German steelmaker ThyssenKrupp AG has picked Deutsche Bank to manage the sale of its high-performance alloy unit VDM.
The sale process is not expected to start until more restructuring measures have been taken at VDM. ThyssenKrupp may even decide to keep the asset if offer prices remain significantly below its book value, the people added.
VDM, which expects earnings before interest, taxes, depreciation and amortization of between 60 million euros ($80.7 million) and 70 million this year, may be valued at more than 500 million euros in sale, people familiar with the situation told Reuters.
German daily Sueddeutsche Zeitung initially reported the sale last week. It said Apera had a good chance of winning the bid, but financial investors were also interested.
On Wednesday, January 28, the day’s biggest mover was the spot price of nickel, which saw a 2.1% increase on the LME to $14,670 per metric ton. This increase comes after the price fell for the two previous days. The 3-month price of nickel is back up, rising by 2.0% on the LME yesterday to close at $14,720 per metric ton. The cash price of primary Indian nickel improved by 0.6%, closing at INR 915.30 ($14.91) per kilogram yesterday.
Chinese stainless steel prices were flat for the day. The price of Chinese ferro-chrome continues hovering around CNY 10,950 ($1,754) per metric ton for the fifth day in a row. The price of Chinese ferro-moly saw essentially no change for the fifth day in a row, remaining around CNY 87,000 ($13,939) per metric ton.
The price of Chinese primary nickel saw little movement yesterday at CNY 107,400 ($17,208) per metric ton. The Allegheny Ludlum 316 stainless surcharge remained essentially flat at $0.94 per pound. For the fifth consecutive day, the price of Chinese 316 stainless coil held flat at CNY 23,700 ($3,797) per metric ton. For the fifth day in a row, the price of Chinese 304 stainless coil remained essentially flat at CNY 16,700 ($2,676) per metric ton. The price of Chinese 316 stainless steel scrap remained essentially flat at CNY 12,950 ($2,075) per metric ton.