Australia PM touts green steel as iron ore miners meet Chinese steelmakers
green steel
, Prime Minister
Anthony Albanese
said in Shanghai on Monday, even as he called on the world's largest steelmaker to address excess capacity for the metal.
China relies on Australia for roughly two-thirds of the
iron ore
consumed by its vast steel industry, a trade that will earn Canberra A$105 billion ($68.90 billion) this financial year, according to the latest government estimates.
However, attempts to clean up an industry responsible for roughly a tenth of all emissions put that trade for Australia at risk as
decarbonisation
requires higher grades of iron ore, found in countries like Guinea and Brazil.
Green steel refers to metal produced using
renewable energy
such as hydrogen to limit or eliminate the use of coal, cutting carbon emissions.
Speaking before a meeting between Australian iron ore miners and Chinese steelmakers, Albanese framed green steel as a way to grow Australia and China's decades-long trade relationship.
"Achieving the goal of the Paris Agreement would require the decarbonisation of steel value chains, presenting an opportunity for Australia and China to progress our long-term economic interests," he said.
Albanese also offered to work with China to reduce overcapacity in its steel industry, which is fuelling record exports that are in turn triggering a wave of tariffs and duties from trade partners like Vietnam and South Korea.
Australia could lose as much as half its revenue from the sector if it fails to start producing green iron, a specialised lower emissions product, as other countries start making steel using renewable energy, a think tank said last year.
Successfully building a green iron industry could double those revenues, the report suggested.
Australian iron ore is too low-grade to be directly processed into green steel so it needs an additional processing step. When this step is undertaken with renewable energy such as hydrogen or biomass instead of coal, it is called green iron which becomes a low-carbon base for green steel production.
Top iron ore miners
Rio Tinto
,
BHP Group
, and Fortescue, who also attended the meeting, all have green iron projects underway, with Fortescue set to produce green iron from a pilot plant this year.
Fortescue founder Andrew Forrest, in China with Albanese, said the relationships forged between Chinese steelmakers and Australian miners strengthened the bonds between both countries and security issues were a "distraction."
Forrest was responding to a question about whether a debate around security that emphasises China's risk was detrimental to the two countries' economic relationship, in the context of China framing itself as a more stable partner than the United States.
Australia and New Zealand both said they did not receive adequate warnings of live-fire drills by China's navy in the Tasman Sea between Australia and New Zealand earlier this year.
"Australia has a multilayered relationship, as it must, with China, and to really build up the strength of a bilateral relationship you need those strong friendships, that very real business trust between each other," Forrest said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
an hour ago
- Mint
Chinese Convertible Bonds Rally to Decade-High on Surging Demand
(Bloomberg) -- Convertible bonds have emerged as one of the most popular asset classes in China this year, trouncing the performance of local stocks and fixed income. The CSI convertible bond index has rallied about 8% in 2025 to trade near a decade high. That easily beats the stock benchmark's 2.1% advance so far this year, while Chinese government bonds have returned just 0.9% in local-currency terms. Investor appetite for the hybrid notes has surged, thanks to easing credit rating risks on the securities and an equity market rebound. A share price rally in banks and small-caps — the sectors that dominate the convertible bond index — has further buoyed demand for such securities that can be exchanged for equity. 'Non-convertible bond investors can no longer overlook the standout performance of this asset class,' said Wesley Chen, head of fixed income at Ubp Investment Management Shanghai Ltd. 'For foreign funds looking to build positions in China but lacking strong conviction in the equity market, these bonds offer a compelling alternative, providing exposure to equity upside with lower volatility and drawdowns.' Convertibles typically offer investors lower yields than conventional debt, but provide an option to exchange into shares if certain conditions are met. The recent economic backdrop has made such notes appealing to both issuers — who can raise funds at a lower cost — and buyers, who expect stock momentum to continue. Two exchanged-traded funds tracking the CSI convertible bond index saw the biggest monthly inflow last month since January, Bloomberg-compiled data show. A drop in supply from early redemptions and maturities has also supported prices. The outstanding amount of such securities in China fell by over 55 billion in yuan ($7.7 billion) in the June quarter to dip below 650 billion yuan, according to Sinolink Securities Co. That compares with over 730 billion yuan at the end of 2024. The supply squeeze has been particularly pronounced in banking convertibles, long favored by investors for their low volatility, strong credit ratings and better liquidity. The surge in the sector's shares has helped fuel early redemptions. The CSI 300 Bank Index has gained 17% this year. To some, the rally presents an opportune time to realize gains. Convertible bond investors should 'consider locking in some profits,' given uncertainties facing the stock market from tariff negotiations and earnings, Ruizhe Yin, a Sinolink Securities analyst, wrote in a note. Yet the tight supply will likely continue to support the price of convertibles. There has been no new bank convertible issuance onshore since late 2022, according to data complied by Bloomberg. Shanghai Pudong Development Bank Co.'s 50 billion yuan note, which matures in October, will likely exacerbate the situation. 'Market appetite is strong, but supply is tight,' said Wei Li, head of multi-asset investments at BNP Paribas Securities (China). 'Chinese bank convertibles are trading like premium scarcity plays, yet visibility on future issuance remains low. That's keeping valuations elevated.' More stories like this are available on
