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EU watchdog accuses Commission lack of transparency with 'urgent proposals'
The EU Ombudswoman, who represents the EU citizens in Strasbourg, accused the European Commission of being rash to introduce measures on sustainable reporting, agriculture and illegal migration without adhering to its own rules for transparent and evidence-based legislation. The EU Institutions' watchdog said that the Commission failed to justify its urgency, citing the findings of an investigation prompted by complaints from climate and human right activists. Teresa Anjinho, Ombudswoman, said that the deficiencies constituted maladministration. "There are certain principles of good legislation that cannot be compromised, even if it is urgent." The European Commission stated that it would carefully examine the recommendations but also maintained that it had produced solid evidence about the problems and the required response and that it included input from consultations in its decision-making. Eight organisations complained in April that the Commission proposed weakening sustainability rules following private meetings with lobbyists from the industry, without consulting the public or assessing the impact of the suggested changes. They said that any agreement reached should be based on evidence and aligned with EU climate goals. Their statement stated that "if this cannot be ensured, the Commission should retract its proposal." (Reporting by Alessandro Parodi and Bart Meijer; editing by Philippa Fletcher, Alexandra Hudson)
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China launches new platinum futures contracts, which will increase the price of platinum
The spot platinum price rose on Thursday, as the opening of futures trading at the Guangzhou Stock Exchange in China helped to increase the overall liquidity. These contracts represent the first domestic price-hedging mechanisms for platinum and palladium, which are used in automakers and other industries including jewellery and investment goods. On their first trading day, Guangzhou's June platinum futures jumped 6% while palladium rose 1.5%. After hitting a one-month high of $1,641, spot platinum prices in London rose 1.0% to $1,604 per troy inch by 1226 GMT. Palladium spot prices were unchanged at $1,423. China is the largest consumer of metals in the platinum group, and relies heavily on imports. Analysts say that China, which accounts for almost 30% of global palladium consumption and 20% of platinum, has no domestic price guidance. It is left to follow international market movements. Weibin Deng is the Asia Pacific head at World Platinum Investment Council. He said that this launch will transform China's market for platinum group metals. He added that "for the first time domestic industrial users and fabricators now have a direct and regulated tool for hedge against global palladium and platinum price volatility." The global prices of two platinum group metals soared this year due to tighter supply and renewed interest from investors following the record-breaking performance for gold and Silver. The price of palladium and platinum has risen by 76% and 56% respectively in 2025. Reporting by Ella Cao and Polina Devtt, London; editing by Louis Heavens
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EU watchdog accuses Commission lack of transparency with 'urgent proposals'
The EU Ombudswoman, who represents the EU citizens in Strasbourg, accused the European Commission of being rash to introduce measures on sustainable reporting, agriculture and illegal migration without adhering to its own rules for transparent and evidence-based legislation. The EU Institutions' watchdog said that the Commission failed to justify its urgency, citing the findings of an investigation prompted by complaints from climate and human right activists. Teresa Anjinho, Ombudswoman, said that the deficiencies amounted "to maladministration". "Certain rules of good legislation cannot be compromised, even if it is urgent." The European Commission didn't immediately respond to an inquiry for comment. Eight organisations complained in April that the Commission proposed weakening sustainability rules following private meetings with lobbyists from the industry, without consulting the public or assessing the impact of the suggested changes. They said that any agreement reached should be based on evidence and aligned with EU climate goals. Their statement stated that "if this cannot be ensured, the Commission should retract its proposal." Reporting by Alessandro Parodi, Bart Meijer and Philippa Fletcher; editing by PhilippaFletcher.
