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What are the five critical metals that China has restricted?
China announced on Tuesday sweeping restrictions on exports of five metals that are used in defence, clean energy, and other industries. This comes just minutes after the additional 10% tariff imposed by U.S. president Donald Trump on Chinese products went into effect. What you should know about these metals TUNGSTEN Tungsten, an ultra-hard material - only diamonds are harder - is used to produce artillery shells and armour plating as well as cutting tools. About 60% of the U.S. production is used to make tungsten carbide. This highly durable material is widely used in construction, metalworking and oil and gas drilling. China is the world's largest producer and exporter of tungsten, and it produced just under 80% of the global supply by 2023. According to Project Blue, a UK-based consultancy, China provides 30% of the ex China market, mainly in the form powders used for tooling. Vietnam, Russia and South Korea are also producers. According to the U.S. Geological Survey, tungsten hasn't been commercially mined in the United States for at least five years. INDIUM Indium, via an indium tin dioxide refined product, is used to make phone screens and television displays. In addition, a separate indium-based product is used in the fibre-optics technology. Indium demand has increased due to the expansion of 5G cellular networks. According to the USGS, China, like tungsten is the world's largest producer. It accounts for 70% of global production. In September 2024, about a quarter (25%) of U.S. imports of indium came from China. Project Blue reports that Japan and South Korea are also major Chinese buyers. BISMUTH Bismuth can be found in alloys, medicines, metalurgical additives and atomic research. USGS reports that the U.S. stopped producing primary refined bismuth back in 1997, and it is now heavily dependent on imports. USGS data also revealed that China produced more than 80% of the 13,000 tons bismuth consumed worldwide last year. South Korea and Laos also produce a lot of tehse products. TELLURIUM Tellurium is a common by-product of copper refinement and used in metallurgy. It's also found in solar panels, memory chip, and other products. According to USGS, China will produce about three-quarters of the refined tellurium produced in the world by 2024. According to the USGS, the copper telluride is produced in two refineries within the United States, but it is shipped abroad for further processing. Tellurium is imported for most products that use it. MOLYBDENUM Molybdenum is used primarily to harden and strengthen steel alloys to make them more resistant against heat and corrosion. Molybdenum is also used as a catalyst, in petroleum, in lubricants and in pigments. According to USGS, China will account for 40% of the global production in 2024 compared with 12% for America.
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A Russian drone attack damages Ukrainian homes and a railway depot
The Ukrainian military announced on Tuesday that they shot down 37 of 65 Russian drones in an overnight attack that caused damage to businesses, a rail depot, and homes across the country. Ukrzaliznytsia, the state railways of Ukraine, said that Russia had attacked a depot located in Dnipropetrovsk Region. The attack caused significant damage to both infrastructure and premises. Ihor Taburets, the governor of central Cherkasy Region, said that three private companies were also affected by the attack. Regional authorities reported that eight residential buildings as well as one apartment block were damaged in the northeastern region Sumy. Ukraine's military stated that 28 drones did not reach their target, most likely because of electronic warfare. Ukrenergo reported Tuesday emergency power outages in eight regions, citing damage from missile and drone strikes. The report did not mention the date of the attack. On Monday, nine Ukrainian regions were affected by an emergency power outage. Over the last year, Russia has bombarded Ukraine's infrastructure for energy with missiles and drones. The attacks have caused deep power cuts and damaged the distribution system, knocking out half of Ukraine’s generating capacity. Russia denies that it has targeted civilians, but in fact thousands of people have been killed or injured during its invasion of Ukraine. (Reporting and editing by Andrew Cawthorne. Anastasiia malenko)
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Russell: China's impact on US energy trade is minimal at first.
