Latest News
-
Minister says India is considering a temporary tax on imports of cheap Chinese steel
H.D. Steel Minister H.D. Kumaraswamy said that India could implement a temporary import tax of 15-25% in six months due to the "serious threat" to local producers from low-cost imports. Kumaraswamy stated. In an interview given late Tuesday, Kumaraswamy said that "rising Chinese steel imports are a major challenge for Indian manufacturers." "The government remains resolute to protect the Indian steel industry", Kumaraswamy said. New Delhi started an investigation in December to determine whether it should impose a temporary duty known locally as a "safeguard duty" to reduce steel imports. It could be in place for up to two years if adopted. The minister stated that "based on ongoing investigations, safeguard duty in the range 15-25% is being considered to ensure fair competition and level playing fields" as well as prevent unfair competitors. India became a net exporter of finished steel during the fiscal year that ended March 2024. Shipments from China also reached record levels between April and December. In the fastest growing major economy in the world, steel prices are down despite a robust local demand. As a result, some of India's smaller textile mills had to reduce their operations and even consider job reductions as a consequence of the recent import surge. Insiders in the industry say that President Donald Trump's steep tariff increases on imports of steel could worsen the problem as exporters may look to ship instead to India. South Korea and Japan may increase their import pressure in FY2026, as they seek alternative markets for the cargoes that were previously American. The pressure can be exerted on domestic steel prices and further reduce the earnings of the industry in FY2026. India's exports of steel have also fallen in recent months. This is primarily because global demand has been sluggish. It has exacerbated the problems faced by India's largest steelmakers, such as JSW Steel and Tata Steel. JSW Steel India's largest steelmaker reported last month a decline in profit from October to December, its third fiscal quarter, that was larger than expected. The government has been working to expand market access, Kumaraswamy stated, referring to India's efforts in finding new markets for steel. He said that India wanted to sell its high-quality steel to Africa and the Middle East. The price of high-grade steel is higher, and competition from China has lessened. Kumaraswamy stated that India also seeks to diversify its sources of raw materials for steel production, such as coking, by looking at Canada, Russia and other countries, including Mongolia, Mozambique and the United States. Australia accounted for about 80% all coking coal shipments to India during the past decade. In 2024, its share fell to 62% as the U.S., Russia and Mozambique supplied coking coal to India. The Minister also announced that the government will launch a programme of incentives linked to production in order to promote low-carbon steel production. The minister stated that India's steel sector would need to invest an estimated $20-25 billion in order to decarbonise. This transition will be funded by green bonds, public-private partnerships and concessional financing. (Reporting and editing by Kate Mayberry; Additional reporting in Bengaluru by Manvi Pan; Reporting by Neha Bhardwaj, Mayank Bhardwaj).
-
Officials in Russia say that Ukrainian drones have hit a city near the Zaporizhzhia Nuclear Plant.
The regional governor, who is based in Moscow, said that Ukrainian forces carried out a drone strike on Enerhodar on Wednesday near the Zaporizhzhia Nuclear Power Plant held by Russia. The management of the plant said that no safety violations had been recorded. The message said that the radiation background is normal at the site as well as in the observation area. The drones struck a carpark about 300 metres from one of the reactors at the plant, wrote Governor Yevgeny Balitsky on Telegram. The report could not be independently verified. Ukraine has not yet commented. Russian forces took over the largest nuclear power plant in Europe, shortly after President Vladimir Putin's troops entered Ukraine in February 2022. The six reactors are all in "cold shut down" mode to reduce the possibility of an accident. Russia and Ukraine accuse one another of shelling the plant as well as the surrounding area. The International Atomic Energy Agency, the U.N.'s nuclear watchdog has placed permanent monitors on the site. It also urged both sides not to attack it. IAEA chief Rafael Grossi warned that attacks on the plant have increased. He added that it is impossible to determine who was responsible by studying the fragments of drones. (Reporting and Writing by Lucy Papachristou, Editing by Marktrevelyan & Gareth Jones).
