Tuesday, 4 November 2025
The Sizewell C project to build two of EDF’s EPR reactors on England’s east coast has reached Financial Close, including GBP5 billion (USD6.5 billion) in export credit financing by BpifranceAE as well as debt financing from the UK’s National Wealth Fund.
How the new plant could look (Image: Sizewell C)
France's EDF, announcing the financial closing of the project, said it would invest a maximum of GBP1.1 billion during the construction period and would have a stake of 12.5%, with the UK government having 44.9%, La Caisse 20%, Centrica 15% and Amber Infrastructure 7.6%.
It added: "EDF will not invest new cash at financial close due to the reimbursement of the development costs incurred since 2015 and a payment in return for the Hinkley Point C project expertise that Sizewell C benefits from, as well as the series effect."
Thirteen banks have supported the GBP5 billion debt raise: ABN Amro Bank; Banco Bilbao Vizcaya Argentaria; Santander CIB; BNP Paribas; Crédit Agricole Corporate and Investment Bank; CaixaBank; Citibank; Crédit Industriel et Commercial; HSBC Bank; Lloyds Bank; National Westminster Bank; Natixis and Societe Generale.
Sizewell C said "this landmark moment sees funding for the project beginning to flow, unlocking full-scale construction of the Suffolk-based plant".
The plan is for the estimated GBP38 billion Sizewell C plant to feature two EPR reactors producing 3.2 GW of electricity, enough to power the equivalent of around six million homes for at least 60 years. It would be a similar design to the two-unit plant being built at Hinkley Point C in Somerset, with the aim of building it more quickly and at lower cost as a result of the experience gained from what is the first new nuclear construction project in the UK for about three decades. A final investment decision for the Sizewell C project was taken in July this year.
Sizewell C has used the Regulated Asset Base (RAB) funding model, which will see consumers contributing towards the cost of new nuclear power plants during the construction phase. Under the previous Contracts for Difference system developers finance the construction of a nuclear project and only begin receiving revenue when the power plant starts generating electricity.
Sizewell C said the "financing model attracts private investment that would not otherwise be possible. Government estimates that using the RAB can save consumers GBP30 billion, compared with other models, as a result of lower financing costs".
UK Energy Secretary Ed Miliband said: "By backing nuclear we are creating thousands of high-quality jobs across the country, supporting British supply chains and keeping the lights on with homegrown energy for generations to come."
Tom Greatrex, Chief Executive of the Nuclear Industry Association, the trade association for the UK’s civil nuclear industry, said: "Reaching financial close for Sizewell C is a landmark moment for the UK's clean energy future. It proves that new nuclear can attract significant investment - a vital step towards energy security, skilled jobs, and achieving net zero. The financing model used for Sizewell C is crucial to unlocking further private investment in new nuclear projects, cutting our reliance on fossil fuels, and driving an industrial revival across Britain."
EDF also noted the wider benefits for the French state-owned group: "The EDF group will contribute to the project as a supplier of engineering studies (EDF/Edvance), the main primary circuit including the nuclear boiler, steam generators and safety control system (Framatome) and, for the conventional island, the turbo-alternator unit (Arabelle Solutions). For the French nuclear industry more broadly with some 40 French suppliers, it will help to perpetuate skills, capitalise on experience and generate economies of scale for the EPR2 programme in France."
Sizewell C said that Clifford Chance acted as legal adviser, Rothschild & Co acted as lead financial adviser across equity, debt and credit ratings, and BNP Paribas acted as joint debt financial adviser to Sizewell C on the capital raise. HSBC acted as French Authorities and Green Loan Coordinator, alongside Santander CIB as Documentation Coordinator on the GBP5 billion export credit backed facility.
Heiner Kubny 3. November 2025 | Arctic, Economy, Politics
The Chinese container ship «Istanbul Bridge» has completed the route from China to the United Kingdom via the Arctic in just 20 days. Never before has a ship sailed through the Northeast Passage in such a short time. The passage along Russia’s northern border is considered an important milestone in the emerging ‘Polar Silk Road’. Russia already uses the passage to ship liquefied natural gas (LNG) from Sabetta on the Siberian Yamal Peninsula to Asia, among other things.
