This morning in metals news, U.S. Steel has offered Stelco a 25% stake in its Minntac operation, LME copper fell to a two-week low and China’s industrial profits plunged 36.7% in the first quarter.
U.S. Steel offers Stelco stake in Minntac
Last week, U.S. Steel reported a quarterly loss of $391 million. In addition, the company reported it granted Stelco the opportunity to acquire a 25% stake in its Minntac mine.
“U.S. Steel today granted Stelco Inc. (Stelco) at a purchase price of $100 million the option to acquire a 25 percent interest in the company’s Minntac iron ore mining operations for an aggregate purchase price of $600 million,” U.S. Steel said in an announcement last week. “Under the agreement, $20 million was paid to U. S. Steel upon signing the option agreement and the remaining $80 million will be paid ratably over the remainder of the 2020 calendar year. Once Stelco has completed paying the remaining $80 million, the option can be exercised any time before January 31, 2027 and, upon exercise, Stelco will make an additional payment of $500 million to acquire its 25% interest in the new cost-sharing joint venture.”
LME copper falls to two-week low
LME copper fell to a two-week low Monday on oversupply fears, Reuters reported.
The three-month London copper price fell as much as 1% to $5,061 per ton, according to the report.
China’s industrial profits plunge
Amid the coronavirus outbreak, China’s industrial profits fell significantly in Q1.
According to China’s National Bureau of Statistics, Chinese industrial profits fell 36.7%.
Profits stemming from mining and quarrying fell 27.5%, while manufacturing profits fell 38.9%.