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Russell: The term critical minerals is meaningless and needs a new strategy.
It is now so common to use the term critical mineral that its original meaning has been lost. It is time to create a new definition of what is truly vital for a nation and what is simply important. The Mining Indaba conference held in Cape Town last week also made it clear that what's important to one country may not be as critical to another. What is a better way to define a critical mineral than by its name? It's simply a mineral you don't possess and worry you will not be able get it in the future. You need a certain mineral, but don't possess any domestic reserves. Your strong allies don't also have enough deposits, and you do not have control over the supply chain. This is a different mineral from what commodity analysts CRU call a core ore, which you may need now but are confident you can source in the future. Why is it important to distinguish between the two? Westerners tend to view core minerals as ones that can be left to the market to supply. They rely on private mining firms to explore, develop, and produce them on commercial terms. A truly critical mineral will require a different acquisition strategy, including direct funding of new mines, strategic relationships with the host country, and offtake agreements not dependent on market prices. China has shown that it is much better at focusing on minerals they deem critical. It invests in mines, infrastructure and processing plants in other countries, and also in its own country. China is the largest importer of commodities in the world. It dominates the global supply chain of minerals essential to the energy transformation, including lithium, cobalt and nickel. These four minerals are no surprise to China, but are they still important for China, given that China dominates the production and supply of these minerals? Beijing's approach to ensuring supply was more strategic than commercial. Copper, aluminium and graphite are also included on the list of critical minerals for the United States as well as the European Union. Iron ore, gold potash, and uranium are among the critical minerals on China's list. One could argue that these minerals are critical to China's economy, and are also ones in which Beijing has little influence on the supply chain. Consider iron ore as an example. China imports over 80% of what it needs. Of those imports, more than 90% are from Australia, Brazil, and South Africa. Beijing has no control over these resources, despite its ownership of some companies that mine iron ore. It is a price taker and has been for the last two decades. NEW TACTICS NEEDED The United States and Europe could be asked why copper is included on their list of critical minerals, when there is no threat to the supply. This is because most of the copper mined in the world is controlled by Western firms, which are located in countries with a strong Western alignment. Aluminium and lithium are also important, but cobalt's importance for energy transition is still being questioned. Nickel is a fascinating case. Both the United States and European Union consider it critical but have not done anything to guarantee supply. They have instead allowed Chinese-controlled mining and processing plants to dominate the Indonesian market, while others in countries such as Australia, a strong ally of China's, are closed due to low prices. It would make sense to continue to supply nickel from allies, even if the cost was higher. If Western countries are truly concerned about the security of minerals like graphite and tungsten, they must change their approach to developing mines. Western mining companies have difficulty securing long-term financing because they cannot guarantee the price that will be paid in several years, when a new mine is built and operational. They lose out to Chinese firms that are less concerned about commercial results. Western governments must also become more proactive when it comes to engaging countries in resource-based relationships, utilizing both soft power like aid programmes and direct benefits like market access to foster stronger resource relationships. It appears, however, that U.S. president Donald Trump has adopted the exact opposite strategy, abandoning all aid and threatening to impose widespread tariffs against both allies and enemy alike. The European Union appears to be moving at a snail's pace. It produces policies and reports about critical minerals, but does not seem to do much to develop the supply chains that it controls. These are the views of the columnist, an author for.
