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India's April to January finished steel imports from S. Korea, China and Japan reached record high
According to preliminary government data, seen on Tuesday, India's finished-steel imports from China and South Korea, as well as Japan, reached a record in the first ten months of this financial year. India, which is the second largest crude steel producer in the world, reported that it was a net steel importer and shipped record amounts of finished steel between April and January. The data revealed that South Korea imported 2.4 million tons of finished steel, an increase of 11.7% over the previous year. South Korea was India's largest exporter of this alloy during that period. The total amount of finished steel shipped from China during April-January was 2.3 million metric tonnes, an increase of 3.4% compared to the previous year. The data shows that finished steel imports to Japan reached 1.8 million metric tonnes, an increase of 88.6% over the previous year. India imported 78% of its total finished steel from China, South Korea, and Japan. India's fiscal calendar runs from April to March. Imports of Indonesia reached 0.3 million tons, nearly three times more than a year earlier. The data revealed that hot-rolled coils or strips were the most popular grades imported, while bars, rods, and other non-flat steel products led the shipments. India began an investigation in December to determine if it was necessary to impose either a temporary or safeguard tax to curb the unbridled importation of steel. H.D. Last month, India’s Steel Minister H.D. Last month, India's Steel Minister H.D. Exports of finished steel fell to a minimum seven-year low between April and January. The export of finished steel to Italy, which is the largest export destination, has nearly been halved over the period. The data also showed that exports to Belgium and Spain fell between April and January. Reporting by Neha arora, Editing by Mrigank dhaniwala
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Rwanda says Canada export permit, business suspension over Congo war 'shameful'
Rwanda said that Canada's position regarding the conflict in eastern Democratic Republic of Congo is "shameful" and that Ottawa's measures against Kigali will not solve the conflict. Late on Monday, Canada announced it had suspended the issuance of permits for the export of controlled goods and technologies to Rwanda, as well as suspending pursuing new government-to-government business and trade missions with Rwanda, and support to private-sector business development activities. The Canadian government also announced that it would be reviewing its participation in international events hosted by Rwanda. Canada has announced its intention to suspend bilateral assistance to Rwanda, joining the European Union and United Kingdom. The U.S. has also announced sanctions against James Kabarebe a Rwandan minister of state for foreign affairs. The Tutsi led M23 rebel group has entered the city Goma, at the end January. Since then they have made an unprecedented advance in eastern Congo. They have captured territory and gained access to valuable minerals. The ongoing assault, which began in late December, has already been the most serious escalation in a conflict that dates back to the Rwandan genocide of 1994 and the struggle over Congo's vast minerals resources. Experts from the U.N. and Western countries accuse Rwanda, of supporting this group. Rwanda denies that and claims it is defending against ethnic Hutu militias intent on killing Tutsis and threatening Rwanda. The Canadian Ministers of Foreign Affairs, International Development, and Export Promotion, International Trade and Economic Development announced the suspensions on Monday. They repeated the allegations against Rwanda. Reporting by George Obulutsa, Nairobi; Editing and proofreading by Ammu Kanampilly and Lincoln Feast.
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Oil prices fall on OPEC+ production increase and US tariff uncertainty
The oil prices continued to fall on Tuesday after reports that OPEC+ would proceed with a planned production increase in April, while the markets prepared for U.S. Tariffs against Canada, Mexico and China. Brent futures dropped 49 cents or 0.7% to $71.13 per barrel at 0455 GMT. U.S. West Texas Intermediate crude (WTI), however, fell 26 cents or 0.4% to $68.11. Darren Lim is a commodities strategist with Phillip Nova. He said that the current decline in oil prices was primarily due to OPEC+ increasing output and U.S. Tariffs. He added that geopolitical developments in relation to the Russia-Ukraine Conflict were a complicating factor. Trump's decision to halt all U.S. Military Aid to Ukraine follows his clash last week in the Oval Office with President Volodymyr Zelenskiy. The Organization of the Petroleum Exporting Countries and its allies, such as Russia, collectively known as OPEC+ decided to go ahead with a planned increase in April of 138,000 barrels of oil per day. This is the first time since 2022 that the group has increased their output. "While this decision is intended to unwind past output cuts gradually, it has raised concern about a possible oversupply on the market," Lim said. The 25% tariffs imposed by U.S. president Donald Trump on imports from Canada, Mexico and other countries are scheduled to go into effect on Tuesday at 12:01 am EST (0501 GMT). Canadian energy will be subject to a 10% tariff. Imports of Chinese goods will rise to 20% tariffs. Analysts predict that the tariffs will have a negative impact on economic activity, fuel demand and oil prices. BMI analysts said in a recent note that "market participants are struggling to assess the impact of Trump's flood of energy policy announcements." "However those who are weighing down, such as the U.S. Tariff Measures, are currently winning." The market also weighed on oil Trump's decision to stop military aid for Ukraine. It interpreted the increasing distance between the White House, and Ukraine, as a possible easing of conflict. This could also lead to a reduction in sanctions for Russia and a return of more oil to the market. Sources said that the pause was prompted by a report stating that the White House had asked the State Department and Treasury Department to create a list that would include sanctions that might be relaxed for U.S. officials during discussions with Moscow. Goldman Sachs analysts, however, say that Russia's oil flow is more constrained by its OPEC+ target than sanctions. They warn, however, that a significant easing of sanctions might not increase them. Reporting by Colleen Chow and Emily Chow from Beijing; editing by Jamie Freed, Clarence Fernandez