India Today
an hour ago
- India Today
Pew Survey: Global views of China, Xi Jinping improve as US image declines
A new survey by the Pew Research Centre reveals a shift in global public opinion, with views of China and its leader Xi Jinping improving in several countries, while favorability toward the United States and President Donald Trump has notably on Tuesday, the survey suggests that global attitudes toward the two geopolitical superpowers are now more evenly matched than in recent years, marking a dramatic reversal from the Biden era, when international views of the US were consistently stronger than those of its latest survey of 24 countries, Pew found that the US was viewed more favourably than China in eight countries, China was viewed more favourably in seven, and the two were viewed about equally in the remainder. In particular, only 35% of respondents in 10 high - income countries — including Canada, France, Germany, and Italy-held a favourable opinion of the US, down from 51% just a year ago. Pew surveyed more than 30,000 people across 25 countries, including the US, which was excluded from the comparison from January 8 to April 26. The margins of error for each country ranged from plus or minus 2.5 to plus or minus the Pew Research Centre did not pinpoint a singular reason for the change, experts point to a combination of evolving geopolitical dynamics and perceptions of leadership. 'As the US potentially looks like a less reliable partner and people have limited confidence, for example, in Trump leading the global economy, China may look different in some people's eyes,' said Laura Silver, associate director of research at also noted that criticisms previously linked to China's global image, such as its human rights record or pandemic response, may be less influential this findings arrive as President Trump faces growing criticism over his administration's foreign policy decisions. A group of Democratic senators this week accused the administration of 'ceding global influence to China' through a series of policy moves, including cutting foreign aid, slapping tariffs on traditional allies, and tightening immigration policies affecting international the Pew findings, 35% of those in 10 high-income countries surveyed, consistently including Canada, France, Germany and Italy have favourable opinions of the US, down from 51% last year. By comparison, 32% of them have positive views of China, up from last year's 23%. And 24% of them say they have confidence in Trump, compared with 53% last year for scored a slight improvement: 22% of those in these rich countries say they have confidence in the Chinese president, up from last year's 17%.However, people in Israel have far more favourable views of the US than of China: 83% of Israelis like the US, compared with 33% who say they have positive views of China. And 69% of them say they have confidence in Trump, while only 9% express confidence in Xi.- Ends
Time of India
2 hours ago
- Time of India
Tesla Too Late?
Musk's EV is here finally, but starting production in India 10 years ago would have served him better There's a tide in the affairs of men… Brutus says in Julius Caesar. Elon Musk, who's quoted from The Tempest before, might have heard. His Tesla 'took the current' on Tuesday to launch its India operation. The world's largest manufacturer of battery-electric cars – Chinese BYD was a sliver behind in 2024 – now has a showroom in Mumbai, and little more. Reports say six fully built Tesla Model Ys are on the way from Shanghai. On-road prices start around ₹61L, putting the midsize SUV in the luxury segment, where the likes of Mercedes, BMW and Volvo will keep it company. But this segment amounted to only 50,000 units last year, of which 75% were petrol or diesel vehicles. And sales in the first six months of 2025 have been weak. Tesla's fighting for a pie that amounts to 10,000-12,000 units per year, and analysts expect it to sell not more than 200-300 units per month. Which, considering that it sold about 1.8mn cars globally in 2024, is nothing. So, what's Musk's plan really? Some see it as an attempt to gauge the Indian market. As far as brand-building goes, Tesla is too well-known already. Back in 2016, when it was a much smaller company, and Musk's net worth was less than $12bn, Indian tycoons proudly announced they had booked the newly launched Model 3 online. The cars didn't materialise, but fans kept the faith. Musk also maintained India was on his mind: 'Hoping for summer this year (2017)'. Winter arrived, and one man imported a model X on his own – its eight-year battery warranty would be running out now. So, brand strength has never been Tesla's problem. What it needs is a business plan, and 10 years ago Musk had a stronger one. 'Given high local demand, a Gigafactory in India would probably make sense in the long term,' he tweeted in Oct 2015, years before he set up that factory in Shanghai instead. It was a good idea, which, 'taken at the flood' may have led to better fortune for both India and Musk. Facebook Twitter Linkedin Email This piece appeared as an editorial opinion in the print edition of The Times of India.
