China’s Hebei Iron and Steel Group has agreed to acquire a controlling stake in global steel trader Duferco, as the country’s steel exports rise to a record, the Financial Times reported.
This is believed to be the first example of a state-owned Chinese steel company taking a majority shareholding in a global metals trader.
It is also the latest indication of Chinese companies expanding overseas as Beijing reduces restrictions on outward investment.
Hebei Iron and Steel, China’s largest producer, is to take a 51 per cent stake in Duferco, according to Chinese media reports.
Chinese slab saw the biggest price decline of the day, dropping 0.9% to close at CNY 3,150 ($508.63) per metric ton on Friday, December 12. The price of Chinese HRC rose by 0.3% to CNY 3,070 ($495.71) last Friday after remaining flat for two days. The price of Chinese coking coal was unchanged at CNY 1,080 ($174.39) per metric ton. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($135.63) and a low price of CNY 840.00 ($135.63) per dry metric ton.
The cash price of steel billet continues hovering around $500.00 per metric ton on the LME for the fifth day in a row. The steel billet 3-month price saw essentially no change on the LME for the fifth day in a row, remaining around $480.00 per metric ton.
The 3-month price of the US HRC futures contract showed little movement last Friday, hovering around $617.00 per short ton. The spot price of the US HRC futures contract remained essentially flat at $614.00 per short ton.