A delay in getting enough electricity to the Port Talbot site means there is currently a 12-month delay to the new electric arc furnace opening but bosses are confident that could come down

The opening of Tata’s new electric arc furnace at the Port Talbot steelworks could be delayed by up to 12 months, bosses have said, although they say they are hopeful that time can be reduced.

The electric arc furnace is a £1.25bn scheme to build one of the largest such furnaces in the world. The project, partly funded by the UK Government, is to replace the historic blast furnaces at the steelworks.

But issues have emerged with getting power to the site which could delay its start date by up to a year.

Tata Steel’s chief financial officer Koushik Chatterjee has said the delay was 18 months but has already reduced to 12 months. The Indian-owned company is hopeful it will reduce further.

He said “securing access to high-power electricity is critical for our planned transition”.

“While we are working with the electricity system operator and the National Grid for new electrical infrastructure National Grid has formally alerted us that their connectivity project is delayed,” said Mr Chatterjee.

“This is critical for Tata Steel UK for the project commissioning. We are in conversation with National Grid and the UK Government on resolution of the issues.”

Asked about how long the delay might be Mr Chatterjee, Tata’s executive director and chief financial officer, said that was being discussed.

He replied: “Somewhat between, say, six months to eight months will certainly be there, maybe higher, after we have built the plant. The initial estimate was around 18 months. It has come down to 12 months and we’re actively working to see if we can reduce it further but there will be some delays imminent.”

He said the company was working with partners including the UK Government, the National Grid, and its electricity supplier to “see if we can mitigate”.

In a call three weeks ago CEO TV Narendran told journalists: “There is a delay of about 12 months in the electricity supply. What we are trying to see is at least some connection, one line, as soon as the plant is ready so we can do some trials, test out some equipment etc so we don’t waste the time that we’re waiting for the full electricity connection.

“Then what we are planning to do is to ramp up that we had scheduled after the commissioning how to compress that to make sure we catch up on the project.

“if we do the preparatory work before the full electricity connection is there we can do a quicker ramp up”.

In the call Mr Chatterjee said fixed costs in the UK in the last two years had fallen by 50%.

Before the delay in power access an operational estimate of late 2027 or early 2028 had been given. For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here.

The National Grid is building a new substation at its Margam site and delivering a second 275kV substation on Tata Steel’s Port Talbot site – which requires new supergrid transformers, as well as a 2km underground cable connecting the two substations to deliver the EAF.

It is understood issues emerged with ground conditions, and environmental and planning considerations, once work had started but that teams from National Grid have been on site since September.

Work on the new Margam substation will start in the coming weeks.

In recent days the Tata site has also been hit with a major fire.

Tata said its controversial decision to shut the historic steel plant’s two blast furnaces, signalling the end of steelmaking from raw materials in Wales, was due to a combination of cost-cutting and a move to decarbonising its operations.

On September 30, 2024, blast furnace four – the final one operating at the vast site – was closed ending 100 years of primary steel-making .

The site is being reworked around an electric arc furnace to recycle previously-used steel and when the decision was made Tata announced 2,800 job losses with the majority in Port Talbot. We now know that between September 2024 and the end of July 2025 2,162 people left the business.

Tata says it has lost £4bn in Port Talbot since 2007 and the new furnace would ensure a “financially and environmentally sustainable future” as well as reducing the site’s carbon emissions by 90%.

The UK Government gave £500m to the plans.

A Tata spokesman said: “The electric arc furnace programme is a major industrial project and, like all projects of this scale, timelines continue to evolve as detailed engineering, construction, and infrastructure work progresses.

“While we are still discussing potential adjustments to the commissioning timetable we are working closely with National Grid, our construction partners, and the UK Government to deliver the project safely and as quickly as possible.

“We have already met a series of key milestones in the construction phase and the shipment of major components including the EAF shells, tilting platform, and Consteel conveyor will commence imminently.”

A National Grid spokesperson said: “We recognise the importance of this project and remain committed to delivering the connection safely and at pace, working closely with our partners. Construction is underway and good progress is being made. This is a major, multimillion pound programme involving complex engineering, subject to environmental and planning considerations which require careful design and delivery.”

Shares of the company remained locked in the lower circuit at Rs 588.30 apiece on NSE in the morning trading hours of Monday.

AI rally slams the brakes

South Korea’s Kospi plunged 9% on Monday morning, leading to a 20-minute trading halt, as the massive selloff in tech stocks raged on. The index is now down about 14% from the record high it touched last week. The sharp downturn came after heavyweights and semiconductor stocks tumbled, including Samsung shares which crashed over 6%.

The sharp plunge in Kospi reflects the sharp pause in the AI rally, as too much of the benchmark index’s earlier momentum had become tied to the performance of a small group of AI-linked stocks. Samsung Electronics and SK Hynix together account for nearly half of the KOSPI’s weighting and have contributed roughly two-thirds of the benchmark’s gains this year.

