Stemcor Wants to Sell Assets in India, Restrained by Court

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Hoping to repay about $1.2 billion of debt, Stemcor Holdings Ltd. has put its iron ore mine and pellet plant in India up for sale. Unfortunately for them, they were restrained by a court from putting the assets on the block.

“The Calcutta High Court passed an order following a petition filed by ICICI Bank Ltd. (ICICIBC), which said the London-based steel trader’s Indian assets are part of collateral for a 5.87 billion rupee ($94 million) loan, according to an interim order published today on the court’s website. The next date of hearing is Oct. 7,” reported Bloomberg.

The cash price of steel billet saw a 15.3 percent increase on Tuesday, September 24, reaching $219.00 per metric ton on the LME and making it the biggest mover for the day. Also on the LME, the 3-month price of steel billet rose 2.3 percent to $225.00 per metric ton.

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Chinese steel closed mixed yesterday. The price of iron ore 58% fines from India were range bound. The price of Chinese slab moved on Tuesday. After a few changeless days, prices dropped 0.3 percent. For the fifth day in a row, the price of Chinese HRC remained essentially flat.

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The 3-month price of the US HRC futures contract remained essentially flat at $625.00 per short ton. The US HRC futures contract spot price held steady on Tuesday, remaining around $643.00 per short ton.