Vale’s nickel business is a good target for former Xstrata CEO Mick Davis, but his reported offer price is probably too low, considering the Brazilian miner’s stated interest in only selling a minority stake, analysts and banking sources said on Wednesday.
On Tuesday, Bloomberg reported that Davis, who runs London-based mining startup X2 Resources, is considering a $5 billion to $7 billion offer for Vale’s nickel assets.
Holding steady on the LME, the spot price of nickel remained at $14,775 per metric ton for Wednesday, January 14. The nickel 3-month price held steady yesterday on the LME, remaining around $14,850 per metric ton. After dropping for two days, the Indian nickel cash price flattened at INR 901.80 ($14.55).
Chinese stainless steel prices closed flat for the day. The price of Chinese ferro-chrome held steady at CNY 10,950 ($1,768) per metric ton. Chinese ferro-moly stayed flat at around CNY 87,000 ($14,045) per metric ton.
The Allegheny Ludlum 316 stainless surcharge held steady at $1.01 per pound. For the fifth day in a row, the price of Chinese 316 stainless coil remained essentially flat at CNY 23,700 ($3,826) per metric ton. The price of Chinese 304 stainless coil saw little movement at CNY 16,700 ($2,696) per metric ton. Chinese 316 stainless steel scrap saw little change in its price on Thursday at CNY 12,950 ($2,091) per metric ton. At CNY 9,350 ($1,509) per metric ton, the price of Chinese 304 stainless steel scrap was essentially unchanged.