Also read: Kospi crashes 9%, trading halted for 20 minutes, as chip rout deepens; Samsung, SK Hynix worst hitSterlite Technologies shares had emerged as one of the biggest multibaggers of 2026, riding on explosive demand for AI-linked data centre infrastructure. Sterlite, the optical-fiber maker owned by the Vedanta Group, was seen as the “poster child” for the AI boom. This came amid expectations that the world’s AI expansion needs massive amounts of high-speed connectivity infrastructure, and optical fibre is becoming the backbone of that ecosystem.

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The company late in May announced that its subsidiary has secured a multi-year supply agreement valued at $1.11 billion from a global hyperscaler for AI-ready data centre infrastructure projects in the US. Hong Kong-based CLSA had said that this significantly strengthens Sterlite’s positioning in AI data centres while improving medium-term growth visibility. It expected the order to reinforce Sterlite’s competitiveness in global markets, while maintaining an “Outperform” rating on the stock.
However, the sharp crash in tech stocks led to rising worries that the AI rally was fizzling out, which may have led to the downtrend in Sterlite Tech shares today.

Also read: Hidden AI Winners

Sterlite Tech share price

Sterlite Tech shares have gained 5% in one week and 56% in one month. The stock delivered a whopping 676% return over one year, 282% over three years and 119% in five years.The company currently has a market capitalisation of nearly Rs 28,719 crore.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

SYDNEY — Wesfarmers Ltd. shares rose modestly on Friday, closing at A$78.93 after advancing 0.32 or 0.41%, as solid performance in its core retail businesses helped the diversified group outperform a softer broader market.

The gain came as the S&P/ASX 200 index closed lower, highlighting Wesfarmers’ relative resilience. The company, which operates leading Australian retail brands including Bunnings, Kmart and Officeworks alongside industrial and chemical operations, continues to benefit from steady consumer demand and operational improvements in 2026.

Wesfarmers has reported consistent results this year, with its home improvement and department store divisions showing particular strength. Bunnings has maintained robust sales supported by ongoing housing activity, renovations and trade customer demand. Kmart and Officeworks have delivered value-focused offerings that resonate with cost-conscious shoppers amid economic pressures.

The group’s diversified structure provides balance across retail, chemicals, energy and fertiliser businesses. This mix has historically helped Wesfarmers navigate economic cycles better than more concentrated peers. Recent updates have emphasized cost discipline, digital investment and sustainability initiatives across its portfolio.

Analysts generally maintain positive outlooks on Wesfarmers. The stock is frequently cited for its strong brand portfolio, reliable earnings and consistent dividend growth. Its market leadership positions in key retail categories and prudent capital allocation support a premium valuation justified by quality and execution track record.

For income investors, Wesfarmers offers an attractive and growing dividend yield backed by strong cash flow generation. The company has a long history of increasing payouts, making it a core holding for many Australian equity income portfolios.

The current share price movement reflects continued investor confidence in Wesfarmers’ defensive qualities and growth potential. Trading volume was in line with recent averages, indicating steady rather than speculative interest.

Broader Australian market context shows mixed performance, with resources facing pressure while consumer and industrial names like Wesfarmers found buyers. The company’s exposure to everyday consumer needs provides insulation from commodity volatility affecting other large-cap stocks.

Looking ahead, Wesfarmers’ upcoming half-year results will be closely watched for updates on retail trading conditions, industrial performance and capital management strategy. The company continues expanding its store network, enhancing digital capabilities and advancing sustainability targets.

Global consumer trends and domestic economic indicators will influence near-term performance. Wesfarmers’ value-oriented retail offerings position it well to benefit from cautious consumer spending patterns. Its industrial businesses provide additional exposure to commodity and agricultural cycles.

Analysts project continued earnings stability for Wesfarmers, supported by operational excellence and strategic investments. While near-term economic uncertainty exists, the group’s diversified model and strong balance sheet provide a solid foundation for navigating challenges.

For long-term investors, Wesfarmers represents a high-quality Australian blue chip with defensive characteristics and growth potential. Those with longer horizons may view current levels as attractive for accumulation, particularly given the reliable dividend stream. Shorter-term participants might monitor upcoming earnings and economic data for direction.

The modest gain on Friday fits within normal daily fluctuations for a company of Wesfarmers’ size. It reflects steady support for a business with proven resilience and clear strategic direction rather than a major catalyst.

As one of Australia’s largest listed companies, Wesfarmers plays a significant role in the economy through employment, retail presence and industrial operations. Its performance influences broader market sentiment and reflects conditions in consumer spending and industrial activity.

Wesfarmers continues focusing on operational excellence, customer experience and sustainable practices. Its ability to adapt to changing retail landscapes while maintaining strong returns has been a hallmark of its long-term success.