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Norway to Offer New Acreage Only for Floating Wind
Norway will not offer acreage suitable for bottom-fixed offshore wind farm development when it next announces new tenders, and will instead focus on floating wind options, it said on Monday.The government had previously said it would offer new areas in its North Sea bordering Denmark suitable for turbines fixed to the seabed, that may also connect to other countries via so-called hybrid cables."We believe that it is not the time to proceed with planning hybrid cables now," Energy Minister Terje Aasland said in a statement, citing high cost levels and the lack of a European framework for hybrid connections.A study by grid operator Statnett had shown that building out the area known as Soervest F would require government support regardless of whether the wind farms connected to Norway only or also other markets, he added.Aasland also said he was sceptical of further exposing the Norwegian power system to the challenges in other markets such as Germany.Instead, the government will prioritise floating offshore wind projects with single-point connections to Norway, the minister said.Norway, whose domestic power generation is dominated by cheap, abundant hydropower has some of the lowest electricity prices in Europe, but also saw an increase in the wake of the European energy crisis in 2022.A net exporter of power through subsea cables linking it with Germany, Britain, Denmark and the Netherlands, these connections have been blamed for lifting prices domestically.Last year, the country tendered its first offshore wind farm, Soerlige Nordsjoe II, located in the area now being scrapped for immediate further development.(Reuters - Reporting by Nora Buli, editing by Terje Solsvik)
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Reports of a rise in U.S. crude stocks cause oil prices to fall
The oil market edged lower on Wednesday, as an industry report revealed an increase in U.S. stockpiles of crude and worries about tariffs weighed on the sentiment. However, stronger refining margins tempered the market's decline. Brent futures dropped 25 cents or 0.3% to $76.75 per barrel at 0408 GMT. U.S. West Texas Intermediate crude fell 28 cents or 0.4% to $73.04 per barrel. Brent prices rose by 3.6%, while WTI climbed 3.7%. According to Tuesday's American Petroleum Institute data, sources citing the American Petroleum Institute, crude oil stocks in the U.S. grew by 9.4 millions barrels during the week ended February 7. API data shows that gasoline inventories dropped by 2,51 million barrels and distillate stock fell by 590 000 barrels. The Energy Information Administration will release data later on Wednesday. The EIA has increased its estimate of U.S. crude oil production, while keeping its demand forecast the same. The EIA now estimates that U.S. crude production will average 13,59 million barrels of oil per day by 2025. This is up from the previous estimate of 13,55 million bpd. Prices fell on fears that the multiple U.S. Tariffs enacted, or even threatened, could slow global economic growth. Overall, however, the price declines were limited by higher refining margins. LSEG data show that complex refining margins have clawed back the losses of January, averaging $3 a barrel in the last week. "Prompt margins in refineries are healthy and reverse the margin trend from last month. June Goh is a senior analyst with Sparta Commodities and she replied to the question: "There's a strong demand for refineries running hard, especially as we move into turnaround season in Northwest Europe and Asia." The macroeconomic outlook was dominated by traders awaiting the key U.S. Consumer Price Index data, which will be released on Wednesday at 1330 GMT. This will provide clues about the economic performance of the country and its potential impact on interest rate. Jerome Powell, the chair of the U.S. Federal Reserve, said on Tuesday that he was not in a hurry to cut interest rates further but would do so if there were inflation. Continued decline Or the job market has weakened. (Reporting and editing by Christian Schmollinger, Kate Mayberry and Colleen Waye)
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Aluminum prices fall amid Trump tariff fears
Aluminum prices dropped on Wednesday, amid fears of a global trade war following the 25% tariffs imposed by U.S. president Donald Trump on imports of steel and aluminum. The London Metal Exchange's (LME) three-month contract for aluminium fell 0.8%, to $2,624 per metric ton, as of 0340 GMT. This is down 1.3% compared to the three-week-high of $2,662.50, which was reached on Monday when tariffs announced. Morgan Stanley says that the tariffs on Monday will have the greatest impact on aluminum, which is used for transport, construction, and packaging. Net imports account for 82% of U.S. needs. Since February 7, the U.S. premium on aluminium over the benchmark global price at the London Metal Exchange jumped by a quarter to 35 cents a pound. It has also risen by 60% since Trump's re-election in November 2024. After Trump announced tariffs against U.S. imported goods, volatility in the aluminum market is expected remain high. We expect that the U.S. aluminum industries will struggle in the short-term to avoid tariffs, putting upward pressure for prices", ANZ Research stated. Trump has not yet imposed tariffs on the copper but he threatened duties last week, without providing any further details. The LME copper benchmark traded flat at $9361.5 per metric ton. The expectation of a copper tariff pushed the premium between U.S. Futures on Comex and the global benchmark LME to an all-time high on Monday. Lead increased by 0.2% at $1,983.5, while zinc gained 0.7%, reaching $2,840.5. Tin fell 0.2%, to $31,105. The aluminum contract at the Shanghai Futures Exchange shed 0.6%, reaching 20,560 Yuan ($2,813.20), its highest level since December 2024. The SHFE copper fell 0.6%, to 76800 yuan. Nickel dropped 1.2%, to 124070 yuan. Zinc was unchanged at 23,730, while lead fell 0.1%, to 17,130, and tin slipped 0.1%, to 257330 yuan. $1 = 7.3084 Chinese Yuan Renminbi (Reporting and editing by Rashmi Nandy and Sumana Naandy; Additional reporting and editing by Eric Onstad)
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MSCI removes Adani Green Energy from the key global index and adds Hyundai Motor India
MSCI has added one Indian company to its Global Standard Index late Tuesday, the carmaker Hyundai Motor India. Adani Green Energy was removed as part of the index revision for February 2025. Changes will be implemented at the close of the market on 28th February. MSCI's previous index reconstruction in November added five Indian companies to the global standard index. This increased India's weighting in the indicator that tracks emerging market countries from 17% to 20%. Overnight, the MSCI India Domestic Smallcap Index was rebalanced to include 20 Indian stocks, including Ola Electric Mobility and Sundaram Clayton, as well as Zaggle Prepaid Ocean Services. The MSCI Smallcap Index was reduced by 17 stocks. According to IIFL Capital the MSCI rejig may lead to an inflow of passive funds between $850 million and $1 billion to Indian markets. According to IIFL Capital, the weight of IndusInd Bank - a private lender that is already included in the global standard index - has increased. MSCI has added eight Chinese stocks and deleted 20 from the second largest economy in the world. As part of this review, 107 securities will be deleted and 23 added to the MSCI Global Standard Indexes.
