Fuel crisis forces WA resources company Blue Cap Mining to send workers home
By Jarrod Lucas, Mya Kordic and Courtney Withers
FIFO workers are being stood down as a result of the fuel shortages. (ABC News: Cody Fenner - file photo)
In short:
Fuel shortages linked to the Middle East war have forced a WA gold miner to stand down workers, exposing how smaller miners are being squeezed.
Blue Cap Mining says it will stand down two thirds of its 180-strong fly-in fly-out workforce in Western Australia.
What's next?
The state's mining exploration lobby said the cuts highlighted its fears that the commercial supply chain of fuel was starting to break down.
Operations at a remote Western Australian gold mine could grind to a halt in one of the first signs that fuel shortages, created by the war in the Middle East, are impacting small and medium-sized businesses in the state's diesel-reliant resources sector.
While the agriculture sector has been quick to raise the alarm ahead of its annual seeding campaign, the WA mining industry's major players have so far downplayed the impact on operations from the fuel crisis, which has consumed state and federal politics.
But for smaller industry players, like privately owned mining contractor Blue Cap Mining, fuel shortages have reached a tipping point. The company is standing down about two thirds of its 180-strong fly-in, fly-out workforce in the state.
"We had about 50 to 60 people affected over the weekend, and probably another 50 to 60 over the next few days will be told to stay home rather than come to work," Blue Cap's Managing Director, Ashley Fraser, told ABC Radio Perth on Tuesday morning.
Blue Cap's operations in WA include the Devon gold mine near Laverton, about 900 kilometres north-east of Perth, where ore is mined from the open pit and trucked almost 300 kilometres for processing.
But that work, and other Blue Cap projects around WA which consume about 15,000 litres of fuel a day, could be interrupted because, Mr Fraser says, independent distributors cannot maintain adequate supply.
"My primary concern is increasing our storage capacity on site, because I can't see it being solved any time soon," he said.
Blue Cap had less than a fortnight's supply of fuel, at normal run rates, stored in on-site tanks, Mr Fraser told the ABC.
Diesel was unavailable at this fuel station in Albany in WA's Great Southern on Tuesday after it ran out. (ABC News: Andrew Chounding)
"When I say that we're parking up equipment and we're sending people home, that's somewhat pre-empting the view that we only have a certain amount of supply such that we don't run out of all our fuel in a day or two," Mr Fraser said.
"We'll be dialling down our production until we can get some surety around what that fuel supply looks like.
"The feedback that we're getting is, don't expect more than 30 to 40 per cent of the fuel you normally get once or twice a week."
Mining vulnerable
According to the Institute for Energy Economics and Financial Analysis, Australia's resources sector consumes almost 10 billion litres of diesel annually.
It said one large haul truck could use a million litres of diesel in a year.
Mining accounted for 35 per cent of diesel used in Australia in the 2023-24 financial year, according to the Australian Bureau of Statistics (ABS).
The sector's consumption has risen by more than 90 per cent since the 2010-11 financial year to 9.6 billion litres in 2023-24.
Mr Fraser said, like farmers, smaller players in the mining sector relied heavily on independent fuel distributors.
He said his company was far down the "pecking order" compared to the big miners, which enjoyed a greater level of fuel certainty.
"It's frustrating. It's not a level playing field and it's probably not unlike the impacts that we all felt during COVID-19," he said.
Australia's resources sector is said to consume almost 10 billion litres of diesel annually. (ABC News: Keane Bourke)
"It's all well and good to say Australia has lots of supply, we have full tanks in Singapore — what's not being said is there is not a 100 per cent supply for all.
"Small and medium-sized businesses wouldn't be in this position if there wasn't an issue."
Situation 'concerning': premier
WA Premier Roger Cook said the situation for Blue Cap Mining was "very concerning".
WA Premier Roger Cook says the government will try to help Blue Cap Mining deal with the fuel shortage. (ABC News: Keane Bourke)
"That's why we have our fuel industry operations group that meets on a daily basis, to identify where these shortages are and make sure the trucks get there as a matter of priority," he said.
"We'll obviously reach out to this company to work out what their circumstances are and how we can help."
Opposition Leader Basil Zempilas said Blue Cap highlighted how the government should do more to make sure key industries were well supplied with fuel.
