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Sources say that India's gold and silver imports in September nearly doubled despite record prices.
India's gold and silver imports nearly doubled from August to September, despite record-high prices. Banks and jewellers were rushing to stock up ahead of festivals in order avoid higher import taxes, according sources. India's higher imports, as the second largest consumer of gold, will support the price, which has reached record levels this week. This is despite the fact that demand in the top buyer, China, is lagging. However, the surge in imports may increase India's trade surplus and put pressure on its weaker rupee. A government official who requested anonymity because he wasn't authorized to speak to the media said, "Jewellers have cleared a lot gold from customs in the last two weeks." "We haven’t seen such a rush for years." He said that the customs authorities cleared a larger volume of imported goods in September than in August. A higher clearance is expected for the last day of this month due to a possible increase in the import base price of gold or silver. The Indian government reviews the base import price every 15 days to determine import duties. The new base price is expected to be higher following the recent rally in global prices. Chirag Thakkar said, the chief executive officer of Amrapali Group in Gujarat, a major precious metal importer. "Even though gold and silver reached record highs, investors kept chasing after them and investment demand soared," said Thakkar. His company had more than doubled their gold and Silver purchases in September compared to the previous month. Data from the trade ministry shows that India imported 64.17 tonnes of gold for $5.4 billion and 410.8 tonnes of silver for $451.6 millions in August. The government will publish trade data for the month of September by mid-October. Silver futures in India reached a new record of 144330 rupees for a kilogram on Tuesday. Indian gold futures also hit 116900 rupees. Jewellers who had avoided gold and silver for the past few months, awaiting a correction in price, are now paying more to stock up before the festival season, as prices have reached new highs. Indians celebrate Diwali in October, the festival that is celebrated by Indians. It is a good time to purchase gold. Indian dealers have quoted a premium this week Up to $8 per ounce above official domestic prices. This includes 6% import duties and 3% sales taxes. A Singapore-based gold dealer said that the strong buying from India surprised the market. China is still inactive. This month, Chinese dealers increased their discounts to $31-$71 per ounce. The highest prices in recent years have been recorded against benchmark global prices. (Reporting and editing by Mayank Bhhardwaj, Clarence Fernandez and Clarence Fernandez).
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Indonesia has contacted the United States nuclear watchdog to discuss radioactive shrimp
Indonesian authorities announced on Tuesday that it is regularly updating the United States and the global nuclear watchdog about its investigation into the detection of radioactive elements in a shipment of shrimp. Indonesia is investigating the traces of Caesium-137 that were found in shrimps shipped by a local firm to the United States in August. The U.S. Food and Drug Administration reported that the same contaminant had been found last week in a shipment containing cloves. Zulkifli Hazan, Coordinating Minister for Food, told journalists that Indonesia is in contact with the International Atomic Energy Agency (IAEA) and U.S. authorities. According to the FDA website, Caesium 137 can be found in the environment primarily as a result of nuclear accidents or testing such as Chernobyl. Indonesia has no nuclear weapons nor nuclear power plants. Bara Hasibuan said that Indonesia also looks into the latest findings of the U.S. FDA in regards to the clove exports. She was speaking with journalists alongside Hasan. The agency has already banned the exporting company PT Natural Java Spice from sending spices into the United States. Hasan, who presided over the meeting that discussed the investigation of the contamination of shrimps, made the comments. Hasan stated that Indonesia conducted additional inspections and health tests in a radiation-exposed industrial area to determine the extent of contamination. The task force was established in Indonesia after the U.S. FDA advised American consumers, distributors, and sellers to not eat, serve, or sell frozen shrimp imported from Indonesian company PT. Bahari Makmur Sejati. Hasan, Hasan's task force, said that the contamination was only found in Cikande. This industrial area is located just outside of Jakarta. They will also investigate the staff of a scrap metal company believed to be the caesium source. He didn't elaborate on the possibility that the shrimp packages may have been in contact with a scrap metal factory. The task force examined more than 1,500 community members and workers in the area and found that there was no significant impact. Hasan stated that the government makes sure quality control mechanisms are in place for fishery products and they operate according to national and international standards. (Reporting and editing by Gibran Peshimam, David Stanway and Dewi Kurniawati)