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Seven & i shares fall after report rejecting Couche-Tard's bid
The shares of Seven & i fell as much as 12% Tuesday following a report that the 7-Eleven owners plans to reject a takeover offer worth $47 billion from Canada's Alimentation Couche-Tard. However, the Japanese company still said it is considering the offer. In Tokyo, the shares fell 8% to 2,023 yen after falling as high as 12% earlier. They had reached their lowest level in just over six months. The Yomiuri reported on Tuesday, that Seven & i intended to reject the takeover bid from Circle-K's owner Couche-Tard in order to instead enhance corporate value by itself. Seven & i, however, said in a press release that it "remains dedicated to exploring all options to unlock value for investors and continues to evaluate a full range strategic alternatives, which includes the proposal" by Couche-Tard. The special committee said it is "engaging in a constructive manner" with CoucheTard. Seven & i has finalised a plan to replace CEO Ryuichi ISAKA with director Stephen Dacus. This is almost certain, according to reports. Dacus is the head of a special committee that will evaluate the recent collapsed takeover deal by Seven & i and a bid to takeover Couche-Tard. (Reporting and editing by Sam Nussey, Rocky Swift and David Dolan; Christopher Cushing and Sandra Maler)
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IMF: Sri Lanka must avoid tax exemptions and focus on budget passage
An IMF official stated on Tuesday that Sri Lanka should not give tax exemptions, but instead focus on adopting a national budget in accordance with the parameters set forth by the International Monetary Fund. This will allow the IMF to continue its $2.9 billion loan program. Sri Lanka has made a "remarkable recovery" from a financial crisis that was sparked by a dollar shortfall record three years ago. The global lender announced this after it approved a fourth installment of $334m under the Extended Fund Facility program. Peter Breuer, IMF senior mission chief in Sri Lanka, told reporters that the island nation of South Asia must improve tax compliance, better target social welfare and smoothen capital expenditure to support better public finance management. Sri Lanka's monopoly power company, the Island Nation's Power Corporation, had reduced its tariffs by 20 percent in January. The IMF supported restoring cost recovery electricity pricing. Breuer stated that it was important for the next tariff to be set so as to recover costs. The next review will also be a very important one for us to ensure that the budget passed by the government this month is in line with the parameters. We will therefore be paying close attention to this. He also said that it was crucial for Sri Lanka to finalize bilateral agreements with official creditor countries such as Japan, India, and China, after Colombo had secured a preliminary deal on a debt restructuring of $10 billion last June. The IMF completed the third review following the announcement by Sri Lanka's newly elected president Anura Kumara Dsanayake of his first full year budget in the month of January. This included an agreement to adhere to the primary surplus target set by the IMF of 2,3% of GDP until 2025. The IMF bailout in March 2023 stabilized financial and business conditions in Sri Lanka after the economy contracted by 7.3% during its financial crisis, and by 2.3% by 2023. According to the latest IMF statistics, Sri Lanka's economic growth is expected to be 4.5% in 2018. The forecast for 2025 is 3%. (Reporting and writing by Uditha Jayasinghe; editing by Christian Schmollinger).
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Australia Grants Feasibility Licenses for 3.2GW Offshore Wind Projects
The government of Australia has granted feasibility licenses for two offshore wind projects with a total planned capacity of 3.2 GW, to be developed off the coasts of New South Wales and Victoria.The feasibility licenses have been awarded for the Southern Ocean and Hunter zones.In Hunter zone, offshore New South Wales, Novocastrian Wind, owned by Equinor and Oceanex Energy, plans to develop a floating wind project with the capacity of 2 GW. Once fully operational, it is expected to power 1.2 million homes and meet 10% of New South Wales’ annual electricity needs.In the Southern Ocean zone, offshore Victoria, Alinta Energy and Parkwind, part of JERA Nex, are planning to develop Spinifex offshore wind farm, with a capacity of 1.2 GW.It would cover 265 km2, and be capable of meeting 10% of Victoria’s electricity needs.Over the next 7 years, the feasibility of licensed project proposals will be tested, and before any offshore wind farms are constructed, the feasibility license holders must develop management plans, undertake environmental assessments, obtain environmental approvals, and consult with marine users, the community and First Nation groups.“We’ve done a lot of work on the project over almost four years, so it’s great that the project has moved quickly from zone declaration to a feasibility license being offered.“We thank the government for the prompt decision. It puts us in a good position to complete our upcoming seasonal surveys and keep progressing the project,” said Jeff Dimery, Alinta Energy MD and CEO.“This announcement is an important step but there is plenty of further work to do. We welcome this decision by the government and look forward to bringing our global expertise and scale into this joint venture, while remaining focused on consulting and working closely with the local community, various levels of government and other key stakeholders to ensure the shared success of this project,” added Nathalie Oosterlinck, CEO of JERA Nex.