Opposition Leader Basil Zempilas said the impact of fuel shortages on Blue Cap Mining was deeply concerning. (ABC News: Keane Bourke)
"Western Australia is the engine room of the nation's economy and that engine runs on diesel," he said.
"So any shortages of diesel fuel are going to greatly impact Western Australia and Australia's economy more broadly, so of course we have to make sure that there are adequate supplies getting through to industry and agriculture."
Association of Mining and Exploration Companies CEO Warren Pearce said a breakdown of commercial fuel supply chains, an event he "feared", was happening.
Meanwhile, Chamber of Minerals and Energy WA CEO Aaron Morey said the disruption at Blue Cap Mining was not an isolated incident.
"We're aware of another operator in and around the Goldfields area that's had some challenges in getting sufficient fuel," he said.
Federal politicians weigh in
Federal Shadow Minister for Industry Andrew Hastie said the government needed a "clear plan" to mitigate the extended closure of the Strait of Hormuz.
Andrew Hastie is demanding to see a clear plan from the federal government. (ABC News: Matt Roberts)
“This worker stand down by Blue Cap mining is an early warning sign that we are about to experience the impact of serious national fuel shortage," he said.
"We are not insulated from the war in the Middle East, and an extended closure of the Strait of Hormuz will impact our economy."
Resources Minister Madeleine King said the government was looking at "every practical measure required to shield our nation and household budgets from the worst of this global uncertainty."
&imwidth=800&imheight=600&format=webp&quality=medium "UAE's Fujairah operations suspended after drone attack - why it's a huge deal for global oil market")
Smoke rises from the direction of an energy installation in the Gulf emirate of Fujairah on March 14, 2026. Photograph: (AFP)
Story highlights
The temporary suspension of Fujairah’s oil-loading operations, caused by a drone attack, threatens a vital global energy lifeline. As a strategic bypass to the blocked Strait of Hormuz, any disruption here risks forcing production cuts.
The recent suspension of oil-loading operations at the United Arab Emirates’ (UAE) Port of Fujairah following a drone attack and subsequent fire has sent ripples through an already volatile global energy market. As tensions escalate in the region and the nearby Strait of Hormuz remains effectively closed, Fujairah’s role as an energy lifeline has never been more critical.
Why Fujairah matters globally
Fujairah is not just a regional port, it is a vital cog in the global energy machine. Last year, the port exported an average of more than 1.7 million barrels per day (bpd) of crude oil and refined fuels - a staggering 1.7 per cent of daily global demand.
Located on the Gulf of Oman, just 70 nautical miles from the Strait of Hormuz, Fujairah serves as an essential alternative route. Amidst the tensions surrounding the Strait of Hormuz due to the ongoing war, the world is heavily reliant on the oil that flows through this strait to avoid a complete supply collapse.
It is the 4th largest marine fuel (bunker) hub in the world, trailing only Singapore, Rotterdam, and Zhoushan. Ships rely on this infrastructure to refuel, keeping global maritime trade moving.
Why it matters to the UAE
For the UAE, Fujairah is a strategic economic asset that secures the nation's ability to export its resources even when traditional routes are compromised. The port is connected to the Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan–Fujairah Pipeline. This 1.5 million barrels per day (bpd) pipeline enables the UAE to transport crude oil from its interior fields directly to the coast, bypassing the Strait of Hormuz entirely.
Any significant disruption at the Fujairah terminal limits the UAE's ability to export. As OPEC’s 3rd largest crude producer, the UAE may be forced to further curtail oil production if its only reliable export outlet is compromised.
Why it matters to crude and fuel markets
Beyond exports, Fujairah is one of the world’s most important "energy batteries." With a massive storage capacity of 18 million cubic metres, the port is a premier global hub for storing crude and refined products. It also facilitates complex "blending" operations, where different components are mixed to create specific grades of gasoline and bunker fuels that meet international standards.
Traders familiar with state-owned Saudi Aramco’s notifications said customers who chose Yanbu will only be able to receive a fraction of their usual monthly volumes. The reason is the limited capacity of the pipeline that connects the country’s oil fields to that port. The alternative is to load in the Persian Gulf, but in this case there is still a risk of a complete halt in deliveries if the Strait of Hormuz remains closed. Traders spoke on condition of anonymity because they are not authorized to speak to the media, according to Bloomberg.
