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Iron ore reaches two-week high before Trump-Xi Meeting
The iron ore futures price rose on Wednesday, for the third consecutive session. It reached its highest level in two weeks. This was boosted by optimism about a possible trade agreement between two of the world's largest economies. U.S. president Donald Trump, who is expected to meet with Chinese President Xi Jinping in South Korea on Thursday for a high-level meeting, has said that he anticipates reducing U.S. duties on Chinese products as a result of Beijing's promise to limit exports fentanyl precursor chemicals. Analysts at brokerage Xinhu Futures stated in a report that the general risk sentiment has improved due to a easing of U.S. China trade tension. The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 1.96% higher, at 804.5 Yuan ($112.94) per metric ton. This was its highest level since October 14. The benchmark December Iron Ore at the Singapore Exchange increased 1.42%, to $107.25 per ton. This is the highest price since October 14. Prices of the main steelmaking ingredient were also supported by the expectation that steel mills will restock in a hurry to meet production requirements after the end of production restrictions. A forecast for worsening air pollution forced steelmakers in certain northern regions to start implementing production controls on Monday. This included the largest steelmaking hub, Tangshan. Vale, a Brazilian miner, said that it was very optimistic about long-term demand for iron ore. Coking coal, coke and other steelmaking components, which had previously suffered a decline, have now risen by 3,5% and 1,9% respectively. Analysts at Galaxy Futures stated that the price rally was caused by authorities reiterating their commitment to cracking down on 'involution style' competition. Early in July, China promised to stop excessive price wars. This sparked hopes for a wave supply-side reforms. Coal prices rose that month. The majority of steel benchmarks at the Shanghai Futures Exchange have gained ground. Rebar gained 1%, while hot-rolled coil grew by 1.21%. Wire rod climbed 0.48%, and stainless steel gained 0.31%.
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Outokumpu invests $45 Million in US pilot plant despite missing earnings forecast
Outokumpu, a Finnish stainless steel manufacturer, reported a third-quarter profit that was below the market's expectations on Wednesday. It also announced it would invest $45 million into establishing a pilot plant in America. In the period June-September, the adjusted earnings before taxes, depreciation, and amortization (EBITDA), as measured by the company, fell 60%, to 34 million euros. This was below the 35.7 million forecasted by analysts in a survey provided by the firm. European steelmakers are facing challenges, including a low domestic demand, high energy costs and severe pressures from imports at low prices from Asia, particularly China. The global trade tensions caused by President Donald Trump’s import tariffs are weighing on consumers' moods, slowing economic and industrial activity. In a recent statement, CEO Kati Ter Horst stated that "the underlying demand for stainless is still subdued because of low investment activity and manufacturing as well as weaker consumer confidence." Outokumpu announced that it will open a pilot plant in New Hampshire, the U.S. where it is currently the second largest producer of stainless steel, to produce critical materials without carbon, such as chromium and enriched ferrochrome. Due to the market slowdown in Europe and the seasonal slowdown in North America, the group's deliveries of stainless steel fell by 11% during the third quarter. Outokumpu stated that "Asian exports to Europe remain high in comparison to the low demand on the stainless steel market."
