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Latest market news

Australian state adds funding for Whyalla steelworks

  • Market: Metals
  • 04/06/26

The South Australian (SA) state government will provide A$319mn ($228.5mn) in additional funding over the next two years to support the sale and operations of the 1.2mn t/yr Whyalla steelworks, it said in its 2026-27 budget today.

The SA government placed the steelworks into administration in February 2025. It has since received over A$2.88bn in state and federal funding, which the governments say is needed to secure sovereign steelmaking capabilities and support low-emissions manufacturing.

The SA government also allocated A$6.5mn over two years to support Whyalla's transition towards low-carbon steelmaking. The state government added that its 200PJ gas deal with Santos will support the steelworks' transformation. The deal will see Santos deliver about 20 PJ/yr (534mn m³/yr) to the Whyalla steelworks under a 10-year binding term sheet, starting in 2030.

Santos' gas will enable Whyalla to deploy direct reduced iron (DR) technology to process magnetite ore into low-carbon iron, chief executive Kevin Gallagher said on 20 February, cutting emissions by about 50pc compared to the former coal-fired blast furnace operations.

The state government on 27 May shortlisted two bidders to purchase the steelworks — Australian independent M Resources and India's Jindal Steel.

By Emma Partis

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04/06/26

BHP trials Australian tallow biodiesel for biobunkering

BHP trials Australian tallow biodiesel for biobunkering

Sydney, 4 June (Argus) — Australian tallow-based biodiesel was blended in Singapore for the first time and used onboard a bulk carrier, as part of Australian mining group BHP's pilot program aimed at reducing maritime emissions. Mining giant BHP trialled the fuel in May, using a 100pc biodiesel blend comprising 50pc Australian-origin tallow methyl ester (TME) and 50pc used cooking oil methyl ester (Ucome), the firm said on 3 June. The blend is expected to deliver around a 79pc reduction in lifecycle greenhouse gas (GHG) emissions per voyage compared with conventional very low-sulphur fuel oil. The biodiesel was used onboard the Berge Lyngor , an iron ore carrier that departed Port Hedland, Western Australia, for China on 17 May and partially discharged its cargo on 31 May, according to Kpler data. Around 500t of TME was sourced from producer Just Biodiesel's 60mn litre/yr plant on the New South Wales–Victoria border and exported to Singapore's bunkering hub in approximately 25 isotanks by biofuel supplier HAMR Energy, Just Biodiesel told Argus today. Japanese trading firm Mitsui's Singapore energy trading arm supplied the Ucome component and carried out blending. The project was co-funded by the Maritime and Port Authority of Singapore under the Maritime Innovation and Technology Fund. By Grace Dudley Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Coal gasification push in Indian steel faces hurdles

