Egypt moves to sharpen competitiveness of its iron and steel sector

BHP has reaffirmed its commitment to lower-emission steelmaking, reporting progress across industrial trials and technology partnerships even as global steel decarbonisation investment faces mounting economic pressure. The miner said it is working with 13 of the world's largest steelmakers, which accounted for a quarter of global steel output in 2025, to test technologies that cut emissions from existing operations and support near-zero emission steelmaking. Announced investment and funding commitments in steel decarbonisation totalled about 24 billion USD in the 12 months to April 2026. However, BHP said high capital costs, limited access to competitively priced energy and hydrogen, and weak demand for lower-emission steel are squeezing project economics, making the pace of decarbonisation more measured. Under its expanded partnership with POSCO, trials using BHP iron ores are planned for 2028 at POSCO's 300,000-tonne HyREX hydrogen-based ironmaking plant in Pohang, South Korea. In Australia, design work is complete for the NeoSmelt demonstration-scale direct reduced iron and electric smelting furnace project at Kwinana, Perth, involving AMB Holdings, BHP, BlueScope, Mitsui Iron Ore Development, Rio Tinto and Woodside, with commissioning expected in 2029 subject to a final investment decision. More than 100 electric smelting furnace tests since 2022 have produced over two tonnes of hot metal using Pilbara ore. Hydrogen-rich gas injection trials at China's Zenith Steel have achieved a 2-3% emissions cut, while carbon capture testing with ArcelorMittal and HBIS showed operating time and CO2 capture rates above 90%.

The EU Carbon Border Adjustment Mechanism now covers steel imports, tying import charges to embedded emissions and accounting for carbon costs paid at origin, which narrows the carbon-cost gap between European mills and overseas suppliers. Whether Canada wins recognition or an exemption remains unsettled; the Montreal summit added political attention but no resolution. Algoma Steel (TSX: ASTL) has moved from blast furnaces to electric arc furnaces, with its second furnace casting first steel in October and now ramping up; it expects roughly a 70% cut in annual carbon emissions once complete. The transition is not yet profitable: Q3 net loss was about 130 million USD on revenue of about 180 million USD (249.4 million CAD). Operating cash inflow of 78.6 million USD included 163.9 million USD of tax receivables; excluding that, flow was negative 85.3 million USD.

Twenty-six members of the European Parliament have warned the European Commission that safeguards on electrical-steel imports are raising costs and weakening the competitiveness of EU transformer manufacturers. In a letter, the lawmakers said insufficient domestic supply leaves producers dependent on imports, while the measures favour finished transformers from countries including China. They urged the Commission either to withdraw the provisional safeguards and close the investigation, or to adjust the measures so that EU manufacturers are protected. The intervention highlights a policy conflict between steel trade remedies and downstream electrical-equipment production.