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Shanghai copper reaches a five-month high as Sino-US trade talks progress
The price of copper futures in Shanghai reached a five-month high Tuesday. This was largely due to the progress made in trade negotiations between the United States, China and the bets on a rate cut in the United States. U.S. officials and Chinese officials came to an agreement Monday on a framework for the short-video application TikTok. This has sparked hopes of a close trade deal. Analysts at Everbright Futures stated in a report that the progress made by trade talks between the two world's largest economies has boosted market sentiment. The U.S. president Donald Trump will call the Chinese President Xi Jinpingin on Friday. As of 0320 GMT, the most traded copper contract at the Shanghai Futures Exchange had risen by 0.36% to 81,120 Yuan ($11,396.62) per metric ton. The contract reached its highest level since 28 March at 81.530 yuan during the session. Analysts at Everbright Future said that the prices were also boosted by increased bets on a rate reduction this week by the U.S. Federal Reserve. The market is currently focused on whether or not there will be any more positive signals. Analysts at Benchmark Minerals Intelligence wrote in a report that rate cuts increase copper prices by leveraging a weaker currency and expectations of higher demand. Analysts said that the benchmark three-month copper price on London Metal Exchange fell 0.43%, to $10,142.5 per ton, due to profit-taking. On Monday, the contract reached a 15-month high of $10,192.5. Nickel, aluminium, and tin all saw a decline of 0.49%, while zinc, lead, and zinc were relatively unchanged. Aluminium fell by 0.11% on the LME, while nickel dropped 0.2%, and lead declined 0.12%. Zinc also fell 0.15%, but tin rose 0.32%. Click here to see the latest news in metals.
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Sunrise Energy, Australia, secures US funding interest for Scandium Project
Sunrise Energy Metals Ltd, a Canadian company backed by Robert Friedland and specializing in mining in New South Wales, received a letter from the U.S. Export-Import Bank expressing interest in a $67 million debt financing to fund its Syerston Scandium Project. The miner's shares surged up to 38.8%, reaching A$4.65, the highest level since November 2018. This was a far greater increase than the 0.4% gain in the benchmark S&P/ASX 200. The company stated that the financing is equivalent to half of the estimated costs of development for the project. The U.S. government's support for scandium underscores its strategic importance, following China's April restrictions on rare earth metals exports that have disrupted the global supply chain. Alternative sources are becoming increasingly valuable for the Western defence and technology sector. Robert Friedland, Co-Chair of the Committee, said that Australia is a major ally of America and its significant supply of strategic metals makes it an important supplier. The company plans to finish its feasibility study in late October and incorporate the new metal inventories to ore reserves estimates for the project. The company stated that if Sunrise submits a formal loan application, EXIM would conduct due diligence prior to making a final commitment. (Reporting and editing by Anjali Sing in Bengaluru)
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Australian shares rise as commodities soar, traders focus on jobs data
Australian shares rose on Tuesday as investors were cautious in anticipation of important unemployment data which could affect the Reserve Bank of Australia’s rate-cutting policy. As of 0023 GMT, the S&P/ASX 200 was up 0.3% to 8,874.90. The benchmark index closed Monday flat. The markets in Sydney bet that the RBA will adopt a cautious stance on policy easing at its two-day September 29-30 meeting following a string of positive domestic data. Swaps indicate that the odds of a RBA cut in this month are minimal. What was once priced as a near certainty move in November is now priced at 70%. The focus is now on the local jobs data, due on Thursday. These numbers have been strong for months. Australian heavyweight miner's gained 1.4%, hitting a 2-week high. The weaker dollar helped global copper prices reach a 15-month-high on Monday. BHP, Rio Tinto, and Fortescue all gained between 1% to 1.6%. Stocks of gold rose by 1.2% as bullion prices reached a record high. A weaker dollar made the precious metal priced in greenbacks more attractive to holders of other currencies. Evolution Mining shares rose up to 2.4%. The energy sector gained 0.6% as oil prices rose. New Hope Coal, which is a major contributor to the subindex's growth, has risen as high as 8.3%. This is its highest level in seven months despite reporting a 8% decline in annual profits. Financials captained broader gains by a 0.1% drop. According to CME’s FedWatch tool, the odds of a 25-basis point cut by the U.S. Federal Reserve at the conclusion of its two-day meeting are near 100%. New Zealand's S&P/NZX 50 Index traded flat at 13,218.22, with attention on GDP data that are likely to show 0.3% quarter-on-quarter contraction. This will reinforce expectations for two additional rate cuts before early next year.
