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Gold prices fall as traders wait for US jobs data to see if they can cut rates
The gold price fell on Wednesday, as investors resisted placing large bets before the U.S. employment data which is expected to provide more information on Federal Reserve policy. At 0901 GMT, spot gold was down by 0.2% to $3333.45 an ounce. U.S. Gold Futures were down 0.2% at $3,344.10. Analyst Giovanni Staunovo at UBS said that market participants had not changed their expectations for more rate reductions this year in the U.S. over the past few weeks. Gold will continue to rise in price as long as debt levels, the Fed's continued pressure to lower rates and the weakening of U.S. data are considered. The data released on Tuesday revealed that U.S. employment opportunities unexpectedly increased in the month of May. However, a drop in hiring has added to the signs that labour markets have slowed down. Fed Chair Jerome Powell said that the U.S. Central Bank plans to "wait" and "learn more" about the impact tariffs have on inflation before it lowers rates. He again ignored U.S. president Donald Trump's demand for an immediate and steep rate cut. The focus now shifts towards the U.S. ADP Employment data, due later that day. This will be followed by June Non-Farm Payroll figures on Thursday to gain further insight into the labour market. Analysts at BMI wrote in a report that they believe it will either take a war in the Middle East, which is a low probability, or a significant interest rate reduction by the Fed to push gold past the historical high reached in April. The U.S. Senate Republicans passed Trump's tax-and-spending bill by a narrow margin on Tuesday. It is a package that cuts taxes, reduces social safety net programs, and boosts military spending while adding $3.3 trillion in debt. Silver spot rose 0.2%, to $36.12 an ounce. Platinum increased 0.5%, to $1356.96. Palladium also increased 0.5%, to $1105.68. (Reporting by Brijesh Patel in Bengaluru. Mark Potter edited the article.
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Iron ore futures are rising on a dip in supply and firming demand
All benchmarks of iron ore futures rose on Wednesday, as top exporters Australia & Brazil saw their shipments drop. Meanwhile, an increase in the hot metal production boosted investor sentiment. The daytime trading price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 722.5 yuan (US$100.81). As of 0806 GMT, the benchmark August iron ore traded on Singapore Exchange was up by 1.82% to $94.9 per ton. Everbright Futures, a broker, said that iron ore exports from Australia and Brazil, two of the world's top iron ore producers, have decreased, while global iron ore shipment has also declined. Everbright reported that hot metal production, which is a measure of iron ore consumption, has continued to rise month-on-month. China's factory output has increased since November 2024, according to official PMI and Caixin PMI. Still, the resale prices of homes in China dropped at a faster rate in June. Meanwhile, new home price growth slowed down, underscoring the persistent weakness of China's real estate market. Analysts at ANZ also noted that a proposed by the China Iron & Steel Association restricting exports of some steel products may keep more supplies within the country and potentially pressure prices. Coking coal and coke, which are used in the steelmaking process, have both gained in value, rising by 3.18% and 3.15 percent, respectively. The benchmark steel prices on the Shanghai Futures Exchange have risen. Rebar climbed 2.61%; hot-rolled coil grew 2.24%; wire rod climbed 1.03% and stainless steel jumped 1.08%.