The Liberian-flagged «Istanbul Bridge», loaded with more than 1,000 standard containers, departed from the port of Ningbo-Zhoushan in the eastern Chinese province of Zhejiang on 22 September 2025 and reached the British container port of Felixstowe on 13 October 2025.
At a length of 7,500 nautical miles (13,900 kilometres), the journey was almost twice as fast as the traditional Suez Canal route. The ship completed the passage without the assistance of an icebreaker, taking advantage of the low ice levels in late summer.
The usual journey through the Suez Canal typically takes 40 to 50 days and covers 11,000 nautical miles (20,400 kilometres).
Sealegend highlighted the efficiency of the route and the lower emissions. For much of the year, the Northeast Passage is still covered by ice. However, climate change is extending the navigable period. This opens up new opportunities – but also new challenges for shipping and environmental protection.
Heiner Kubny, PolarJournal
https://polarjournal.net/through-the-northeast-passage-in-record-time/
- Deal brings total long-term commitments for Ruwais LNG to more than 8 million tons per year of its planned 9.6 million-ton capacity
Abu Dhabi National Oil Company (ADNOC) said Tuesday it has signed a 15-year sales and purchase agreement with Shell International Trading Middle East Limited FZE, a wholly-owned subsidiary of Shell, for up to 1 million tons per year of liquefied natural gas (LNG) from the Ruwais project.
The agreement brings total long-term commitments for Ruwais LNG, currently under development in Al Ruwais Industrial City, to more than 8 million tons per year of its planned 9.6 million-ton capacity, ADNOC said in a statement.
Shell holds a 10% stake in the project through its subsidiary, Shell Overseas Holdings Limited, the statement added.
The Ruwais LNG plant will be the first LNG export facility in the Middle East and Africa region to operate on clean power, making it one of the lowest-carbon intensity LNG projects in the world.
Signed during Abu Dhabi International Petroleum Exhibition and Conference, the deal marks ADNOC's first long-term LNG sales agreement with Shell and the eighth long-term offtake agreement secured for the Ruwais LNG project.
Commenting on the deal, ADNOC CEO Fatema Al Nuaimi said: "This agreement with Shell marks a significant milestone that reinforces ADNOC's position as a reliable global supplier of lower-carbon LNG."
"Securing over 80% of Ruwais LNG's capacity in just over a year from FID is a remarkable achievement that sets a new benchmark for large-scale LNG projects globally," Al Nuaimi added.
"While the industry can take up to four or five years to market such volumes, Ruwais is advancing at record pace," Al Nuaimi added. "In parallel, construction, contractor mobilization, and site works are all on track for commissioning by the end of 2028."
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr
Russia's seaborne crude shipments fell sharply in early November, marking the largest weekly decline since January 2024, Bloomberg reported on Nov. 4.
The drop follows Washington's Oct. 22 decision to impose blocking sanctions on Rosneft and Lukoil, Russia's two largest oil companies, freezing their U.S.-based assets and threatening secondary sanctions against foreign entities trading with them.
The four-week average volume from Russia's ports reportedly fell to 3.58 million barrels per day as of Nov. 2 — down 190,000 barrels from the period to Oct. 26 — the steepest decline in 22 months.
During the week ending Nov. 2, 26 tankers loaded 21.11 million barrels, compared to 34 vessels carrying 26.41 million barrels a week earlier. On a daily average basis, exports dropped to 3.02 million barrels, 20% below the prior week's 3.77 million.
Much of the oil remains undelivered, with tankers now being used as floating storage facilities.
Since early September, after the U.S. also doubled tariffs on India, the amount of Russian oil stored at sea has grown by 8% to more than 380 million barrels, equivalent to over 100 days of exports.
At the start of the year, around 340 million barrels were held in tankers.
