MMi Daily Iron Ore Report (May 12)

A US federal appeals court unanimously ruled that the Department of Energy exceeded its authority when it ordered Consumers Energy’s 1.4-GW J.H. Campbell coal-fired power plant in Michigan to remain operational beyond its scheduled May 2025 retirement. The court found that the DOE improperly invoked emergency powers under the Federal Power Act. Michigan argued that continued operation of the economically unviable plant could impose nearly $300 million in additional costs on electricity customers. However, the ruling does not immediately close the plant, as Consumers Energy remains subject to a separate temporary DOE order requiring operations to continue until mid-November 2026. The decision could constrain similar federal efforts to postpone coal-plant retirements on grid-reliability grounds.

In H1 2026, Americas moly supply divergence deepened. Despite stronger mining profits, overall output failed to rebound. While H2 may see recoveries at select large mines, supply elasticity remains constrained. Which operations are dragging on supply, and where will incremental growth emerge? SMM data reveals a market entering a new phase of "stronger margins, diverging production, and concentrated incremental gains."...