Features

Final Thoughts

October 14, 2025

Nothing focuses your mind like sunshine and a caipirinha. After my last Final Thoughts a couple of weeks ago, I was able to take a short vacation in Rio de Janeiro. Not a bad place to sit by the beach and collect your thoughts.

For those who don’t remember (probably quite a few), my last article dealt with the US tariff focus while much of the rest of the developed world remains full-steam on decarb. This was at the International Iron Metallics Association (IIMA) meeting in São Paulo, Brazil.

And upon my return this week, a few items ripped from the headlines seem to show a pattern. Or maybe it’s my jet lag. Perhaps they are just random items collected after one has gotten a mild suntan. Time will tell.

Green steel seeks a footing

See the following headline from the Financial Times from Sunday: Flagship green steel start-up in funding crisis as Europe’s low-carbon ambitions falter.

The article details how green steel startup Stegra, formerly known as H2 Green Steel, is looking for up to 1.5 billion euros (USD$1.74 billion) in funding.

We’ve written about the Sweden-based company many times in the past and its pursuit of profitable green steel.

The article hints that the company might be in trouble, a claim it disputes. Still, the Financial Times said “Citigroup (a lender) has indicated it wants to stop being a lender to Stegra because of concerns over the company’s future.”

Will this development prove just a hiccup in Europe’s sustainability push, or could it be a pivot point? We’ll wait and see how things play out.

Robots making pig iron in the Bayou?

No, this isn’t a low-budget horror picture. SMU’s Stephen Miller reports in today’s issue that NEMO Industries is planning a $3-billion pig iron venture in Ascension Parish, La.

Beyond the $3 billion, the company hopes to invest an additional $5 billion over two further phases, for a total capital investment of $8 billion over 15 years. NEMO counts heavy-hitter Cargill Metals as part of its backing.

Speaking of Cargill Metals, Managing Director Lee Kirk said in a NEMO press release, “As European markets accelerate their decarbonization commitments, reliable, sustainable iron production from the US will be essential to meeting demand with maximum carbon efficiency.”

While the intersection of sustainability, the nearshoring of pig iron production, and the significant investment price tag are headline enough, there’s even more to the story. Come for the pig iron investment, stay for the technology.

NEMO bills itself as “the AI-powered ironmaking platform,” meaning artificial intelligence will be integral to the company’s manufacturing processes. The company said “groundbreaking self-learning plants will use artificial intelligence to increase efficiency, uptime, and safety.”

We’ll be following developments very closely with this project. Is AI the missing ingredient in the secret sauce to make sustainability more palatable to American consumers along the value chain?

I guess a big answer to that question will be if the innovation can end up lowering manufacturing costs. Also, if the energy will be cheap enough to power the AI.

Inclusions, make your voice heard

In the meantime, SMU’s Laura Miller details the latest developments in the Section 232 derivatives inclusions process. Details matter. And companies, trade associations, etc., are making their voices heard. The tariff landscape is a work in progress, and we’re still sorting out the details. Inevitably, millions or even billions can be at stake down the line.

So, we will keep on watching how tariffs, technology, and sustainability will continue to combine in interesting ways as we push towards that ever-elusive “new normal” that seems always just around the corner. Hopefully, that next corner will somehow lead back to Rio. Cheers.

Ethan Bernard

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.