Aramco, the world’s largest oil exporter, shipped about 7.2 million bpd of crude last month – even before Iran effectively blocked the strait. Most of that volume went through the Persian Gulf terminals of Ras Tanura and Juaima. Saudi Arabia has a pipeline with a capacity of about 5 million bpd that runs through the country to the Red Sea, but the capacity of the Yanbu port itself may be below that level, according to traders’ estimates.
Saudi crude is usually sold under long-term contracts, with most of it heading to Asia. Amid the disruptions, China’s largest refiner Sinopec has already cut refinery utilization by about 10% to cope with the shortage of crude. In Japan, the authorities have started using oil from strategic reserves.
Uncertainty forces the use of dubious alternatives
Aramco’s proposed options reflect the uncertainty surrounding the conflict in the Middle East and the timing of the possible opening of the Strait of Hormuz. US President Donald Trump’s statements about the reasons for the start of the war remain contradictory: both Washington’s allies and opponents do not understand when the end of the conflict may come. At the same time, Iran has so far shown no willingness to make concessions.
Since the start of the war, which is now in its third week, Aramco has gradually increased shipments through Yanbu. The company has also taken the unusual step of putting oil shipments with loading at this port on spot tenders. However, the offer of contract deliveries through the Red Sea terminal was heard for the first time.
It is not only Asian buyers that have been affected by the cuts. Some European refineries said they received smaller contracted volumes from Aramco for next month. One major refiner did not receive any supplies at all, while another was allocated less oil than it had requested.
https://logos-pres.md/en/news/saudi-arabia-proposes-to-divert-oil-through-the-red-sea/
Tuesday 17 March 2026 5:16 am | Martin Copeland
The conflict in Iran has highlighted the fragility of global supply chains and the necessity of energy self sufficiency, says Martin Copeland
It has been just over two weeks since the US and Israel commenced military action in Iran, with acute consequences for energy, international trade and potentially the global economy.
Normally, about 20 per cent of global oil demand and 20 per cent of the global LNG trade pass through the Straits of Hormuz daily. Today, these volumes have been slashed by more than half, with LNG flows stopping completely as Qatar has called force majeure at their massive Ras Laffan liquefaction plant.
In response, the IEA has authorised the release of 400m barrels from strategic reserves to stabilise markets. While this may soften some of the immediate shock, it is only about 3 weeks of foregone supply and global energy markets remain fragile. This crisis is the latest reminder that energy security matters and is a physical thing that depends on complex, integrated logistics chains.
More than 70 per cent of the UK’s primary energy demand today is met by oil and gas, and around 45 per cent of that is imported. These molecules heat homes and industrial processes, power businesses, provide feedstock for all manner of chemicals and products of modern life, and keep critical transportation and infrastructure running.
Offshoring mindset
The government’s narrative is that the Middle East conflict reinforces the importance of doubling down on ending our reliance on oil and gas. Whether or not this is the message that the public takes from these events, it is dangerously simplistic. Reducing the contribution of oil and gas from our energy mix is a decadal challenge. The government’s own gas security strategy calls for increased volumes of LNG to support demand over the remainder of the decade. The consequences of this ‘offshoring’ mindset are reflected in a punitive tax regime on UK production that disincentivises investment, a de facto freeze on approving new field developments, and stopping exploration licensing. As a result, no new North Sea field has been approved since Serica’s small Belinda field was sanctioned in May 2024 and, for the first year since the 1970s, not a single exploration well was drilled in 2025. These policies actively discourage the investment needed to deliver more homegrown gas and oil in favour of increasing dependence on imports.
The Secretary of State argues that new oil and gas fields will not help the UK in the current energy crisis. It is true that approving new projects today won’t deliver barrels tomorrow. However, he is sitting on approvals for new UK fields which, had they been actioned promptly, could by now have reduced the UK’s requirement for LNG imports by over one third. In contrast, Norway has approved 26 projects in the last four years, many of which are for new gas production destined for export to the UK.
