Core Viewpoint - Lithium South Development Corporation has entered into a Letter of Intent to purchase several lithium projects in Argentina for up to US$62 million, indicating a strategic move to enhance its lithium resource portfolio [1][3]. Group 1: Transaction Details - The Letter of Intent involves the acquisition of the 100% owned Hombre Muerto North Lithium Project and other concessions, with a total cash price of up to US$62 million [1]. - The offer is made by POSCO Argentina S.A.U., a subsidiary of POSCO Holdings, which is the sole owner and operator of the Sal de Oro lithium project [1][2]. - The LOI is non-binding and includes a 60-day due diligence period, followed by a 60-day negotiation period for a definitive agreement [3]. Group 2: Project Background - Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina, which is part of the lithium triangle known for its lithium production [5]. - The HMN Li Project has a NI 43-101 compliant resource estimate of 1,583,200 tonnes of Lithium Carbonate Equivalent (LCE) at an average grade of 736 mg/L Li [5]. - A Preliminary Economic Assessment indicates the potential to develop a lithium carbonate project with a capacity of 15,600 tonnes per year, and the company is advancing towards a Feasibility Study [5]. Group 3: Advisory and Regulatory Aspects - Canaccord Genuity Corp. is acting as the financial advisor for Lithium South in this transaction [4]. - Any transaction will require customary regulatory approvals and shareholder approval at a future meeting [3].

Market Analysis - China's GDP in the first half of the year increased by 5.3% year-on-year, higher than the annual target of 5%, with fiscal efforts and "rush exports" supporting the economic data, but policy urgency has decreased [2] - China's exports in June were strong, and a new round of "rush exports" supported demand under the easing of Sino-US tariffs; the year-on-year growth rate of social retail sales in June slowed to 4.8%, mainly due to the suspension of subsidies in some regions, and subsequent policy subsidies are expected to support domestic consumption [2] - In terms of investment, infrastructure and manufacturing investment declined significantly, and overall fixed investment weakened. There is still a risk of the weak real estate sales dragging down the entire real estate chain [2] - On July 29, the A-share market strengthened throughout the day, with the ChiNext Index leading the gains. Most stocks fell, and the trading volume was nearly 1830 billion yuan. Among commodity futures, the main glass contract fell more than 7%, coking coal fell more than 6%, and lithium carbonate fell more than 5% [2] Anti-Involution Progress Tracking - Since July, relevant departments have emphasized the governance of low-price and disorderly competition among enterprises. Policy expectations for "anti-involution" in industries such as steel, photovoltaic, lithium battery, and new energy vehicles have increased, and the prices of some commodities have rebounded [3] - The Ministry of Industry and Information Technology stated that work plans for stabilizing growth in ten key industries, including steel, non-ferrous metals, and petrochemicals, are about to be introduced, aiming to adjust the structure, optimize supply, and eliminate backward production capacity [3] - Multiple departments have notified the assessment of old equipment in the petrochemical and chemical industries, focusing on corresponding chemical products [3] Impact of "Reciprocal Tariffs" - Trump signed the "Great America" tax and spending bill, marking a shift in US policy from "tight fiscal expectations + neutral monetary policy" in the first half of the year to a stage of "easy to loosen, difficult to tighten" [4] - The 2.0 stage of reciprocal tariffs has officially begun, with 4 batches of tariff letters sent to 25 countries so far. The UK is pushing for an agreement in the steel sector, and the US has reached agreements with Japan, Indonesia, the Philippines, and the EU to reduce reciprocal tariffs [4] - The EU plans to purchase AI chips worth 40 billion euros in the US-EU trade agreement. Japan has lowered its export assessment for the first time in a year, citing the impact of US trade policies [4] - The auction of 5-year US Treasury bonds was unexpectedly weak, and overseas demand hit a three-year low. The US Treasury expects to borrow more than 1 trillion US dollars in the third quarter [4] Commodity Sector Focus - Domestically, the black and new energy metal sectors are most sensitive to the supply side. Overseas, the energy and non-ferrous sectors benefit significantly from inflation expectations [5] - The black sector is still dragged down by downstream demand expectations, and the supply shortage in the non-ferrous sector remains unresolved. In the energy sector, the short-term geopolitical premium has ended, and the medium-term supply is expected to be relatively loose [5] - Trump urged the UK to reduce taxes on the fossil fuel industry and increase North Sea oil production. OPEC+ agreed to increase production by 548,000 barrels per day in August, higher than expected [5] - In the chemical sector, the "anti-involution" space of varieties such as methanol, PVC, caustic soda, and urea is worth noting. There is no short-term weather disturbance in agricultural products, and the fluctuation range is relatively limited [5] Strategy - For commodities and stock index futures, go long on industrial products on dips [6] Key News - The A-share market strengthened throughout the day, with the ChiNext Index leading the gains. Most stocks fell, and nearly 3000 stocks in the Shanghai, Shenzhen, and Beijing stock markets closed lower. The trading volume was nearly 1830 billion yuan. At the close, the Shanghai Composite Index rose 0.33%, the Shenzhen Component Index rose 0.64%, and the ChiNext Index rose 1.86% [7] - Most US chip stocks rose before the market, with NVIDIA rising more than 1%. The EU plans to purchase AI chips worth 40 billion euros in the US-EU trade agreement [7] - Japan lowered its monthly export assessment for the first time in a year, partly due to the weakening of export demand to avoid US tariffs. Japan also adjusted its description of the overall economic situation, saying that the economy is recovering at a moderate pace [7] - The US Treasury auctioned 69 billion US dollars of two-year Treasury bonds, with a winning bid rate of 3.920% and a bid-to-cover ratio of 2.62 [7] - The US Treasury expects to borrow 1.01 trillion US dollars from July to September, higher than the previous forecast of 554 billion US dollars, mainly due to the impact of the debt ceiling [7] - Trump expressed disappointment with Russia's attitude towards the Ukraine war. WTI crude oil futures rose more than 2%, and among rare earth concept stocks, NioCorp Developments Ltd. fell 5.1%, Ucore UCORE RARE METALS fell 1.5%, Energy Fuels rose 0.6%, and MP Materials rose 0.2% [7] - The ceasefire agreement between Thailand and Cambodia officially took effect at 24:00 on July 28 [7]