India, China, and Turkey — which together account for roughly 95% of Russia's crude exports — have paused or reduced imports as they seek clarity on compliance risks. Some buyers have turned to smaller Russian suppliers not yet under sanctions, but many are sourcing oil elsewhere.
India's largest private firm, Reliance Industries, said it would adhere to U.S. sanctions and shift to crude from the Middle East, the U.S., and Brazil. Indian Oil Corp., the country's biggest state-owned refiner, placed no Russian orders after the sanctions took effect.
The sanctions coincide with Ukraine's intensified strikes on Russian oil infrastructure, further reducing output and exports. The combined impact has benefited Western competitors.
According to Reuters, profits from refining operations among ExxonMobil, Chevron, Shell, and TotalEnergies rose 61% in the third quarter compared to the previous quarter, contributing to a 20% increase in overall earnings.
Riyadh – Saudi Arabia’s energy company Saudi Aramco reported a 2.3% drop in third-quarter profits on Tuesday (4) as global economic uncertainty and a glut in supply continued to weigh on the market, resulting in lower oil prices.
Crude prices have been pinched in recent months by a cloudy outlook for demand owing to global economic headwinds linked to tariffs and recession worries. The oil alliance OPEC+, which Saudi Arabia is a key part of, has overseen an increase in production in recent months, resulting in more oil flooding the market and eroding prices.
The Saudi oil giant recorded a fall in net income to USD 26.94 billion from USD 27.56 billion in 2024 – the 11th consecutive quarterly fall for Aramco. But stripping out exceptional items, adjusted net income rose about one percent to USD 27.98 billion. This figure beat expectations, with projections provided by the company, based on 15 analyst forecasts, predicting a median range of USD 26.5 billion.
“We increased production with minimal incremental cost, and reliably supplied the oil, gas and associated products our customers depend on,” said president and CEO Amin Nasser. In the third quarter of last year, a barrel of Brent crude was priced at around USD 80. In the same period this year, the price dropped to about USD 70.
Translated by Guilherme Miranda
©Fayez Nureldine/AFP
https://anba.com.br/en/saudi-aramco-lower-oil-prices-impact-profit/
Chevron's entry into Guinea-Bissau marks a turning point for the small coastal state, which currently does not produce hydrocarbons, and fully integrates it into the burgeoning exploration activity along the MSGBC basin, now one of West Africa's emerging energy hubs.
Chevron Corp., the second-largest U.S. oil company after ExxonMobil, announced Monday it has entered offshore exploration in Guinea-Bissau, securing two permits in the MSGBC Basin, which spans Mauritania to Guinea.
Chevron’s local subsidiary will hold a 90% operating interest in blocks 5B and 6B, with Petroguin, the national oil company, holding the remaining 10%. The deal has received all necessary regulatory approvals.
The two permits, Carapau and Peixe Espada, will be operated by Chevron. Béatrice Bienvenu, Chevron’s Country Manager for West Africa, said the company welcomes the new partnership with Petroguin and the government of Guinea-Bissau. The move is part of Chevron’s global exploration strategy to expand its portfolio with high-potential assets. Already a producer in Angola and Nigeria, Chevron said it has increased its exploration portfolio by nearly 40% over the past two years, adding new acreage in Peru, Uruguay, and Namibia.
Chevron’s entry follows a wave of new projects across Africa. In Equatorial Guinea, the company finalized a deal in September to develop associated gas from the Aseng field, an investment valued at $690 million. In Nigeria, it continues deepwater oil exploration, notably in the Agbami and Usan fields. In Namibia, Chevron holds an 80% interest in permits PEL 82 and PEL 90, located in the Walvis and Orange basins.
The stakes are high for Guinea-Bissau, which does not yet produce hydrocarbons but has stepped up efforts over the past two years to attract foreign investment in offshore exploration. Before the Chevron deal, Bissau-Guinean authorities reached an agreement in principle with Italy’s Eni in May 2023 to assess the country’s oil and gas potential. President Umaro Sissoco Embaló also said he wanted closer cooperation with Russia’s Lukoil in July 2023. However, U.S. sanctions have since led Lukoil to sell its international assets, including those in Africa, effectively ending any prospects for projects in Guinea-Bissau.
