[Domestic Iron Ore Brief] Iron ore prices in the Tangshan area are likely to be in the doldrums

Stelco Holdings Inc. will indefinitely idle finishing operations at its Hamilton, Ontario plant, affecting up to 500 workers across Hamilton and Lake Erie. The company said the move was 'unfortunate but necessary', citing US tariffs that have cut demand for its cold rolled and galvanized products. Demand in its traditional markets fell almost 25% in Q2 2026 vs the 2024 quarterly average, with Canada down 10%. Ottawa's import curbs have cut volumes but not enough to close the gap. Production will be concentrated at the Lake Erie Works in Nanticoke, Ontario. Parent Cleveland-Cliffs said the product mix will change but steel tonnage will not, and will offer Hamilton staff Lake Erie roles. Peer Algoma Steel announced over 1,000 layoffs; ArcelorMittal Long Products Canada shut its Hamilton wire drawing mill.

Italy's steel association Federacciai warned that soaring energy costs are threatening the continuity of domestic steel production and urged the EU to suspend its Emissions Trading System (ETS). It said the combined burden of high electricity prices and carbon costs has left Italian mills, particularly electric arc furnace operators, facing unsustainable pressure, with some lines at risk of shutdown. Federacciai called on the EU and the Italian government to take emergency measures, including halting ETS allowance auctions and adjusting carbon cost pass-through rules, to protect steel supply and jobs. Spanish peer Unesid also warned of a 658 million EUR energy cost overrun (about 710 million USD) and sought an emergency plan. Source: Federacciai.

The European Commission proposes barring Egypt from importing EU-origin ferrous and non-ferrous scrap once the revised Waste Shipment Regulation fully takes effect on 21 May 2027. Egypt, with India, Pakistan, Morocco, Bangladesh and Saudi Arabia, failed to prove environmentally sound waste management. Egypt imported 1.86 million tonnes of EU scrap in 2025 and 2.12 million tonnes in H1 2026, up 59.7% y-o-y, ranking third globally; about half its ferrous scrap supply comes from the EU. Mills would need alternative scrap or more DRI: European freight is 20-25 USD/tonne versus 35-40 USD/tonne from China or the US. Egypt has also lost 213 million USD of steel exports to EU and US anti-dumping measures. Feedback closes 16 October; adoption is planned for Q4 2026.