OAO Mechel, Russia’s largest maker of coal for steelmakers, plunged to its lowest price in two years in New York after the U.S. Federal Reserve warned of “significant downside risks” and a report said China’s manufacturing may shrink for a third month.
Mechel’s American depositary receipts fell 8.6 percent to $12.23, the lowest since Sept. 4, 2009, at 10:17 a.m. in New York. The shares dropped as much as 13 percent earlier in the day.
Mechel had fallen 14 percent from Sept. 16 through yesterday after delaying a plan to raise as much as $2 billion selling shares in a mining unit. The Moscow-based company cited unfavorable market conditions for its decision, three people with knowledge of the matter said.
China’s manufacturing may shrink for a third month in September, a preliminary index of purchasing managers from HSBC Holdings Plc and Markit Economics showed today. The Federal Reserve yesterday warned of weakness in the U.S. economy and said that it will replace $400 billion of short-term debt with longer-term Treasuries to spur growth as the recovery falters two years after the biggest slump since the Great Depression.