No operational timeline or technical program has yet been released for the Carapau and Peixe Espada blocks. According to data reported by Ecofin Agency in 2023, roughly 498 million barrels of prospective resources were identified in some Bissau-Guinean coastal blocks by Australia’s Far Ltd before the company exited the country in 2022.
Louis-Nino Kansoun
Gunvor Group CEO Torbjörn Törnqvist
(Nov 4): Gunvor Group CEO Torbjörn Törnqvist said an agreement to acquire Russian oil producer Lukoil PJSC’s international portfolio represents a “clean break” for the assets.
Lukoil said last Thursday it had agreed to sell its international assets, including upstream production, refineries, gas stations and a trading book, to Gunvor, without disclosing terms. The trading house, which has longstanding ties to Russia’s energy industry, has now begun talks with regulators over the potential purchase.
Törnqvist said he believes any concerns the authorities might have about continued Russian influence over the portfolio would be satisfied and ruled out a scenario where any of the assets get sold back should sanctions on the Russian company be removed.
“Obviously we are assuring them that this is not the case,” he said in an interview with Bloomberg Television on Tuesday (Nov 4). “And it’s a clean break the moment the deal is done — that’s it.”
“We’re pretty confident that this deal ticks off all the critical boxes,” Törnqvist said of discussions with regulators and authorities.
The US blacklisted Lukoil and fellow Russian oil giant Rosneft PJSC last month as part of a fresh bid to end the war in Ukraine by depriving Moscow of revenues. Gunvor’s subsequent deal is subject to clearance from the US Treasury’s Office of Foreign Assets Control, among other authorities.
Törnqvist said the assets would help his firm as oil markets become more crowded and competitive but indicated some could be spun off to other parties.
“There are assets perhaps we would feel would be better preserved in other hands,” he said, without elaborating.
ExxonMobil and its partners recovered about US$6.6 billion in costs from Guyana’s oil sector in the first half of 2025, the Ministry of Finance said in its mid-year report. The report, released on Monday, reflects the continued recouping of billions invested in developing the South American nation’s offshore Stabroek Block.
The Ministry said crude oil exports were valued at US$8.16 billion for the period. ExxonMobil, Hess, and CNOOC take up to 75% of annual production to cover exploration and development expenses, as permitted under their production sharing agreement with the Guyana government.
The cost recovery process began when oil production started in December 2019, but it covers expenditures dating back to ExxonMobil’s entry into Guyana in 1999. The consortium has so far committed more than US$60 billion to develop the block through sanctioned projects, in addition to exploration and other expenses incurred to prove the existence of 11 billion barrels of recoverable oil and gas.
Earlier this year, the Bank of Guyana said that from the start of production through the first quarter of 2025, total recovered costs amounted to US$35.9 billion. Based on the mid-year figure, the total accumulated cost recovery as of June is estimated at close to US$40 billion.
Government and Exxon officials have said that as the oil companies substantially recover their expenses, they will no longer need to take the maximum 75% of annual crude output for cost recovery. That future shift is expected to leave a larger share of production as “profit oil” for Guyana, potentially driving a sharp increase in government revenues in the coming years. However, as Exxon and its partners pursue new projects, that timeline shifts further into the future.
The four projects in the Stabroek Block have the capacity to produce 900,000 barrels of oil per day (b/d). Output in September was 771,000 b/d, as the newly minted Yellowtail development ramps up to its production capacity.
Exxon has a 45% operating stake in the Stabroek Block, partnered with Hess (30%) and CNOOC (25%).
