A major European steelmaker will spin off its long products division rather than sell and many are betting on lower prices of London Metal Exchange copper.
Tata Steel Won’t Sell Long Products Division to Klesch
Tata Steel Ltd. has spun off its long products unit — which makes items such as plates, sections and wire rods — into a standalone business to better pursue strategic options, after the reported withdrawal of Klesch Group from talks to buy the division.
India-based Tata Steel, Europe’s second-largest steelmaker, said in October it was in talks to sell the loss-making long products operation, which employs 6,500 people mostly in Scunthorpe in the English midlands, to Klesch.
Funds Betting on Lower Price for LME Copper
More funds are betting copper prices on the London Metal Exchange will fall further over the coming days and weeks, highlighting expectations of weaker demand growth in top consumer China. Money managers’ net short positions rose to 5,249 lots or 131,225 metric tons on Friday from 1,359 lots the previous week, the exchange’s Commitments of Traders Report showed on Tuesday.