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The market is weighing the supply risks from Russian refinery attacks.
The oil prices remained stable in early trading on Tuesday, after increasing in the previous session as participants considered a potential disruption in supply from Russia following Ukrainian drone attacks against its refineries. Brent crude futures were up 4 cents at $67.48 per barrel as of 0000 GMT, while U.S. West Texas intermediate crude was up 2 cents at $63.32. Brent crude futures settled at $67.44, up 45 cents. WTI closed 61 cents higher on Monday at $63.30. Ukraine intensified its attacks on Russia's infrastructure to undermine Moscow's military capability as the talks to end their war have stagnated. In a note to clients, Tony Sycamore, IG's market analyst, said that "heightened fears of supply disruptions by Russia, a major producer accounting for more than 10% of the global oil output", is helping oil price. U.S. Treasury secretary Scott Bessent said on Monday that the government will not impose any additional tariffs on Chinese products to encourage China's purchase of Russian oil, unless European countries impose steep duties on China and India. Investors will also be watching the U.S. Federal Reserve meeting on September 16-17, where the bank is expected to reduce interest rates. Lower borrowing costs may boost fuel demand. Sycamore stated that "a weaker U.S. Dollar, driven by the expectation of a Federal Reserve interest rate cut this coming week, has further supported crude oil." The U.S. Dollar Index, which measures the strength of the greenback against six other currencies, has fallen to a near-week's low. Oil becomes cheaper for holders of currencies other than the dollar when the dollar falls. Axios, citing Israeli officials, reported that the Israeli military launched an offensive to occupy Gaza City on Monday, adding to the risk profile for Middle Eastern oil supplies. In a rare breakthrough after months of talks, U.S. officials and Chinese officials announced on Monday that they had reached a framework deal to transfer the short-video application TikTok under U.S. control. The easing of U.S.-China tensions has boosted the risk sentiment, and therefore increased expectations for oil demand. (Reporting and editing by Christopher Cushing in Bengaluru, Anjana Anil)
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Mariners win 10th consecutive game against Royals
Seattle's trip to Kansas City a little over a week earlier had the potential of being important for both teams as they raced to earn wild cards in the American League. This three-game series, which begins on Tuesday, has lost its luster. The Mariners are aiming to win their 10th consecutive game, while the Royals are stuck in an untimely bad stretch. Kansas City's third straight win on Sept. 6 allowed it to remain one game behind Seattle in the AL for the final wild card spot. Since then, however the Mariners have won nine consecutive games, beating Atlanta, St. Louis, and the Los Angeles Angels 66 to 23. The Mariners are now one game ahead in the AL West before the Astros play the Texas Rangers on Monday night at home. Cal Raleigh's 54th season-long home run, hit against the Angels on Sunday, tied Mickey Mantle as the most home runs in a single-season by a switch hitter. Raleigh told ROOT Sports that the job was not done. "We have to win every game and continue our work," Raleigh told ROOT Sports. ... "Put ourselves in a position of strength." The Royals (75-75) have lost 42-27 points during a 2-6 streak, which has put them six games back of the Astros in the race for the final wild card spot. The Royals are now six games behind the Astros for the final wild-card spot. The Royals have been trying to stay afloat under the leadership of catcher Salvador Perez. He hit his 300th home run in his career Saturday at Philadelphia, and ended the weekend with 3 home runs in 2 games. Perez said to FanDuel Sports Network, "You just never know what will happen." "Play hard to the end." Seattle is looking to win its third straight road game after a 7-0 run at home. Raleigh is two home run short of Ken Griffey Jr.'s club record 56 in a single season, set in 1997 and equaled in 1998. Raleigh has four of his six home runs in career against the Royals. He is 0-for-12, with a strikeout and a walk, against the scheduled Royals starter Michael Wacha (11-11, 3.45 ERA). J.P. Crawford is 7-for-17 and has a homer against the veteran right hander, batting.348 in the last 14 games. In a 6-2 win at home on June 30, the Mariners took advantage of one big inning in order to beat Wacha. Wacha did not allow a run until his fourth inning, and then four runs in his final inning. Randy Arozarena sent Wacha into the stratosphere with a solo blast in the fourth inning and a triple-run blast in fifth inning. Wacha will make his first appearance since September 5, when Kansas City beat Minnesota 2-1 at home. He gave up a single run, two walks, and four hits in five 2/3 innings. Logan Gilbert, who has a 3.54 ERA and a 1-1 record with a 2.38 ERA over his last four starts for the Mariners, is their counter. The right-hander struck out eight batters in four and a half innings against the Cardinals on Wednesday, allowing a single home run among five other hits. Seattle won 4-2 in 13 innings. Gilbert only allowed one run, three hits and seven strikeouts in a 3-2 victory over Kansas City. He only lasted four and a half innings because he walked. Perez and Bobby Witt Jr., another Royals' star, are combined at 12-for-28. They have three home runs against Gilbert. Field Level Media