The UK Continental Shelf is indeed mature, but it is still the second-largest oil and gas resource base in Western Europe, with the potential to meet around half of domestic demand over the next 25 years. Every additional UK-produced molecule is one fewer imported, contributing more tax and supporting the economy and UK jobs. Moreover, oil and gas imports come with far higher carbon emissions than domestically produced oil and gas, with LNG three to four times more emissions intensive than the average of homegrown production.
Developing our own oil and gas resources is not in conflict with the energy transition; it is entirely compatible.
The government has policy choices. For as long as the UK needs oil and gas, we should seek to maximise domestic production alongside the expansion of renewables. Pivoting their approach to new oil and gas activities in the UK North Sea will stimulate investment that would help protect this country at times of extreme energy crisis and reduce our exposure to riskier and more carbon intensive imports.
Industry stands ready to play its part. Companies like Serica – one of the six largest UK oil and gas producers – have the capacity and desire, with the appropriate fiscal and licensing regimes, to invest in projects that will help support the country’s essential energy needs. Many of these projects could be adding production, supporting jobs and generating growth in the very near-term.
As the Chancellor said to the Labour Conference last year, where things are made matters. The ongoing joint US and Israeli military operations, and their impact on a key artery of global trade, show us this is as true for energy as anything else.
https://www.cityam.com/domestic-oil-and-gas-are-britains-best-defence-in-the-global-energy-crisis/
Dirk Kaufmann
Gold is typically seen as a safe haven, especially in times of war and other crises. Notwithstanding the ongoing war in Iran, the price is steady. What's driving the stability?
A well-known stock market proverb says: "Buy when the cannons are firing." In other words, in times of war and uncertainty, people should invest.
Those looking to protect their wealth and assets often turn to gold — even though gold is rarely cheap in turbulent times. In times of crises, such as a pandemic or a war, demand for gold typically rises. This stronger demand tends to push prices higher, as it did in the first weeks of this year.
If prices continue to rise, investments in gold not only preserve wealth but also potentially increase it. So is the current environment a boon for speculators?
Gold is generally less of a speculative investment and more of a safe-haven asset. This has been reflected in the gold price's recent development, which has repeatedly reached new highs — mirroring the tense global political situation. According to the comparison portal Gold.de, the precious metal reached its all-time high on January 28, 2026, at $5,417.60 (€4,721.40) per ounce.
However, during the Iran war, the price has not continued to rise despite increased market uncertainty. One week after the war began on February 28, gold briefly traded at $5,327.42, but has since stabilized within a range of $5,000-$5,200 per ounce.
For Michael Hsueh, head of the Metals Research division at Deutsche Bank, this does not come as a surprise. Although gold prices tend to be higher on average after a crisis event, there are "greater differences between individual cases than the average might suggest." He told DW that Deutsche Bank observed a similar pattern last year following Israel's attacks on Iran.
Gold is not getting more expensive
Carsten Fritsch, a commodities analyst at Commerzbank, has noticed similarities with the current conflict: "The gold price has not benefited from the uncertainty caused by the Iran war," he told DW. "On the contrary, it is actually trading lower than before the war began."
He says there are two factors at play here. First, gold is traded in US dollars. When the dollar strengthens, gold becomes more expensive for buyers using other currencies. As a result, demand from those buyers declines, which tends to push the price down.
Second, rising oil prices are driving up inflation. When inflation increases, it becomes less likely that the US Federal Reserve will cut interest rates. If investors expect interest rates to stay higher, gold becomes less attractive because it does not pay interest, while other investments do.
An overheated gold market
Wolfgang Wrzesniok-Roßbach, managing director of Fragold GmbH and an advisor to private and institutional investors, is not surprised by the current sideways movement in the gold price. In his view, it reflects a cooling of the market.
"The rise in the gold price and the prices of other precious metals in the last quarter and in January was disconnected from the actual fundamental data and had therefore become completely exaggerated."
In his assessment, the sharp increase in prices had real consequences for demand. For example, he said that jewelry demand—an important factor in the gold market — fell in the fourth quarter of last year to its lowest level in the past 15 years.
Central banks, he said, were also cautious because of the high price. Although they still bought 230 tons of gold, this was the second-weakest fourth-quarter demand from central banks in the past five years.
He attributes the bull run in the gold market primarily to price-driving forces, notably the purchases by investors and speculators who had previously bet on falling prices. To limit their losses, they now had to buy gold at higher price levels, he explained.