Investors evaluating Wesfarmers should consider individual risk tolerance, portfolio allocation and investment horizon. The company offers stability, income and moderate growth potential that can complement other holdings in diversified portfolios. Prudent monitoring of key metrics such as same-store sales, margins and capital returns remains advisable.

Overall, Wesfarmers maintains a position of strength in the Australian corporate landscape. Its diversified operations, iconic retail brands and disciplined management position it favorably to navigate current economic conditions while pursuing longer-term opportunities in retail, industrial and emerging sectors.

NEW YORK — Crude oil prices jumped sharply on Monday, with West Texas Intermediate futures rising more than 4% to settle at $94.39 a barrel, the highest level in several months, as escalating geopolitical concerns and supply disruption fears fueled a broad energy rally.

The gain of $3.85, or 4.25%, marked one of the largest single-day percentage increases this year and reflected renewed anxiety over potential supply shortfalls amid ongoing conflicts in key producing regions. Brent crude, the international benchmark, also climbed significantly, trading above $96 per barrel in late dealings.

Analysts attributed the surge to a combination of factors, including heightened tensions in the Middle East, signs of tighter global inventories and expectations of sustained demand from major economies. The move caught some traders off guard after a period of relatively stable pricing, highlighting the market’s sensitivity to headline risks.

The rally extended gains across the energy complex, with gasoline and heating oil futures also posting strong advances. U.S. equity markets showed mixed reactions, with energy sector stocks rising while broader indices displayed caution amid concerns over the inflationary impact of higher fuel costs.

Market participants pointed to renewed supply risks as a primary driver. Disruptions in key shipping routes and potential escalation in producer regions have raised fears of tighter physical markets in the coming months. At the same time, strong industrial activity in Asia and resilient U.S. consumption have supported the demand side of the equation.

This latest spike comes after several weeks of consolidation, during which prices had traded in a relatively narrow range. The breakout above important technical levels has prompted short covering and fresh bullish positioning by hedge funds and other speculative accounts, amplifying the upward momentum.

Energy analysts noted that while the move appears sharp, it aligns with broader macroeconomic trends. Persistent global economic resilience, particularly in emerging markets, continues to underpin oil demand even as some developed economies show signs of moderation. At the same time, OPEC+ production policies and compliance levels remain closely watched variables.

For consumers, the rise in crude prices is expected to translate into higher gasoline costs at the pump in the coming weeks. U.S. regular gasoline averages have already begun edging higher, and further increases could add pressure to household budgets during the summer driving season.

The energy sector’s performance has broader implications for inflation readings and monetary policy expectations. Higher oil prices feed directly into transportation and manufacturing costs, potentially complicating central banks’ efforts to manage price stability.

Industry executives have emphasized the need for balanced investment in both traditional and renewable energy sources to ensure long-term supply security. Major producers continue to highlight disciplined capital spending while advancing lower-carbon initiatives across their portfolios.

Looking ahead, market attention turns to upcoming inventory data and geopolitical developments. Weekly U.S. crude stockpiles figures from the American Petroleum Institute and the Energy Information Administration will provide fresh insight into domestic supply-demand balances.

Analysts remain divided on the sustainability of the current rally. Some view it as a temporary spike driven by headline risk, while others see structural tightening in the market that could support higher prices through the remainder of 2026. Long-term forecasts continue to emphasize the role of oil in the global energy mix even as the transition to renewables accelerates.

For investors, the energy sector’s recent performance has offered both opportunities and volatility. While higher prices benefit producers, they also raise concerns about demand destruction if economic growth slows in response to elevated costs. Refiners and downstream companies face margin pressures depending on how quickly price changes pass through the supply chain.

The move in oil also influenced currency and bond markets. The U.S. dollar strengthened modestly against several major currencies, while Treasury yields showed limited reaction as investors weighed the inflationary implications.

Broader commodity markets displayed mixed signals, with some industrial metals easing while precious metals found support amid safe-haven flows. Agricultural futures were largely steady, reflecting balanced supply outlooks for key crops.

As trading continues, participants will monitor developments in producer regions and any statements from major consuming nations. Diplomatic efforts to reduce tensions could temper the rally, while any escalation would likely add further upward pressure on prices.

The current environment underscores oil’s enduring role as a critical global commodity. Despite long-term shifts toward cleaner energy sources, near-term supply risks and economic resilience continue to drive significant price movements that affect economies, consumers and financial markets worldwide.

Market veterans caution that sharp moves in either direction can quickly reverse as new information emerges. Position squaring ahead of key data releases often contributes to volatility, making risk management essential for participants across the energy complex.

For now, the surge to $94.39 represents a notable shift in sentiment, reminding traders and policymakers alike of the persistent geopolitical and fundamental risks embedded in global oil markets. The coming days and weeks will determine whether this latest rally has staying power or proves to be another temporary spike in an uncertain trading environment.

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