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California's top environmental regulator retires amid Trump battles
California's top environment regulator, who helped lead the state in its effort to ban gasoline-only vehicle sales starting in 2035 will retire on 30 September as the state spars over climate change regulations with President Donald Trump. Lauren Sanchez, the senior advisor to Governor Gavin Newsom for climate, will replace Liane Randolph. She has been a California Air Resources Board chair since 1992. Donald Trump has criticized the state's plans to reduce emissions and California has filed a lawsuit on several fronts against federal efforts that would loosen regulations related to climate change. In June, he approved three resolutions by lawmakers that barred California's diesel engine and electric vehicle mandates. Randolph was responsible for the adoption of a California plan to achieve carbon neutrality in 2045. This included efforts to reduce air pollution, and to promote green vehicles. About a quarter (25%) of California's new vehicle sales are now EVs. Eleven other states, which represent about a third in the U.S. automobile market, have adopted California's landmark proposal to stop selling gasoline-only cars by 2035. Trump has taken a number of steps to discourage EV sales, and to make it easier for gas-powered cars to be sold. This includes ending EV tax credit. In August, Trump's administration sued California in order to prevent the Air Resources Board (ARB) from enforcing strict emission standards for heavy duty trucks which Trump had recently declared null. The Environmental Protection Agency announced that it will also revoke the long-standing conclusion that greenhouse gas emission endangers human health. Randolph stated that this is "polluter fantasy over proven science." While back on Earth the planet continues suffering the consequences of unchecked CO2 pollution. Trump's Transportation Department also canceled grants of nearly $4.2 billion for California's high speed rail project. The project is part the state's emission reduction plan which California has challenged.
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ENAMI, a Chilean company that produces smelters, attracts the interest of traders and miners
ENAMI, the Chilean state-run mining company, said that 15 entities including major miner and traders expressed interest in financing a $1.7billion smelter project. WHY IT IS IMPORTANT ENAMI stated that interested parties include mining companies such as Rio Tinto, commodities traders like Hartree Partners and Vitol (Javelin Global Commodities), funds of investment (Orion Resource Partners), and banks, including SumitomoMitsui Bank Limited Macquarie Bank Societe Generale. ENAMI reported that the Japanese conglomerate Mitsui as well as Indo Asia Copper, a copper producer in India, and Foreign Engineering and Construction, a subsidiary of China Nonferrous Metal Industry, also expressed an interest. KEY QUOTE Ivan Mlynarz of ENAMI said, "It's been very gratifying seeing the market's enthusiasm for this mega-project... It's a signal of investor confidence in our company." CONTEXT ENAMI launched a process in August to find investors for a modernization of a smelter in exchange for the supply of copper cathodes. Renovations are being carried out at the Hernan Videla Lira Smelter, located in the Atacama Region. This will allow it to process up to 850,000 tons of copper concentrate per year and produce 240,00 tons of cathodes. The company has said that the initial offers will be due at the end of October. After this, ENAMI will move to the binding offer stage. (Reporting and editing by Rosalba o'Brien, Daina Beth Solon)
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Globe and Mail: Canada PM asked Anglo American to relocate its headquarters to Canada in exchange for Teck deal approval
The Globe and Mail, citing sources familiar with this matter, reported that Canadian Prime Minister Mark Carney had told Anglo American it would have to move its headquarters from the United States to Canada if its proposed acquisition by Teck Resources was to be approved. Anglo American, based in London, and Teck, based in Canada, announced last week a merger worth $53 billion. This is the second largest M&A transaction in the mining sector. The merged entity will be headquartered in Canada, with a primary listing in London. The Globe and Mail reported that Carney had made it clear in his discussions with Anglo American that any potential buyer of Teck must meet the requirement to move its headquarters. An Anglo American spokesperson declined comment on the report. However, they pointed out that CEO Duncan Wanblad stated last week Vancouver was the most natural location for the combined company given its operations and project are largely located in the Americas. The spokesperson said in an email that "Anglo American also has its Americas exploration teams based out Vancouver for a very long time. We are therefore familiar with the set-up." Could not verify the report immediately. Teck refused to comment. The office of PM Carney did not respond immediately to a comment request. (Reporting by Ananya Palyekar and Dheeraj Kumar in Bengaluru; Editing by Shinjini Ganguli)
Green steel requires tiered incentives to become truth in Asia: Russell
It's time for a truth examine about decarbonising Asia's large and growing steel sector. Minimizing the carbon footprint is possible, but just in phases, and over a far longer than perfect period, and only if rewards to do so are readily available.