03/06/26
News
03/06/26

Coal gasification push in Indian steel faces hurdles

Mumbai, 3 June (Argus) — Coal gasification may help Indian steelmakers reduce dependence on imported fuels, but its commercial viability depends on how effectively the industry addresses cost, coal quality and technological constraints, industry experts said. The process has seen increased traction in recent months as India looks to reduce dependence on imported natural gas, ammonia and other products following the US-Iran war that disrupted trade flows from the Mideast Gulf. The Indian government in May approved a 375bn rupee ($3.9bn) incentive package to accelerate coal gasification projects, under which financial support of up to 20pc of plant and machinery costs will be provided. Coal gasification converts coal to synthesis gas, or syngas, which in turn can be used to produce fuels and chemicals domestically. Scaling up the process would enable India to use its abundant domestic coal reserves — estimated at about 401bn t — to secure energy supply for major industries. There are different pathways to use syngas in the steel sector, one of which is the production of direct-reduced iron (DRI) — a key feedstock for steelmaking. Indian producer Jindal Steel's nearly 2mn t/yr Angul facility, which was commissioned in 2014, is the first commercial plant globally to use coal gasification-derived syngas for DRI production and is the only such plant operating at a commercial scale in India. The company also started using syngas at its steel galvanizing and colour coating units earlier this year to offset natural gas and propane shortages. Over time, coal gasification is expected to reduce reliance on imported metallurgical coal by enabling syngas-based DRI production, thereby lowering dependence on coke-intensive blast furnaces. However, industry participants told Argus that fully substituting metallurgical coal remains challenging. Jindal has also introduced syngas into its blast furnace — something which will help the company cut down on the use of pulverized coal injection (PCI), Jindal Steel's sustainability and decarbonization head Naveen Ahlawat said at a coal ministry roadshow on 28 May. "We have a very strong view that it will reduce our PCI consumption by 20-30pc as we move forward," Ahlawat said. Big investments, slow progress But coal gasification projects require hefty upfront capital investments and significant water consumption. Additionally, Indian domestic coal has 30-45pc ash content, making it less suitable for gasification using imported technologies. This underscores the need to set up coal washeries and to scale up indigenous technologies better tailored to domestic coal. Government documents show other gasification projects are yet to take off, with Talcher Fertilizers' plant in eastern India's Odisha state facing delays in construction. The plant plans to use coal gasification to produce 1.27mn t/yr of urea. "We need to develop a business model for coal gasification, by aligning plant location, detailed feedstock assessment, gasification technology, and downstream product mix," gasification and decarbonisation expert Gaurav Verma told Argus. A technically and commercially viable model can then serve as a "template" for accelerating gasification projects while reducing development risks, Verma added. The green steel question The emissions intensity of DRI produced in coal-based rotary kilns and syngas-based DRI is very similar, the steel ministry noted in its green steel roadmap. Lowering the emissions intensity of coal gasification-based DRI will require carbon capture and storage units (CCUS) for CO₂ generated during the process, increasing costs for steelmakers. For projects which have a CCUS component, companies can approach the ministry of power for additional support under the CCUS scheme announced in the latest union budget , secretary of the coal ministry, Vikram Dev Dutt, said during the roadshow. Still, industry experts believe that coal gasification does not indicate a detour from steel decarbonization but serves as a stepping stone to advanced technologies such as green hydrogen, which are currently at a nascent stage. "Coal gasification is a transitional industrial strategy for resource-rich economies like India, where steel demand is growing rapidly while dependence on imported coking coal and LNG remains structurally high," mining and steel sector expert Hridaya Mohan said. "The objective is not to delay decarbonisation, but to create a practical bridge between today's resource realities and tomorrow's low-carbon steelmaking technologies," Mohan added. By Amruta Khandekar Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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US May factory activity quickens to 4-year high: ISM

01/06/26
News
01/06/26

US May factory activity quickens to 4-year high: ISM

Houston, 1 June (Argus) — US manufacturing activity expanded in May at the fastest pace in four years, with production and demand indicators growing, even as factory purchasing managers expressed concerns about the Iran war and rising prices. The manufacturing purchasing managers index rose to 54 in May, up from 52.7 in April and the highest since May 2022, the Institute for Supply Management (ISM) said in its latest survey results. Readings over 50 signal growth, while those below that level point to contraction. The new orders index rose to 56.8 in May, up from 54.1 in April, marking a fifth month of gains following four months of contraction. ISM said 25pc of respondents' comments were positive while 69pc were negative. The Iran war was mentioned in 42pc of comments and tariffs in 18pc. Price volatility was mentioned in 57pc of comments. "Despite the positive momentum for demand, sentiment remained dominated by the war in Iran," Oxford Economics said in a note on the ISM report. "The strait of Hormuz closure is driving up oil, fuel, and raw material costs, creating shipment delays and price hikes across industries." The production index rose by 0.9 to 54.3, ISM reported. The prices index slipped to 82.1, still in solid expansion. The employment index rose by 2.2 to 48.6, signaling a diminishing rate of contraction, with only half of respondents hiring. The supplier deliveries index was unchanged at 60.6 from April after rising in each of the prior five months. The unchanged reading marked continued slower deliveries, which is typical of improving economic activity and rising customer demand. Customers' inventories rose to 42.7 in May from 39.1, remaining "too low", according to ISM, which is considered a positive sign for future demand. The new export orders index rose by 2.7 points to 50.6, returning to growth, while the import index rose to 53 from 50.3. "Impact of Iran conflict starting to directly and negatively impact cost of supply chain," a transportation equipment survey respondent said. "Oil and related commodities are escalating in price." "The Middle East conflict is triggering shipment delays and uncertainties," a machinery respondent said. "Elevated gas prices and inflation will surely impact our purchases. However, over the last quarter, we've seen increased demand that was unexpected." By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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S Africa energy regulator approves FeCr tariff relief

