LAUNCESTON, Australia: The decision by Boashan Iron & Steel Co, China's biggest listed steelmaker, to idle a plant may both be a sign of how bad things are in the key sector and a contrarian signal that a turnaround is near.
It's easy to construct an argument that the move to close the 3 million ton-a-year plant in Shanghai is proof that China's steel sector has too much capacity and supply is well ahead of demand.
Closing down higher cost steel production is after all what should happen when demand cools and prices decline, and there is also a need to work through an overhang of inventory built up in the first half of 2012 when steelmakers maintained output even as economic growth eased.
However, an argument can also be built on saying the Boashan move is an early indicator that things should start turning around within the next 12 months.
Removing the higher cost production allows prices to stabilize as supply adjusts lower to reflect the change in demand.
What you are basically left with is a situation where the current short-term pain is replaced with longer-term gain.
The question then becomes how long are iron ore and steel producers going to have to wait for the good times to return?
It's worth looking back to the start of 2012 when many analysts thought Chinese commodity demand would slow in the first half before rebounding in the second.
Instead what happened is that the economic growth rate eased as expected, but raw commodity consumption and finished product output continued apace, particularly in the steel sector.
This led to a build-up of inventories, falling prices and the current situation, where even if demand does pick up, it will take some time to work its way down to commodity producers.
The most-traded steel rebar contract in Shanghai has lost 13 percent this year and while it has picked up slightly in recent weeks, it's still near the record low hit last month.
Spot iron ore prices have also rebounded recently, gaining 17 percent in September, but they were still down 22 percent for the third quarter, the steepest drop since the Steel Index starting compiling data in 2008.
The idling of the Boashan steel plant in Shanghai is unlikely to be the last such occurrence, especially if the Chinese government's $ 160 billion infrastructure-spending boost fails to increase demand meaningfully in the next few months.
Iron ore capacity is also being closed in China, with high-cost mines the first to go.
This is positive for the big, global iron ore miners such as Vale, BHP Billton and Rio Tinto, as their lower cost bases means they can keep producing at a profit long after Chinese rivals are deep in the red.
But just as analysts were off with the timing of the slowdown in China's commodity demand, hopes that it will rebound by the end of this year may be too optimistic as well.
Even if China's economic growth does start to regain momentum, and by that I mean a gross domestic product outcome above 8 percent in year-on-year terms, it's likely that commodity demand will lag the improvement, just as it remained resilient during the first half of slowing GDP growth.
The official Purchasing Managers' Index rose to 49.8 in September from 49.2 in August, which was the lowest reading since November 2011.
While still in contractionary territory below 50, the PMI is consistent with an economy bouncing along the bottom of the cycle.
But the compiler of the PMI, the National Bureau of Statistics, also said on Monday that while demand for food, beverages, tobacco and computers improved, that for steel, refined metals and construction materials remained under pressure.
This is consistent with the view that any recovery in the iron ore and steel sector is going to be slow, and more likely U-shaped rather than the more V-shaped rebound that happened after the 2008 global financial crisis.
The closure of one of Baoshan's steel plants confirms what we already know: namely that China's steel sector is now doing it tough and suffering from the hangover of over supply in a softening demand scenario.
But it also lays the groundwork for improvement in the sector, albeit a slow and lumpy recovery rather than strong and sustained as many producers would prefer.
— Clyde Russell is a Reuters market analyst. The views expressed are his own.
China steel plant closure points to slow recovery
China steel plant closure points to slow recovery
Capital concentrates as MENA startups close deals
- Fresh funding flows in even as broader market data points to a slowdown
RIYADH: Startup funding activity across the Middle East and North Africa delivered a mixed picture over the past week, with fresh capital flowing into gaming, fintech, deep tech, and travel, even as broader market data pointed to a slowdown in overall investment momentum.
Saudi Arabia’s Impact46 led a $1 million investment round in Hypemasters, an international game development studio focused on competitive strategy experiences for mobile. The round included participation from GEM Capital.
Hypemasters develops strategy titles designed for competitive depth and precise game mechanics and has attracted more than 7 million players globally.
The studio is currently advancing several new projects, including a title in soft launch, as it looks to expand its reach in markets with sustained demand for strategy games.
“Strategy is one of the most demanding categories in game development, and Hypemasters approaches it with uncommon discipline. Their work shows a clear understanding of what committed players expect from this genre, and we believe their upcoming titles can serve a global audience with genuine depth,” said Basmah Al-Sinaidi, managing partner at Impact46.
“We are pleased to support a team that builds with intention and long-term ambition,” she added.
Boris Kalmykov, CEO and co-founder of Hypemasters, said: “We’re focused on deepening our presence across the region and pushing forward with the next generation of strategy games, including a major new title already in soft launch. Partnering with Impact46 marks an important step for Hypemasters.”
The CEO added that Impact46 shares his company’s long-term vision for building “world-class strategy games” from the MENA region, and the support reinforces his firm’s commitment to expanding its portfolio with high-quality releases.
The investment reflects Impact46’s continued interest in game development and interactive entertainment and aligns with its broader strategy of backing studios building globally oriented titles.