After Beijing retaliated to President Donald Trump’s tariffs by imposing its own measures, the trade between China and the United States in crude oil and liquefied gas is now effectively dead. China, which is the largest importer of three energy commodities in the world, imposed import duties on Tuesday of 15% for U.S. coal and LNG, and 10% for crude oil and farm machinery. Beijing made its move after the Trump administration imposed a 10% additional tariff on all Chinese imports into the United States. The 10% tax was less than the 60% Trump had threatened during his last-year campaign to reclaim U.S. presidential power, but it was enough to prompt a response from China. China's response raises the possibility of further US moves, and escalates trade tensions between the two world's largest economies. A series of tit for tat measures could cause global economic growth and inflation to slow down as countries reorder their supply chains and face increased disruptions in industries like manufacturing and construction. The immediate impact on U.S. imports of crude oil, LNG, and coal will likely be minimal. According to Kpler, commodity analysts, China imported 5,99 million barrels from the United States of crude oil in January. It is about 193,000 barrels a day. This is less than 2% the total amount of imports from China. The volume of January's imports was typical of recent months. However, China has imported U.S. crude at times, and the 948,000 barrels per day of June 2023 was the highest in the last two years. In recent months, China's LNG imports have been modest. January saw 190,000 tons of LNG, down from 222,000 tons in December. LNG volumes fluctuated a lot, due to the nature of spot trade between China and the United States, but in October 2010, 780,000 tons was the highest volume in the last two years. China's total LNG exports are currently averaging 6.5 million tonnes per month, which means the U.S. supplies between 4% to 12% of that total. Kpler reports that China imported 1.34 million tonnes of coal from the United States in January. The highest month over the last two years was August, when 1.55 million tonnes were imported. China's coal imports in 2024 will average 45.2 million tons per year, according to official customs data. The U.S. is a minor supplier. BROADER IMPLICATIONS The question is whether the tariffs on energy imports imposed by Beijing will have any impact. Both China and the United States are likely to be able to adapt without much difficulty. Answer: It amplifies tensions. And it accelerates the trend to increasingly split the world into two trade blocs. One that deals with Trump's America, its allies and the other that prefers China and the so-called global south. As part of the "America First" agenda, Trump may continue to impose tariffs on both his traditional allies as well as his rivals. This could drive commodity producers towards the emerging BRICS bloc. China also shows its strength in the commodities market by announcing a new export control on five minerals used in defence industries and energy transition industries. The metals tungsten (tellurium), bismuth (indium), indium, and molybdenum as well as their products are covered by the controls that come into force immediately. These measures will encourage Western nations to seek out and develop their own sources of energy. This will require that we engage with businesses and governments from Africa, Asia, and Latin America. Many of these are likely to become targets of Trump’s tariffs and aid measures. These are the views of a columnist who writes for. Mark Potter edited this article.
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China tightens controls on critical minerals exports after US tariffs
China announced on Tuesday sweeping restrictions on exports of five metals, used in defence, clean energy, and other industries. This came just minutes after the additional 10% tariff imposed by U.S. president Donald Trump on Chinese products went into effect. China has been trying to weaponise their dominance of the mining and processing critical minerals since 2023. These minerals are used for everything from smartphones, electric car batteries and infrared weapons and ammunition to smartphones and electric cars. The new controls are in effect immediately and cover metals such as tungsten and tellurium. They also include bismuth, molybdenum, indium, and other related products. These metals are found in a wide range of products, from artillery to solar panels. In a press release released shortly after a new round of tariffs was imposed by the United States on Chinese imports, the Commerce Ministry stated that the controls were designed to "protect national security interests." On Jan. 16, it had announced that it would be strengthening export controls in this year. Exports will likely drop as companies rush to obtain export licenses. This process takes about six weeks. As the export licenses are issued, the experience from previous rounds of restrictions on exports suggests that shipments will recover, although slowly. It remains to be determined whether U.S. Importers will be eligible for licenses. The United States has stopped mining tungsten since 2015, and it hasn't produced refined bismuth in the country since 1997. Both depend on imports. Price of tungstate The price of, which is used to produce various tungsten-based products, reached its highest level in 2014 at the end January. Indium price index outside China At the same time, they hovered at near-decade-high levels.