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Gold falls from near 2-week-high as traders consider US rate cuts
Gold prices fell on Thursday after hitting a two-week high in the previous session. Investors also assessed the probability of a U.S. rate cut in December. As of 1216 GMT, spot gold was down by 0.2% to $4,156.89 an ounce. U.S. Gold Futures for December Delivery fell 0.2% to $4154.40 an ounce. Carsten Menke, analyst at Julius Baer, said: "We expect that the consolidation process that began with the October setback will continue because the dust from that setback is still not completely settled." Bullion is down 5% from its record high of $4381.21 reached on October 20. However, it has traded above the important 4,000 per ounce price level. Menke said, "The factors that we see favoring the gold market remain largely unchanged. These include slowing U.S. economic growth, which has led to lower interest rates, a weaker U.S. Dollar, and sustained demand for safe havens, as well as continued central bank purchases." Federal Reserve signals contradictory on timing and magnitude of U.S. rate cuts has accelerated hedge flows into swaptions, and derivatives linked to overnight rates. Kevin Hassett has aligned himself with Donald Trump, the frontrunner for Jerome Powell to be the next Fed chair, in advocating rate cuts. The comments made this week by San Francisco Federal Reserve Bank president Mary Daly, and Fed Governor Christopher Waller have also raised expectations for a rate cut. CME FedWatch shows that traders now price in an 85% probability of a rate reduction next month, compared to just 30% one week ago. Gold that does not yield tends to do well in an environment of low interest rates. The U.S. market will be closed for Thanksgiving on Thursday and operate with a reduced schedule on Friday. Other than that, silver spot rose by 0.1%, to $53.39 an ounce. Platinum gained 0.9%, to $1,602.10, while palladium remained at $1,422.65. (Reporting and editing by Alexander Smith, Ed Osmond, and Noel John from Bengaluru)
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Copper falls on stronger dollar and weak China data
The copper prices were under pressure Thursday due to a stronger dollar, and poor data from China's top metals consumer. They had hit their highest level in nearly a month the previous session. The benchmark three-month copper price on the London Metal Exchange fell 0.7% to $10,893.50 per metric tonne by 1121 GMT. On Wednesday, the metal reached $11,025 - its highest level since October 30 - on expectations that the U.S. Federal Reserve would cut interest rates by December. The metal reached a record-high of $11,200 due to disruptions in mine supply on October 29. The metals market focused on the data that showed China's industrial profit contracted in October, as well as the debt woes of developer Vanke. The 21-day moving Average at $10,811 is a technical support for copper. An LME executive stated that the premium of 2% to 3% between the Comex and LME copper contracts, which continues to attract the metal into U.S. stocks, will likely persist for the next 18-months. This is due in part to the uncertainty surrounding copper tariffs within the U.S. Comex copper stocks Stocks in the LME-registered warehouses, which reached a record last week at 378.900 metric tonnes, have continued to rise this week. Stocks at the LME registered warehouses The total number of tons is down by 42% to 157,175 this year. The inventory situation outside the U.S. is expected to remain tight. The premium of the LME Cash Copper Contract over the 3-month forward On Monday, the price of a ton reached its highest level since mid-October at $25 and it was last seen at $20 on Friday. Other LME metals saw aluminium fall 0.9%, to $2,836.50 per ton. Zinc fell 1.1%, to $3,023.50. Lead and nickel remained steady, at $1,979 each and $14,815. On persistent concerns about supply disruptions, tin rose by 0.1% to reach $37,970, after reaching $38,650. This was the highest price since May 2022. (Reporting and editing by Eileen Soreng; Additional reporting by Dylan Duan)
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Wacker Chemie will cut over 1,500 jobs. High energy prices and German red tape are blamed
The German chemical company Wacker Chemie announced on Thursday that it plans to reduce its workforce by around 9%, mainly in Germany, before the end of 2027. It blamed high energy prices as well as excessive bureaucracy within Europe's largest economy. Wacker announced last month a cost-saving programme but did not provide details. The company said that it would aim to save more than $300 million per year. It said that more than 1,500 job losses worldwide, mainly in Germany, will contribute to about half the annual savings planned. Christian Hartel, CEO of Hartel Chemicals said: "In Germany in particular, excessively high energy costs and bureaucratic barriers continue to be a major braking force on the successful growth of the chemical industries." Wacker Chemie is a company that has been around for many years. Face Weak demand and increased competition from Chinese producers It lowered its sales and core profits for the full year, citing softening demand and competition from China. German chemicals, the third largest sector in the country, is struggling to cope with a subdued market, high energy prices, supply-chain issues, and an economic downturn. U.S. president Donald Trump's tariffs have added to the pressure. This has weighed on industry sentiment, with Germany's VCI chemicals lobby not expecting a recovery before 2026 despite indications that the downturn in the chemical-pharmaceuticals sector may have bottomed out. Wacker will have 16,637 workers in 2024. After the announcement, shares jumped around 1.6% but since then have pared back their gains.
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Oil prices rise as investors wait for peace talks
The oil price steadied Thursday as traders weighed the impact of Western sanctions on Russian supply against the talks to end Ukraine's war. Trading was expected to be thin because of the U.S. holiday Thanksgiving. Brent crude futures increased 9 cents, or 0.1%, to $63.22 a barrel as of 1102 GMT. U.S. West Texas intermediate crude futures increased 19 cents, or 0.3%, to $58.84 a barrel. Steve Witkoff, U.S. ambassador to Russia and other senior U.S. officials will travel to Moscow with Russian leaders next week for discussions on a potential plan to end the nearly 4-year-old conflict in Ukraine. This war is the deadliest to have occurred in Europe since World War Two. A senior Russian diplomat stated on Wednesday that Russia would not make any big concessions in regards to a peace plan. This was after a recording of Witkoff's call with Moscow revealed he advised Moscow how to approach U.S. president Donald Trump. Barclays stated in a report that "Geopolitical Volatility continues, and the hopes of a possible ceasefire between Russia & Ukraine has neutralized supply concerns caused by new US sanctions against key Russian producers." Three OPEC+ source told Reuters on Tuesday that the Organization of the Petroleum Exporting Countries (OPEC) and its allies will likely leave the output level unchanged during a Sunday meeting. OPEC+ members, who pump about half of the world's crude oil, have increased production levels since April in order to gain market shares. The expectation of a rate cut by the U.S. Federal Reserve in December was a major factor that limited crude prices declines. Lower rates are known to stimulate economic growth, which in turn boosts oil demand. Kelvin Wong, senior market analyst at OANDA, said: "We're approaching year-end without any new drivers except the Fed surprises markets with a more hawkish direction on the FOMC meeting of 10 December." He added that "WTI crude will likely be range bound between US$56.80 to US$60.40 until year's end."