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Iron ore prices rebound on fears of supply disruptions
Iron ore futures recovered on Wednesday as investors focused their attention back on concerns over possible supply disruptions by major producer Australia, and the prospects of growing consumer China. The new tariffs announced by President Donald Trump, which go into effect on March 12, have caused prices to fall by more than 1 percent. U.S. president Donald Trump significantly raised tariffs on imports of steel and aluminum on Monday, to a flat rate of 25% "without any exceptions or exclusions". This was done to help struggling industries in the U.S. while also risking a trade war on multiple fronts. As of 0247 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange gained 0.43%. It was now worth 824.5 Yuan ($112.83) per metric ton. As of 0308 GMT the benchmark March iron ore traded on the Singapore Exchange had risen 1.76%, to $107.75 per ton. This is the highest price since October 16, 2024. Investors' concerns about supply disruptions have been rekindled after Western Australia's Port Hedland - the world's largest export point for iron ore - will close at 6 pm (1000 GMT) because of tropical cyclone Zelia. This has boosted investor sentiment and lifted prices. Analysts said that the prices were supported by a growing demand and the weather conditions becoming more favorable for outdoor construction. CITIC Futures reported that hot metal production, which is typically used to gauge demand for iron ore, will increase steadily after the week-long Lunar New Year holiday in China. This is due to relatively good profitability. Coking coal and coke, which are both steelmaking components, also fell further on the DCE, by 0.62% each. The Shanghai Futures Exchange's steel benchmarks extended their losses. Rebar fell 0.42%, while hot-rolled coils eased 0.09%. Wire rod fell 0.28%, and stainless steel dropped 0.68%. ($1 = 7.3075 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Aluminum tariffs eased by Trump
The price of aluminium fell on Wednesday, amid fears of a global trade war after U.S. president Donald Trump imposed 25% tariffs on imports of steel and aluminum. As of 0219 GMT on Monday, the London Metal Exchange's (LME) three-month aluminium was down 0.6% at $2,627.5 per metric ton. This is down 1.3% compared to a high of $2.662.50, reached on Monday, when tariffs were announced. Morgan Stanley estimates that the biggest impact will be felt on aluminum, which is used for transport, construction, and packaging. Net imports account for 82% of U.S. needs. Since Trump's election, the U.S. premium on aluminium over the benchmark global price at the London Metal Exchange is up by 25%. The current rate of 35 cents a pound has risen by 60%. After Trump announced tariffs against US imports, volatility in the aluminum market is expected remain high. ANZ Research stated that the U.S. aluminum industries are expected to struggle in the short-term to avoid tariffs, putting upward pressures on prices. Trump has not yet imposed tariffs on the copper but he threatened duties last week, without providing any further details. The LME copper benchmark rose by 0.2%, to $9373.5 per metric ton. The expectation of a copper tarrif pushed the premium between U.S. Futures traded on Comex and the global benchmark at the London Metal Exchange up to a new record on Monday. Lead increased by 0.3% at $1,985.5, while zinc fell 0.9% to $2,838, and tin rose by 0.1% to $30,200. The aluminum contract at the Shanghai Futures Exchange fell by 0.5%, to 20,570 Yuan ($2,814.76) per ton. This is its highest level since early December. SHFE copper fell 0.4% to 76950 yuan. Nickel lost 0.8% at 124450 yuan. Zinc was flat at 23715 yuan. Lead shed 0.2% at 17,105 yuan. Tin was unchanged at 257,000 yuan.
