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Outokumpu targets a 250-million-euro increase in earnings between 2026-2030
Outokumpu, a Finnish stainless steel manufacturer, said that it aims to increase its long-term profits by 250 million euros (285 million dollars) between 2026 and 2030. This was announced ahead of the company's Investor Day on Wednesday. The company's stainless steel products, which are used for tanks, facades, and consumer goods like washing machines, will also invest around 200 million euros into a new annealing-and-pickling line in Tornio in Finland and plans to close two less efficient lines in Krefeld in Germany. Outokumpu stated that once the new line was operational, it would result in annual EBITDA improvements of 70 millions euros over the period. The company will drive growth through investments in either the foundational or transformational categories. The foundational businesses are to be used to generate cash to fund growth in other areas. Capex is limited to maintenance, targeted investments and targeted investments. The company stated that the transformative strategy targets high-value growth with an internal rate of returns of at least 20% and expansion into markets with lower cyclicality. This includes expanding into the global market for advanced materials and alloys and assessing opportunities to grow beyond stainless steel standard in the U.S. Outokumpu also targets a ratio of net debt to EBITDA, an important measure of a company’s financial health, at 1.0x for the same time period. It stated that it would pay a "stable, growing" dividend in the future.
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Andy Home: Demand destruction could help China break its rare earths shackles
Beijing's export restrictions have exposed the West's dependence on Chinese supplies of these exotic metals, and the permanent magnets that they power. It's not like we've never been in this situation before. China did the exact same thing in 2010. Western automakers chose to ignore historical precedents and double down on a techniqe that is almost completely beholden Beijing's export whims. Many of them have now entered a panic mode and several have already been forced to stop production lines. This shows the huge economic impact that niche metals like dysprosium (used in neodymium iron boron (NdFeB), magnets) can make. China's willingness weaponise its dominant position in the metals which power our modern world, will accelerate the West’s drive to develop its own supply chain. The solution lies in using less rare earths. The West cannot control the supply but can change demand. The past is not for those who forget it. Beijing said that its 2010 imposition of rare Earth export quotas was only to clamp down on illegal domestic mining. The incident happened after a collision in disputed waters between a Chinese coast guard vessel and a Chinese trawler. The entire West was affected by the skyrocketing prices of rare Earths if Japan were the target. According to Adamas Intelligence, the price of dysprosium oxide increased 26-fold between 2009 and 2012. China only reversed its position after a panel of the World Trade Organization ruled against them in 2014. Several automakers have learned the lesson. Nissan Motor Co. of Japan launched in 2012 a new LEAF electric car with a motor that contained 40% less dysprosium. Renault developed an alternative motor for its ZOE in the same model year, without permanent magnets or rare earths. Adamas estimates that the number of EVs with rare-earth free motors grew from a little over 1% in global sales in 2010, to 12% by 2017. This was the peak. BUCKLE UP Prices of rare earths fell in late 2010 and remained steady. Western automakers have largely switched back to permanent magnetics. According to Adamas, around 97% of the EVs sold each year since 2017 have rare-earth motors. The rapid growth of the EV market, especially in China (which for obvious reasons does not have a rare earths phobia), is reflected in the number of magnets that are used in new vehicles, whether they be pure battery or hybrid. Magnets are also used to control heating, entertainment, braking, and remind the driver of their seat belt. This has increased the dependence on a single country, which not only produces 95% of all NdFeB magnetic products in the world but also controls supply chains for the metals needed to produce them. PEACE TALKS China's rare earth exports may have been pushed too far this time, possibly because of an overzealous bureaucracy in the Ministry of Commerce that is responsible for segregating military from civilian applications. The talks between Chinese and U.S. officials entered their second session on Tuesday, in an effort to find a compromise between China's restriction on rare earths versus U.S. restrictions regarding advanced semiconductors. Background: Tariffs are a major factor. The automotive industry will remain dependent on rare earths even if Beijing eases up its restrictions. It may take a while for Western supplies