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Report: China must reduce its steel production by 2025 to achieve the decarbonisation goal
Researchers said that in order to meet the green steel goal for this year, China must reduce its steel production from coal-powered blast furnaces by over 90 million metric tonnes from 2024. Why it's important Around 8% of carbon dioxide emissions are attributed to the global steel industry, and China produces more than half of all global steel. Analysts at the Centre for Research on Energy and Clean Air in Helsinki said that if China met its goal of producing 15% of its steel using electric arc furnaces this year, CO2 emissions could be reduced by 160 million tons. This is almost equivalent to the carbon footprint of the European Union's steel sector. By the Numbers China is far behind other countries in the world when it comes to electric arc furnace steel. According to the centre, the average global share is 30%, with 71.8% of that in the United States and 58.8% India, and 26.2% Japan. The report said that from 2021 to 2025's first half, China's capacity utilization of blast furnaces increased from 85.6% up to 88.6%. However, the utilisation of electric-arc furnaces fell from 58.9% down to 48.6%. KEY QUOTE Belinda Schaepe is an analyst with the Helsinki-based Centre. She said that a credible strategy would address the structural problems of the sector and ease global tensions. CONTEXT China will produce 1.005 billion tonnes of crude steel by 2024. Around 90% of this will be produced in blast furnaces. Overcapacity in China's steel industry has led to a decline in prices, and has prompted a growing backlash against the country from its global trading partners. High power costs, an unstable scrap supply, and increasing losses have been a major obstacle for cleaner electric arc plants. Reporting by Amy Lv, Lewis Jackson and Cynthia Ostert. Editing by Cynthia Ostert.
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Taiwan's CPC rejects'specifics' US shale-gas acquisition talks
CPC Corp, Taiwan's state owned energy company, said that it was not in negotiations for "specific" shale fields in the United States. However, it did not exclude any potential partners and would make the best decision based on their own evaluations. Three sources with knowledge of the matter said earlier this month that CPC was in early discussions to purchase shale gas producing assets in the United States. The move is part of a plan to secure the supply for natural gas to fuel Taiwan's economic growth. CPC stated in a late Monday statement that the U.S. Shale Gas has been a target for many years because of its quality, mature extraction technologies and favorable investment environment. The CPC said that it would not exclude any potential partners, but instead make the best decision possible based on evaluation results. The company said that the reports stating that CPC was in the process to discuss the acquisition of certain shale fields in the United States were not true. Taiwan has committed to increasing its energy purchases from the United States in order to reduce its trade surplus. This will also help avoid tariffs. CPC and Alaska Gasline Development Corp signed an agreement in March to purchase LNG and invest into the Alaska LNG Project. The project will use pipelines to transport gas from Alaska's remote northern region to Taiwan, Japan, and South Korea. (Reporting and editing by Jacqueline Wong; Ben Blanchard is the reporter)
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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).
India's UltraTech Cement surpasses profit expectations as price increases help
UltraTech Cement (India's largest cement maker by capacity) posted a profit for the first quarter that was above expectations, thanks to higher prices.
The shares of the company that were up 0.7% prior to the results are now trading 0.5% higher.
UltraTech's cement volume grew by 9.7% during the quarter ending June, which is lower than the range of growth projected by four brokerages.
Construction is slow during the April-June quarter, due to monsoon rains.
Analysts claim that UltraTech's contracts, including those with India Cement and Kesoram have protected its sales volume from weather-driven volatility.
According to brokerage Ambit Capital the average cement price rose 2% year-on-year in the third quarter. This continues the steady recovery this year following last year's slump.
UltraTech's consolidated profit for the quarter ending June 30 was 22.26 billion rupies ($258.11million), exceeding analysts' estimates of 21.56 rupies, according to LSEG data.
Net profit grew 48% on a stand-alone basis from the previous year.
(source: Reuters)