Collaboration to Accelerate Commercialization of Next-Generation Battery Technologies and Enhance Global Competitiveness
SEOUL, South Korea, Nov. 4, 2025 /PRNewswire/ — China Petroleum & Chemical Corporation (HKG: 0386, “Sinopec”) and LG Chem today announced the signing of a joint development agreement on key materials for sodium-ion batteries. Under the agreement, the two companies will collaborate on the development of cathode and anode materials for sodium-ion batteries, targeting applications in energy storage systems and low-speed electric vehicles across China and global markets. The partnership aims to accelerate the commercialization of sodium-ion battery technologies, establish new business models, and extend cooperation into broader new energy and high-value materials sectors in the future.
Sinopec and LG Chem Sign Agreement to Jointly Develop Sodium-ion Battery Materials.
Sodium-ion batteries offer significant advantages over lithium-ion batteries in terms of resource accessibility and cost efficiency, while delivering enhanced safety and faster charging performance. They also maintain better capacity retention under low-temperature conditions, outperforming lithium iron phosphate batteries and demonstrating strong commercial potential. According to industry research, China’s sodium-ion battery market is expected to grow from 10 GWh in 2025 to 292 GWh by 2034, representing an average annual growth rate of approximately 45%. By 2030, China is projected to account for over 90% of global sodium-ion battery production.
The signing ceremony was attended by Mr. Hou Qijun, Chairman of Sinopec; Mr. Wan Tao, Vice President of Sinopec; and Mr. Shin Hak-Cheol, CEO of LG Chem. The agreement was signed by Mr. Bian Fengming, General Manager of Sinopec’s Science and Technology Department, and Mr. Lee Jong-Kyu, CTO of LG Chem, on behalf of both parties.
“Sinopec is dedicated to building a world-leading clean energy and chemical company and becoming a major supplier of clean energy and advanced chemical materials,” remarked Hou Qijun, Chairman of Sinopec. “This strategic cooperation with LG Chem on sodium-ion battery materials will further strengthen both parties’ technological capabilities and market competitiveness, while contributing to the global energy transition and sustainable development.”
“As a global leader in battery materials, LG Chem has consistently provided differentiated solutions to customers in the electric mobility market,” said Shin Hak-Cheol, CEO of LG Chem. “Through this partnership with Sinopec, we will jointly advance the development of next-generation battery materials and continue to reinforce our business portfolio in alignment with our customers’ future strategies.”
For more information, please visit http://www.sinopec.com/listco/en/.
The world’s gold industry was still ripe for consolidation although the historic price highs in the metal would present some obstacles.
“I suspect over the next twelve months, gold is an industry that’s just been screaming out for consolidation,” said Jim Rutherford, a non-executive director for Saudi Arabia’s Manara Minerals at the FT Metals & Mining Summit last month. “There’s been a lot of lifestyle companies in that industry.”
One difficulty, however, was how to price reserves and resources given they were valued at more than half the prevailing market price for the metal.
“The gap between spot and reserve valuation is actually bigger than the absolute gold price was twelve months ago,” said Rutherford. “So what price do you use in terms of valuing a gold deal in that sort of environment”.
This has not stopped dealmaking in the sector. On November 3, Coeur Mining Inc. agreed to acquire New Gold Inc. for about $7bn in an all-stock deal.
The deal marks the largest takeover between gold producers in 2025, said Bloomberg News. Shares of precious metals producers have also surged, with Coeur’s and New Gold’s stock more than doubling this year.
“The move in price, obviously, puts people off to some extent … On the other side, though, if you’re thinking of retiring, it’s maybe not a bad time,” said George Cheveley, a portfolio manager for Ninety One. “Your share price is probably higher than you ever believed it would get to in many cases.”
Cheveley added that gold companies that were depleting their reserves rapidly might be forced buyers over the next 12 months, brought into the market for new ounces despite a record gold price.
“They are going to start to get desperate next year looking for reserves,” he said. “And obviously the fastest way to get them is to go buy them. It doesn’t necessarily add a lot of value, but I think that could well start to encourage some deal-making next year.”