to catch up. Even though Western governments pour money into new projects to build a mine-to magnet supply chain, it will take years. Civil sectors will also be a second priority. The U.S. Department of Defense is the largest investor in rare earths, with a stated goal of supporting "all U.S. Defense requirements by 2027". The speakers in your car radio are not as powerful as the magnets required for an F-35 fighter. This aircraft requires over 900 pounds worth of rare earths. DEMAND DESTRUCTION Does the technology used in non-critical applications really need to be deployed on new vehicles? A bigger question is if they need a rare earth magnet in the engine. Renault and BMW, which have learned from their past mistakes, have developed alternatives for their EV motors to reduce the impact of this current supply crisis. Many other automakers have also been interested in the same technology, but it is not yet ready for commercial production. China's recent restrictions on rare earths should serve as a powerful motivation to speed up the redesign process. When it comes to breaking free of China's chokehold over rare earth magnets, automakers may find that engineered demand destruction is faster than creating a new supply network. It's not like they've never done it before. These are the opinions of the columnist, an author for. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X and X. Editing by Jan Harvey
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German nuclear fusion company Proxima raises development funding of 130 million Euros
Proxima Fusion is a Munich-based company that specializes in nuclear fusion technologies. It announced on Wednesday that it had raised 130 million Euros ($148.8 Million) to move it closer to its goal to develop a novel power station. Why does it matter? Around the world, dozens are exploring nuclear-fusion technology, which is a newer form of energy generation that harnesses the same intense process that powers our sun. There is fierce competition between private and public companies, governments of European countries, United States, and China and technology options such as Plasma confinement used by Proxima or lasers. The new conservative government in Germany supports Proxima's technology as part of its energy agenda. This puts Proxima, and other domestic rivals such as Gauss Marvel and Focused Energy, on the map. List of Investors Proxima has listed the venture capital firms Cherry Ventures from Berlin and Balderton Capital from London as its lead finance partners. KEY QUOTES "Fusion energy has entered a new age - it is moving from laboratory-based science to engineering at industrial scale," said Proxima's CEO Francesco Sciortino. This investment validates the approach we have taken and provides us with the resources necessary to develop hardware to help make clean fusion energy a reality. Cherry Ventures Founding Partners Filip Dames and David S. Smith said that Proxima Fusion combines Europe’s scientific edge with its commercial ambition. This is deep technology at its finest, and a bold message that Europe can lead the world stage. WHAT'S NEXT? Proxima will use the funds to finish a major hardware demo while continuing to build its teams in Munich and near Zurich, Switzerland, as well as at a campus in Britain near Oxford.
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Industry group claims that China's coal imports may drop up to 100,000,000 tons by 2025.
An official from a major industry association said that China's coal exports could fall by as much as 100 million metric tonnes in 2025. This could put global benchmark prices, which are already at multi-year-lows, under even more pressure. The world's biggest consumer, producer and importer of fossil fuels increased imports to a new record of 542.7 millions metric tons by 2024 as lower international prices prompted buyers to substitute imported coal for domestic supply. Xuegang Li (Vice President of China Coal Transportation and Distribution Association) told Coaltrans China on Wednesday that imports could drop by between 50 and 100 million tons. Official data revealed that imports fell by 8% in the five-month period ending May. The decline in 100 million tons would be equivalent to an annual drop of 18.4%. Li did not indicate how much he anticipated thermal coal and steelmaking coal imports to drop. Thermal coal is used primarily in power generation while metallurgical is used for steelmaking. China's increasing dependence on thermal coal has been reduced as a result of the rising output from renewable sources. Thermal coal accounts for the majority of the coal consumed in the second largest economy. Li added that China's coal consumption would peak in 2027 or 2028. The time period for near-peak levels of consumption will be spread over three to five year. (Reporting and writing by Sam Li and Lewis Jackson; editing by Himani Sarkar, Rachna uppal and Sudarshan Varadhan)
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MORNING BID EUROPE - So, is it a framework to a deal?