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Climate Fund backs $6 Billion Jordan Water Project with its largest deal
According to its chief executive, the world's largest climate multilateral fund made its biggest financial commitment yet to build a $6 Billion water desalination plant in Jordan. The Green Climate Fund was backed ahead of COP30 in Brazil, in November. It also comes a decade after Paris Agreement which cited the fund as a major way to finance efforts against global warming. Mafalda duarte said that it would transform the country. She added that this was the "highest investment" the fund had made in a single project. In South Korea, a grant and loan of $295 million were approved by a board on Wednesday in order to attract financing from other sources such as the International Finance Corporation (IFC) and private lenders. A WORLD-WIDE DESALINATION CRAFT Jordan has the lowest water availability on earth and the desalination plant, one of the biggest in the world will serve almost half of its population. It was predicted that the situation would worsen, with temperatures rising by 4 degrees Celsius and rainfall falling by 21%, resulting in increased evaporation and droughts. Jordan's leader has described the Meridiam-SUEZ project as a priority. Jordanian officials said that the U.S. has committed $300 million as grants and $1 billion as loans to the project. Other countries from the region are also expected to contribute. Raed Abu Soud is Jordan's Minister for Water and Irrigation. He said that the project was a strategic one to desalinate and deliver 300 million cubic metres of water to all parts of Jordan every year. 24 PROJECTS are up for approval at the GCF Board meeting Senior officials involved in the project stated that the GCF funds would enable it to reduce the cost of drinking water by 10 cents per litre, and save the government $1 billion over the course of the project. He added that it would allow the IFC better terms on loans, which will result in cheaper financing for private sector. At the GCF Board meeting, 24 projects are up for discussion. The fund would be able to disburse $1.4 billion if all 24 projects were approved. GCF has accelerated its decision-making this year as part of a broader overhaul to the multilateral financial system in the world. The COP30 will explore ways to go even further. Duarte stated that while MDBs are still not doing enough in mobilising private sector capital, stakeholders need to be realistic with how much risk they will take. (Editing by Alexander Smith & Thomas Derpinghaus).
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Spain commemorates the anniversary of the deadly Valencia Floods with a state funeral and solemn marches
Spain's King Felipe is attending a state funeral on Wednesday in Valencia, as part of several events to mark a year since the deadly floods that killed 237 people. Even as late as last week, authorities were still finding victims in the mud. The country is dealing with the worst flooding it has seen in Europe for more than 50 years. On October 29, 2024, flash floods caused from torrential rainfall washed away bridges and cars as well as people. They also flooded homes and underground parking lots. In the Valencia region, 229 people were killed and eight more in other parts in Spain. Residents plan to place 229 foil emergency blankets, representing the victims, in a Valencian square. In Benetusser (one of the most affected suburbs of Valencia), two silent marches with torch-bearing participants will be held. Tens of thousands of demonstrators in Valencia called for the resignation of conservative regional leader Carlos Mazon at a protest on Saturday. Protesters claimed that the regional government failed to alert citizens in time during an emergency. They sent a text message warning when many buildings had already been submerged. After a local reporter claimed that she had spent nearly four hours with Mazon at a meeting of emergency services, a court is now investigating his handling of the situation and whereabouts. Mazon refused to reveal the details of his lunch, or the bill for the restaurant. However, he claims he was informed throughout the day over the telephone. On Tuesday, the government approved a loan guarantee of 5 billion euros ($5.8billion) to assist businesses and homes that were affected by floods. More than 8 billion euro has been spent by the government to clean up flood-damaged areas. Heavy rains and flash floods in the area were caused by an isolated high-altitude depression, locally known as a DANA. This is a weather system that can be highly destructive when warm and cold air combine to create powerful rain clouds. Scientists believe that climate change is causing this phenomenon to occur more often.
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OMV's profit forecast for the third quarter is topped by fuels and chemicals
OMV, Austria's oil, gas, and chemicals group, beat expectations for the third quarter profit on Wednesday. It benefited from higher contributions by its fuels, chemicals, and segment. According to the company, analysts had expected 1,17 billion euros. Clean operating results are based on current costs of supply and exclude one-off items, short-term gains or losses and energy inventory holdings. OMV's chemical division is considered its growth engine, as it transitions from polluting fuels to cleaner alternatives. It produces chemicals that are used in car parts, gas and water pipes and medical syringes. The division achieved a third-quarter operating profit of 222 millions euros, an increase of 64% over last year. The decline in sales revenue from continuing operations was primarily due to lower volumes of contracts with customers, particularly in the energy sector. The company reported that the energy production fell by 8% mainly due to the divestment from SapuraOMV. OMV reported earlier this month that it had recorded lower energy prices for the third quarter 2025. The average price of natural gas fell by 6% compared to the previous quarter. Reporting by Maria Rugamer, Editing by Harikrishnan Nair. $1 = 0.8575 Euros
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Gold Stages rebound on bargain-hunting ahead of Fed verdict
