Russian steel producer Evraz is one of the latest casualties in a lackluster steel market. The steel company’s stock fell 3.6%, as Evraz strains to ease its debt levels.
Via the Financial Times: “Debt was approaching similar levels to 2009 when Evraz last sold shares and convertible bonds to ease the strain on its balance sheet, it said. Demand has been deteriorating in an oversupplied market for Russian construction steel while cash costs at Evraz’s mines are above local prices, Merrill [Lynch] said. It forecast group net debt to reach $7.1bn by the end of the year, or 4.5 times operating earnings.”
Chinese prices of steel were mixed for the day on MetalMiner’s daily price index. The price of iron ore 58% fines from India remained rangebound, but Chinese slab prices fell 4.5 percent on Tuesday. Chinese HRC stayed flat.
The steel billet cash price was off by 3.7 percent on the LME yesterday, falling from $130.00 to $130.00 per metric ton. Also on the LME, the 3-month price of steel billet held steady around $160.00 per metric ton.
The US HRC futures contract 3-month price saw essentially no change for the fifth day in a row, remaining around $619.00 per short ton. The spot price of the US HRC futures contract remained essentially flat at $635.00 per short ton.