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ASIA COPPER WORRID-China's crackdown on overcapacity reaches copper but market impact is unlikely
Plans to build a series of new smelters have been shelved The industry still expects to gain new capacity through projects in construction The move is seen as a sign of more to come Amy Lv. Lewis Jackson, and Dylan Duan Industry insiders say that the decision by China to shelve plans for a number of copper smelters will not have a significant impact on historically tight copper markets, unless more measures are taken to reduce output. Due to the disruptions in mines, supplies of copper concentrate have been stretched and increased. The fees paid for processing copper (also known as treatment and refinement charges) have dropped to negative historic levels. China announced on Wednesday that it had suspended the construction of 2 million metric tonnes of new smelting capacities. This was a gesture to the difficulties faced by Chinese smelters during annual negotiations over copper concentrate supplies. Eight analysts and three traders who spoke to us on the sidelines the World Copper Conference Asia, held in Shanghai, this week, stated that there would be no immediate impact on the copper market, as the projects currently under construction will be completed. Helen Amos is a commodities analyst with BMO Capital Markets. She said: "I don’t think that the decision will change anything over the next two years because we are still seeing new smelting capacities coming online." Unnamed Chinese analyst said that the announcement which didn't name any project raised many questions, such as how the 2 million ton figure was calculated. The Chinese government is redoubling its efforts to reverse the rampant overcapacity of industrial production. Policies to reduce production have been implemented for coal, lithium, and polysilicon (the raw material used in solar panels). Uncertain is how far Beijing would go to curb a sector that helps China offset its reliance on refined copper imports, which it wants to reduce. The industry figures warned that if Wednesday's announcement signals the government is planning or considering more drastic measures, such as forced capacity reductions or production caps, then it could have a greater impact. Amos stated, "For me it's symbolic of the industry being affected by policy changes like we have seen in the past with steel and aluminum." (Amy Lv in Shanghai, Lewis Jackson in Beijing; editing by Joe Bavier).
Norsk Hydro believes that CBAM loopholes will remain open until 2028.
Norsk Hydro's CEO said that it is not realistic to expect any amendments aimed at closing the loopholes which allow companies to avoid the new carbon border tax on aluminium imposed by the European Union before 2028.
From January, the Carbon Border Adjustment Mechanism (CBAM) will impose a carbon-based tax on aluminum and certain other commodities such as steel that enter the European Economic Area to compensate for emissions directly generated during production.
The aim is to protect European producers from cheaper competitors in countries with less aggressive climate laws, and to prevent European companies shifting their investments abroad.
CEO: LOOPHOLES ARE AVAILABLE FOR FINISHED AND SCRAP PRODUCTS
Eivind Kallevik said that CBAM will help to level carbon costs and put the Norwegian company, Hydro, in a better position. Hydro uses renewable energy for energy intensive aluminium smelting.
He said that two loopholes in the EU's industrial policy could undermine it.
Kallevik stated that the scrap loophole must be closed. Without that, there's a risk of circumvention as well as an unfair playing field for European recyclers compared to competitors from outside the... EEA."
He said that CBAM does not also cover downstream products containing a lot of aluminium, and as it stands, these could still enter the EEA free of charge.
He said that the scope of the project should be expanded to include downstream products to avoid carbon leakage.
Carbon leakage is when a company shifts its production to a different country in order to avoid strict climate regulations.
The implementation of amendments will take time
After taking feedback from the industry, the European Commission will publish CBAM amendments in December. These changes should close loopholes.
Kallevik stated that "Unfortunately,... these processes are slow and we expect the earliest inclusion of these components to be 2028."
Kallevik said that the supply of low carbon aluminium will not grow at a rate commensurate with demand even though leading industrial companies are using it to reduce their emissions.
Kallevik stated that "aluminium production below four tons per ton aluminium will only grow marginally by 2030, while production over this threshold will increase by several millions of tons." (Reporting and editing by Tom Daly)
(source: Reuters)