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PMI data shows that Saudi Arabia's private non-oil sector grew strongly in February.
A survey released on Tuesday showed that the Saudi Arabian non-oil sector's growth continued to be robust in February. This was due to strong sales by customers and higher activity levels. However, the rate of growth has slowed since the previous month. The Riyad Bank Saudi Arabia Purchasing Managers' Index fell from a decade high reading of 60.5 to 58.4 at the end of February, but remained above 50. This indicates strong growth. The small drop in the headline PMI can be attributed to the slowing of new business growth that had soared at the beginning of the year. The subindex for new orders fell to 65.4 from 71.1 in the previous month. Tourism and marketing efforts increased, which led to new sales growth. Although slightly slowed, the output expansion remained one of the most rapid since mid-2023. Naif Al Ghaith, Riyad Bank's Chief Economist, said that despite the slowdown in growth of new orders in February, businesses remain confident about demand in future. He said that this was reflected by higher staffing levels as companies increased their workforce in order to meet the demands of business and increase workloads. As firms prepare for growth, employment levels have risen at the fastest rate in 16 months. Manufacturing and service sectors saw the highest growth. The pace of inflation slowed down, and the firms only reported a modest increase in sales prices because of competitive pressures. The business confidence index reached its highest level in 15 months, as firms were optimistic about the economic growth and government initiatives that would support it. (Reporting and Editing by Hugh Lawson).
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Shanghai's base metals benefit from China stimulus hopes
Shanghai's base metals gained Tuesday, as the market hoped for more stimulus in China, the largest metals consumer in the world, and an improvement in manufacturing in China. By 0342 GMT, the most active copper contract at the Shanghai Futures Exchange had risen 0.1% to $10,590.45 per metric ton. Base metals rose on signs of increased factory activity in China, ahead of the National People's Congress gathering (NPC), which will take place on March 5. There are also expectations of further stimulus for the economy. This was said by Daniel Hynes of ANZ Bank, a senior commodities strategist. China's manufacturing sector expanded at its fastest rate in three months during February. This should reassure officials about the stimulus measures taken last year to help shore up the patchy recovery of the second largest economy in the world. Trump announced on Monday that tariffs of 25% on goods imported from Mexico and Canada would take effect at 0501 GMT, on Tuesday. He also doubled the China tariffs to 20%. This sparked fears of a North American trade war and sent financial markets into a tailspin. JP Morgan predicts that the global deficit of refined copper will grow to 160.000 metric tons by 2026. They continue to forecast copper prices to average around $11,000 per ton in 2019. According to the International Copper Study Group's (ICSG) December report, there was a global deficit of 22,000 metric tons in refined copper. SHFE aluminium increased by 0.1%, to 20,650 Yuan per ton. Zinc rose by 0.2%, to 23,695 Yuan. Nickel gained 1%, to 127330 Yuan. Tin rose 0.5%, to 256900. Lead remained at 17,245 Yuan. The London Metal Exchange's (LME) three-month copper fell 0.4% to $9.384 per metric ton. LME aluminium remained at $2,610 per ton. Zinc fell by 0.4% to 2,831, while nickel dropped 0.5% to 15,815. Tin rose 0.4% to $30,700, and lead increased 0.1% to 1,994.5. ($1 = 7.2792 Chinese yuan renminbi) (Reporting by Anushree Mukherjee in Bengaluru; Editing by Sumana Nandy)
Watchdogs warn that Ireland could face a 26 billion euro EU Climate Bill
Ireland could face EU compliance costs between 8 billion and 26 billion euro ($8,4 billion to $27.2 billion) if its plans for reducing emissions are not implemented quickly by 2030, warned the country's fiscal watchdogs and climate experts on Tuesday.
The estimated amount, which is between 3% to 9% of Irish income, exceeds the 2023 estimate by the government of 3.5 to 8.1 billion euros for failing to meet the EU 2030 climate change targets.
Irish fiscal and climate advisory councils stated that the government could cut the costs by between 3 billion to 12 billion euro if it implements plans to reduce greenhouse gas emissions.
In a report, the two independent organizations said that allowing these costs to be paid by the Irish government instead of meeting their agreed commitments to cut emissions would be an enormous missed opportunity.
In order to meet the legally-binding EU target of 55% reduction in emissions by 2030 member states who fail to achieve their goals will be liable for paying those who exceed their targets, by purchasing their excess emissions allowances.
According to data from the European Commission, Ireland, with the best public finances in Europe at the moment, is farthest away from its emission targets per capita among all member states.
The Environmental Protection Agency reports that while Irish emissions will be 6.8% lower in 2023 than 2022, they could fall between 11% to 29% below their 2018 levels depending on the extent of government plans implemented.
The wide range in their estimates is due to Ireland's different emission paths and the "highly unreliable" cost of not meeting targets.
The experts said that measures such as upgrading Ireland's grid of energy, accelerating the roll-out of electric vehicles and supporting the change in farming practices can help to avoid some of the current inevitable costs.
(source: Reuters)