Steel is the greatest commercial factor to worldwide carbon emissions, accounting for around 8% of the world's overall, making efforts to decarbonise the sector essential to meeting net-zero ambitions.
Asia's iron ore and steel industry gathered this week in Singapore and delivered both motivating and disconcerting news about efforts to decarbonise steel production.
The good news is that virtually every player in the market, from iron ore miners through to steel mills is taking the problem seriously, and more than that, actually putting time, effort and capital towards options.
The problem is that conference net-zero emissions by 2050 in Asia appears mainly a pipedream with the current and most likely available technology.
A more looming and massive obstacle is the current prices structure for steel, given that as yet there is no genuine premium for producing low-carbon metal in Asia and little indication that is on the horizon.
The present situation is one where iron ore miners and steel mills are largely undertaking decarbonisation efforts as part of voluntary commitments to decrease their carbon emissions.
These commitments are mostly the outcome of bending to pressure from investors, some governments and the general public to be seen to be doing something to mitigate the anticipated negative impact of environment change.
This is all well and good, however it means that any costs incurred in decarbonising are effectively stripped from a. business's bottom line as there is no financial reward in Asia. for producing green, or even slightly less unclean, steel.
The question is how to introduce incentives to decarbonise,. From the low-cost and relatively simple preliminary steps. through to the a lot more hard and capital extensive. ambition of net-zero steel.
One way would be to present a tiered system of rewards.
Let's assume a baseline of 2.1 metric tons of carbon. emissions per lots of steel produced in the existing primary. approach of iron ore fines through a blast furnace and after that a. basic oxygen heating system (BOF).
If a steel mill might lower emissions by a 3rd for. example, it could be rewarded with a carbon credit, or prevent. paying a carbon tax of a set quantity per ton of emissions. decreased.
For the sake of example let's assume this very first 3rd. reduction is worth $60 a ton, which is roughly the cost of a. carbon credit in the European Union.
Now presume the steel mill can cut emissions by a further. 3rd, however only by buying brand-new processes, such as utilizing. direct lowered iron (DRI), or its shippable equivalent hot. briquetted iron (HBI) in an electrical arc heating system (EAF).
This decrease could be rewarded with a higher price on. carbon, state $120 a heap.
The final steps to totally decarbonise steel production. by utilizing green hydrogen to produce the HBI, green electrical energy to. run EAFs, and using sustainable shipping fuel such as methanol. to transfer materials, could bring in an even larger carbon. credit to offset the vast capital that needs to be released to. get there.
REWARDS ESSENTIAL
One thing became clear from the discussions at the Green. Steel Online forum today in Singapore, is that without incentives. only the very first, and relatively easy steps to decarbonise will. become reality.
These involve maximising the efficiency of BOFs, increasing. making use of higher grade iron ore and agglomerates such as DRI. and HBI, boosting making use of recycled steel in EAFs and. decarbonising mining iron ore by restricting making use of diesel. power generation at electrifying automobiles and remote mines and. trains.
The problem is that all these efforts will likely cut only. about 20% of steel's international emissions.
The next actions include doing things like utilizing natural gas. to turn low-grade iron ore into DRI and HBI for usage in more. innovative BOFs and even EAFs, and after that changing this process to. green hydrogen.
It's here where expenses end up being real, and where. shareholders are likely to ask what remains in it for them.
Eventually, for steel to decarbonise beyond the low-hanging. fruit, there needs to be a price incentive, and the market by. itself is unlikely to offer this, provided cost is likely to. trump climate concerns for the huge bulk of consumers.
This indicates guidelines such as carbon taxes or credits require. to be executed, and likely coordinated throughout various. countries, however particularly the leading iron ore exporters, Australia,. Brazil and South Africa, as well as China, which produces half. of the world's steel, as well as emerging significant manufacturers such. as India.
The viewpoints expressed here are those of the author, a writer. .
(source: Reuters)