Steel Industry
Stegra faces financial crisis and seeks more support
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The Swedish steel company Stegra, building a fossil-free plant in Boden, struggles with delays and cost overruns and now seeks ten billion kronor in new funding. Pension funds like the AP funds have invested hundreds of millions via Al Gore's climate fund, while state support is debated politically. A potential bankruptcy would hit Boden hard but minimally affect pension savers.
Several business organizations have expressed support for the government investigation into Philippine Sanjia Steel Corp. after its Misamis Oriental plant was closed due to radioactive materials.
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HSBC has started coverage on JSW Steel and Jindal Stainless with Buy ratings. The bank expects a multi-year demand upcycle driven by infrastructure and urbanization. It also reaffirmed a Buy rating on Tata Steel.
The european steel industry is suffering, putting thousands of jobs at risk. The Eu commission plans to raise tariffs on steel imports to protect the sector. This offers relief to the industry but may make car manufacturing more expensive.