Core Insights - Algoma Steel Group Inc. reported consolidated revenue of $589.7 million for the second quarter of 2025, a decrease from $650.5 million in the same quarter of the previous year [5][7] - The company experienced a net loss of $110.6 million, compared to a net income of $6.1 million in the prior-year quarter, primarily due to lower steel shipment volumes and pricing pressures [7][19] - The company achieved its first arc and first steel production from its Electric Arc Furnace (EAF) project, marking a significant milestone in its transition to green steel production [4][11] Financial Performance - Revenue for the second quarter was $589.7 million, down from $650.5 million year-over-year, with steel revenue specifically at $534.4 million compared to $597.4 million [5][7] - The average revenue per ton of steel sold decreased to $1,249 from $1,293 in the prior-year quarter [5] - The loss from operations was $85.1 million, significantly higher than the loss of $12.5 million in the previous year, attributed to lower revenues and increased costs from tariffs [6][7] Tariff Impact - Tariff costs for the second quarter totaled $64.1 million, impacting the company's financial performance due to ongoing tariff uncertainty and market conditions [6][16] - The U.S. imposed a 50% Section 232 tariff on steel exports from Canada, contributing to a structural imbalance in the Canadian market and resulting in lower pricing [14][15] - Canadian net sales realizations were reported to be up to 40% lower than U.S. levels, leading to an estimated revenue impact of $30 million [15][16] Operational Developments - The company completed preparations for its first production of Volta™, its trademarked green steel, with successful production achieved in early July 2025 [4][11] - The EAF project is expected to provide a structural cost advantage and reduce annual carbon emissions by approximately 70% [13][28] - As of June 30, 2025, the cumulative investment in the EAF project was $881 million, with funding expected from cash on hand and operations [12][19] Liquidity and Capital Allocation - At the end of the quarter, the company had cash of $82.5 million and unused availability under its Revolving Credit Facility of $329.1 million [17] - The Board of Directors decided to suspend the regular quarterly dividend of approximately US$5.2 million to preserve liquidity amid ongoing market uncertainties [19]

So joining us now for a CNBC exclusive is New Core chair and CEO Leon Tapali. And Leon, it's great to have you back on the show. Welcome.Thank you, Morgan. Great to be here. So let's start right there.What did you see in the second quarter with rising raw material costs. How's it affecting new core. How much of this is tied to the tariffs and the tariffs rising during the quarter to 50%.You know, look, I I would tell you the impact in Q2 to the overall tariffs was pretty minimal. uh raw materials impact as ...

