ArcelorMittal Climbs on Signs EU Trade Case on Steel May Widenby
Wider anti-dumping probe would improve steel sentiment: RBC
Salzgitter rises, along with other gains in commodities
ArcelorMittal SA, the world’s biggest steel producer, climbed on speculation that the European Commission may extend its anti-dumping investigation on imports of hot-rolled coil to more countries.
ArcelorMittal shares added 6.6 percent to 4.31 euros as of 11:16 a.m. in Amsterdam, reaching the highest level in two weeks. The stock has rallied 12 percent in the past three days.
The European Commission has opened a probe into whether Chinese exporters of hot-rolled coil, used in everything from cars to construction, received trade-distorting government aid. The subsidy inquiry comes on top of a commission investigation begun three months ago into whether Chinese exporters sold this type of steel in the EU below cost, a practice known as dumping.
In a note released on Thursday, analysts at RBC Capital Markets cited reports from Steel Business Briefing that the European Steel Association petitioned the commission to widen its investigation, which could include Turkey, Russia, Brazil, Iran and Ukraine. The current probe is limited to Chinese suppliers, wrote RBC’s Ioannis Masvoulas.
“If confirmed, we see this as an incremental step forward, which should improve sentiment and underpin European HRC prices,” he wrote, using an acronym for the steel product.
RBC said Salzgitter AG, a German steel producer, and ArcelorMittal would benefit the most from a wider EU trade case. Salzgitter shares added 2.9 percent to 27.22 euros.
Metal producers also advanced amid a broader recovery in commodities today. All 12 companies in the FTSE 350 Mining Index climbed and industrial metal prices increased.