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Copper prices are impacted by profit-taking and the start of the long holiday in China
The price of copper fell on Tuesday, as the start of a holiday week in China's top metals-consuming country coincided with the close of the third-quarter. This prompted profit-taking following the prices reaching their 15-month-high last week. The benchmark three-month price of copper at the London Metal Exchange dropped 0.6%, to $10 347.50 per metric ton as of 0948 GMT. After the disruption of the Grasberg Mine in Indonesia this month, many analysts have lowered their estimates for 2025 and 2026. Copper prices rose to a 15-month-high of $10,485 Thursday on the prospect of reduced supply from Grasberg. The discount between the LME cash price and the three-month contract for copper was also reduced. . Last week, the discount was $26 per ton. This is the lowest level since last July. The Yangshan Copper Premium is a premium in China The price of copper, which reflects the demand for imported copper into the country fell by 6%, to $50 per ton. This was its lowest level in six weeks, just before the National Day holiday, which normally reduces overall trading activity. From October 1 to 8, the financial markets in Mainland China will be closed. China's poor manufacturing data also affected the market sentiment. An official survey released on Tuesday showed that China's manufacturing activity declined for the sixth consecutive month in September. This suggests that producers are waiting for more stimulus to boost domestic consumption. Tin lost 0.5% on the LME to $35,285 per ton. On Monday, the metal reached $35,510 - its highest price since April 4 - after news that Indonesia had ordered the closing of 1,000 illegal tin mining operations in a major producing region. A tin dealer said that the significance of this move to the tin production in the region was probably overstated. He added that "the actual impact on tin supplies is still uncertain but this uncertainty fuels fund's involvement in long positions on LME tin". LME Aluminium and zinc both fell by 0.2%, to $2674.50 and $2935.50 respectively. Lead remained unchanged at $1.995.50 while nickel dropped 0.4%, to $15,270. (Reporting and editing by Leroy Leo; Polina Devtt)
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Gold drops from record high due to profit-taking, but it is still the best month for 5 years
Gold prices fell on Tuesday, as investors took profits after the price hit a record earlier in the day. However, concerns about a U.S. shutdown and an increase in bets for a Federal Reserve rate reduction limited losses. As of 0924 GMT, spot gold was down 0.9% at $3,800.34 an ounce after gaining 1% during Asia hours to reach a record high price of $3,871.45 per ounce. Bullion is up 10.4% in September and on course to have its largest monthly percentage gain since the month of July 2020. U.S. Gold Futures for December Delivery fell by 0.7% to $3.827.80. Swissquote's external analyst Carlo Alberto De Casa stated that gold had pared its gains due to profit-taking, after it rose as much as 1% in Asia hours. "So far this is only a technical correct and we aren't talking about an Inversion." The White House meeting between Donald Trump and his Democratic rivals to prevent a shutdown of the government that could affect a range of services by Wednesday appeared to have made little progress. De Casa said that "the risk of a shutdown for gold is a positive, because it indicates uncertainty and the Federal Reserve may not have clear data as that could arrive later." According to CME Group’s FedWatch, the markets expect an 89% probability of a reduction in 25 basis points at the Fed’s October meeting. Investors are now awaiting a number of U.S. economic data, including Friday's nonfarm payrolls. In the event of partial government shutdown, the U.S. Labor Department confirmed Monday that the statistics agency will suspend the release of data including the closely watched monthly employment report. UBS said that its bull case scenario predicts gold to reach $4,200/oz in mid-2026. The bank made this statement in a Tuesday note. In a low interest rate environment, gold, which is viewed as a safe haven in times of economic and geopolitical uncertainty, does well. The shares of China's Zijin Gold International soared 66% on their Hong Kong debut after the company raised $3 billion in its initial public offering, the largest deal globally in 2025. Silver spot has gained 16.1% this month, despite a 2% loss to $45.99 an ounce. Palladium fell 3% and platinum dropped 4.5%.