"The sharp decline on January 30 and afterward clearly revealed how exaggerated the previous surge had been."
Carsten Fritsch shares this view. "The price increase in January was an exaggeration and could no longer be explained by the usual influencing factors. Greed and the fear of missing out on the price rally also played an important role."
All that glitters is not gold
Gold is not the only commodity currently experiencing a boom. Silver is also in strong demand and therefore expensive. However, Wrzesniok-Roßbach does not see a price bubble in this precious metal.
"As far as the silver price is concerned, I actually see it as fundamentally very well supported, and in my opinion we will have to get used to a permanently high price level and thus a complete revaluation."
Frank Schallenberger, a commodities expert at Landesbank Baden-Württemberg (LBBW), disagrees. In his view, demand for silver is likely to weaken. "In the coming months, the slowing momentum in the solar industry, the weak global economy, and a further decline in jewelry demand are likely to weigh on the silver price."
What's next for silver?
Asked for a forecast, he painted a more nuanced picture of the silver market.
"It is uncertain whether the silver market will show a supply deficit for the sixth consecutive year in 2026. If sales of silver ETCs [Exchange Traded Commodities – the ed.] continue over the course of the year, the market balance could actually shift into a supply surplus," he said.
In contrast, Wolfgang Wrzesniok-Roßbach believes silver prices are likely to keep climbing. He points to the global push toward electrification — particularly the expansion of solar power — as the key driver. Because of this trend, he says he would not be surprised if silver eventually stabilizes at levels above $100 per ounce.
The outlook for gold
When it comes to gold, Frank Schallenberger urges caution. Weak jewelry demand and central banks' hesitancy to increase their gold holdings could slow the recent price rally in the months ahead, he noted. "At the same time, US policy remains an important source of uncertainty, as it may continue to trigger unexpected reactions in financial markets."
Still, he notes that gold is likely to remain attractive to investors as a safe-haven asset.
Carsten Fritsch of Commerzbank takes a more forward-looking view. If the war were to end, he expects the dollar and oil prices to decline, which would generally support higher prices for both gold and silver.
However, whether prices would actually rise again would largely "depend on how strongly higher oil prices feed into inflation — and how central banks choose to respond," he said.
https://www.dw.com/en/iran-war-why-gold-prices-are-not-soaring/a-76381602
Australian mining company South32 said on March 16, that it placed its Mozal aluminium smelter in Mozambique under maintenance. The company made the decision after the smelter’s electricity supply contract expired this month and negotiations to renew the agreement failed.
South32 had issued several statements in recent months warning that it could suspend Mozal’s operations if negotiations did not secure a reliable power supply. The plant represents a major contributor to the local economy and employed about 2,500 workers.
Mozal Aluminium ranks as Africa’s second-largest aluminium smelter, behind the Hillside smelter in South Africa. The facility operates using electricity supplied by state-owned power producer Hidroeléctrica de Cahora Bassa (HCB). However, negotiations on a new power supply agreement stalled as the contract approached expiration.
South32 said disagreements over electricity tariffs prevented the parties from reaching a new agreement. As a result, the company proceeded with its plan to halt operations once the contract expired.
“Over the past six years, we have held in-depth discussions with the Government of the Republic of Mozambique, Eskom, and other key stakeholders, but we have been unable to secure a sufficient and affordable electricity supply for Mozal beyond March 2026,” said Graham Kerr, Chief Executive Officer of South32.
Aluminium smelters require stable and affordable electricity supplies because the facilities consume large amounts of energy. Therefore, the lack of a long-term power agreement likely played a decisive role in South32’s decision to suspend the plant’s operations.
Meanwhile, the suspension deprives South32 of one of its flagship assets and removes a major contributor to Mozambique’s economy. According to the operator, Mozal Aluminium employed more than 2,500 workers in 2024 and generated economic activity equivalent to around 4% of Mozambique’s annual GDP.
For now, neither South32 nor Mozambican authorities have indicated whether the parties could resume negotiations to restore the smelter’s operations.