-
German Spot on Drop in Renewable Supply
The German spot electricity price for the day after rose on Wednesday, as it was anticipated that wind and solar energy supply would fall, while demand would increase. By 0905 GMT, the German baseload electricity for Thursday had risen 8.2% to 164 Euros ($170.07) per Megawatt Hour (MWh). The French power price for the day ahead rose by 1.5%, to 153 Euro/MWh. LSEG data indicated that the German wind power production was expected to fall by 6.7 gigawatts on Thursday, to 11.5 GW. Meanwhile, wind energy in France should increase by 520 Megawatts (MW), to 2.5 GW. The data revealed that the German solar power output was expected to fall by 1.4 GW - 2.5 GW. Naser Hashemi, LSEG analyst, said that "residual loads are increasing (on Thursday in Germany) because of a combination between lower wind and solar output and higher consumption." The French nuclear capacity has increased by two percentage points, to 84%. LSEG data shows that power consumption in Germany will increase by 1.3 GW this Thursday to reach 64.8 GW. In France, it is projected to drop by 930 MW at 63.7 GW. The German baseload year-ahead contract fell 0.2% to 100.05 euros/MWh, while the French baseload 2026 contract was not traded with a bid of 72.65 euro. The benchmark European carbon permits fell 0.7% to 81.91 euro per metric ton. Equinor, following a sudden shutdown on the previous day, has partially restored production at the giant Johan Sverdrup field in the North Sea. The company is now working to achieve full capacity. (Reporting and editing by Mrigank Dahniwala; $1 = 0.9643 euro)
-
Vitol CEO: European LNG prices have reached levels that will affect demand
The European price of liquefied gas (LNG), currently trading at a premium compared to Asia, is reaching levels which will begin to hurt demand, said the CEO of global energy and commodities firm Vitol on Wednesday. "Europe is attracting more LNG, and the European price now exceeds the Asian price." Russell Hardy, speaking at the India Energy Week in New Delhi, said that it is usually the other way around. The higher European prices and lower temperatures have led to a greater demand for LNG in the region. Hardy stated that Europe will have sufficient gas to replenish its gas stocks, but added government intervention would be necessary to ensure adequate winter LNG supplies. "We have a very unique situation, where the market for gas is in reverse going into the summer. So the price is higher for the summer than the price of January next year." "That's counter-intuitive for a market based on winter," he said. As Europe's demand in winter is usually higher than that of summer. "So, you have this imbalance. The European Union is concerned with winter supply. Keeping people warm is also a priority. There's a worry today that this won't be possible without some force. This instruction is being developed in the EU, and will likely come with incentives, subsidies or negative-priced storage." Gas Infrastructure Europe reported that Europe's gas storage tanks are 48.48% filled, compared to 67% last year. Hardy said that while global LNG supply is "tight" at the moment, he doesn't expect any new policies from the top-producing country of the United States will change the global LNG supply balance. He added that 200 million new tons of LNG will be available on the market in the period 2028-2031. He said that the U.S. policy changes may not have a major impact on the balance of the United States by 2030, but could affect it in the next 10 years. (Reporting and writing by Emily Chow, New Delhi; editing by Himani Sarkar & Kim Coghill).