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Nippon Steel purchases 30% of Canada's Kami Iron Ore Project
Nippon Steel, Japan's steel company, announced on Tuesday that it has purchased a 30% stake of Canada's Kami Iron Ore Project. The joint venture will be formed with Australia's Champion Iron & Sojitz in order to ensure high-grade ore for direct reduced iron. The top Japanese steelmaker, NS Canadian Resources paid C$42,000,000 ($30.20 million) out of the total C$150,000,000 consideration. The remaining C$108,000,000 will be paid pending a further investment decision based upon a feasibility report. The agreement follows an agreement signed in December, whereby Nippon Steel & Trading House Sojitz agreed that they would buy 49% of the project from Champion Iron at a cost of C$245 millions. The companies are forming a joint venture called the Kami Iron Mine Partnership to advance a feasibility report for a project in Newfoundland & Labrador that is being considered for development. Nippon Steel stated that the project's ore was a rare, high-grade resource, suitable for direct reduction iron production. Nippon Steel plans to build large electric arc smelters to reduce carbon dioxide emissions. Direct reduced iron and high-quality scrap are needed to produce high-grade steel. The Japanese steelmaker has increased its stakes in iron ore and coking coal mines, following the recent acquisition of U.S. Steel. This is to ensure that essential raw materials are available.
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European shares continue to fall as the focus is on the looming US shutdown
European shares eased Tuesday, with energy stocks leading the losses due to the drop in oil. Investors also weighed the impact of a U.S. shutdown which could delay the release the closely watched monthly jobs data. By 0856 GMT the pan-European STOXX 600 had dropped 0.2%, to 554.5 points. However, it was still on track for its third consecutive monthly and quarterly gains. The stock is expected to rise by nearly 1% in September, compared with its 0.7% increase in August. Investors expect a rise in OPEC+ supplies later this week. TotalEnergies in France and BP in the UK both fell by more than 1%. Chemicals and automobiles were also among the sector laggards. JD Vance, the U.S. vice president, said on Monday that a shutdown of government was imminent as budget negotiations with Democrats had stalled. This could delay the release later this week of crucial jobs data. Daniela Sabin Hathorn is a senior market analyst with Capital.com. She attributed Tuesday's decline in European markets to "spillover" sentiment from the global market. Hathorn said, "Everything is so focused on the data and Federal Reserve easing. That could throw a little spanner into the works." There are also growing expectations that Federal Reserve will cut interest rates at its meeting in October. The first cut of the year, in September, saw European stocks rise by 0.7%. The UK economy expanded by 0.3% during the second quarter. French preliminary inflation was 1.1% in September. German inflation rose as expected in four states. The Eurozone inflation data will be released on Wednesday. ASOS, a British fashion retailer, warned that its annual revenues would be below market expectations because of weak consumer demand. Hornbach's shares fell by 4.6% following the German DIY store operator's disappointing second-quarter adjusted earnings.
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Bloomberg News reports that China has banned all BHP iron ore shipments as the pricing dispute intensifies.
Bloomberg News, citing sources familiar with the situation, reported that China's iron ore purchaser has instructed major steelmakers to temporarily stop purchasing any seaborne iron ore freights denominated in dollars from BHP. China is the largest consumer of iron ore in the world, and purchases about 75% global seaborne ore. BHP is also the largest publicly listed mining company. China Mineral Resources Group, a state-owned buyer of iron ore, was created in 2022 to help Beijing increase its iron ore pricing power. BHP reported last month that it had recorded its lowest annual profit in five years due to a slowdown in demand from China, which impacted iron ore prices. It also indicated a reduction in capital and exploration expenditure. Bloomberg reported earlier this month that CMRG had urged steel mills in the country to suspend their purchases of BHP Jimblebar Blend Fines, after discussions on long-term agreements failed. Bloomberg reported on Tuesday that CMRG's latest directive was an extension of earlier curbs. BHP Group has not responded to a comment request. CMRG didn't respond immediately to a request for comments sent via email. Reporting by Preetika Parshuraman from Bengaluru, and Kanjyik Gosh from Barcelona. Jan Harvey and Mark Potter edited the story.
