Brazilian mining giant Vale could follow BHP Billiton‘s lead by spinning off a group of its businesses to form a new company next year.
SteelGuru reported that Vale said it was considering a float for its nickel and copper assets, after becoming concerned those businesses were not being valued properly by the market.
In comments that echoed BHP’s drive for a simpler, more focused business model, Mr Murilo Ferreira CEO of Vale said that the Brazilian company had to become thinner to prevail against plunging commodity prices. We need a stronger and thinner company, one that can run a marathon very easily. The low ferrous, non ferrous, oil and gas prices is a marathon and we need to be very lean with regards to cost and productivity.
The nickel spot price rose 1.0% on Thursday, December 11, making it the day’s biggest mover. After two days of falling prices on the LME, it closed at $16,420 per metric ton. The nickel 3-month price is back up, rising by 0.9% on the LME on Thursday to close at $16,475 per metric ton. The cash price of primary Indian nickel saw a 0.5% decline to INR 1,027 ($16.53) per kilogram.
Chinese stainless steel prices were mixed for the day. Chinese ferro-chrome held its value on Thursday at CNY 10,950 ($1,773) per metric ton. The price of Chinese ferro-moly saw essentially no change for the fifth day in a row, remaining around CNY 90,000 ($14,571) per metric ton.
The price of Chinese primary nickel declined 0.4% to CNY 115,300 ($18,667) per metric ton. For the fifth consecutive day, the Allegheny Ludlum 316 stainless surcharge held flat at $0.97 per pound. The price of Chinese 316 stainless coil remained essentially flat at CNY 23,700 ($3,837) per metric ton. The price of Chinese 304 stainless coil continues hovering around CNY 18,400 ($2,979) per metric ton for the fifth day in a row. The price of Chinese 316 stainless steel scrap remained essentially flat at CNY 13,350 ($2,161) per metric ton.