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Steel Dynamics reports disappointing quarterly results for raw material costs
Steel Dynamics reported second-quarter earnings below Wall Street expectations on Monday, due to rising raw material costs and the uncertainty surrounding U.S. Trade Policy. After hours, shares of the Fort Wayne-based company dropped more than 4%. Tariffs imposed by President Donald Trump on steel imports will benefit U.S. Steelmakers, as they will increase prices. However, the tariffs could also raise raw materials costs. In a statement, CEO Mark Millett stated that "the uncertainty surrounding trade policy continues causing hesitancy among customer order patterns in our businesses despite the healthy demand factors underlying." We are confident that, as trade policies and individual country agreements are settled in the next few months, a strong demand for our products is likely to result. Steel Dynamics has also confirmed that it has an overhang of coated flat-rolled products because of imports. LSEG data shows that the company's adjusted second-quarter profit per share of $2.01 was below the analysts' expectation of $2.10 The quarter ending June 30 saw revenue of $4.56 billion. This was below the $4.76 billion Wall Street expected.
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Trump's staff cuts are forcing firefighters to clean toilets as US wildfires rage.
Former and current employees of the U.S. Forest Service have complained that the Trump administration has reduced the federal workforce, leaving fire teams understaffed. This is as the U.S. struggles with a record number of wildfires this year. These claims were rejected by the agency that oversees America's largest wildland-firefighting force. It said it had sufficient resources. More than a dozen U.S. Forest Service active and retired employees said the agency was struggling to fill key roles after about 5,000 employees, or roughly 15% of their workforce, quit in the last five months. According to firefighters in Oregon, New Mexico and a Pacific Northwest fire chief who recruits support staff, the vacancies are causing personnel to be held back in frontline firefighting due administrative duties. The crew leader of an Oregon fire said that her team was left without food for days, medical supplies and chainsaw fuel, after the support staff had quit during two rounds "forks in the road" buyouts. The crew leader of the Alder Springs Fire said, "I had guys going to bed after working 16 hour shifts," and asked to remain anonymous for fear of losing their job. National and local USFS officials, however, say that the force is prepared for what will be a fire year worse than average in California, the Pacific Northwest and the northern Rockies. This is according to National Interagency Fire Center predictions. Isabella Isaksen is the USFS Public Affairs Officer who represents USFS Operations in Central Oregon. She said, "Our staff are very confident about our staffing levels as we enter this fire season." Isaksen explained that the food issues on the Alder Springs Fire was due to a newly hired caterer, and they were quickly fixed. She said that medical supplies, chainsaws, and other equipment were readily available at the 3,400-acre fire, which prompted evacuations in both counties. They are ready The Trump administration has pledged to not cut firefighting jobs and other public-safety positions in firings and voluntary resignations. They also promised to take early retirements to increase efficiency at the USFS. This agency manages roughly 193 million acres (78 million ha), which is the same size as Texas. USFS employees interviewed for this article said that the loss of thousands foresters, biologists and trail builders was having an impact on firefighters. These people claim that not only do firefighters have to fill vacant positions at ranger station, but also they are losing hundreds of their peers who switch from regular jobs each year to firefighting support roles in the fire season which runs from spring until fall. USFS Chief Tom Schultz told agency managers on Wednesday to make available all the "red-carded", fire-qualified staff for an "extremely difficult" fire year. This memo was seen by. Wildland firefighters were called out to 41,000 fires in the first half of this year, which is by far the most since federal data dating back at least to 2015. Year to date, wildfires have consumed 2.9 million acres, which is below the 10-year-average of 3.3 millions acres. Last month, Schultz said to a U.S. Senate Committee that he wanted to temporarily hire 1,400 support staff with "red cards" who had taken buyouts. Schultz replied, "I believe they are prepared," when asked if the fire-year 2025 was ready. FIREFIGHTERS mow the lawns In June, Agriculture Secretary Brooke Rollins who oversees USFS said at a gathering of Western state Governors in New Mexico, that the agency is on track to hire 11,300 firemen by mid-July. This will be a record number compared to the hiring in the previous three years. According to the latest USDA data, as of June 29, 11236 people, or 99%, had been hired. This is slightly lower than last year. The USDA denied claims that staff shortages endanger communities, forests and firefighters. A USDA spokesperson stated that any suggestion of firefighting duties being deferred or given less priority is incorrect. This is not a second mission. It is at the heart of our work in public safety, and each decision reflects this urgency. New Mexico U.S. Senator Martin Heinrich criticized Trump's administration for firing and rehiring 3,400 USFS probationary employees, of which three quarters were red-carded. He also criticized its agency-wide buyouts, and what he described as its indiscriminate staff hiring practices. Heinrich stated in an email statement sent on July 11 that "Wildfire Season is well underway and the U.S. Forest Service has been gutted thanks to DOGE, Donald Trump