President Trump and executives from Mesabi Metallics unveiled a plan to build a $15 billion steel mill in Iowa, the WSJ's Bob Tita and Alex Leary write.

Mesabi, a part of Indian conglomerate Essar Group, recently opened the first iron-ore mine in Minnesota in 50 years. Steelmaking at the Iowa plant could begin in 2030, according to a White House official, who said it could support more than 1,700 jobs.

The proposed mill would be one of the largest in the U.S. with an initial annual production capacity of 7.5 million tons. Later additions could increase the plant's capacity to about 10 million tons a year.

The company said the plant would be in eastern Iowa, and would transport iron ore from its mine to the steel mill by railroad. The company expects to build plants at the site to process the ore for use in electric arc furnaces with scrap steel to make new steel.

"We will have a very cost competitive product that supports the scale of the investment announced today. Mesabi Metallics controls its own high-quality iron ore."Rewant Ruia, chairman of Mesabi Metallics

Regulation

The Trump administration dialed back rules requiring automakers to build cleaner, more fuel-efficient cars, the WSJ's Sharon Terlep writes. The federal government will now require an average of 34.5 miles a gallon for vehicles by model year 2031, down from the 50.4 miles a gallon standard set by the Biden administration.

The changes come as America's drivers are squeezed by high gasoline costs and soaring new-car prices, which now top $50,000 on average.

Administration officials say the changes will drive down the average cost of a new vehicle by easing costly engineering requirements on automakers. Critics say those savings are overblown and will be quickly eclipsed by higher fuel costs.

Number of the Day

1,619

Items on the list of U.S. exports to China recommended for a lower tariff rate, according to documents released by the Trump administration.

Energy

Saudi Arabia resumed exporting oil via its East-West pipeline after repairing damage caused by drone strikes earlier this month, people familiar with the matter said, restoring a crucial route around the Strait of Hormuz and dealing a blow to Iran.

The WSJ's Summer Said and Georgi Kantchev report that the pipeline, which stretches 750 miles across Saudi Arabia to the Red Sea Port of Yanbu, has served as a critical workaround for curtailed tanker traffic through Hormuz. Roughly 4 million barrels a day-around 4% of global supply-were flowing through it before drone strikes blamed on Iran-backed forces in Iraq damaged the pipeline on Sept. 10, analysts estimate.

The kingdom has also figured out how to get more oil past Iran in the Strait of Hormuz. Loadings at Saudi Arabia's Gulf port at Ras Tanura recently surged to around 6.5 million barrels a day from 1.5 million barrels a day in early September, ship tracker Kpler said.

In Other News

-- The European Commission's economic-confidence gauge for the eurozone fell to 97.9 in September from 98.4 in August. (WSJ)

-- Copper could hit $10 a pound, or $22,050 a ton, in the second quarter of 2027-up almost 50% from current levels-according to Deutsche Bank's new head of metals research. (WSJ)

-- Hapag-Lloyd raised its full-year earnings guidance again on strong demand, and as port congestion and war-driven shipping reroutes tighten capacity and sustain freight rates. (WSJ)

-- RTX unit Raytheon received a Defense Department contract valued up to $20.7 billion to accelerate production of its AMRAAM missiles. (WSJ)

-- Aviation-services supplier AAR agreed to buy a majority stake in privately held aircraft-maintenance company MRO Holdings for $1.8 billion. (WSJ)

-- Samsung agreed to commit $1 billion to Helix Digital Infrastructure, an AI-infrastructure company backed by KKR and Nvidia. (WSJ)

-- French electrical-equipment supplier Legrand raised its 2030 targets as it laid out plans to capitalize on the rapid AI data-center buildout. (WSJ)

-- Tesla started high-volume output of its battery-electric Semi last week at its Reno, Nev., factory, aiming to produce 1,000 trucks a week. (TransportTopics)

-- A.P. Moller Capital agreed to acquire a 53.35% stake in Thaumas, the holding company behind Euroports, one of Europe's largest bulk and breakbulk terminal platforms. (Splash247)

-- A wild screwworm fly was found in Brewster County, Texas, the first since the flesh-eating parasite was found in the U.S. in June. (Bloomberg)

-- Lego plans to invest more than $400 million to add packing and warehousing capabilities to its Monterrey, Mexico, manufacturing operations. (SupplyChainDive)

-- The Airforwarders Association named Airlink founder Steve Smith as its CEO to succeed Brandon Fried, who will retire at the end of the year. (Air Cargo News)

-- Recent rains prompted the Panama Canal Authority to increase daily Neopanamax capacity to 10 from nine slots, and to increase the allowed draft for those locks to 49 feet.

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.

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This article is a text version of a Wall Street Journal newsletter published earlier today.