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Volvo Cars sales drop 12% in June; fully electric cars fall 26%
Volvo Cars, based in Sweden, reported Wednesday that sales volume had fallen for the fourth consecutive month due to trade tariffs as well as a weaker demand for electric vehicles. Volvo Cars, owned by China's Geely in majority, announced in a press release that it had sold 62 858 cars in the month of June, down 12% from a year ago. In April, the group, in response to tariffs, retracted its earnings forecasts for the next two-year period. The sales of electric vehicles fell by 26%, accounting for 22% in total sales. The sales of all electrified vehicles, including plug-in hybrids and electric cars, fell by 19%, accounting for 44%. Volvo Cars In May, it announced that it would be cutting 3,000 jobs - mostly in the white collar sector - as it battles with rising costs, a decline in demand for electric vehicles and uncertainty in global trade. Sales volumes were down by 14% in Europe, while they were down by 7% in the U.S. Early trade saw shares of the company rise 1%, bringing their year-to date fall to 27%. Volvo Cars didn't comment on sales figures. (Reporting and editing by Anna Ringstrom, Louise Heavens and Jagoda darlak)
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India's palm oil imports in June jump by 61%, reaching an 11-month high
Five dealers report that India's imports of palm oil reached an 11-month peak in June. This was due to lower domestic stocks and a discount on rivals such as soyoil or sunflower oil, which encouraged refiners and retailers to increase their purchases. India's increased palm oil imports, as the world's largest buyer of vegetable oil, will help to reduce stocks in top producers Indonesia, and Malaysia, and support benchmark Malaysian Palm Oil futures. According to estimates by dealers, palm oil imports increased 61% in June compared to the previous month, reaching 953,000 metric tonnes, which is the highest level since July 2024. Since last month, palm oil has gained lost market share. Sandeep Bajoria is the CEO of Sunvin Group and a vegetable oil broker. He said that palm oil was now $100 cheaper per ton than other oils. According to the Solvent Extractors' Association of India (SEAI), which will publish its June import figures by mid-July, India imported an average of 475,699 tonnes of palm oil per month in the first seven months of this current marketing year, ending October 2025. India imported more than 750,000 tonnes of palm oil per month in the last marketing period. Dealers estimated that soyoil imports fell by 9% in June, to 363,000 tonnes, while imports of sunflower oil rose 18%, to 216,000 tonnes. Dealers estimate that the increase in palm oil and sunflower oils imports to India increased the country's total edible imports by 30% from June to 1,53 million tonnes, the highest level since November. According to Rajesh Patel of GGN Research (an edible oil trader), palm oil imports will remain strong in the months ahead due to its attractive prices and a rise in production in major producing countries. India imports mainly palm oil from Indonesia and Malaysia. It also imports sunflower oil and soyoil from Argentina, Brazil and Ukraine. GGN Research estimates that Nepal's edible oils imports fell to 75,000 tonnes in June from 155,000 tons a month earlier. (Reporting by Rajendra Jadhav. Mark Potter edited the story.
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Copper gains as US shipments likely to continue despite possible tariffs
On Wednesday, copper prices rose at the London Metal Exchange (LME) and Shanghai Futures Exchange, as traders were expected to continue to rush metal shipments into the U.S. before potential import tariffs. This would further reduce inventories that are already very low. As of 0702 GMT the most traded copper contract on SHFE rose 0.65% to 80.540 yuan per metric ton after reaching 80.930 yuan in the second half of March and remaining at its highest price range to date. The LME's three-month copper price rose 0.06%, to $9939.5. Low copper inventories on the SHFE and LME, along with continued shipments to the U.S. prior to the imposition of import tariffs, have supported prices. This is according to a Beijing-based futures analyst. Copper Stocks Copper inventories in LME-registered storage shed 66% between the middle of February and now stand at 91 250 tons. In the warehouses monitored, the SHFE has also seen a 66% drop in stock since early March. In the summer, copper inventories in China tend to rise due to a weakening of seasonal demand. ANZ reported that "U.S. Treasury Sec. Scott Bessent stated that Washington's negotiation with Beijing would focus first on reciprocal duties, and then on duties on raw materials such as copper." "A delayed tariff decision would justify a premium for U.S. Copper, giving traders more shipping time before levies are implemented." SHFE nickel increased by 0.69%, to 121.220 yuan per ton. Tin gained 0.44%, to 268,520, aluminium rose 0.36%, to 20,635 and lead grew by 0.23%, to 17,175 while zinc fell 0.11%, to 22,230. LME aluminium rose 0.12%, to $2.601.5 per ton. Lead also rose 0.12%, to $2.040.5. Nickel also increased 0.12%, to $15.225. Tin fell 0.58%, to $33,465, while zinc dropped 0.15%, to $2.710. Click or to see the latest news in metals, and other related stories.