and their policies." The Forest Service claims it doesn't have enough wildland firefighters to deal with the "wildfire crisis" in the United States and relies on "red-carded employees" to "boost firefighting capability." Forest Service employees are not the only ones who see problems. Steve Ellis, Chairman of the National Association of Forest Service Retirees said that his checks with Oregon fire staff revealed no reports of firefighters being hungry or having other support issues. Riva Duncan, an officer assigned to a New Mexico fire, told reporters that even firefighters are being used to fill in the gaps created by job losses. This is exacerbating the long-standing shortage of personnel who can operate fire engines. They're answering the phones at the front office, cleaning toilets in campgrounds, or mowing lawns at administrative sites," Duncan, a retired USFS Fire Chief who reenlists every fire season, said. Duncan also helps run Grassroots Wildland Firefighters - a federal firefighter advocate group. Fire staff officers in the Pacific Northwest reported that managers had told support staff they must first meet Trump's targets for increased oil and gas production and timber sales, which are higher than ever. The fire chief who requested anonymity for fear of reprisals said, "They claim we get all we need but in reality it's not even close." (Reporting by Andrew Hay; Editing by Donna Bryson and Diane Craft)
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Merz: Berlin is still interested in TenneT German business
The German Chancellor Friedrich Merz stated on Monday that the government has not yet decided if it will take a stake of the German division owned by the Dutch state-owned power grid operator TenneT. He also said the Netherlands and Germany were still in discussions. The Netherlands announced last month that it would decide in September if it wanted to sell a minority stake in TenneT Germany, or pursue a partially IPO. This could be Europe's largest deal in 2025. After a failed partial sale of TenneT Germany to the German state lender KfW in June last year, the Dutch government began a dual-track process. Merz stated in a joint press conference with Norwegian Prime Minster Jonas Gahr Store that "the discussion within the federal governments is currently underway and has not been concluded." The Norwegian sovereign wealth fund, according to Handelsblatt, which cited sources familiar with the issue, is looking at a multi-billion-dollar investment in TenneT Germany. Store, when asked if he would support it, said that the fund has already made "significant investments" in German companies. Store stated that there are numerous opportunities to invest in Germany. (Reporting and editing by Marguerita Chôy)
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The Lindsey refinery in Britain will close after no buyer is found
Michael Shanks, the Energy Minister of Britain, said that no buyer had been found for Britain's Lindsey insolvent oil refinery. After its owner Prax went bankrupt at the end last month, the refinery was handed over to an official receiver. Shanks stated that "after a thorough evaluation to determine if a sale is possible, there have not been any credible offers to buy the refinery and it will wind down operations." Lindsey, one of the five remaining refineries in Britain with a daily capacity of 113,000 barallons, is one of only five refineries left. FTI Consulting is the special manager of the refinery during the insolvency procedure. It employs about 420 people. Shanks condemned the "untenable situation in which the owners have left Prax Lindsey Oil Refinery" and called for the refinery's owners to "do what is decent and publicly commit themselves to make a voluntary financial commitment to support the workers". Prax, headed by Sanjeev Soosaipillai as Chairman and CEO, was not available for immediate comment. After the announcement of insolvency, fuel deliveries were resumed by the refinery. It had been able secure crude supplies that prevented immediate closure. All direct employees at the refinery will be guaranteed employment in the next few months, according to the energy minister. He said that the official receiver continues to seek buyers for individual assets within the Prax Group. (Reporting and editing by Tomasz Janowski, Jan Harvey, and Robert Harvey)
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Alteia, a French AI company, will be acquired by GE Vernova for the purpose of enhancing AI tools in utilities
GE Vernova, a maker of power equipment, announced on Monday that it would buy Alteia in France, a company that makes artificial intelligence tools for utility companies. GE Vernova offers Alteia software through GridOS Visual Intelligence. The tool allows utilities to assess damage along electrical lines and inspect assets. GE Vernova stated that the acquisition would enhance the system by providing visual and operational data. This will allow the companies to “see and feel” the grid. The financial terms of the purchase, which is expected on August 1, were not disclosed by the company. Christopher Dendrinos, an analyst at RBC Capital Markets, said that GE Vernova had highlighted the fact that growth could accelerate in its electrification-software segment, which includes GridOS. He said that the segment has grown at single-digit percentage rates over the last two years. GE Vernova has seen its stock rise since it was spun-off from General Electric in 2017. The surge in power demand for data centers that use AI and cryptocurrency technologies is a major factor. This year, the power demand will be at an all-time peak. The company will release its second quarter earnings report before the bell on July 23, 2018. (Reporting and editing by Sahal Muhammad in Bengaluru, with Sumit Saha from Bengaluru)
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Due to repairs, Nornickel has cut its nickel and palladium production forecast for 2025.
