A positive week for the Steel Stock Index of siderweb which increased by 3,1%, just below the excellent performances of the mainly international stock indeces. Extremely positive the EuroStoxx and Ftse Mib index with +7,1% and 6,2% respectively. Brasilian groups are subdued, while the European and American companies have great performances.
Top & Flop
The best weekly performance is for the French Vallourec with +35,1%. During this week ArborGen, which is the world leader in technologies for the improvement of shafts production, declared to have signed a deal with Vallourec aimed at the development and promotion of eucalyptus clones. If ArborGen will have an expansion of its product line, Vallourec should have a major quantity of eucalyptus able to produce carbon which is used in the production process for steel and iron. Two american companies obtained the silver and bronze medals: Allegheny Technologies and Carpenter Technologies with +24,8% and 22,5% respectively. The American markets are growing up thanks to the election’s victory of Biden that was already revealed the previous week, however it was reinforced with the last vote of Arizona, North Carolina and Georgia. Allegheny Technologies continues its upgrade also afterwards the results obtained in the third trimester of 2020 with a decline of 0,38 dollars despite the highly reduction of sales. The drop in sales at 598 millions dollars, decreased by 41% compared to the same period in 2019, caused the drop in demand in High Performance Materials & Components (-51% than 2019) while the Advanced Alloys & Solutions sector decreased by 33%.
A negative week for the Brasilian groups. Companhia Siderurgica Nacional drops by 8,2% while Gerdau loses 7%. The results related to the third trimester 2020 of Gerdau point out an income of 794 million of brasilian reais and sales amounting to 12,2 billions reais, increased by 23% than the same period in 2019. The company will detach the dividends of 0,032 dollars on 25th of November. Finally, the chinese Hunan Valin closes the rank with one of the three worst weekly performance with -1,8%.
In the spotligh
In the spotlight there is Thyssenkrupp (+18,9%) which is negotiating with the German Government for a support worth 5 billions euros, overcoming the total market value of the company, Bloomberg declares.
The Government of the Chancellor Merkel expressed the desire to give financial assistance to the group which is in great difficulty, and to guarantee the future production of a kind of sustainable steel. Two billions dollar required by thyssenkrupp should be used as liquid assets while the residual 3 billions as subsidy. Moreover, Liberty Steel Group has recently made an offer to takeover thyssenkrupp steel activities.
Made in Italy
The positive trend for the Italian companies is still proceeding. Danieli is moving with +7,5% while Tenaris follows the rally with +13,9%. Danieli obtained one more commission for building an entire steel mill located in South Korea. Indeed, the Korean Kosco decided to entrust the Italian group to supply a new high-speed rolling mill for the production of steel bars in different dimensions. The rolling mill will be connected directly to a cast of Danieli at 5 lines, by the use of an induction heaters Danieli Automation Q-Heat.