Premialab raises $220m
UAE-headquartered Premialab, a provider of data, analytics, and risk management solutions for quantitative investing, has raised $220 million in a growth investment led by KKR, with participation from existing investor Balderton.
Founded in Hong Kong in 2016 by Adrien Geliot and Pierre Trecourt, Premialab operates a global platform serving the $800 billion quantitative investment strategies market.
Counterfeits don’t just impact economies; they erase identity, creativity and truth. Along with our investors, we’re building a movement to make the world’s stories verifiable again.
Walid Tarabih, founder and CEO of Relik
The company provides benchmarking, performance analysis, and risk analytics tools for institutional investors.
The funding will be used to support global expansion, strengthen core operational systems, and scale Premialab’s execution product, which was developed in partnership with Eurex, to broaden access to quantitative investment strategies.
“Quantitative investment strategies have grown rapidly in scale and importance, yet the market has lacked a truly independent standard for data, analytics and risk. Premialab was built to fill that gap,” said Adrien Geliot, CEO of Premialab.
Relik closes seed round
UAE-based Relik has closed a seed funding round with participation from KBW Ventures, Naatt Holding, Fort Holding, and Ayman Sejiny.
Founded in 2023 by Walid Tarabih and later joined by John Tsioris, Relik is an artificial intelligence-powered authentication platform designed to help collectors, brands, and marketplaces.
The company plans to use the funding to roll out additional products and expand across sectors including sports, luxury, and heritage markets.
“We are ensuring authenticity in a fakeable world,” said Walid Tarabih, founder and CEO of Relik, adding: “Counterfeits don’t just impact economies; they erase identity, creativity and truth. Along with our investors, we’re building a movement to make the world’s stories verifiable again.”
Prince Khaled bin Alwaleed bin Talal Al-Saud, founder and CEO of KBW Ventures, said: “Relik is creating a new global standard for truth and trust. At a time when counterfeiting and AI-generated content are rising, Relik’s mission to protect authenticity carries both cultural and commercial value.”
Nawah raises $23m
Egypt-based deep tech startup Nawah Scientific has raised $23 million in a series A round comprising a mix of equity and debt, marking a decade since the company’s founding.
The round was led by Life Ventures Holding, with participation from Den Ventures, Empire M, AfricInvest, Elsewedy, as well as banks and angel investors.
Founded in 2015 by Omar Saqr, Nawah operates a cloud laboratory model that enables remote access to advanced testing services. Its operations span four business units covering life sciences, food and agriculture, pharmaceuticals, and certified reference materials.
The company plans to use the funding to build a global research and development center in Rwanda, double laboratory capacity in Egypt and Saudi Arabia, and expand into North Africa and Europe.
Algeria’s VOLZ raises $5m
Algeria-based travel tech startup VOLZ has raised $5 million in a series A funding round led by a consortium of private investors under Tell Group, with participation from Groupe GIBA.
Founded in 2023 by Mohamed Abdelhadi and Hacene Seghier, VOLZ enables travelers to book flights in Algerian dinars using online payments or cash on delivery, while comparing multiple airlines through a single platform.
Announced at the African Startup Conference in December, the transaction is Algeria’s largest startup funding round in local currency and marks the first exit of the Algerian Startup Fund.
The capital will be used to launch new consumer and corporate travel products, strengthen VOLZ’s position in Algeria, and support expansion across North and West Africa.
MENA startup funding slows in November
Investment activity across the MENA startup ecosystem slowed sharply in November 2025, with 35 startups raising a combined $227.8 million, according to Wamda’s monthly report.
This marked a steep decline from the $784.9 million recorded in the previous month and a 12 percent drop compared to November 2024, pointing to a period of consolidation as investors moderated deployment toward the end of the year.
More than half of the capital raised during the month was driven by a single debt-backed transaction by erad, which propelled Saudi Arabia to the top of the regional rankings. Across 14 deals, the Kingdom attracted $176.3 million, accounting for more than three-quarters of all capital deployed in November.
Despite funding activity spanning 35 startups, capital was concentrated in just 5 markets. After Saudi Arabia’s dominant lead, the UAE followed with $49 million across 14 transactions.
Egypt recorded $1.12 million across 4 deals, while Morocco raised $1.1 million through 2 transactions. Oman saw 1 deal with an undisclosed value, with limited activity reported outside these markets.
Fintech emerged as the most funded sector in November, raising $142.9 million across 9 deals, largely influenced by the same debt-driven transaction.
E-commerce followed with $24.5 million across 6 rounds, while property tech, which topped the charts in October, slipped to 3rd with $18.9 million raised by 3 startups.
Debt financing dominated the month, accounting for more than $125 million through a single transaction.
The remaining capital was largely channelled into early-stage startups, with no later-stage funding rounds recorded in November, underscoring continued investor caution.
From a business model perspective, B2B startups captured the majority of capital, with 20 companies raising $197.1 million.
B2C startups lagged, with 9 companies raising a combined $22.2 million, while the remainder was split across hybrid models.
The gender funding gap showed no signs of narrowing, with male-led startups absorbing 97 percent of the capital raised during the month. Female-led and mixed-gender founding teams accounted for the remaining share.