Russia's Nornickel, one of world's biggest nickel producers, and the largest palladium producer, lowered Monday its 2025 nickel forecast to 196,000-204,000 tons. The previous guidance was 204,000-211,000 tonnes. The company has also revised down its palladium production forecast, expecting now between 2.677-2.729 million pounds compared to the previous 2.704-2.756,000 pounds. In a press release, Nornickel Senior Vice President Alexander Popov stated that "a series of major repairs are scheduled for the second part of the year in order to improve the reliability and operation of new mining equipment substituted by imports." The forecasts for nickel, copper and platinum group metals are virtually unchanged compared to the previous forecasts. The copper production is forecast to be between 343,000 and 355,000 tons instead of the previous range of 353,000-373,000. Nornickel has also released its operational results for the second quarter. The nickel production was 45,000 metric tonnes, an increase of 9% on the previous year, while palladium production reached 658,000 ounces. This is a 11% decrease. (Reporting and writing by Anastasia Lyrchikova; editing by Mark Trevelyan).
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As dollar and yields are easing, gold gains more than 1%.
Gold prices rose over 1% Monday, as the dollar and U.S. bonds yields fell amid uncertainty about trade talks in advance of an August 1 deadline for U.S. countries to reach agreements or face additional tariffs. At 9:52 ET (1350 GMT), spot gold rose 1.2% to $3,390.79 an ounce. U.S. Gold Futures rose 1.3% to $3.402.40. The U.S. Dollar Index was down by 0.4%. This made dollar-denominated Gold more affordable to buyers who use other currencies. Meanwhile, benchmark yields on 10-year U.S. Treasury notes hit a record low. David Meger is director of metals futures at High Ridge Futures. According to EU diplomats, the European Union is looking at a wider range of counter-measures that could be taken against the United States as prospects for a trade agreement acceptable with Washington are fading. According to the CME FedWatch tool, traders have priced in a 63% probability of a rate reduction in September. U.S. Treasury secretary Scott Bessent stated that the Federal Reserve as an institution needed to be examined and whether or not it was successful. Meger says that speculation about a rate cut earlier than expected in the U.S. is increasing, and that speculations around a possible Fed Chair Jerome Powell replacement or reshaping the Fed are adding to market anxiety. Gold is a hedge for uncertainty, and it tends to do well in an environment with low interest rates. China, the largest gold consumer in the world, imported 63 metric tonnes of the precious metal during the month of June, the lowest since January. In June, its imports of the precious metal fell by 6.1% compared to the previous month. Silver spot gained 1.8%, to $38.86 an ounce. Platinum rose 2.2%, to $1,453.17, and palladium rose 3.5%, to $1,284.46. Reporting by Sherin E. Varghese in Bengaluru and Ashitha S. Shivaprasad, Editing by Mark Potter
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New EU Russia curbs could increase Indian oil refiners’ reliance on traders
After the latest round European Union sanctions, Indian private refiners who have used cheap Russian crude in order to boost their margins will need to find ways to work around it and depend more on traders for finding new markets for products. In recent years, refiners like Reliance Industries or Nayara Energy have benefitted from the pressure that sanctions imposed on Russia's crude oil prices due to its invasion in Ukraine. Many of these refiners have exported their refined products to European buyers. In its 18th package against Russia, which was approved on Friday by the European Union, it banned imports from third-country refiners of petroleum products derived from Russian crude, except for a few Western nations. The sanctions also target Nayara Energy (a Russian refinery owned by Rosneft), a major oil company in Russia. The package will be implemented over a six-month period. In the first seven month of this year, LSEG data on ship tracking showed that Reliance was India's biggest buyer of Russian oil products and refined products. It shipped 2.83 million barrels per month of diesel fuel and 1.5 million barrels per month of jet fuel to Europe. This accounted for roughly 30% and 60% respectively of its exports of both products. Nayara Energy exports 4 million barrels of refined products per month including jet fuel, diesel, gasoline, and naphtha, but only jet fuel is typically shipped to European markets. Sources said that under the sanctions, traders will likely play a larger role in the placement of refined products made with Russian crude. They will likely get creative in their routes due to the long transition period. Singapore traders have said that traders will likely swap Indian diesel with Middle East cargoes to export to Europe. The traders said that they may also send Indian cargos to floating storage in