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Nippon Steel's net loss forecast for the full year has increased to $446 Million
Nippon Steel, which had previously forecast a net loss for the 'financial period ending in March' of 70 billion yen (US$446.1 million), increased it on Thursday to 70 billion dollars due to an explosion at a blast-furnace. This was after the company experienced a profit in nine months up to December. Japan's largest steelmaker had previously anticipated a loss in the region of 60 billion yen due to charges related to an $15 billion deal to purchase U.S. Steel, which closed in June. Steel exports from China and sluggish demand in Japan will also affect the company's performance for the full year. Takahiko iwai, chief financial officer of Nippon Steel, said that the Muroran blast-furnace, which was shut down in December, will reopen in March. This is expected to reduce Nippon Steel earnings by about 40 billion yen. The company's net loss for the nine-month period ending in December was 45 billion yen, compared to a profit last year of 362.1 billion. Iwai stated that U.S. Steel is expected to perform better in the next fiscal year, as the U.S. market has recovered. However, he refused to provide a specific profit estimate. Nippon Steel's overseas operations, especially in the U.S.A. and India, continue to be key growth drivers. Iwai stated that the steel business in India saw a decline in margins, but it has recovered since December, when it 'bottomed out.' The company plans to increase capacity there. Sources told?reporters on Thursday that Nippon Steel is considering the sale of up to 500 billion yen in convertible bonds. The company?needs money for its overseas business as well as decarbonisation efforts. Sources said that the?company needs long-term financing to replace a loan taken out last year for its U.S. Steel purchase, which?totaled around 2 trillion yen. Iwai stated that Nippon Steel would proceed with the optimal funding options, as the bridge loan expires in June. He added that the funding has not been decided.
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TotalEnergies signs power contract for German and British Airbus sites totaling 3.3 TWh
By America Hernandez PARIS, February 5, 2019 - French oil giant?TotalEnergies signed two agreements to supply Airbus with 3.3 terawatt hours of electricity. The companies stated that this amount would cover half the sites’ power needs in the next decade. Germany and Britain are key growth markets for Total. Total is focusing on markets that have deregulated electricity markets, where it can own and build renewable assets and sell directly to clients. The company has a'strategy' that includes owning gas-fired plants and signing supply deals to provide continuous power sourced both from renewables and gas assets. These contracts, which are based on Total's integrated power portfolio, combining renewable and flexible assets will positively contribute to the profitability and growth of its?electricity businesses, Stephane Michel, Total President of Gas, Renewables and Power, stated in a press release. Total announced that a portion of the?power supplied to Airbus would come from new renewable assets with a?capacity of 200 megawatts. Total will start supplying the sites next year. These agreements will help Airbus to secure reliable low-carbon electricity, which supports our goal of increasing renewable?electricity throughout our sites, said Florent Massou Dit Labaquere. Airbus executive vice president, commercial aircraft operations. Total supplies sustainable aviation fuel to Airbus.
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Indonesia has the fastest economic growth in three years
Official data released on Thursday showed that Indonesia's economy grew at a faster rate than expected during the fourth quarter, largely due to strong household spending and investment. Southeast Asia's largest economy grew by 5.11% per year in 2025. This is up from 5.03% annually a year before. This was the highest rate of growth since 2022 but it is still below the 5.2% government target. Analysts say that he is facing a number of challenges, including a slowdown in international trade because of U.S. Tariffs and geopolitical tensions as well as internal factors such as the influx of refugees. Investor sentiment is deteriorating In 2025, the government increased fiscal stimulus to boost demand. It has vowed to remain on course this year. The central bank reduced interest rates between September 2024 to September 2025 by 150 basis points. Analysts predict that more reductions are likely. The growth rate in the fourth quarter was 5.39%, on an annual basis. This is the fastest pace since the third?quarter of 2022. A poll of analysts predicted 5.01%. Amalia Adininggar, Statistics Indonesia's chief Amalia Adininggar?Widyasanti, said that a 16,23 trillion rupiah stimulus package ($965million) in the fourth quarter had helped increase household spending. Investment was also a strong growth driver. FISCAL STIMULUS In addition to the rice distribution, the tax exemption for tourism workers was also included in the stimulus package. The October-to December quarter saw a 5.1% increase in household spending, which accounts for more than half the gross domestic product of Indonesia. This is the fastest growth in over two years. In 2025, spending by households grew at a rate of 4.98%, which is the highest growth since 2019. Investments grew at a rate of 5.09%, which was the highest growth since 2018. Krystal Tan of ANZ, an economist at the time, said that the domestic demand had rebounded by Q4 2025 due to the new fiscal policy stance after the September 2025 change in leadership within the Finance Ministry. Purbaya Yudhi Sadewa, an economist who favors growth and is pro-growth, was appointed Finance Minister in September. He replaced the fiscally conservative Sri Mulyani Idrawati. But Sri Mulyani's Sacked abruptly widening budget deficit The appointment of Prabowo’s nephew as the new governor of the central bank caused capital outflows and sent the rupiah down to a Historic low Last month, the dollar was down against the euro. The government is targeting a 5.4% growth rate in 2026. This will be achieved by increasing spending on Prabowo’s flagship programs and investing through the sovereign wealth fund Danantara. Brian Lee, an economist at?Maybank', predicted only a marginal improvement in 2026. Lee referred to the recent drop in Jakarta's major equity index, which was triggered by fears about transparency and liquidity. Analysts said that Prabowo’s crackdown on resources, including his takeover of Martabe Gold Mine in disaster-hit North Sumatra could also weigh on investor sentiment. DATA VERACITY Some economists have questioned the veracity?of GDP data by pointing out Tax revenues in 2025 and other indicators Flat growth in foreign direct investment. Rizki Siregar is an economist at the University of Indonesia. Nailul Husa, an economist at the Center of Economic and Law Studies said that there was a discrepancy in data about high net exports for 2025 and the strong investment growth resulting from imports of machines. There are several local think tanks Last year, the GDP data for the third quarter was also questioned, as it didn't reflect factors like a decline in auto sales, a contraction of manufacturing activity, and reports of job losses.