-
The Chinese demand for iron ore is expected to rise due to the supply problems in Australia
Iron ore futures recovered on Wednesday, as investors focused their attention on concerns about potential supply disruptions by major producer Australia, and the prospect that demand will grow in China's top consumer. The new tariffs announced by President Donald Trump, which go into effect on March 12, have caused prices to fall by more than 1 percent. Trump raised the tariffs on imports of steel and aluminum to a flat rate of 25% on Monday, "without any exceptions or exclusions", in an effort to help struggling industries in the U.S. while risking a trade war on multiple fronts. The May contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 0.91% higher at 828.5 Yuan ($113.36). The benchmark March Iron Ore at the Singapore Exchange increased 1.8% to $107,8 per ton. This is the highest price since October 14, 2024. Investors' concerns about supply disruptions have been rekindled after Western Australia's Port Hedland - the world's largest export point for iron ore - will close at 6 pm (1000 GMT) because of tropical cyclone Zelia. This has boosted investor sentiment and lifted prices. Analysts said that the rising expectations for demand and a more favourable weather climate were supporting prices. CITIC Futures reported that hot metal production, which is typically used to gauge demand for iron ore, will increase steadily after the week-long Lunar New Year holiday in China. This will be boosted by relatively good profitability. Trump's advisers on trade were still finalising plans for reciprocal tariffs on Wednesday, further inflaming trade war fears following his decision to increase tariffs for aluminium and steel. Coking coal and coke, which are both steelmaking ingredients, fell by 0.22% and 0.58 %, respectively. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Hot-rolled coils gained 0.15%, rebar fell 0.3%, and stainless steel dropped 0.53%. ($1 = 7.3088 Chinese Yuan) (Reporting and editing by Amy Lv, Michele Pek)
-
Voestalpine reduces profit forecast, hit by the weak automotive market in Europe
The Austrian steelmaker voestalpine reduced its core profit forecast on Wednesday, after the metric fell by almost a third during its third fiscal quarter. This was largely because of weakness in Europe and in particular the automotive and construction industries. The company, which supplies steel primarily to the automotive industry, said that Europe remained its most difficult market in the current year. German automakers, such as Volkswagen, are facing increasing competition from Chinese automakers in China due to the weakening demand and rising costs. Voestalpine, the biggest of the four steel divisions based on revenue, said that the demand for volumes dropped rapidly and dramatically after the profit warnings from car manufacturers. The report noted that the price of steel in Europe has fallen steadily in the first nine-month period of the fiscal year, which runs until March 2025. Speciality Steelmaker reported a 32% decline in earnings before interest taxes, depreciation, and amortization (EBITDA), to 250.3 millions euros ($259.2million) in the third quarterly, slightly below the analysts' median estimate of 258.8million euros. It has lowered its EBITDA forecast for the year to around 1.3bn euros, down from about 1.4bn euros. Voestalpine said that it does not expect any recovery in Europe's automotive, construction, mechanical and consumer goods industries in the fourth quarter. It only sees a restocking of individual segments. It sees mixed prospects for its second-largest market, the United States, Mexico, and Canada. Voestalpine stated that the tariffs announced on steel products have created uncertainty for exports to the USA, but it added that its North American locations should benefit from the good economic momentum. The European Union, Mexico, and Canada all condemned the move by Donald Trump, U.S. president, on Monday. $1 = 0.9656 Euros (Reporting and editing by Milla Nissi in Gdansk)
-
Thames Water to be investigated by UK's Ofwat over environmental delays
The British water regulator Ofwat announced that it would investigate Thames Water for delays in hundreds of environmental improvements. It will determine if the struggling utility has breached their obligations, which could lead to fines. The regulator stated that Thames Water committed to deliver 812 schemes for environmental improvements over the period 2020-2025 but informed it recently it was unlikely to deliver them all on time. It announced on Wednesday that it would be opening an enforcement case. If found to be at fault, the company could face a fine of millions of pounds. Thames, the largest water provider in the UK, has a total debt of 18 billion pounds ($22,4 billion). It is currently waiting for the court to grant a debt-lifeline. Otherwise, it will be out of money by the end March. The water industry in Britain is under fire for dumping sewage into rivers and oceans. Profits are allegedly being put before the environment. Lynn Parker, Ofwat's senior director, said: "The customers have paid Thames Water for these important environmental schemes." We take very seriously any indications that water companies may not be meeting their legal obligations. Ofwat said that opening a case does not mean that the company has breached their obligations. It will publish its findings once an investigation is completed. In August last year, Ofwat suggested fining Thames Water for failing to manage their wastewater and treatment facilities following an earlier enforcement case.
