Jindal Steel Loses Coal Bids in India, Molycorp Inc. Stock Gets a 60 Minutes Boost

MetalCrawler brings the latest metal news to you before the ink dries on government decrees from as far away as China and India.

Jindal Loses Coal Block Bids

Shares in Jindal Steel and Power Ltd. tumbled on Monday over concerns that the company’s ability to feed its power plants after it lost bids for three coal mines auctioned by the government.

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Stock of the company, controlled by former Indian lawmaker Naveen Jindal, fell as much as 14.9% before ending down 6.2%, while the benchmark BSE Sensex fell 0.24%. The company said it will take India’s government to court over the decision to reject the bids.

Without Domestic Demand China’s Steel Industry Wants to… Expand?

China’s steel mills are still looking to the export market as domestic demand remains tepid. Beijing’s answer for the beleaguered industry? Foreign acquisitions.

In a draft of a revised restructuring plan for the industry issued late last week, Beijing included a line saying it would support mills’ efforts to buy assets abroad, with attention now turning to more detailed measures that could be announced later in the year.

“There is capacity that we can shift abroad, to regions that need it like Southeast Asia and Eastern Europe, as well as places like Indonesia and Africa where demand for steel is huge but production capacity is very low,” Deng Qilin, Chairman of Wuhan Iron and Steel Group, China’s No.4 producer, told Reuters.

Molycorp Inc. Stock Jumps

Molycorp stock spiked this morning after the Colorado-based miner was featured prominently in a 60 Minutes story on the rare earths industry.

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