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Portugal reports direct costs of Storm Kristin exceeding $4.7 billion
Portugal will face direct reconstruction costs of more than 4 billion euros ($4.7 billion) following the devastating storm Kristin last week, Economy Minister Manuel Castro Almeida said. He cited preliminary government estimates. The direct costs of reconstruction after last week's storm Kristin are estimated to be more than 4?billion euros ($4.7? He told RTP that the indirect costs, such as the disruption of supply chains in the industry, would be more than 4 billion Euros. He said that "several business owners are planning to build completely new factories, as their existing?factories are unusable. Recovery could take several months." Social Security will cover 80% of the wage and companies 20% to avoid job losses during reconstruction. Six people were killed and homes and factories damaged by the storm that swept through central Portugal on 31st January. The storm had winds of up to 200 km/hr and heavy rains. Leiria, and Marinha Grande were among the worst-hit areas. On Sunday, the government approved a package of 2.5 billion euros in loans and incentives to help businesses and people rebuild their lives after Hurricane Sandy. In the last few weeks, the Iberian Peninsula was hit by a series of storms that brought heavy rain, strong winds, and snow. Now, it is being pounded by Storm Leonardo. Reporting by Sergio Goncalves, Editing by William Maclean. $1 = 0.8471 Euros
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Greenpeace protests in Milan when the Olympic torch arrives
Greenpeace, an environmental group, staged a demonstration in front of Milan’s main cathedral Thursday. This was the day that the Olympic torch had arrived in the city. The installation showed the Olympic rings dripping with black oil. It was a visual denial of the companies that it accused of contributing to global heating and endangering winter sports which depend on cold temperatures. One of the banners posted in front of Milan’s Duomo Cathedral (cathedral), in the middle of the city, read: "Kick Polluters Out of the Games." Greenpeace has called on the organisers of Milano Cortina to break ties with Eni after it filed a lawsuit over climate change. The report argues that Eni's fossil fuel operations undermine efforts to protect snow-based sports as temperatures increase. Winter Olympics is scheduled to take place from February 6 through 22. Eni, a state-controlled company, is one of the Games’ top domestic sponsors. Eni stated that it "shares" the importance of addressing the climate change and will continue to invest in the energy transition as part of its goal of reaching net-zero emission by 2050. The Olympic flame reached northern Milan on Thursday after it began its journey across Italy. It was lit in Rome in December. Eni's headquarters was to be passed by later in the day. The torch was designed to create excitement in Italy ahead of the Games 2026. It has now travelled through 110 Italian provinces. Gazzetta Sport reported that the Olympic ski champions of Italy, Alberto Tomba and Deborah Compagnoni, will light the cauldrons on Friday. (Reporting and editing by Keith Weir, Giselda Vasgnoni)
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Anglo American cuts its 2026 copper production guidance by 10% and reports a 10% decline in copper output for 2025
Anglo American, a global miner, announced on Thursday a 10% decline in its?copper output last year, to 695,000 tons. This is the lower end of their guidance. They also cut their 2026 forecast for?the transitional metal. The London-listed company now expects copper production in 2026 to range between 700,000- 760,000 tons. This is down from the previous forecast of 760,000-820,000 tonnes, due partly to lower production at its Chilean mine, Collahuasi. Anglo expects to record charges of around $200 million for the second half 2025 in relation to "rehabilitation provisions" at its Chile copper operation. The London-listed company announced in September a plan to merge with Canada's Teck Resources for $53 billion, all-stock and no-premium. This would make the miner the fifth largest copper producer in world. The metal is used in electric vehicles and renewable energy infrastructure. Both companies have been undergoing significant restructuring in the last few years, largely due to previous takeover attempts. Anglo has refocused on copper and ore while trying to sell or spin-off its struggling De Beers business as well as its nickel and metallurgical coke assets. All of these divestments have not yet been completed. Duncan Wanblad, CEO of the company, said in a Thursday statement that he was "committed to see our portfolio transformation to its conclusion". He added that each sale or separation process would be progressed. Anglo has said that it is reviewing the value for the De Beers diamonds after the 2025 production of rough?diamonds dropped by 12%, to 21.7 millions carats. It has lowered its 2026 production forecast to a range between 21 million and 26 million carats from 26 million to 29, as the demand is low and inventories are high. De Beers is also expected to report a loss by 2025. Anglo will announce its financial results for 2025 on February 20, 2019.