Core Insights - Nucor Corporation (NUE) reported earnings of $2.60 per share for Q2 2025, a decrease from $2.68 in the same quarter last year, and missed the Zacks Consensus Estimate of $2.62 [1][8] - The company achieved net sales of $8,456 million, reflecting a year-over-year increase of approximately 4.7%, surpassing the Zacks Consensus Estimate of $8,405.1 million [1][8] Nucor's Operating Figures - Total sales tons to outside customers for steel mills in Q2 were 5,044,000 tons, up 9% year over year, but below the estimate of 5,359,000 tons [2] - Overall operating rates at Nucor's steel mills increased to 85% in Q2 2025 from 80% in Q1 2025 and 75% in Q2 2024 [2] Segment Highlights - The steel mill segment saw an increase in earnings compared to the previous quarter, primarily due to higher average selling prices at Nucor's sheet and plate mills [3] - The steel products segment also experienced an earnings increase from Q1, driven by stable average selling prices and higher volumes [3] - The raw materials segment's earnings rose sequentially, supported by scrap processing operations [4] Financial Position - Cash and cash equivalents at the end of the quarter were $1,946 million, down approximately 57.4% year over year [5] - Long-term debt increased to $6,692 million, up 18.5% year over year [5] - Nucor repurchased around 1.8 million shares of its common stock during the quarter [5] Outlook - The company anticipates Q3 2025 earnings to be slightly lower than Q2 due to expected declines in the steel mills unit and stable earnings in the steel products and raw materials segments [6] - Despite strong backlogs and a consistent demand outlook, Nucor expects margin compression in Q3 compared to Q2 [6] Price Performance - Nucor's shares have decreased by 9.3% over the past year, in contrast to a 21.7% decline in the industry [7]

Financial Performance - Q2 2025 EBITDA was approximately $13 billion[10], compared to $15 billion in the previous period[10] - Net earnings for Q2 2025 were $603 million[10], down from $845 million[10] - Earnings per diluted share (EPS) were $260 in Q2 2025[10], compared to $346 in the previous period[10] - Capital expenditures in Q2 2025 reached $954 million[10], reaffirming the full-year estimate of approximately $3 billion[10] - Share repurchases in Q2 2025 amounted to $200 million, representing 18 million shares[10] - The company returned 55% of Q2 2025 net earnings to shareholders and 100% of year-to-date earnings[10] Operational Highlights and Market Conditions - Steel mills achieved EBITDA positivity at Brandenburg and record sheet shipments[10] - Steel product shipments and margins increased in Q2 2025, with a stable backlog[10] - Strong mill backlogs were maintained at approximately 37 million tons at the end of Q2 2025, a 30% year-over-year increase[10] - Steel imports decreased by approximately 9% year-to-date through June compared to the same period in 2024[10]

Core Viewpoint - ArcelorMittal has published its second quarter 2025 sell-side analyst consensus figures, which reflect the aggregated expectations of approximately 15 brokers covering the company [1][2]. Financial Estimates - The consensus estimates for Q2 2025 are as follows: - EBITDA is projected at $1,850 million - Adjusted net income is expected to be $811 million - Adjusted earnings per share are estimated at $1.06 [3]. Analyst Participation - A total of 11 sell-side analysts contributed to the consensus estimates, indicating active participation from various financial institutions [4][6]. Company Overview - ArcelorMittal is a leading integrated steel and mining company with operations in 60 countries and primary steelmaking in 15 countries. It is the largest steel producer in Europe and has significant operations in the Americas and Asia [8]. - In 2024, ArcelorMittal generated revenues of $62.4 billion, produced 57.9 million metric tonnes of crude steel, and 42.4 million tonnes of iron ore [8]. - The company aims to produce innovative steels that are energy-efficient, low in carbon emissions, and cost-effective, supporting the transition to renewable energy infrastructure [8].

Group 1 - Nucor's shares have underperformed over the past year, losing 9% of their value [1] - The anticipated benefits of President Trump's tariff policies for domestic steelmakers have not materialized [1] Group 2 - The article reflects a contrarian investment approach based on macro views and stock-specific turnaround stories [1]

