TK Calvert plant deal seen boon to US market
Dec 02, 2013 | 03:43 PM
| Thorsten Schier
NEW YORK ThyssenKrupp AGs deal to sell its Calvert, Ala., facility to ArcelorMittal SA and Nippon Steel & Sumitomo Metal Corp. (NSSMC) for $1.55 billion should have a positive impact on flat-rolled pricing, steel market analysts largely agreed.
"In the short term, we believe the consolidation should create better pricing discipline for the U.S. flat-rolled industry, particularly in the southern United States," analysts at Cleveland-based KeyBanc Capital Markets Inc. wrote in a research note, adding that hot-rolled tags could peak above $700 per ton ($35 per hundredweight) in the first quarter of 2014 as a result.
The deal, which remains subject to regulatory approval in certain markets, was announced late Nov. 29 (amm.com, Dec. 1). Sources have previously speculated that the deal could boost flat-rolled prices (amm.com, Oct. 29).....
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