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New Belgian government considers building new nuclear plants, report says
The financial daily Tijd quoted Mathieu Bhet as saying that the new Belgian government wants to double nuclear power from 4 GW to 8 GW through new reactors. Why it's important In the new coalition agreement, the coalition states that it targets 4 GW nuclear energy as part of the Belgian energy mix. The coalition could achieve this by extending the life of existing reactors or building new nuclear power stations. The building of 4 GW would require a significant shift in policy and billions of Euros in projects that may take years. KEY QUOTE Bihet added that the government wanted to extend the lives of existing reactors as well as build new ones. He did not give any details about the locations or timing of the new reactors. Bihet stated that building Small Modular Reactors by themselves would not be sufficient to provide enough capacity. "We still need to decide which technology we'll use. It is obvious that SMRs will not be the only option. "Small reactors alone will not be enough," he said. CONTEXT Engie, a French-Belgian power group, reached an agreement in December 2023 to extend the lives of two nuclear reactors: Doel 4 et Tihange 3. These two reactors account for 35% of Belgium's nuclear energy production. This agreement has triggered an EU investigation into possible violations of the bloc's competition rules. THE NUMBERS Currently, Belgium has five nuclear reactors. Three are located in Doel, and two others in Tihange. They have a combined power of approximately 4 GW. WHAT'S NEXT? Engie has stated that it does not want to build new reactors. Bihet has said he is willing to talk with the French company. He hinted he may also speak to EDF, the French state-owned operator of nuclear power plants. EDF has a small stake in Tihange's reactors.
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REFILE: China's restrictions on strategic mineral exports
China announced on Tuesday sweeping export controls targeting five metals that are used in defence, clean energy, and other industries. This comes just minutes after the additional 10% tariff imposed by U.S. president Donald Trump on Chinese products went into effect. China's decision to limit tungsten and indium, amongst other metals, is its latest attempt to weaponise their dominance over the mining and processing a variety of minerals that are vital for everything from smartphones to electric car batteries and infrared weapons and ammunition. Here is a list of minerals which Beijing has restricted in some manner since 2023. BATTERY, LITHIUM AND GALLIUM PROCESSING TECHNOLOGY China has proposed restricting the export of certain technology used in manufacturing cutting-edge batteries and processing critical minerals such as lithium and gallium. The announcement in January did not specify when the proposed amendments, which were open to public comments until early February and could come into effect, might be implemented. ANTIMONY, GALLIUM, GERMANIUM Beijing has banned the export to the United States of three crucial minerals in response to Washington's renewed crackdown on China’s chip industry. China has gradually introduced export licensing schemes for these three metals over the past 18 months. Exports of antimony to major buyers such as Japan, India, and South Korea, which is a strategic metal that's used in solar power equipment, munitions and flame retardants had only just begun three months after the export licenses were issued. China is the world's largest producer of these three metals, and produces or refines half to 90% of the global supply. RARE EARTHS MAGNET TECHNOLOGY China has banned exports of technology for making rare earth magnets in December 2023. This ban is added to the existing ban on the technology used to extract and separate critical materials. Rare earths is a grouping of 17 metals that are used to produce magnets in electronic devices, electric vehicles and wind turbines. While common in the earth's crust, China has mastered the technically difficult and environmentally-harmful refining process. China produces 90% of the world's refined products. GRAPHITE China announced that it will require export licenses for certain graphite products in October 2023 to protect its national security. China is the top producer and exporter of graphite in the world. It also refines over 90% of all graphite to a material used in almost all EV batteries.