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Handelsblatt: German government does not hold talks about TKMS stake
Handelsblatt, citing sources in the government, reported Wednesday that the new German government has not yet entered into any discussions aimed at acquiring a share in Thyssenkrupp’s defence division TKMS. According to the report the Chancellery and the Ministries involved have agreed to not push for state involvement in this period. The German economy and defense ministries have not responded to email requests for comments. Thyssenkrupp didn't immediately respond to an email or phone call seeking comment. Handelsblatt reported that the government would instead seek to establish a "security accord" in order to protect national security and jobs despite a spinoff. This agreement would require regular consultations. Handelsblatt reported that the agreement would include a government right of refusal in the event a strategic shareholder wanted to purchase TKMS. However, this is not expected. Thyssenkrupp said that in the past, government participation was not a precondition to any divestment from TKMS. The planned spin-off will go ahead without it. (Reporting and Writing by Anneli Palmer, Miranda Murray; Editing Kim Coghill & Lincoln Feast).
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Palm production likely to fall in June due to better demand
The price of palm oil in Malaysia rose on Wednesday as a result of improved demand, a rally of soyoil and a possible reduction of production for June. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for September delivery had gained 66 Ringgit or 1.66% to 4,034 Ringgit per metric ton. "Overall, the market has improved. Demand has returned to normalcy." Our preliminary assessment of lower production in the month of June, coupled with the rallying soyoil prices, helped keep palm prices competitive, said Paramalingam Supramaniam at Selangor brokerage Pelindung Bestari. Dalian's palm oil contract, which is the most active contract, gained 0.79%. The Chicago Board of Trade's (CBOT) soyoil price was 0.71% higher. As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price fluctuations of competing edible oils. According to AmSpec Agri Malaysia (an independent inspection company), exports of Malaysian products containing palm oil rose by 4.3% in June compared to the previous month. Intertek Testing Services reported a 4.7% increase. The statistics bureau reported that Indonesian crude palm oil and refined palm oils exports increased by 53% from a year earlier in May. This was because the tropical oil began trading at a lower price than its competitors, which boosted demand from major buyers. Indonesia increased its crude palm oil benchmark price to $877.89 a metric ton, up from $856.38 a metric ton, in June. A trade ministry regulation published on Monday showed this increase. The palm ringgit's trade currency, the dollar, fell by 0.41%, making the commodity more affordable for buyers who hold foreign currencies. Technical analyst Wang Tao stated that palm oil could retest the resistance level of 4,015 Ringgit per metric tonne. A break above this would lead to gains in the range between 4,041 Ringgit and 4,063 Ringgit.
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Iron ore futures are up on a supply decline, but China's property woes limit gains
Iron ore futures rose on Wednesday, as exports from Australia and Brazil fell. However, the persistent weakness of China's real estate market limited gains. As of 0357 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.77% higher. It was 716 yuan (US$99.91) per metric ton. Singapore Exchange benchmark August iron ore was up by 0.86% to $94 per ton. Everbright Futures, a broker, said that iron ore exports from Australia and Brazil, two of the world's top iron ore producers, have decreased, while global iron ore shipment has also declined. Everbright reported that hot metal production, which is a measure of iron ore consumption, has continued to rise month-on-month. China's factory output has increased since November 2024, according to official PMI and Caixin PMI. Even so, the resale prices of homes in China dropped at a faster rate in June. Meanwhile, new home price growth slowed down, highlighting persistent weakness on the property market in China. Analysts at ANZ also noted that a proposed by the China Iron & Steel Association restricting exports of certain products of steel could increase supply in the country and potentially pressure prices. Coking coal and coke both gained 0.92% on the DCE. The benchmark steel prices on the Shanghai Futures Exchange have risen. Rebar climbed 1.44%; hot-rolled coil jumped 1.12%; wire rod grew by 0.45% and stainless steel jumped 1.04%.
