Ohio-based manufacturing firm Timken Company is spinning off its steel business, focusing on bearings and power transmission equipment, according to the Financial Times.
Director of the Board Joe Ralston said “creating two companies would allow investors to more fully appreciate and evaluate the strategic and financial strengths of each business,” according to Industry Week.
“The new steel company will have annual revenues of approximately $1.7 billion, the company noted. Timken’s steel business is one of the largest producers of SBQ large bars in the North American market, and the largest producer of seamless mechanical tubing. The steel business has been the object of an estimated $500 million in capital investments over the recent years, including an expanded electric melt shop and new billet caster, and a novel in-line forge rolling press. The new company will have about 3,000 employees, at seven plants and four warehouses.”
Today’s Steel and Raw Materials Prices
The steel billet 3-month price experienced the biggest price decline of the day, dropping 10.5 percent on the LME to close at $170.00 per metric ton on Thursday, September 5. Also on the LME, the steel billet cash price remained essentially flat at $145.00 per metric ton.
Chinese steel closed mixed on Thursday. The prices of iron ore 58% fines from India remained above a recent threshold number. Chinese HRC closed 0.5 percent lower. For the fifth day in a row, the price of Chinese coking coal remained essentially flat.
The 3-month price of the US HRC futures contract continues hovering around $628.00 per short ton for the fifth day in a row. The spot price of the US HRC futures contract showed little movement yesterday, hovering around $645.00 per short ton.