Wayne Cole gives us a look at what the future holds for European and global markets. They have a concept for a proposal for a framework to end the latest U.S. China trade impasse. This was all because President Trump tweeted that Beijing had violated the old agreement. The deal must now be approved by Trump, Chairman Xi and implemented. The Chinese thought that the talks were "rational", so this was a positive step. The details were scarce, but the U.S. team claimed that they would remove China's restrictions on magnets and rare earth minerals. Beijing's return is still unclear. It was not clear whether the truce would continue longer than before, and this could be the reason why the initial market reaction was not very enthusiastic. The U.S., European and Asian stock futures all fell between 0.2% to 0.6%. Asian shares were modestly stronger. The question of whether or not the levies on April 2 are legal remains. A federal appeals court has allowed the tariffs to continue in place while it reviews the lower court ruling that blocked them. Dollar and Treasuries are little changed, as the U.S. CPI is due later today. Any upside surprise will fuel stagflationary concerns to the detriment both markets. Analysts expect lower energy prices to keep the headline at 0.2% while the core will rise by 0.3%. The focus will be whether tariffs are reflected in the prices of goods, although their full impact may not appear until June. Investors are not prepared for high numbers, so any number that is in line with expectations will be welcomed. Treasuries are also subject to a 10-year sale, and the emphasis is on the amount of money that foreign central banks have bid. In May, the latter took 71% of all sales. Primary dealers received just 8.9%. We would welcome a repeat performance. The following are key developments that may influence the markets on Wednesday. * ECB wage tracking. Gabriel Makhlouf, Piero Cipollone, Philip Lane and Claudia Buch of the ECB Council; Yiannis Stournaras (policymaker) The British Finance Minister Rachel Reeves releases a spending review * U.S. CPI for May
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Scientists from the EU say that May was the second hottest month on record.
Scientists said that the world experienced its second warmest May in history, and climate change was responsible for a heatwave record in Greenland. The EU's Copernicus Climate Change Service said that last month was Earth's 2nd-warmest may on record. Only May 2024 will surpass it. This brings the northern hemisphere to its second-hottest spring ever. C3S reported that global surface temperatures were 1.4 degrees Celsius warmer last month than they were in 1850-1900, the pre-industrial period when humans first began to burn fossil fuels at an industrial scale. This ended a period of extreme heat in which the average global temperature was 1.5C higher than pre-industrial levels for 21 of the 22 previous months. Scientists warned that this break would not last. "While this may be a temporary respite for our planet, we expect that the 1.5C threshold will again be exceeded in the near future because of the continued warming climate system," stated C3S Director Carlo Buontempo. The burning of fossil fuels is the main cause of global warming. The planet experienced its hottest year ever in 2018. Separately, a study published on Wednesday by the World Weather Attribution Group of climate scientists found that climate change caused a record-breaking Heatwave in Iceland and Greenland, last month, to be about 3C warmer than it would have otherwise been. This contributed to an additional melting of Greenland’s ice sheet. Sarah Kew is a researcher and co-author of the Royal Netherlands Meteorological Institute's study. The Paris Climate Agreement states that countries will try to limit global warming to 1.5C to avoid the worst effects of climate change. Technically, the world hasn't yet reached this target. It refers to a global average temperature of 1.5C per decade. Scientists have stated that this goal is no longer achievable and urged the government to reduce CO2 emissions more quickly to avoid overshoot, as well as to fuel extreme weather. C3S records date back to 1940 and are cross-checked against global temperature records dating back to 1850. (Reporting and editing by Alex Richardson; Kate Abnett)
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Tower Resources Lines Up ADES Jack-Up Rig for Cameroon Drilling Op