Gold prices rose Wednesday, as bargain-hunters stepped in to buy after the bullion fell to a 3-week low the previous session. Investors are now waiting for the Federal Reserve rate decision that will be announced later in the day. As of 0634 GMT spot gold rose 0.7% to $3,977.30 an ounce after falling as low as it has been since October 7. U.S. Gold Futures for December Delivery gained 0.2%, to $3.990.60 an ounce. Kelvin Wong, senior market analyst at OANDA, said: "The fuel behind this short-term gold correction is the readjustment from safe-haven instruments to more responsive instruments like global equities because of trade optimism." Gold is under pressure to fall due to short-term leverage and technical levels being breached. The fundamentals of gold are still positive. Over the weekend, Chinese and U.S. official hammered out the framework for a trade agreement between President Donald Trump and Xi Jinping that would pause the steeper U.S. Tariffs and Chinese export controls on rare-earths. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to erode demand for safe-haven assets like gold. This pullback extended as tensions eased. The recent falls may offer central banks an opportunity to increase purchases," ANZ stated in a report. Investors are waiting for Jerome Powell's forward-looking comments at the Fed's policy meeting, which is scheduled to end on Wednesday. At its Thursday policy meeting, the European Central Bank will likely leave interest rates unchanged. Gold that does not yield is a good investment in low interest rate environments and economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Spot silver rose 1.5% to $47.53 per ounce. Platinum edged up 0.1% to $1.587.70, and palladium increased 0.9% to $1.405.99.
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Sources: China's smelter group does not set Q4 copper TC/RC guidelines
Sources said that China's leading copper smelters have decided not to set fee guidance for copper concentrate processing in the fourth quarter of 2025. This is the third time in a row they have taken this decision, which highlights a long-term feedstock shortage. Two sources familiar with the matter confirmed that the decision on Wednesday was taken at a quarterly gathering of members of the China Smelters Purchase Team. The CSPT is a group of sixteen leading smelters who are expected to follow the guidelines in dealings for spot copper concentrate. Treatment charges and refining costs (TC/RC), a major source of revenue for miners, are usually paid to refine concentrate and tend to decrease when the concentrate supply is tightening. They rise with an increase in ore availability. The group has not provided such guidance for the second and third quarters, as spot prices have been negative since December. This means that smelters must pay miners. One of the sources said that there was some discussion about the direction, but they ultimately decided to not set any guidance. It's best to wait until November, when the annual negotiations begin. All sources asked for anonymity because they were not authorized to speak with media. Global mining output is growing faster than smelting capacities, resulting in a tightening of concentrate supplies that squeezes smelters’ margins. The suspension of Freeport’s flagship Grasberg copper mine in Indonesia, which is the second largest mine in the world, has further reduced the prospect of mined supplies. The Chinese smelters have not reduced their output in a significant way, as the revenue generated from other products such as sulfuric acid, gold and silver, has offset the losses caused by copper sales. This year's copper production is expected to reach a new record. Some overseas smelters have either reduced output or suspended operations because of a shortage of feedstock. Chinese smelters have agreed to process concentrates from Chilean miner Antofagasta at no cost, which is a record for the industry. Reporting by Amy Lv in Beijing and Lewis Jackson in London, with editing by Jacqueline Wong & Michael Perry.
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Australian shares fall to a two-week low after inflation spikes sink rate-cutting hopes
Australian shares closed on Wednesday at their lowest levels in two weeks as a spike of core inflation dashed any hopes for a rate cut in the near future, prompting a sale-off in real estate and banking stocks. The S&P/ASX 200 Index fell by 0.96%, to 8,926.20. It is the first time that the index has fallen below the important 9,000-point mark since October 15. Data released on Wednesday showed that the core inflation rate rose at the fastest pace in two years in the third quarter of the year. This dampened expectations of a cut in rates next week, and forced markets to reduce their bets about the Reserve Bank of Australia (RBA)'s broader easing cycles. The odds of a rate reduction in December have fallen below 22%, from 47% before the data. Citi, Goldman Sachs and Standard Chartered are all Australian 'Big Four banks' that expect the RBA's key interest rate to remain at 3.60% in this year. The top lender CBA's economists have abandoned their calls for another rate cut in February next year and expect that the cash rate will remain unchanged for an extended period. Financials, the largest sector, fell by 1.9%, after two consecutive days of gains. All four of the "Big Four" banks closed in the red. National Australia Bank, the top lender in Australia, lost 2.6%. The cash rate is the basis for the valuation of defensive assets, which are an alternative to bonds. As a result, we see those stocks being sold as the expectation of a rate reduction next week has now been removed, said Luke Winchester. Goodman Group, a sector leader, fell 1.4%. CSL, the healthcare sector's main stock, fell by 4% on Tuesday. The benchmark S&P/NZX 50 Index in New Zealand closed at 13,409.21, a slight increase. Atharva Singh, Bengaluru (reporting); Sonia Cheema, editing)
Asia shares rise as Fed looms big; yen falls apart listed below crucial level
Asian stocks got off to a favorable start on Monday ahead of the Federal Reserve's policy meeting later on in the week, while the dollar broke past the psychologically key level of 160 yen for the very first time in decades.
