Ferrosilicon Daily Express 12.1

  • Tuesday, December 1, 2020
  • Source:ferro-alloys.com

  • Keywords:ferrosilicon,futures,spot
[Fellow]Japanese steel manufacturer JFE Steel has secured funds to invest in Chinese speciality steel bar company Baosteel Special Steel Shaoguan (BSSS).
[Ferro-Alloys.comJapanese steel manufacturer JFE Steel has secured funds to invest in Chinese speciality steel bar company Baosteel Special Steel Shaoguan (BSSS).

The state-backed Japan Bank for International Co-operation has agreed with JFE Steel to loan $58mn, which will be co-financed with unspecified loans provided by the country's private-sector Mizuho Bank.

The loan is aimed to finance a part of JFE's spending of 686mn yuan ($104mn) to acquire a 50pc stake in BSSS – a wholly owned subsidiary of its Chinese partner Guangdong Shaoguan Iron and Steel Songshan (SGIS). SGIS' parent company is China's biggest steelmaker state-controlled Baowu. SGIS holds the other 50pc in BSSS.

US automotive producers and other steel-intensive manufacturers are facing a supply shortage which could potentially lead to production shutdowns or reductions, according to numerous market sources.

Since October, multiple flat-rolled service center sources have noted the lack of steel availability was of growing concern to OEM customers, particularly automotive, as demand was outpacing supply.
 
 

 
 
  • [Editor:kangmingfei]

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