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ArcelorMittal South Africa reduces its loss after closing long-stack steel operations
ArcelorMittal South Africa announced?on?Thursday that it had narrowed its loss for the full year by 34% due to lower raw material prices and after closing down its money-losing, long steel business. Sub-Saharan Africa’s largest steelmaker reported a headline loss in the year ending December 2025 of 3.355 billion Rand ($207.86million), compared to a loss of 5.1 billion Rand the previous year. South Africa's unit of global steelmaker ArcelorMittal is struggling with a weak local market, high electricity prices and competition from mini-mills for recycling scrap metals in the country as well as imports from China. ArcelorMittal South Africa's Luxembourg-headquartered parent company, however, on ?Thursday reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $1.59 billion for ?the fourth quarter, beating analysts' ?average estimate of $1.51 billion. The South African unit reported that its crude steel sales and production were down by 12%, to 2.3 and 2 million tons respectively. The realised steel price was 5% lower, in rands and 3% less in dollars. ArcelorMittal South Africa shut down its long steel plants last year to reduce losses. In its results announcement, the company said that long-steel operations had a neutral impact on?EBITDA for 2025 after a loss of 1.7 billion rands in 2024. The company confirmed the date of January 22. With the state-owned Industrial Development Corporation, that could lead to a possible transaction. Bloomberg reported that ArcelorMittal South Africa, whose?second largest shareholder is IDC with 8.2% of the shares, had re-opened talks after the initial negotiations. Stalled Last year, there was a valuation. ArcelorMittal South Africa stated that the discussions are continuing and will shape its outlook in 2026, if successful.
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Sources: Nippon Steel is considering a convertible bond issue of $3.2 billion, according to sources
According to two sources familiar with the matter, Nippon Steel, Japan's largest steel company, is considering the sale of up to?500 billion yen ($3.2billion) in convertible bonds. This would be a transaction of unprecedented size in Japan. Sources said that the steelmaker was considering making a decision this month. They declined to name them as the information wasn't public. Reporting the potential issuance for the first. Nippon Steel stated in a press release that nothing had been decided. Following the release of this report, the company's shares fell by 2%. According to LSEG, at 500 billion yen the convertible bond issuance would be largest of its kind in Japan. One source said that the issuance amount could be reduced, or the plan could be re-evaluated. Sources said that Nippon Steel prefers to issue the convertible bonds in order to avoid a capital raise which would result in immediate share dilution. Also, as domestic interest rates are rising, they can be issued as zero-coupon bond. At a set price, convertible bonds can be turned into shares. The steelmaker needs capital to expand its overseas business, including in the U.S.A. and India?and for decarbonisation efforts. Sources?stated that the company needs long-term financing to replace a 2 trillion yen bridge loan taken out last year for its acquisition by U.S. Steel. Steelmaker's performance has declined due to tariffs imposed by President Donald Trump on imports of steel and the competition from Chinese exports. Sources also claim that the Japan?Bank of International Cooperation (JBIC) is looking at lending Nippon Steel funds totaling approximately 1 trillion yen (6.37 billion dollars). JBIC stated in a press release that it would not be commenting on specific cases.
Iron ore prices slip on high inventories despite steady production
Iron ore futures fell on Thursday as inventories were high, indicating a steady production of blast furnaces.
The most traded May iron ore contract at China's Dalian Commodity Exchange ended the daytime session down 1.73%, closing at 768.5 Yuan ($110.72), a metric tonne. This was?the fourth consecutive session of decline.
As of 0707 GMT, the benchmark March iron ore on the Singapore Exchange had fallen by 1.71% to $100.75 per tonne.
Data from the Shanghai Metals Market, released on Wednesday, showed that the blast furnace utilization rate increased slightly, and daily hot metal production increased by?21,000 tonnes week-on-week.
Iron ore inventories were high, and most steel mills had completed their pre-Lunar New Year stocking.
Prior to the Lunar?New?Year, a number of electric-arc furnaces in Anhui and Yunnan - Guizhou have scheduled maintenance. Profitability concerns are driving them to restart production sooner than expected.
Coking coal and coke, which are both steelmaking ingredients, were down by 2.25% and 0.77 percent, respectively.
The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell by 0.29%; hot-rolled coils dropped 0.4%, and wire rods lost 1.1%. Stainless steel, meanwhile, rose by 0.69%.
(source: Reuters)