The acquisition of Greybull Capital of Tata Steel's UK long product business will save thousands of jobs and was accepted by the steelworkers after two years of uncertainty.
Price of iron ore rallies as China's property market showed further sign of recovery. Surge in the price of iron ore also correlated with increase in steel futures.
China has decided to layoff millions of workers from 'zombie enterprises' in the next two to three years. For relocating retrenched workers, the government will spend Yuan 100 billion ($15.27 billion). China's economy is suffering from industrial overcapacity and pollution levels.
Industrial overcapacity in China may have adverse impact on the domestic market and global economy. A number of new units came up owing to easily available loans and government subsidies in the world's second largest economy. A latest report calls for more radical measures including greater privatization to streamline the Chinese domestic industry.
Iron ore futures approached $50 a tonne Monday, the lowest it has been in three months, going down almost 10 percent in just two weeks. Reuters reported that the $50 a tonne price is a sign that losses will continue after Dalian futures slumped lower on Tuesday as Chinese steel producers cut output due to the decline in demand of iron ore.
In a move designed to avoid default, ThyssenKrupp was able to receive an extension of its credit lines from banks before its planned share sale.
According to ThyssenKrupp CFP Guido Kerkhoff, there are still plans to sell off its Americas units, under certain conditions.
The South Korean steel making company pulls out from deal to put up US $5.5 billion plant after land acquisition became difficult.