Peabody and ArcelorMittal receives clearance from China for Macarthur offer

Thursday, 13 October 2011

US-based giant coal company Peabody Energy and the world's biggest steelmaker ArcelorMittal have announced that they have received clearance from the Ministry of Commerce of the People's Republic of China (MOFCOM) for the $A16.00 per share cash offer to acquire all the outstanding shares of Australia-based low-volatile metallurgical coal producer Macarthur Coal Limited.

With the approval of MOFCOM, the companies have received all the necessary regulatory approvals for the acquisition.

The offer of PEAMCoal, the 60-40 joint venture formed by Peabody and Arcelor to bid for Macarthur, is still the only offer for Macarthur shares and it is scheduled to close on October 28, 2011 unless extended. PEAMCoal currently has approximately 22.78 percent relevant interest in Macarthur.

Tags: coking coal , raw mat , USA , Australia , Oceania , North America , mining , Macarthur Coal

(sourced steelorbis)

Chinese steel price slide has no more room - MOFCOM

Monday, 14 Mar 2011

According to the report revealed by Ministry of Commerce of the People Republic of China, China steel price witnessed straight two weeks’ fallout down 1.6% compared to that of the previous week.

MOFCOM said that three main factors are as follows affecting recent steel price slide

1. Supply is on the rise
Steelmakers progressively resume production and the output rises clearly. As CISA ten day report showed that China average daily crude steel output hit 1.8 million tonnes in the first 20 days of February up by 5.7% from that of 1.7 million tonnes in January.

2. The restocking picks up greatly
The data shows that China construction steel inventory increased by 53.9% from the beginning of February up by 13.3%YoY.

3. The price of raw materials cools down
Iron ore spot market price slide spur steel making costs drop. The data displays that domestic iron ore prices declined by 4.7% in last week from the middle ten days of February.

MOFCOM also noted that slim room is expected for further decline, but the downward margin will be limited, considering that many projects are to resume construction as busy spring sets in and the demand from home appliances and car industries sees further increase.(sourced:mysteel)

Steel prices may continue to go up in China - MOFCOM

Friday, 28 Jan 2011
According to survey, domestic steel prices presented three-week continuous increase with rising market transactions. By last week, domestic steel prices were up by 1%WoW including 3mm HR sheet coils, 14 I-beam and 20 1.2 welded steel pipe up by 2%, 1.8% and 1.7% respectively.

Traders and construction enterprises increased their winter-stocking, as per statistics, the social inventory of construction steel eyed a WoW increase of 6.9% by January 21 up by 23.1% from last month.
As predicted, the steel prices would be further edging up by small amounts in the later periods mainly boosted by many mills pulled up their ex-works prices.
(Sourced from MySteel.net) visit www.Mysteel.net for real time access to China steel news!