Cargill is considering selling its steel trading division – Reuters

Cargill, one of the world’s largest commodity traders, is in talks to sell its steel trading division to Australia’s Macquarie Group. Reuters reported this, citing several sources familiar with the matter.

The company is seeking to focus on its core business in food and agriculture.

The sale has not yet been announced, and insiders have not disclosed further details regarding the negotiations, which do not guarantee a deal. The parties did not provide comments to the agency.

According to the company, Cargill’s metals division, headquartered in Singapore, trades between 60 and 70 million tons of iron ore and 4 million tons of steel annually.

The potential spin-off comes amid uncertain prospects for iron ore prices due to falling demand in China. The presence of state-owned buyer China Mineral Resources Group in the country also reduces the volatility that traders profit from.

Cargill exited the physical steel trading business in China in 2024, as demand there fell due to a prolonged slowdown in the real estate sector. At the same time, the corporation reorganized its business from five to three divisions: food, agriculture and trading, as well as a specialized portfolio.

As a reminder, the American company Worthington Steel has completed a voluntary public tender offer to acquire Klöeckner & Co S after fulfilling all closing conditions. Worthington expects this deal to expand its product portfolio, diversify its end market, and strengthen its geographic presence.