Steel News Roundup

Stainless Prices continue to Increase

Rising nickel costs ensure that stainless steel transaction prices will increase over the next three months in all parts of the world. Expanding figures for ferrochrome and molybdenum over the same period are also a real prospect. We are bullish about stainless steel prices in the period to September, at least. We forecast a further 19 percent increase in our benchmark 304 cold rolled coil price over the next four months. Over that period, supply is likely to remain quite firm - at least in Western nations.

Source MEPS

Mittal and Arcelor to meet

Mittal yesterday won a breakthrough in its 19-week battle to take over Arcelor when its target bowed to shareholder pressure and agreed to hold face-to-face management talks with the Indian-owned steel group on its latest €22bn (£15bn) bid.

The Arcelor board, which is pushing ahead with a €13.25bn merger with Russia's Severstal in the face of shareholder resistance, said it had requested a meeting with Mittal on issues arising from its confidential business plan, submitted last Friday after months of delay.

Source Guardian Unlimited

Turkish court rejects Erdemir Sale

Turkey's top administrative court has rejected a Competition Board objection to its decision to suspend the sale of a major stake in steel maker Erdemir. The court, suspended the sale in April after the Competition Board had given approval for the deal to go ahead.

The Competition Board said last week it was objecting to the suspension.

Turkish army pension fund Oyak Group had made the winning bid of $2.77 billion for a 46% stake in Erdemir last October. An association of engineers and architects had opened the court case, seeking the cancellation of the sale.