ArcelorMittal, the world’s biggest steelmaker, agreed to sell its 50% stake in Gallatin Steel to Nucor Corp. yesterday.
ArcelorMittal and Brazilian steelmaker Gerdau SA each owned 50 percent of the business, by selling the plant for $770 million, ArcelorMittal cut some of its corporate debt.
ArcelorMittal has been seeking to reduce debt after its credit rating was cut to below investment grade by Moody’s Investors Service, Standard & Poor’s Corp. and Fitch Ratings. The company, which reported net debt of $17.4 billion at the end of the first half of 2014, has a medium-term debt target of $15 billion.
The price of Chinese HRC closed Monday, September 15 at CNY 2,990 ($487.47) per metric ton, halting its three-day flat run with a 11.5 percent drift. The price of Chinese coking coal was unchanged at CNY 1,390 ($226.62) per metric ton. For the fifth consecutive day, the price of Chinese slab held flat at CNY 3,480 ($567.36) per metric ton. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($136.95) and a low price of CNY 830.00 ($135.32) per dry metric ton.
For the fifth day in a row, the cash price of steel billet remained essentially flat on the LME at $450.00 per metric ton. The steel billet 3-month price saw essentially no change on the LME for the fifth day in a row, remaining around $455.00 per metric ton.
The US HRC futures contract 3-month price saw little price change yesterday at $641.00 per short ton. The US HRC futures contract spot price saw little movement at $657.00 per short ton.