According to S&P Global, gold producers might also seek to allocate record cash flows towards buying copper. The metals have a fit partly because they are occur together in porphyry deposits. South Africa’s Harmony Gold recently finalised the purchase of MAC Copper for $1.03bn, an Australian company listed in New York.
“I think copper and gold are going to be the key focus,” said Richard Horrocks-Taylor, global head of metals and mining at Standard Chartered Bank. “I think gold in particular for the next few months.”
New Gold Inc. saw its shares rise around 10% in pre-market trading on Monday after Coeur Mining Inc (NYSE:CDE) announced an agreement to acquire the company in an all-stock deal valued at approximately US$7 billion. The transaction will create one of the largest North American precious-metals producers, with a combined market capitalization near US$20 billion.
The agreement marks a major consolidation move in the mining sector. Under the terms of the deal, New Gold shareholders will receive 0.4959 shares of Coeur Mining for each New Gold share held. Details on the governance structure and integration plans of the combined entity have not yet been released.
Market reactions reflected investor optimism about the merger’s potential to enhance production capacity, geographic reach, and operational efficiency across both companies’ gold and silver portfolios. Trading in both stocks is being closely watched as investors reassess valuations and sector positioning.
Investor Takeaway
The merger positions Coeur Mining and New Gold for stronger growth within the North American precious-metals market, leveraging scale and resource synergies.
Market Impact
Shares of both companies may continue to see positive momentum amid expectations of operational efficiencies and increased competitiveness. The deal could also boost broader investor sentiment in the mining sector as consolidation trends gain traction.
Investors should monitor upcoming announcements detailing the transaction’s integration strategy, governance structure, and shareholder-approval timeline.
Broader Market Context
This acquisition may influence strategic decisions among other materials and mining firms such as Barrick Gold Corp (TSX:ABX.TO) and Agnico Eagle Mines Ltd (NYSE:AEM) as they evaluate similar opportunities in a consolidating precious-metals market.
https://www.valuethemarkets.com/news/new-gold-surges-on-7b-acquisition-deal
Last updated: 12:15 04 Nov 2025 GMT, First published: 12:02 04 Nov 2025 GMT
When gold prices rise, so does the urge to merge. That old mining truth may be back in play, as UBS reckons the sector could be heading towards another bout of deal-making; this time between its biggest names, Newmont Corporation (NYSE:NEM, TSX:NGT, ASX:NEM, ETR:NMM) and Barrick Gold Corp. (TSX:ABX, NYSE:GOLD).
The two are already bound together in Nevada Gold Mines, a joint venture that combines Barrick’s 61.5% stake with Newmont’s 38.5%. It is the crown jewel for both, churning out some of the richest ounces on the planet.
But the partnership has always been uneasy, and UBS’s analysts say a fresh round of executive changes and asset valuations could revive long-running talk of consolidation.
The bank sketches out three possibilities. One, Newmont simply buys Barrick’s share of the Nevada venture. Two, it goes the whole way and bids for Barrick itself. Or three, Barrick decides to break itself up, stripping out its copper mines to leave a cleaner, pure-play gold business.
A sale of Barrick’s Nevada stake would not come cheap. UBS estimates it could fetch between $40 billion and $50 billion — more than half Newmont’s current market value.
That alone might make such a deal hard to swallow for Newmont shareholders, especially since the company’s stock already trades on a relatively modest valuation multiple.
A full takeover, then, might look more efficient. Newmont could in theory scoop up the Nevada assets at a lower effective price.
But investors have long memories, and the US group’s recent record on acquisitions, notably Goldcorp in 2019 and Newcrest last year, has done little to build confidence. Another blockbuster transaction, followed by years of asset sales and integration, may be a step too far.
Still, the balance sheet can handle it. UBS calculates that Newmont’s zero net debt and roughly $14 billion in annual cash earnings would allow it to borrow comfortably, even if it used debt to buy the Nevada stake outright.
The bank expects the miner to keep returning cash through buybacks and dividends while building a small net cash position before a key project milestone at its Fourmile deposit in 2029.
