SSAB Jumps After China Data Lifts Steel Prices: Stockholm Mover
SSAB AB (SSABA), a Swedish steel manufacturer, rose the most in almost a year in Stockholm trading after China reported stronger than expected industrial production figures, sending steel prices higher.
The shares rose as much as 5.9 percent to 46.21 kronor, their steepest intraday gain since Sept. 14 last year. The stock added 3.4 percent to 45.13 kronor at 12:36 a.m. local time, valuing SSAB at 14.1 billion kronor ($2.17 billion).
China’s industrial output rose more than estimated in July, with factory production increasing 9.7 percent from a year earlier, adding to signs the Chinese economy is stabilizing after unexpectedly strong trade figures yesterday. China’s exports rose 5.1 percent in July from a year earlier, while imports gained 10.9 percent, the customs administration said yesterday. SSAB generated 6.7 percent of its sales in Asia last year, according to data compiled by Bloomberg.
Steel reinforcement-bar futures in Shanghai advanced for an eighth day to cap the biggest weekly gain in five as iron ore rallied. Rebar for January delivery on the Shanghai Futures Exchange rose 0.3 percent to 3,755 yuan ($614) a metric ton, the highest close for a most-active contract since April 12.
Separately, SSAB said today that it plans to raise its stake in a new Dutch company formed after Hardox Wearparts Center Geha Beheer BV buys Laverman Holding BV. SSAB, which currently holds a minority stake in Geha, is increasing its holding in the new company to 51 percent, the company said.
Geha-Laverman will focus primarily on demolition, waste management, scrap, sand and glass recycling, bulk materials handling, infrastructure and quarrying and have 46 employees.
“By combining Geha’s know-how regarding Hardox wearparts and Laverman’s focus on castings, a company is being formed that will possess broad expertise and a complete customer offering,” Chris Van Beurden, vice president of Wear Services EMEA at SSAB, said in today’s statement. “I see great opportunities for SSAB to further strengthen its presence in the region through an increased stake in the new company.”
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