with an annual capacity of approximately 1.8 million tons, broadens Nucor’s footprint in the region. Adding Gallatin to Nucor’s four existing flat-rolled mills will increase Nucor’s total flat-rolled product annual capacity by 16% – to approximately 13 million tons.
Iron ore and steel futures in China rose on Monday as firmer spot steel prices spurred a rebound from a recent string of losses, although the recovery is seen as fragile amid growing signs of weakness in the world’s No. 2 economy.
The most-traded iron ore for delivery in January on the Dalian Commodity Exchange was up 1.4 percent at 597 CNY ($97) a ton by midday after rising as high as 605 CNY earlier.
The January rebar contract on the Shanghai Futures Exchange had climbed 1.7 percent to 2,819 CNY per ton after earlier peaking at 2,832 yuan.
Chinese steel prices were flat Friday before today’s futures mini rebound. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($137.04) and a low price of CNY 830.00 ($135.41) per dry metric ton. For the fifth day in a row, the price of Chinese HRC remained essentially flat at CNY 3,380 ($551.43) per metric ton. The price of Chinese coking coal was unchanged at CNY 1,390 ($226.77) per metric ton.
For the fifth day in a row, the steel billet cash price remained essentially flat on the LME at $450.00 per metric ton. The 3-month price of steel billet continues hovering around $455.00 per metric ton on the LME for the fifth day in a row.
The 3-month price of the US HRC futures contract showed little movement last Friday at $641.00 per short ton. The US HRC futures contract spot price held steady around $657.00 per short ton.