This morning in metals news, China wants the U.S. to remove tariffs before a final trade deal can be reached, U.S. Steel announced it would offer $300 million in senior convertible notes and Alcoa released its third-quarter financial results.
China: Remove Tariffs for Final Trade Deal
As trade talks between the U.S. and China continued with another round of top-level negotiations last week, China indicated that tariffs must be removed in order for a final deal to be reached, CNBC reported.
“Both sides’ ultimate goal for the negotiations is to end the trade war, cancel all additional tariffs,” Ministry of Commerce spokesman Gao Feng was quoted as saying. “This is good for China, good for the U.S. and good for the world.”
U.S. Steel to Offer $300M in Convertible Notes
U.S. Steel announced Tuesday that it plans to offer $300 million in senior convertible notes “in a private offering made only to persons reasonably expected to be qualified institutional buyers.”
“U.S. Steel intends to use the net proceeds from the offerings for general corporate purposes, including, without limitation, for previously announced strategic investments and capital expenditures,” the steelmaker said.
Alcoa Releases 3Q Financial Results
Bauxite, alumina and aluminum producer Alcoa announced a net loss of $221 million in the third quarter of 2019, compared with a net loss of $402 million in Q2 2019.
The firm reported an adjusted net loss, excluding special items, of $82 million for the third quarter.
“In the third quarter, Alcoa reported adjusted EBITDA excluding special items of $388 million, down $67 million from the prior quarter, primarily due to lower alumina pricing that was partially offset by higher alumina sales volume and lower production costs,” the company said.
In addition, third-quarter revenues of $2.6 billion were down 5% from the previous quarter “primarily due to lower alumina prices,” the company said.