This morning in metals news, arbitration fell in favor of the Department of Justice vis-a-vis the proposed merger of Novelis and Aleris, January steel shipments rose 5.6%, and copper made gains off of multiyear lows.
DOJ wins arbitration in Novelis-Aleris merger case
The Department of Justice (DOJ) has won arbitration related to the planned merger of Novelis and Aleris, which calls for Novelis to divest Aleris’ aluminum auto body sheet operations in North America in order to preserve competition.
“Today’s decision is a victory for automakers and American consumers and taxpayers and will preserve competition in the market for aluminum auto body sheet,” said Makan Delrahim, assistant attorney general of the Justice Department’s Antitrust Division. “This first-of-its-kind arbitration proved to be an effective procedure for the streamlined adjudication of a dispositive issue in a merger challenge. As demonstrated in this case, arbitration has the potential to be a powerful dispute resolution tool in the right circumstances and I look forward to applying the learning from this case to future matters.”
The case marked the first time the Antitrust Division used its authority under the Administrative Dispute Resolution Act of 1996 to resolve a matter, the DOJ released noted.
January steel shipments rise
U.S. steel shipments jumped 5.6% year over year in January to 8.54 million tons, the American Iron and Steel Institute (AISI) reported.
The January shipment total increased 6.4% compared with December 2019 shipments.
Copper bounces back from multiyear lows
After hitting multiyear lows to start the week, copper clawed back some price gains Tuesday, Reuters reported.
LME three-month copper rose 1.7% to $5,628 per ton as of 10:55 GMT, Reuters reported.