-
India's palm oils imports fall to a 14-year low, as soyoil prices rise
A leading trade group said that India's palm-oil imports fell in January to the lowest level in 14 years, as refiners switched to soyoil because of its lower price, due to negative margins on palm oil. The lower palm oil imports from India, which is the largest buyer of vegetable oil in the world, will likely weigh on Malaysian palm oil benchmark prices and support U.S. soybean oil futures. Solvent Extractors' Association of India reported that palm oil imports fell 45% in January compared to December, reaching 275,241 metric tonnes, the lowest level since March 2011. According to the SEA, India imported more than 750,000 tonnes of palm oil per month on average in the marketing period that ended October 2024. Palm oil is usually sold at a lower price than soyoil or sunflower oil. However, falling stocks of palm oil have pushed its prices higher, surpassing rival oils whose supplies are plentiful. The industry association reported that imports of sunflower oil rose by 8.9% in January to 288,284 tonnes, while soyoil imports increased 5.6% in January to 444 026 tons, which is the highest level in seven months. The country reported that lower palm oil shipments reduced total vegetable oil imports by 14.8% in January to 1 million tonnes, the lowest level in 11 months. The SEA reported that the drop in imports of vegetable oil over the past few months has lowered the vegetable oil inventories at the beginning of February to 2,18 million tons, the lowest level since April 2022. Rajesh Patel, managing partner of GGN Research and an edible oil trader, says that palm oil imports will likely increase slightly in February, but remain below normal. He predicted that soyoil exports would fall in February, while sunflower oil imports may rise. India imports soyoil, sunflower oil, and palm oil mainly in Indonesia, Malaysia, and Thailand. It also imports soyoil from Argentina, Brazil and Ukraine. (Reporting and editing by Christian Schmollinger, Barbara Lewis and Anushree Mukherjee in Bengaluru.
BHP names Ross McEwan as the new chairman to replace Ken MacKenzie
BHP, world's largest listed mining company, announced on Wednesday that Ross McEwan, former CEO of National Australia Bank, will be its new Chairman, replacing Ken MacKenzie who is stepping down on March 31, 2019.
McEwan's new position will include overseeing BHP’s selection of the next CEO. He may also be asked to decide whether BHP should revive plans to purchase rival Anglo American following a failed $49 billion bid last year.
McEwan is a nonexecutive director of BHP, since April 2024, after spending five years as the CEO of NAB, Australia’s second largest bank and its largest business lender. He was also the head of Royal Bank of Scotland.
After a damaging Royal Commission inquiry into poor business practice in 2019, the New Zealand-born NAB CEO was appointed. He was widely credited with revitalizing NAB's reputation with investors through a simplification program.
He is currently the director of QinetiQ Group, a defence technology company.
McEwan will likely oversee the process to find a successor for BHP CEO Mike Henry, who is about to enter his fifth year in that position. The average tenure of the top job is six years.
MacKenzie has been with BHP since 2009 and chair of the company for eight years. He was responsible for BHP's failed bid to acquire Anglo, BHP’s recovery from the Samarco Dam disaster in Brazil, unification of the structure into a single Australian listing and the approval of major investment in Canadian Potash.
Andy Forster, of Argo Investments Sydney said: "I think he has done a great job in that time." "He brought a lot of operating discipline, and was really focused on capital allocation and returns."
Two other investors, who weren't authorized to speak with the media, believe that MacKenzie stepping down has probably reduced the likelihood of BHP launching another attack on Anglo.
MacKenzie said at the annual general meeting of BHP on 30 October that the company had "moved forward" in its pursuit of Anglo. However, the company later retracted this statement when it filed a regulatory filing. (Reporting by Melanie Burton in Melbourne. (Byron Kaye and Rishav chatterjee contributed additional reporting from Sydney and Bengaluru, respectively; editing by Savio D’Souza and Jamie Freed).
(source: Reuters)