the Middle East and West Africa for re-export. They said that Indian refiners could either divert jet fuel cargoes into local markets or ship supplies in Asia. Reliance and Nayara didn't immediately respond to comments. A trader in Asia said that the changes would benefit traders, as they will generate more trade, but be costly to producers and consumers. He added that Europe may be forced to pay more for refined fuel as winter approaches. Nayara condemned in a Monday statement the EU’s “unjust and unilateral” decision to impose sanction on the company. India, on the other hand, said that it did not support "unilateral" sanctions by the EU. Refining sources say that Indian refiners who also purchase Russian crude are less likely to be affected by sanctions, as they sell the majority of their fuel locally, and export it through tenders to buyers mainly in Asia, such as Singapore. Mangalore Refinery and Petrochemicals Ltd, an Indian state refinery, said that the latest sanctions would not affect the diesel exports of the company. LSEG reports that traders have sold some of MRPL’s diesel parcels to the UK in recent months. "We do not directly sell diesel to our end customers." The trader picks it up after a tendering procedure," said M Shyamprasad Kamath, managing director of M Shyamprasad Kamath. He added that he doesn't see any problems with selling refined fuels because of the sanctions. A tender document obtained by revealed that Nayara Energy, in response to the EU sanctions, amended the terms of the naphtha bid issued on Monday, requiring payment in advance.
EU ramps up retaliation as US tariff deal prospects diminish
According to EU diplomats, the European Union is looking at a wider range of countermeasures that could be taken against the United States. This comes as the prospects of an acceptable trade deal with Washington are fading.
Diplomats report that a growing number of EU member states, including Germany are considering implementing a wide range of "anti-coercion measures" which would allow the bloc to target U.S. service and other sectors if negotiated deals were not reached.
The European Commission (which negotiates trade deals on behalf of 27 member countries) had seemed to be on track for an agreement where the EU would have still faced a 10% U.S. duty on most of its exported goods, but with some concessions.
These hopes seem to have been dashed following President Donald Trump’s threat to impose 30% tariffs by August 1 and the talks between EU Trade Commissar Maros SEFCIOVIC and U.S. counterparts last week in Washington.
Sefcovic who said that a 30% tariff on transatlantic trade would "practically prevent" it, gave a sobering report to EU envoys about the current situation on Friday.
The EU diplomats said that the U.S. counterparts he met with had proposed divergent solutions, including a base rate of well over 10%.
Each interlocutor had a different idea. One diplomat stated that no one could tell what (Sefcovic), would work with Trump.
The chances of the United States reducing or eliminating their 50% tariffs on aluminum and steel, and 25% on automobiles and auto parts are limited.
'NUCLEAR OPTION'
Washington also rejected the EU demand for a'standstill' arrangement whereby no tariffs will be imposed following a deal. Diplomats claim that Trump cannot be restrained on issues of national security. This is the reason for Section 232 investigations into timber, semiconductors, and pharmaceuticals.
EU diplomats report that the mood among EU member states has shifted, and that they are now more willing to respond, even though a negotiation solution is still their preferred choice.
The EU currently has a package of tariffs that are suspended until the 6th of August. It is on goods worth 24.5 billion dollars (21.5 billion euros) from the United States. The EU still has to decide on another set of countermeasures for 72 billion euro of U.S. imports.
The EU has also been discussing the use of its "anti-coercion instrument" (ACI), which allows it to take retaliatory action against third-country countries who put economic pressure on their member states to alter their policies.
It would be possible to restrict U.S. investments, or limit U.S. access to financial services or public procurement markets, if the bloc was more focused on China.
France has always backed the ACI. Others have resisted what they see as a nuclear alternative. Trump has threatened to retaliate against other countries who take action against the United States.
Ursula von der Leyen, President of the European Commission, said last week that ACI was designed for situations beyond normal. She added: "We're not there yet."
It would require a majority of 15 EU countries, which represents 65% of its population, to be able to use it. Diplomats in the EU say that it would only do this if it felt confident about passing it. However, there are signs of increasing support, including Germany, who has said it should be taken into consideration. Reporting by Philip Blenkinsop, Andrew Gray and Andrew Heavens; editing by Andrew Heavens.
(source: Reuters)