Mittal: Collapse of Chinese Steel Prices Will Offer Import Relief

Could world markets finally see a respite from Chinese steel imports? Molycorp, Inc. vowed in court papers that it won’t completely shut down its Mountain Pass, Calif., facility.

Chinese Steel Prices Collapse

A collapse in Chinese prices last month is set to push already stretched Chinese steel mills even further into the red, curtailing production and exports, according to billionaire steel mogul Lakshmi Mittal, CEO of ArcelorMittal, the world’s largest steel producer.

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Chinese prices for the benchmark product, hot-rolled coil, already at rock bottom, fell a further 10% last month.

We have been hearing a lot that the Chinese government wants to reduce capacity,” Mittal, chief executive officer of ArcelorMittal, the world’s biggest steel producer, told investors on July 31. “This should really accelerate the process of closing down the capacity.”

Molycorp Won’t Shut Down Mountain Pass

In a bankruptcy-court filing, Molycorp, Inc., said it is weighing a number of options for its Mountain Pass, Calif. operation, which has consistently lost money. From 40 to 200 of the 400 jobs at the facility could be saved, depending on how much of the Mountain Pass facility Molycorp decides to keep running while it addresses a $1.7 billion pile of debt, according to court papers filed Wednesday.

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