Oil prices ticked down on expectations that higher-for-longer U.S. rate of interest would dampen demand, while news of a potential Gaza ceasefire alleviated fears of supply restraints.
The dollar touched a high of 160.245 yen - its strongest level in 34 years - in an unexpected but short surge during Asia hours. It was last 0.5% higher at 159.14 yen.
Some analysts associated the relocate to thinned liquidity with Japan out for a holiday on Monday, and as traders aimed to evaluate the resolve of Japanese authorities in safeguarding the yen.
In spite of the yen's continuous slide towards fresh multi-decade lows, Tokyo has actually so far resisted intervening in the currency market, even as officials ramp up their cautions against extreme yen moves.
Markets are evaluating the advantage, stated Christopher Wong, a. currency strategist at OCBC, of the dollar/yen currency pair.
The BOJ had on Friday kept rates of interest around zero at the. conclusion of its financial policy meeting and dismissed moving. to a full-fledged reduction in the BOJ's bond purchases,. striking a more dovish tone than some had expected.
That, and bets the Fed is likely to delay the start of. its rate-cutting cycle, offered fresh incentive to yen bears.
In the more comprehensive market, MSCI's broadest index of Asia-Pacific. shares outside Japan tacked on 0.56%, assisted by. Wall Street's positive lead on Friday owing to a rally in. megacap development stocks.
The upbeat sentiment spilled over into the new week, with. Nasdaq futures and S&P 500 futures each increasing 0.2%.
Hong Kong's Hang Seng Index likewise advanced 0.77%,. while China's blue-chip index edged 0.06% greater.
The Fed's two-day monetary policy conference beginning Tuesday. takes centre phase for the week, where expectations are for the. central bank to keep rates on hold.
Focus, however, will be on any assistance for the central. bank's rate outlook, after duplicated runs of. stronger-than-expected U.S. financial data and still-sticky. inflationary pressures hindered market bets on how quickly the Fed. could start its rate easing cycle.
Market prices shows a very first Fed rate cut is anticipated in. September, from a June start just a couple of weeks back, with just. over 30 basis points worth of easing anticipated this year.
We've seen quite a substantial repricing of rate. expectations in the U.S., which's sort of a standard for. international rates of interest, stated Jarrod Kerr, chief economic expert at. Kiwibank.
I think the Fed today will kind of echo those remarks. that rate cuts aren't as close as they had hoped.
The possibility that U.S. rates would stay in limiting. territory for longer have propped up the greenback, though it. was broadly on the back foot on Monday, edging lower against. most currencies apart from the yen.
Versus the dollar, the euro increased 0.21% to. $ 1.0715, while sterling got 0.23% to $1.2522.
The dollar index was little altered at 105.98, however. was headed for a regular monthly gain of 1.4%.
In products, Brent fell more than 1% to $88.55 a. barrel, while U.S. unrefined similarly eased 1% to $83.02 per. barrel.
Both are up about 15% for the year, in part due to supply. disruption worries amid intensifying geopolitical stress in the. Middle East.
A Hamas delegation will go to Cairo on Monday for talks. targeted at protecting a ceasefire, a Hamas official told on. Sunday, as conciliators stepped up efforts to reach a deal ahead of. an anticipated Israeli attack on the southern city of Rafah.
Gold dipped 0.34% to $2,329.37 an ounce.
(source: Reuters)