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Indonesia will set up a state investment agency similar to Temasek
The parliament approved the creation of a state-owned investment vehicle that will oversee government investments in some the largest companies. It is similar to Singapore's Temasek investment arm. Soon after Prabowo Subito assumed office in October, the creation of Daya Anagata Nusantara Investment Management Agency (Danantara) was announced with the goal of improving performance and returns on state investments. Danantara will have an initial capital of at least 1,000 trillion Rupiah (61 billion dollars). Sufmi dasco Ahmad, deputy speaker to parliament, told reporters that it would take over the State-Owned Enterprises Ministry's holdings in all state-owned companies. State companies play a major role in Southeast Asia’s largest economy. In 2023, they had assets totaling 11,684.3 trillion Rupiah. Official data revealed that they paid 82.1 trillion Rupiah as dividends to the Finance Ministry in 2023. Erick Thohir, Minister of SOEs, told the parliament that Danantara was officially established and formed to consolidate and optimize the management and investment of state-owned enterprises. State companies include the leading banks Bank Mandiri, Bank Rakyat Indonesia and Bank Negara Indonesia. They also include electricity utility PLN, miner MIND ID, energy company Pertamina, telco Telkom Indonesia and cement manufacturer Semen Indonesia. Danantara's goal is to emulate the success of Singapore-based Temasek. According to its website, Temasek had an investment portfolio worth $284 billion as of March last year and has returned 14% to shareholders since 1974. Danantara has not provided any details about its future plans. Danantara’s office has not responded to requests for comment. Toto Pranoto is a University of Indonesia lecturer and consultant who worked on the bill. He said that Danantara would set up two entities, a "superholding", which will manage state companies, and an investment company that will manage dividends and leverage assets. CreditSights' debt research company, Fitch Group, stated in a note published in January that if Danantara was able to consolidate SOEs efficiently and effectively, this would lead to better funding and operational improvements, as well as a better access on global markets. It also warned that the agency was susceptible to political interference. We see risks with the establishment of Danantara. These include potential political influence over the use of the fund, integration, and the influence of Danantara in the strategic direction for the SOE. This could affect investor confidence. Dasco, the deputy speaker of the House, said that Danantara's strong legal framework should alleviate investor concerns. $1 = 16,340 Rupiah (Reporting and editing by Martin Petty, John Mair, and Gayatri Sulaiman)
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Vietnam will soon talk with foreign partners about nuclear power plants
The government announced on Tuesday that Vietnam will be holding talks with foreign partners in this month to discuss projects for the development of its first two nuclear plants. The government announced in a press release that the state utility EVN, and the oil and gas company PetroVietnam would be the investors of the first two plants. According to state media, the government will discuss these projects with partners such as Russia, Japan and South Korea. Southeast Asia, a manufacturing hub in the region, wants to increase electricity supply to support its rapidly growing economy. It is focusing on cleaner energy. Vietnam approved its plans for the development of two nuclear power stations in 2009, but these were halted in 2016, following the Fukushima disaster in Japan, and due to budgetary constraints. The plants were to have a combined power of 4 gigawatts and be built in Ninh Thuan, a province located in central Vietnam, by Rosatom, a Russian company, and Japan Atomic Power Co. Vietnam wants to finish the construction of these plants by the end 2031.
Dollar and stocks are on a roller coaster ride as the US slaps new tariffs on China. China responds.
U.S. Stock Futures fell, the Dollar jumped and Hong Kong Shares tumbled from two-months highs after the U.S. imposed a tariff on Chinese imports. China responded quickly.
S&P futures, after bouncing in relief at the news that Mexico and Canada reached an agreement to delay tariffs, have now fallen by 0.4%. European futures fell 0.2%, and the euro slid below $1.02 due to fears that Europe could be next.
Hong Kong's Hang Seng lost gains of over 2% and closed the day about 1.8% higher.
At 0501 GMT, an additional 10% U.S. duty on Chinese exports went into effect. Beijing announced that it would impose tariffs on the imports of U.S. cars, farm equipment, oil, coal and gas. These measures will take effect on February 10. This sparked market concerns about a messy and prolonged tit-fortat trade war.
Bitcoin fell by 3%, to $98,750.
Ross Mayfield is an investment strategy analyst with Baird, based in Louisville, Kentucky. He said, "I believe you can see the rollercoaster ride of public negotiations around tariffs and policy."
Australian shares finished just below flat at the auction. Japanese stocks pared their gains.
Trump's Press Secretary said he would speak with Chinese president Xi Jinping within the next few days.
The Chinese markets are closed for the Lunar New Year holiday, but the offshore yuan has fallen to 7,3236 per dollar since the tariffs went into effect.
The Australian dollar, which is often used as a proxy to represent the yuan due to its liquidity, dropped 0.7%, falling from $0.6180.
On Monday, gold reached record highs as investors sought safety amid fears of a global trade war. On Tuesday, it traded at $2,817 per ounce, close to the previous record high. Markets were divided over whether or not there would be two rate cuts in the United States this year.
Michael Feroli, J.P. Morgan’s U.S. chief economist, said that the increase in policy uncertainties will be difficult to reverse.
The weekend's events will probably reinforce the Fed's tendency to stay on the sidelines, and to be as low-profile as possible.
(source: Reuters)