This article was initially published in French by Aurel Sèdjro Houenou
Adapted in English by Ange J.A de Berry Quenum
TASHKENT, Uzbekistan, March 16. A new copper smelter worth $2.5 billion will be built at the Almalyk Mining and Metallurgical Complex (AMMC), President of Uzbekistan Shavkat Mirziyoyev said, Trend reports via the press service of the Uzbek president.
President Mirziyoyev made the remark during a ceremony marking the inauguration of the third copper processing plant at the Almalyk Mining and Metallurgical Complex.
According to the president, once Copper Concentration Plant No. 3 reaches full capacity, daily output of copper concentrate at AMMC will increase from the current 2,400 tons to 5,000 tons.
Overall, it was noted that the launch of a new facility will significantly expand production capacity. Annual output of copper cathodes is expected to rise from 148,500 tons to 300,000 tons, gold production from 20 tons to 33 tons, silver from 161 tons to 203 tons, and molybdenum from 850 tons to 1,700 tons.
In addition, production of sulfuric acid, a key raw material used in uranium mining and the chemical industry, will triple.
Mirziyoyev also mentioned that the groundwork is being laid at a rapid clip for Copper Concentration Plant No. 4, which is anticipated to boost current production figures by an additional 1.5 times once it gets off the ground.
"Following the commissioning of these facilities, the Almalyk Mining and Metallurgical Complex is expected to become one of the three largest copper production complexes in the world," the president said.
Last Updated, March 16, 2026
TORONTO – March 16, 2026 – Almonty Industries Inc. (“Almonty” or the “Company”) (NASDAQ: ALM) (TSX: AII) (ASX: AII) (Frankfurt: ALI1), a leading global producer of tungsten concentrate, today announced the completion of Phase 1 commissioning at its Sangdong Tungsten Mine in Gangwon Province, South Korea – marking the return to production after more than 30 years.
Phase 1 of the Sangdong Mine is now commissioned and producing, with the processing plant designed to handle approximately 640,000 tonnes of ore annually, yielding roughly 2,300 tonnes of tungsten concentrate per year. A planned Phase 2 expansion, expected to come online in 2027, is designed to increase processing capacity to approximately 1.2 million tonnes of ore annually, doubling tungsten output to roughly 4,600 tonnes per year. At full capacity, Sangdong is expected to supply ~40% of global tungsten demand outside China.
On March 17, 2026, at 10;00 a.m. local South Korean time, Lewis Black, President and CEO of Almonty, will host a formal commissioning ceremony at the Company’s Sangdong Tungsten Mine marking the completion of development and the transition of the project toward commercial operation. The Company is expecting the ceremony to be attended by over 200 political figures from all branches of the South Korean Government as well as various representatives from the U.S. embassy in Seoul.
The Sangdong Mine was historically one of the world’s largest tungsten producers before operations were suspended in the early 1990s following a prolonged downturn in commodity prices. Since acquiring the project in 2015, Almonty has invested more than $100 million to redevelop the site as a modern underground mining operation with a newly constructed processing plant. The redevelopment includes approximately four kilometers of underground tunnel development, a mineral processing plant equipped with SAG and ball mills supplied by Metso, and advanced operational monitoring systems.
Sangdong has an expected mine life exceeding 45 years and an average ore grade of approximately 0.51% tungsten trioxide (WO₃), roughly three times the global average. The project was developed in accordance with the Equator Principles and is located in the Republic of South Korea, a mature democracy and close strategic ally of the United States.
Management Commentary
Lewis Black, Chairman, President & CEO of Almonty, commented:
“The completion of Phase 1 at the Sangdong Tungsten Mine marks the culmination of more than a decade of investment and development. This is a significant milestone in the effort by the United States and its allies to diversify supply chains for critical minerals away from China, which currently produces approximately 88% of the world’s tungsten supply. With commissioning now complete, our focus turns to optimizing throughput and advancing toward full commercial production.
“Looking ahead, the Phase 2 expansion and the development of our tungsten oxide facility and the adjacent Sangdong Molybdenum deposit will form the foundation of what we refer to as the ‘Korean Trinity’ – a fully integrated strategic-mineral value chain that positions South Korea as a global hub for the production, refining, and upgrading of tungsten. This will directly support U.S. defense procurement requirements mandating non-China tungsten sourcing after 2027 and significantly enhance resource security for the U.S. and its allies.”
