Key Takeaways
- Shell (SHEL) and partners are nearing a final investment decision to double the capacity of the LNG Canada project to 28 million tonnes per annum (mtpa), targeting a massive expansion in global gas supply.
- TSMC (TSM) has confirmed wafer-out price increases of 3% to 6% effective January 2027, citing sustained high demand for AI chips and full capacity utilization.
- BHP (BHP) has suspended all operations at Escondida, the world’s largest copper mine, following a fatal maintenance accident, adding to supply concerns amid ongoing labor negotiations.
- The U.S. rejected an Iranian proposal to reopen the Strait of Hormuz, dismissing Tehran's standing to control the vital waterway during high-stakes mediated talks at the UN General Assembly.
- General Motors (GM) is accelerating its push to bypass China's battery dominance by successfully piloting a closed-loop recycling program using 100% recycled critical minerals for new EV cathodes.
Energy and Natural Resources
Shell (SHEL) and its joint venture partners—including Petronas, PetroChina, Mitsubishi Corp, and Korea Gas Corp—are poised to approve the Phase 2 expansion of the LNG Canada project in Kitimat, British Columbia. This expansion would add 14 mtpa of capacity, effectively doubling the facility's output to meet surging demand from Asian buyers seeking energy security. The move comes as global gas prices remain volatile, with Canadian gas trading significantly lower than international benchmarks, offering a lucrative export opportunity.
In the mining sector, BHP (BHP) halted all operational activities at the Escondida copper mine in Chile on Wednesday after a worker was killed during maintenance. The suspension at the world’s largest copper producer comes at a critical time, as the company faces a potential strike from unionized supervisors who are currently voting on a final contract offer. Analysts warn that a prolonged shutdown or labor action could tighten global copper markets, which are already under pressure from the energy transition's demand for the metal.
Technology and Manufacturing
TSMC (TSM) is set to raise wafer prices by 3% to 6% starting in 2027, a move that reflects the company's dominant market position and the relentless demand for advanced semiconductors. The price hike is expected to impact major clients across the smartphone and AI sectors, potentially providing competitors like Intel (INTC) more room to adjust their own pricing strategies. Visibility for the foundry's orders now reportedly extends to 2030, driven by the "full loading" of processes below 45 nanometers.
General Motors (GM) is making significant strides in its strategy to decouple from the Chinese battery supply chain. The automaker recently completed a pilot program producing EV batteries with 100% recycled nickel, cobalt, and manganese. By partnering with Cirba Solutions, GM aims to establish a domestic, circular battery economy that reduces reliance on imported raw materials and lowers the carbon footprint of its electric vehicle lineup.
Geopolitics and Domestic Policy
At the United Nations, Ethiopian President Atske-Selassie Amde delivered a stern message to "forces of destruction," urging respect for the peace of the Horn of Africa. While highlighting progress with neighboring nations, he criticized "reckless external actors" for interfering in Ethiopia's internal affairs. The President's remarks underscore the fragile security situation in East Africa as regional powers vie for influence.
In the Middle East, the U.S. dismissed an Iranian offer to reopen the Strait of Hormuz in exchange for lifting naval blockades and freezing assets. U.S. negotiators reportedly told Iranian officials that Tehran does not legally control the international waterway. Despite the rejection, President Trump characterized the mediated talks as "productive," leading to a temporary dip in Brent crude prices to below $100 per barrel.
Domestically, Trump administration officials are reportedly weighing a rollback of a controversial beef import plan as "midterm panic" spreads among GOP leaders in ranching states. The plan, which aimed to lower consumer prices by importing 300,000 tons of foreign beef, has alienated core supporters in states like Texas and Nebraska. Meanwhile, the "One Big Beautiful Bill" continues to impact the economy, with millions of Americans seeing immediate tax breaks on tips and overtime, even as significant cuts to Medicaid and SNAP benefits begin to take effect.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.