As for Barrick, its mix of assets remains both its strength and its weakness. It owns some of the safest, most profitable gold mines in the world.
But it also carries exposure to riskier copper projects in Pakistan and Zambia. Investors looking for a clean story have struggled to price the two together, leaving the shares lagging behind peers such as Agnico Eagle on the gold side and First Quantum or Ivanhoe Mines in copper.
UBS’s view is that the valuation gap will persist until Barrick chooses a clearer direction. A break-up, or at least a simplification, might finally let each part of the business shine.
Germany’s largest steel producer, Thyssenkrupp Steel, has announced its withdrawal from the German Steel Association (WV Stahl), which traditionally represents the interests of the industry in Berlin and Brussels. This was reported by The Pioneer.
The decision was made against the backdrop of deep problems in the industry, which union representatives call catastrophic. Tekin Nasikkol, chairman of the works council, said that the situation in the German steel industry is critical.
Thyssenkrupp confirmed that its membership in WV Stahl will be terminated on December 31, 2026. The company explained that in the difficult economic situation, it is focusing on the efficient use of resources, in particular funds and staff time.
At the same time, the company emphasized that this does not mean abandoning industry dialogue or joint positions with the association. Thyssenkrupp will continue to support key industrial policy initiatives, including reducing electricity prices, strengthening trade protection, and developing the green steel market in Germany and the EU.
Thyssenkrupp AG, the parent company, is also considering leaving WV Stahl and is currently assessing the advisability of continuing its membership.
“We regret this decision, especially given that Thyssenkrupp Steel is actively involved in the association’s work during these difficult times,” WV Stahl said.
This event coincided with preparations for the steel summit that Chancellor Friedrich Merz will hold on November 6 to find ways out of the crisis for the industry.
As a reminder, at the end of October, Thyssenkrupp Steel temporarily shut down blast furnace No. 9 at its site in Duisburg-Brückhausen. The company explained this decision by weak demand for steel in Europe and growing pressure from imported products, which negatively affects the competitiveness of local production.
At the same time, the company is in intensive negotiations with Jindal Steel International regarding its steelmaking business. The Indian group is ready to invest more than €2 billion in the development of electric arc furnaces and the completion of the green steel production project in Duisburg. In addition, there was talk of a willingness to take on TKSE’s pension obligations of around €2.7 billion.
https://gmk.center/en/news/thyssenkrupp-steel-leaves-german-steel-association-wv-stahl/amp/
The future of Chinese steel industry will likely depend primarily on demand
China is taking a measured approach to reviving its steel industry, improving prospects for high-end companies while avoiding steps needed to significantly reduce steel supplies, Bloomberg writes.
China’s new five-year plan focuses heavily on promises to stimulate consumption and innovation in the economy. However, the government’s campaign to combat overcapacity and destructive competition, including in the steel sector, has attracted less attention than expected.
Instead, Beijing appears to be intent on delaying restrictions on steel companies – a matter of years rather than months.
In October this year, the Chinese Ministry of Industry and Information Technology proposed stricter rules for capacity exchange. In particular, those that provide for the modernization of plants will have better conditions, and some regions will not be allowed to add any at all.
The agency notes that imposing restrictions on expansion, rather than encouraging the closure of inefficient enterprises, will not help most factories suffering from the prolonged collapse of the real estate market in China. However, the promotion of value-added steel instead of commodity products such as construction rebar suggests that companies that are able to specialize will benefit.
China may still announce specific production or capacity targets at the annual National People’s Congress in March.
Until that happens, steel mills are forced to adjust production volumes based on demand, which is low at least in the domestic market, and profitability, which is good thanks to lower raw material costs. Annual steel production in China may fall below 1 billion tons for the first time in six years by the end of 2025.
Demand is likely to have the greatest impact on the situation in the Chinese steel industry. The government’s five-year plan mentions a number of major construction projects that could influence this.