01/06/26
News
01/06/26

S Africa energy regulator approves FeCr tariff relief

London, 1 June (Argus) — The National Energy Regulator of South Africa (Nersa) has approved an electricity tariff agreement between energy utility Eskom and ferro-chrome smelters that will prevent the shutdown of the country's ferro-chrome industry in the near term. Eskom's new tariff for ferro-chrome producers Samancor and Glencore-Merafe is set at 62 South African cents/kWh (4¢/kWh), down from 87.44¢/kWh at the start of 2026 and less than half the 135¢/kWh these producers were paying at the end of 2025. The tariff for Samancor is set for five years and the tariff for Glencore-Merafe is for three years, both effective from 1 June. Nersa also confirmed that any revenue shortfall from the lower tariff price will be borne by Eskom directly and cannot be recovered through increased levies on standard tariff customers. Merafe Resources said today that it has called off its Section 189 retrenchment process at the Glencore-Merafe joint venture in response to the approval of the new tariff, which will prevent the potential loss of thousands of jobs. The company is still in talks with Eskom to finalise the details of the power purchase agreement that will use the tariff. Samancor's position is still not clear. The company moved forward with a retrenchment notice in March, at which time it planned to cut 2,400 jobs across its smelting operations and corporate offices, according to South Africa's National Union of Mineworkers. That notice came despite Eskom's initial announcement in February of its intent to offer the lower 62¢/kWh tariff. It is possible that Nersa's approval of a longer tariff period for Samancor may be an incentive to halt the retrenchment process, but Samancor has not yet issued any public statement to that effect. Production costs for South African ferro-chrome remain extremely challenging, even under the new tariff, but general consensus across the market is that the agreement will avert the almost total collapse of production that threatened to occur without electricity price relief. Production at Glencore-Merafe and Samancor dropped sharply last year as they struyggled in the face of lower-cost competition from Chinese ferro-chrome producers that benefited from lower energy prices. This dynamic has pushed South Africa towards sales of chrome ore overseas to China in recent years, rather than utilisation of ore reserves to produce higher-value ferro-chrome. Glencore Ferroalloys chief executive Japie Fullard [told Argus in April](https://direct.argusmedia.com/newsandanalysis/article/2816436) that the 62¢/kWh tariff only represents a breakeven margin at Glencore-Merafe's smelters, other than the more technologically advanced Lion operation, which has a lower production costs. But he emphasised that the group wants to continue to beneficiate ore in South Africa, despite the lack of strong margins. By Ronan Murphy Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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Brazil renews quota policy for import steel

29/05/26
News
29/05/26

Brazil renews quota policy for import steel

Sao Paulo, 29 May (Argus) — Brazil will extend its steel import quota regime for another 12 months from June, the foreign trade chamber Camex's executive management committee (Gecex) said on 28 May. Steel imports within the quota threshold will remain subject to reduced 10-16pc tariffs, while a 25pc duty applies to volumes exceeding the quota. The quotas cover 19 steel products across flat, long and tubular steel segments, regardless of origin. The foreign trade authority assigned individual quota volumes for each product based on historical import levels. Gecex will also increase quota volumes for four coated flat steel products by 15pc, it said. The adjustment aims to avoid double protection, as the products became subject to antidumping duties in February 2026. Brazil imposed AD duties on imports of cold-rolled coil (CRC), hot-dipped galvanized (HDG) and other coated steel products from China earlier this year. Quota allocations will renew every four months through June 2027. Importers will be able to access lower tariffs on around 540,000 metric tonnes (t) of steel during each of the three periods. Steelmakers' association Instituto Aco Brasil requested that Gecex raise import tariffs to 35pc, which is the country's highest rate at the World Trade Organization (WTO). The group also proposed to eliminate the current quota system so the higher duty would apply to all imports. Gecex ultimately rejected the proposals, citing concerns that the measure could increase costs for downstream manufacturing sectors that consume steel products. The Brazilian quota regime was introduced in 2024 to curb rising steel imports and will now remain in effect for a third consecutive year. By Isabel Filgueiras Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

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