Summary of the Conference Call on Steel Industry - July 2025 Industry Overview - The steel industry is currently experiencing a lackluster demand environment in Europe, despite some supportive trade measures and potential increases in defense and infrastructure spending [9][10] - The demand for carbon steel is expected to remain weak, with no clear signs of recovery anticipated in 2025 [9][10] - Stainless steel demand is also expected to lag behind carbon steel due to its later-cycle nature, with no inflection predicted for 2025 [9][10] Key Insights - **Demand Conditions**: Demand conditions in Europe are weak, leading to a continued erosion of EU Hot-Rolled Coil (HRC) spreads, which have fallen below historical averages [9][10] - **Equity Ratings**: Steel equities have seen a sharp re-rating, with shares outpacing fundamentals, particularly for companies like thyssenkrupp and Salzgitter, which diminishes their risk-reward appeal [9][10] - **Preferred Companies**: - **Carbon Steel**: voestalpine is favored due to its resilient EBITDA/t and manageable decarbonization investments [10] - **Stainless Steel**: Acerinox is preferred for its strong earnings profile supported by US exposure and high-margin alloys business [11] Financial Performance - The steel sector is trading at approximately a 34% discount to its historical average on EV/normalized EBITDA, but consensus earnings downgrades for 2025 are anticipated [9][10] - Companies like thyssenkrupp have seen their shares double year-to-date, but the valuation appears stretched with a 20-30% premium to their sum-of-the-parts (SotP) valuation [10] Market Dynamics - **Construction and Automotive Demand**: These sectors are identified as key demand drivers for steel, but current indicators suggest a slowdown in growth [21][22] - **Global Steel Production**: The center of gravity for global steel production is shifting towards Asia, with significant production expected from China [19][27] Trade and Inventory Insights - EU steel imports are heavily influenced by countries like Turkey, South Korea, and China, with specific quotas set for various products [81][87] - Steel inventories across the value chain are being monitored, with US steel inventory indexed to January 2019 showing fluctuations [71] Economic Indicators - The construction confidence indicator in the EU has shown a decline, reflecting lower confidence in the sector [38] - In China, cement production growth has been negative, indicating potential challenges in construction-related steel demand [43] Conclusion - The steel industry is currently in a phase of waiting for a demand inflection, with key indicators suggesting continued weakness in both carbon and stainless steel markets. The focus remains on managing costs and navigating the challenging demand landscape while identifying potential investment opportunities in resilient companies like voestalpine and Acerinox [9][10][11]

Summary of Conference Call Records Industry Overview - The Hong Kong stock market is primarily driven by southbound funds and passive investments, with significant increases in trading volume but no notable changes in active allocation ratios, indicating that long-term foreign capital has not significantly entered the market [1][4] - The market is experiencing a structural rally with rapid sector rotation, necessitating investor attention to specific sectors and industry dynamics [1][5] - The phenomenon of AH premium narrowing has been observed, with some companies trading at higher prices in Hong Kong than in A-shares, attributed to alignment with industrial development trends and foreign capital preferences [1][8] Key Points and Arguments - **Liquidity as a Dominant Factor**: The primary driver of the recent market activity has been liquidity rather than fundamentals, with a significant influx of southbound funds [2][10] - **Structural Market Characteristics**: The market has shown a high level of structural activity, with different sectors taking turns as hotspots, leading to a disparity between index returns and actual investment returns [5][6] - **Investment Opportunities**: The ongoing influx of southbound funds, which accounted for 8.2 trillion RMB this year, has positioned them as a dominant force in the market, particularly in ETFs and trading funds [10][11] - **Future Market Outlook**: The Chinese market is expected to continue facing a "money surplus but lack of quality assets" situation, which will sustain structural market trends [11][12] - **IPO and Placement Dynamics**: The balance of supply and demand in the market is expected to remain stable, with estimated IPO and placement absorption power around 3 trillion RMB, matching the supply from southbound funds and foreign capital [13][14] Important but Overlooked Content - **Sector-Specific Insights**: The electric equipment industry is expected to benefit significantly from the Yaxia Hydropower Station project, which has a total investment of approximately 1.2 trillion RMB, catalyzing long-term growth in related sectors [3][40] - **Impact of Policies on Industries**: The "anti-involution" policy is influencing the basic materials sector by reducing production capacity, which may benefit long-term industry development despite short-term profitability pressures [25][26] - **Investment Strategy Recommendations**: Investors are advised to position themselves during market lows rather than chasing highs, focusing on structural opportunities rather than overall index performance [18][19] Conclusion - The Hong Kong stock market is characterized by a liquidity-driven structural rally, with significant implications for various sectors, particularly in the context of ongoing policy changes and macroeconomic conditions. Investors are encouraged to adopt a strategic approach that emphasizes sector rotation and specific investment opportunities while being mindful of the broader market dynamics.