Tower Resources, the AIM-listed oil and gas company focused on Africa, has issued a Letter of Award (LoA) to Advanced Energy Systems (ADES), an affiliate of Saudi firm ADES Holding, for the provision of a jack-up rig for drilling job in Central Africa.The rig proposed under the LoA is ADES’ Admarine 510, which will be put in charge of drilling the NJOM-3 well on Tower's Thali license in Cameroon in the fourth quarter 2025.The Admarine 510, a GustoMSC CJ-46-X100-D triangular design three-legged jack-up unit, built in 2019, and capable of operating in water depth up to 375 ft, is just completing its five-yearly recertification project in Bahrain.The rig has also recently been awarded a contract with Addax Petroleum for operations in Cameroon, to start in late 2025, and it is intended that the rig will drill the NJOM-3 well for Tower before beginning operations with Addax Petroleum.ADES Secures Jack-Up Drilling Rig Contract in AfricaThe commercial terms of the ADES proposal to TRCSA are confidential, but the fact that the Admarine 510 was already committed to move to Cameroon for other operators has facilitated the discussions with the rig owner and resulted in more favorable terms than the owner could have offered otherwise.The terms are well in line with the company's previous projections and compare very favorably to offers received from other rig owners earlier this year and last year.The LoA is subject to contract and usual conditions precedent, including receipt of government approvals in Cameroon and completion of TRCSA's farm-out to Prime Global Energies Limited as announced on in January 2025."We are delighted to make this award, and are looking forward to working with ADES on the NJOM-3 well this year. Our rig selection process has been made a little more complex by the opportunity to coordinate our timing with that of other nearby oil and gas companies, including Addax Petroleum in particular, however I believe it has resulted in a very good commercial outcome for all parties,” said Jeremy Asher, Tower Resources Chairman and CEO.
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North Sea O&G Operators Opt for Flylogix Drones to Tackle Methane Emissions
Flylogix, the operator of next generation unmanned aerial vehicles (UAVs), has secured contracts with several leading oil and gas operators to help tackle the industry’s methane emissions.Worth seven figures accumulatively, the contracts include a multi-year deal for Shell’s offshore and onshore assets serving the North Sea, alongside other major installations including the Ithaca Energy-operated Cygnus, one of the UK’s largest-producing gas fields.New deals, which also include the one with Equinor, will see drone flights for 16 U.K. oil and gas platforms and onshore terminals.Flylogix operates long distance ‘mini planes’ from sites in Aberdeenshire and Fareham, using its UAV technology to monitor methane emissions.“These awards are testament to the industry’s commitment to tackle offshore emissions on the path to net zero while meeting the U.K.’s vital energy needs.“Flylogix’s solution allows operators to receive timely data without the cost, emissions, or safety implications of sending crews offshore,” said Charles Tavner, Flylogix CEO.The work has been awarded to Flylogix as a revolutionary new airspace trial is set to take place with the Civil Aviation Authority (CAA).The year-long trial, due to begin this summer, will allow for long-distance drones to fly more freely in North Sea airspace, alongside other aircraft including helicopters. “The potential for this technology will only grow as we gear up for the CAA trial this summer, allowing our drones to fly more frequently to support oil and gas, defence, and renewables,” added Tavner.
Mexican authorities seize 3 million litres of fuel stolen
Mexican authorities have announced that they seized over 3 million liters (792 516 gallons), of fuel illegally stored at a property located in Tabasco in the southeast of the country. This is the latest of a series of large fuel seizures in Mexico.
Why it's important
The seizure of fuel on Thursday was part of Mexico's ongoing fight against fuel smuggling. This includes both theft from the state-run oil company Pemex pipelines, and imports classified falsely to avoid taxes.
KEY QUOTES In a statement released on Thursday, Mexico's cabinet of security said that 18 vehicles, 3 pieces of machinery and 3,904 metal containers containing hydrocarbons, identified as petroleum derivatives, had been secured.
The Mexican President Claudia Sheinbaum stated on Friday that the seizures are related to a new system of "traceability", which tracks fuel imports all the way from their source until they reach the sale point.
CONTEXT
Since years, the state-owned Pemex is facing a rampant theft by illegal pipeline taps in Mexico. This has resulted in massive losses.
By the numbers Over the last few weeks, the authorities discovered 1.5 million liters (fuel) in two raids conducted in the state Tabasco. They also found 10 million liters (fuel) in the State of Tamaulipas. These fuels were on a ship that arrived in Mexico from the United States a few weeks earlier.
(source: Reuters)