BHP advances steel decarbonisation trials despite investment headwinds

Speaking at the opening session of the 19th Arab Steel Summit in Cairo, Egyptian Minister of Industry Khaled Hashem said Egypt places high priority on developing its iron and steel industry and improving its competitiveness, describing the sector as a key pillar for building an integrated industrial base and supporting sustainable economic growth. He noted the summit convenes as the global steel industry undergoes rapid change driven by shifts in international trade patterns and by challenges in energy and production input availability, making closer joint efforts essential to build a more competitive and sustainable Arab steel industry through stronger research support and industrial integration. Hashem said steel is a major development driver given its close links to construction, infrastructure, engineering industries and the automotive sector. The ministry is pressing ahead with an updated strategy to localise manufacturing, raise added value and boost exports, focused on integrating successive production stages, encouraging new investment and widening the adoption of modern technologies for sustainable output. He also flagged opportunities offered by Arab resources and promising markets for joint investment, regional supply chain development and technology transfer, and reaffirmed continued cooperation with the Arab Iron and Steel Union. An accompanying international iron and steel exhibition opened alongside the summit with wide participation from Arab companies and institutions.

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.