Pig iron production fell by 2.7% y/y
In January–February 2026, China reduced its steel production by 3.6% y/y – to 160.3 million tons. This was reported by SteelOrbis, citing data from the National Bureau of Statistics of China (NBS).
Pig iron production fell by 2.7% year-on-year to 137.7 million tons, while rolled steel production dropped by 1.1% compared to the same period last year, reaching 221.2 million tons.
As Stephen Yu, a researcher at the consulting firm Mysteel, noted, according to Bloomberg, the first two months of the year are typically quieter for steelmakers due to the Lunar New Year celebrations and pollution control measures ahead of the annual legislative sessions in Beijing in early March.
In 2026, steel mills are less eager to build up inventories in preparation for a busier spring season due to concerns about the outlook.
As a reminder, China’s steel production fell below the 1 billion-ton mark in 2025, reaching its lowest level since 2018. According to data from the National Bureau of Statistics of China, the country produced 960.81 million tons of steel last year, a 4.4% decrease compared to 2024. The decline was a result of the protracted crisis in the real estate market, which significantly curtailed domestic demand for steel products.
As reported by GMK Center, China reduced steel exports by 8.1% year-on-year in January-February, to 15.59 million tons. Imports of steel products into the country over the first two months of this year fell by 21.7% year-on-year, to 827,000 tons.
https://gmk.center/en/news/china-reduced-its-steel-output-by-3-6-y-y-in-january-february/
The European long position market remained "tense and static" this week, including for manufacturers
The European long position market remained "tense and static" this week due to attempts by manufacturers to raise prices, which still do not attract buyers.
For example, in the Italian rebar market, manufacturers tried to increase prices by 30-50 euros per ton, depending on the factory, bringing them to 350-360 euros per ton from the factory (610-620 euros per ton from the factory, including the usual additional services). However, according to sources, buyers continue to recall previous orders at a price of 280-290 euros per ton from the factory (540-550 euros per ton from the factory, including the usual additional costs). However, according to the source, the volumes available at these prices are "now running out." "Manufacturers are worried," another source commented. "This war[in the Middle East]is having a serious impact, investments have collapsed, people are afraid to spend," he concluded.
Italian producers have decided to apply various strategies to cope with high energy prices caused by the war and record low demand. Some of them actually reduced production or suspended it for various periods of time, from a few days to more than a week, waiting for a clearer picture of demand.
As for the wire rod market in Italy, quotations are still suspended at the moment. "The situation is tense, and demand is still very low. Let's hope that local factories will not raise prices too much, otherwise the small demand there may disappear completely," said one of the market participants. "Demand remains low," another source confirmed. "The conflict in Iran has led to an increase in energy prices and, consequently, steel prices, as well as a decrease in demand. Unlike in 2022[post — Covid and war in Ukraine], when the market reacted by holding prices, there is a lot of uncertainty now. The market is not responding," he concluded.
In other European countries, wire rod supplies have also been temporarily suspended, and a major manufacturer is reviewing current orders with some customers. As for fittings, prices for them in Central Europe now amount to 580-590 euros per ton from the factory.
Export markets remain calm, while imports from Turkey have tried to rise in price several times due to increased freight costs, which strongly affects shipments by sea. "In addition to the increased freight cost, shipments are delayed by three to four months," commented a European trader. "The ships are simply impossible to find," said another.
FRANKFURT (dpa-AFX Broker) - Concerns over a potential collapse of the steel deal with India's Jindal Steel & Power put Thyssenkrupp shares under increasing pressure throughout Thursday afternoon. The stock slumped by around 10 percent to 8.11 euros, reaching its lowest level since mid-September 2025. The year's previous gains, which had already evaporated between early February and early March, have now turned into a 12.5 percent loss year-to-date.
The additional pressure on the already weak stock was triggered by fresh doubts that a transaction between Thyssenkrupp Steel Europe (TKSE) and the family-run Indian steel group will materialize. "It would be very bad for Thyssenkrupp if Jindal Steel's entry into TKSE fails," commented equity expert Frederik Altmann from Alpha-Wertpapierhandel. "The steel business has long been a heavy millstone around Thyssen's neck, and market hopes are high that a solution could finally be found after a long search."