Nigeria's Dangote oil refinery might speed up European sector's decline
Nigeria's huge Dangote oil refinery might bring to an end a decadeslong gas trade from Europe to Africa worth $17 billion a year, heaping pressure on European refineries currently at danger of closure from increased competitors, experts and traders said.
The refinery began production in January and cost $20. billion to build. It can improve up to 650,000 barrels per day. ( bpd) and will be the largest in Africa and Europe when it. reaches full capacity this or next year.
It has long been touted as the turning point for Nigeria's. mission for energy independence. Nigeria is Africa's most populated. country and its leading oil manufacturer, yet it imports practically all its. fuel due to lack of refining capability.
About a 3rd of Europe's 1.33 million bpd average gasoline. exports in 2023 went to West Africa, a bigger chunk than any. other region, with the majority of those exports winding up in. Nigeria, Kpler information shows.
The loss of the West African market will be bothersome for. a small set of refineries that do not have the package to upgrade. their gasoline to European and U.S. spec, consultancy. FGE's head of improved products Eugene Lindell said, referring to. more rigid ecological standards for other markets.
As much as 300-400,000 bpd of refining capacity in Europe is. at threat of closure because of increasing worldwide gasoline production,. according to Kpler's expert Andon Pavlov.
A European refinery executive who decreased to be determined. said seaside refineries that are geared for exports will be more. exposed while inland refineries are less susceptible since they. rely on regional demand.
The changes won't happen overnight, but they could. ultimately lead to closures of refineries and their conversion. to storage terminals, he included, referring to the tough. market environment.
Pavlov said the UK's Grangemouth and Germany's Wesseling. refineries might close ahead of schedule as an outcome of looming. gasoline oversupply later this year and ensuing pressure on. refining margins.
Petroineos CEO Franck Dema flagged the energy transition. which is triggering demand for nonrenewable fuel sources to diminish as one of. the factors behind his company's choice to shut down. Grangemouth next year. Shell stated its choice to shut. down Wesseling next year was part of its drive to minimize carbon. emissions.
Petroineos did not react to a request for comment and. Shell decreased to comment about whether its plant might close. ahead of schedule.
SHRINKING SECTOR
Around 30 European refineries have shut down because 2009,. information from refining market body Concawe program, with almost 90. plants of different sizes and complexities still in operation.
Closures have actually been caused by competition with newer and. more intricate plants in the Middle East and Asia and more. recently because of the impact of the coronovirus pandemic.
Since 2016, Europe has lost 1.52 million barrels daily. of functional crude distillation which presently stands at. 13.93 million bpd, consultancy IIR's information shows.
Most of the decline took place in 2021 and 2022 as need. damage during the COVID-19 pandemic forced shutdowns.
European refineries don't produce sufficient diesel to fulfill. local requirements however produce excessive gasoline and count on exports. to clear excess supply.
West Africa has long been the primary outlet for gasoline that. doesn't fulfill more stringent ecological constraints in Europe on. sulphur and metals material.
That trade represented $17 billion in 2023, according to. cost information from Argus Media and estimations.
The Dangote refinery, funded by Africa's wealthiest man Aliko. Dangote, was set up to produce as much as 53 million litres. of gas a day, about 300,000 bpd.
The drop in West African imports will coincide with brand-new. environmental laws in Northwest Europe, that will require plants. to reconfigure, seek brand-new markets for lower-quality gas, or. shut down.
Plants that have funds to reconfigure could direct gas. exports to the U.S. or South America, Kpler senior refining. analyst Yaping Wang stated.
But upgrading refineries is likewise challenging since banks. watch out for lending cash to fossil fuel tasks.
Even if you find a bank which will fund a European refinery. upgrade job, rates will be too expensive to make it work, said. an executive at a major U.S. bank which provides to oil companies.
(source: Reuters)