At the same time, steel exports, which have been a positive factor for the country’s steel mills, may change amid protectionist measures, which are becoming increasingly popular around the world. Goldman Sachs Group forecasts an 8% decline for China in 2026, although it will still be the second-largest net volume in recorded history.
The growing share of steel sold abroad does not qualify as a high-quality finished product preferred by the government, indicating room for improvement in the industry.
In October, China presented a proposal for a stricter steel capacity exchange plan aimed at reducing capacity and restoring the balance between supply and demand. In particular, according to the draft resolution, for every ton of new capacity built, at least 1.5 tons of old capacity must be eliminated.
https://gmk.center/en/news/china-will-promote-value-added-steel-production/
By Lucas Liew
Iron ore futures eased on Tuesday, extending losses into a third consecutive session, as slowing factory activity and weak steel demand in top consumer China weighed on market sentiment.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) TIO1! was down 1.71% at 775.5 yuan($108.87) a metric ton.
The benchmark December iron ore (SZZFZ5) on the Singapore Exchange lost 1.19% to $103.8 a ton, as of 0703 GMT.
China's factory activity in October expanded at a slower pace as new orders and output weakened amid U.S. tariff concerns, according to a private-sector survey.
This reading was better than that of an official survey released on Friday, which showed factory activity shrank for a seventh consecutive month in October.
Iron ore prices typically rebound from early November to February before easing. However, significant losses from winter stockpiling in recent years, along with current high operating rates, may curb stockpiling enthusiasm this year, said Chinese broker Zhongtai Futures.
Steel consumption fell 5.7% and crude steel output declined 2.9% in the first three quarters of 2025, according to the state-backed China Iron and Steel Association.
China's iron ore inventories have risen steadily since the third quarter amid rapidly weakening domestic steel demand, while imports have accelerated its recovery, leading to a bearish outlook for prices, said Chinese broker Galaxy Futures.
Still, improving market sentiment following last week's easing of China-U.S. trade frictions helped limit losses, Chinese consultancy Mysteel said.
Other steelmaking ingredients on the DCE fell, with coking coal NYMEX:ACT1! and coke (DCJcv1) losing 2.53% and 2.4%, respectively.
Steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar RBF1! fell 1.42%, hot-rolled coil EHR1! dropped 1.03%, wire rod (SWRcv1) lost 0.54% and stainless steel HRC1! declined 0.71%.
($1 = 7.1230 Chinese yuan)
BHP will collaborate with South Korean steel manufacturer POSCO on a technology for lower-emissions ironmaking.
Hematite iron ore from the Pilbara region, Western Australia © BJP7images/Shutterstock
BHP and POSCO have signed an agreement to work on progressing HyREX, POSCO’s hydrogen-based direct reduced iron (DRI) production technology that uses fluidised bed reactors (FBR) and an electric smelting furnace (ESF) process to melt reduced iron.
The FBR and ESF processes are designed to use fine iron ore directly without being processed into pellets, which differs from conventional shaft based DRI processes that require the ore to first be pelletised.
POSCO has been developing FBR at lab-scale and ESF at pilot-scale, but the collaboration will support an additional scaled-up, integrated hydrogen reduction FBR-ESF demonstration plant in Pohang, South Korea, including trials using BHP’s Pilbara iron ore.
The companies intend to share their technical expertise, focusing on R&D, demonstrating performance and evaluating feasibility of HyREX at scale.
Construction of the demonstration plant is expected to begin soon at Pohang Steelworks, with a target for commissioning in 2028.
Once completed, the demonstration plant is anticipated to have an ‘annual production capacity of 300,000 tonnes’ and be the first facility using hydrogen-based FBR technology integrated with an ESF for ironmaking at scale.
BHP is supporting multiple pathways for addressing steel decarbonisation, including carbon capture, utilisation and storage, and other modifications, in existing blast furnaces, emerging DRI-electric steelmaking methods (including DRI-ESF), and the electrochemical reduction route.
https://www.iom3.org/resource/partnership-to-advance-hydrogen-based-ironmaking.html