It was announced in mid-September last year that negotiations with Jindal were underway. While the initial response from trade unions was positive, analysts had already expressed caution at the time. For instance, Dominic O'Kane from the US bank JPMorgan raised concerns that there was no evidence yet that Jindal's takeover bid would be value-enhancing. Ephrem Ravi from Citigroup highlighted the high pension obligations. Then, in late November, the IG Metall union stated it would only agree to a potential sale if there was an agreement regarding employee interests.
The steel division, Thyssenkrupp Steel, is Germany's largest steel producer. The company fell into crisis due to economic weakness and the resulting overcapacity, as well as high energy prices and cheap imports from Asia. The restructuring process currently underway is expected to result in losses amounting to millions for the group in the 2025/26 fiscal year, which runs until the end of September. This includes the cutting and outsourcing of thousands of jobs.
Jindal is also reported to have demanded further cost reductions during the takeover negotiations, as the "Rheinische Post" reported in mid-January. Since then, things have gone quiet regarding the project. Most recently, at the end of January, Thyssenkrupp CEO Miguel López remained tight-lipped during the annual general meeting, speaking only of a "constructive exchange" with Jindal./ck/la/mis
Posted on 16 Mar 2026
An Indian Ministry of Steel announcement states that NMDC Ltd, India’s largest iron ore producer and a Navratna CPSE under the Ministry of Steel, is set to make history by becoming the first mining company in the country to produce 50 Mt of iron ore in a single financial year, a significant milestone that comes before the close of FY 2025-26 on March 31.
Established in 1958 to develop India’s iron ore resources, NMDC produced around 10 MT in 1978. Over the decades, output has expanded fivefold to reach a historic 50 Mt in FY 2025-26, reflecting the company’s steady transformation into the backbone of India’s iron ore supply chain.
NMDC’s rise to the 50 Mt mark also underscores a sharp acceleration in growth in recent years. Production has increased by nearly two-thirds since 2015, rising from about 30 Mt to 50 Mt, with nearly one-fifth of the current capacity added in the last four years alone showing the fastest expansion phase in the company’s history.
As India advances towards its target of expanding steelmaking capacity to 300 million tonnes by 2030, ensuring a stable and reliable domestic supply of iron ore has become a strategic priority. Commenting on the achievement, Shri Amitava Mukherjee, Chairman and Managing Director, NMDC Ltd, said: “Reaching 50 million tonnes is a notable achievement and reflects the strong progress we have made under NMDC 2.0. What once took decades to build, we have accelerated in just a few years through sharper execution, responsible mining practices, and a clear commitment to national priorities. Being India’s largest iron ore producer comes with a huge responsibility, and this milestone reflects not just the strength of our operations but also the trust placed in us to support the nation’s steel ecosystem.”
With highly mechanised operations across the mineral-rich regions of Chhattisgarh and Karnataka, NMDC remains central to ensuring the country’s iron ore security. The company says it continues to focus on operational excellence, technological advancement, and responsible mining practices, as it looks ahead to the next phase of growth.
A good example is in the plans for NMDC’s Dominalai iron ore mine, where a Dos Santos International Sandwich Belt high angle conveyor system is set to be used as the continuous elevating means from the in-pit crushing system along the mine slope to the surface level 100 m above. At the top an overland conveyor system will transport the bulk to the plant.
JSW Steel, India’s biggest steelmaker by capacity, won rights to develop a coal mine in Mozambique’s Tete province, securing access to a key raw material used in steel manufacturing.
The company’s Minas de Revuboe project in Mozambique’s Moatize coal basin holds about 850 million tons of reserves and could produce 250 million tons of saleable coal used in steelmaking, JSW Steel said in a statement late Friday.
JSW Steel plans to develop the mine in phases. The first stage is expected to take about two and a half years and produce 2.4 million tons of coal a year, according to the statement. Its proximity to ports could make the project a strategic supplier to other Indian steel plants.
As the company plans to increase its annual steelmaking capacity to 50 million tons in India by 2030, the asset will help secure and diversify raw-material supplies while cushioning JSW from volatile global coking coal prices, the company said.
With India’s domestic reserves limited, captive overseas sourcing has become a strategic priority, it said.
https://www.mining-turkey.com/jsw-steel-wins-rights-to-develop-coking-coal-mine-in-mozambique/