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Consolidation

China should get out of steel not strong arm iron ore

July 10, 2009

Things have got serious in the iron ore negotiations in China with spurious ‘espionage’ charges levelled against domestic steel producers and Rio Tinto executives – or here if you don’t have an FT subscription. It’s a stretch to call any iron ore information a state secret, so what might have prompted Chinese officials to take […]

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Chinese steel industry downturn reports

November 3, 2008

Some of you may have caught this article from China Daily as it passed through the newsfeed in the Nerds sidebars. It’s an account of the current downturn in the Chinese steel industry. For example: According to China Iron and Steel Association, most large steel firms have only managed to break even since July and […]

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NLMK Briefing on John Maneely Acquisition

August 25, 2008

Here is an excellent profile of pipe and tube maker John Maneely (JMC) in PDF format produced by NLMK at the time of their acqusition of JMC on August 12, 2008. It provides some very interesting detail on the size and shape of some of JMC’s major tube markets in the US. Click on the link below to open […]

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Novolipetsk buys Tube Operations for $3.5Bn

August 13, 2008

For those looking for more details on today’s NLMK acquisition of the John Maneely tube operations from Carlyle, Bloomberg has a good piece here. It looks like they paid about $1,665/ton for operations generating about $230/ton of EBITDA. Here are some of the salient details from the Bloomberg article: In the year ended June 30, […]

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M&A activity in the global steel industry

June 19, 2008

A reader called NanoSteel posted a comment recently asking if we knew the total value of M&A activity in the global steel industry for 2007. One source is an annual publication by PWC which compiles transactions in the global metals industry. According to the PWC there were 249 deals in the global steel industry in […]

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Severstal’s acquisition of Sparrow’s Point

May 13, 2008

Severstal recently closed its acquisition of the Sparrow’s Point mill owned by ArcelorMittal.  The price paid by Severstal, $810 million, works out to just over $200 per ton of installed steel making capacity.  This is well below what assets have been selling for in North America.  As can be seen in the graph below, the […]

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