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As the threat of a US shutdown grows, caution sets in
On Tuesday, caution prevailed on the world's markets. The dollar and equity prices fell and gold hit another record high amid concerns that a U.S. shutdown could delay important jobs data. The dollar is broadly weaker. European stocks are lower in early trading and U.S. stock futures have fallen a day after U.S. vice president JD Vance stated that the government appears "headed for a shutdown", after President Donald Trump's budget negotiations with Democratic opponents had made little progress. A shutdown of the government would delay Friday's important employment figures, and put the spotlight on the Labor Department JOLTS report for August job openings that is due on Tuesday. This could also affect the Federal Reserve's outlook, as they cut rates earlier in the month. SHUTDOWN CAN LEAVE FED WITHOUT KEY DATA James Rossiter is the head of global macro-strategy at TD Securities, London. "The Fed is worried that there could be a long shutdown if the government shuts down. If we don't receive Friday's CPI or the jobs report, what will happen?" He was referring to U.S. data on inflation. The pan-European STOXX 600 closed at a loss of 0.2% while Japan's Nikkei fell by 0.25%. MSCI's broadest Asia-Pacific share index outside Japan rose by almost 0.5%. It is expected to gain over 5% in the month of April. China's blue chip CSI300 Index rose also almost 0.5%. This is the longest streak of gains since October 2017 and it marks its fifth consecutive month. The world stock market could see a sharp decline if a prolonged government shutdown threatens to dampen the U.S. economy. U.S. shares are expected to finish September with a gain of more than 3%, while European stocks have gained nearly 1% in this month. The Australian dollar gained after the central banks held rates at their current levels, as was widely expected. Oil prices dropped over 1% due to expectations of increased production from OPEC+. Meanwhile, China's manufacturing activity declined for a sixth consecutive month in September. Another record high for gold U.S. shut down worries contributed to gold's spectacular rally. Gold has reached a record high price of $3,820 an ounce. It is up over 12% this month and on course to be its largest monthly percentage gain since Nov 2009. A U.S. shutdown without a deal would start on Wednesday, the day that new U.S. duties are due to be imposed on heavy trucks and patented drugs, among other things. On Monday night, the White House announced that new tariffs would be applied to furniture and cabinets on October 14. The dollar is now on the defensive. The U.S. dollar was down 0.4% to 147.95yen. The euro was up by 0.1% at $1.1742, and the Swiss franc was also slightly stronger against the dollar. The dollar index is expected to finish September with little change. ING currency analysts wrote in a report that the yen would likely outperform other currencies as a hedge against a U.S. shutdown. The U.S. JOLTS Report is one of several indicators that will be released ahead of Friday's September employment report, which is considered crucial to the Fed in determining the timing of rate reductions. The Fed's meeting on October 29 could be thrown into confusion by a prolonged government shutdown. Analysts expect JOLTS will show that job openings remained stable at around 7.18 million in august. China's purchasing manager's index increased to 49.8 from 49.4 at the end of August. This is below 50, which separates growth from contraction. The report suggested that producers were waiting for more stimulus to boost the domestic demand as well as clarification on a U.S. Trade Deal. The Reserve Bank of Australia also left its cash rate at 3.60% after recent data indicated that inflation could be higher than expected in the third quarter, and the economic outlook was uncertain. The data that inflation was rising in four important German states did not have a significant impact on the market. The oil price remained weak due to the anticipated increase in production by OPEC+, and the resumption from Iraq's Kurdistan Region of oil exports. Brent crude oil fell 1.25%, to $67.11 a barrel. U.S. crude dropped 1.25 %, to $62.66.
Sources say that Danantara Indonesia’s $3 billion ‘Patriot’ bonds issue has been oversubscribed
Two sources familiar with the matter on Tuesday said that the sovereign wealth fund Danantara Indonesia has received more commitments for its "Patriot Bond" offering than the 50 trillion rupiah (3 billion dollars) target.
The bonds were sold to companies in five- and seven-year tranches at a rate of 2%. This is lower than the 10-year government bond yield, which is around 6%. They will help finance Indonesia's energy programs, including waste-to-energy.
One source said that the launch of the bond was originally scheduled for October 1, but it will be delayed. She did not give any details but stated that the delay is not due to lack of interest.
One source said that it had been oversubscribed.
Second source: The offering was oversubscribed by 51 trillion rupiah or 1 trillion higher than the target. Companies committed to purchase within the range 500 billion to 3 trillion.
According to another source familiar with the bond offering, the launch is scheduled for October 15.
Danantara didn't immediately respond to an inquiry for comment.
Pandu Sjahrir, chief investment officer at Danantara and the chief of the fund, said in an August interview that the Patriot Bonds were well received by leading Indonesian companies.
Pandu said that some of Indonesia's wealthiest people, such as Prajogo Pagestu who runs the Barito Pacific Group, Garibaldi Thohir of AlamTri Group and Franky Wdjaja from Sinar Mas Group had expressed an interest in purchasing the bonds. ($1 = 16,685,0000 rupiah). Reporting by Stefanno Sulaiman, Gayatri Suryo and Muralikumar Aantharaman. Editing by Muralikumar Aantharaman.
(source: Reuters)