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Gold's record rally is halted ahead of US inflation data
The gold price fell on Wednesday, after reaching a record high the previous day, as Federal Reserve chair Jerome Powell's hawkish comments cemented investors' views that rate cuts will be slower this year. Investors also awaited an important U.S. Inflation Report. Gold spot fell by 0.1% at $2,895.38 an ounce as of 0232 GMT, after reaching a record-high $2,942.70 per ounce on Tuesday. U.S. Gold Futures fell 0.4% to $2922.40. Powell stated on Tuesday that the economy was in a great place, and the Fed wasn't rushing into further interest rate cuts. However, the Fed would be willing to do so if inflation dropped or the job market weakened. Bullion is a good hedge against inflation. However, higher interest rates make it less attractive. Tim Waterer is the chief market analyst for KCM Trade. He said that there was a risk of gold falling if the core CPI data showed an increase. The U.S. Consumer Price Index report (CPI), due later that day at 1330 GMT, and the Producer Price Index data (PPI), scheduled for Thursday. Powell will also testify to Congress in the afternoon. Mexico, Canada, and the European Union condemned U.S. president Donald Trump's Tuesday decision to impose duties on all steel imports and aluminium next month. This has sparked fears of a global trade war, as investors prepare for further announcements. Waterer stated that "the bullish trend in gold remains intact due to the uncertainty surrounding tariffs and the safe-haven flows that could continue to underpin the precious metal." Silver spot was unchanged at $31.83, platinum remained at $983.15, and palladium rose 0.3% to $978.75. (Reporting and editing by Rashmi aich and Subhranshu Sahu in Bengaluru.
Stocks rise, US yields gain ahead of inflation test
Investors reacted to the latest U.S. trade war and Federal Reserve Chairman Jerome Powell's message of a gradual path towards rate cuts.
The financial markets largely waited for the U.S. consumer price reading due later that day, which could provide a guide to the outlook of monetary policy in the country. This is particularly important as policymakers consider the inflationary impact Donald Trump's tariffs may have on the economy.
The U.S. president raised tariffs for steel and aluminum imports from 10% to 25% on Monday. He also eliminated product-specific exemptions and country exclusions.
Trump said that he would consider an exemption for Australia, and that the measures on steel and aluminium would only be in effect as of March 4. This keeps alive the possibility that these duties are being used to negotiate.
Mexico, Canada, and the European Union condemned the move on Tuesday, the EU saying that the 27-nation block would take "firm, proportionate countermeasures".
MSCI's broadest Asia-Pacific index outside Japan gained 0.32% following a mixed Wall Street session as gains by Coca-Cola, Apple and Tesla offset losses by Tesla.
Early Wednesday morning, EuroStoxx 50 futures rose 0.2% and FTSE futures declined 0.05%.
Nasdaq Futures rose 0.08%. S&P futures fell 0.02%.
Shier Lee Lim is the lead FX and macrostrategist for APAC, at Convera.
"Tariff developments are notable but have not yet significantly shifted sentiment as markets continue to be anchored by macroeconomic data and central bank guidance."
The Shanghai Composite Index fell 0.16%, and the CSI300 blue chip index in China dropped 0.29%.
Hong Kong's Hang Seng Index increased by 0.7%. Alibaba shares listed in Hong Kong surged by more than 5% following a report that the company is working with Apple to introduce artificial intelligence features on iPhones in China.
Japan's Nikkei gained 0.25% ahead of SoftBank Group results later that day.
Investors' attention now turns to Wednesday's latest consumer price reading, which will provide the latest information on Treasury yields.
The yield on the benchmark 10-year U.S. notes remained near a high of one week at 4.5332%. Meanwhile, the yield for two-year U.S. notes remained steady at 4.2917%.
The markets have slowly reduced expectations of a Fed rate cut this year. They expect the U.S. Central Bank to keep rates unchanged at its meetings in March and May.
Powell said on Tuesday that "we are in a good place" with the economy. He noted that the Fed is not in a hurry to cut interest rates, but stands ready to do so in the event of deterioration in the inflation rate or job market.
The dollar's tariff driven rally paused on Wednesday as it fell modestly against its major counterparts, except for the yen.
The euro rose 0.02% against the dollar to $1.0363 while the pound sterling rose 0.04% to $1.2451.
The Australian dollar increased 0.06% to $0.6199.
Helen Given, FX Trader at Monex USA Washington said: "We have seen a lot volatility coming off the headlines of tariffs in recent weeks."
But what we are seeing is that headlines and announcements do not necessarily indicate that tariffs will be imposed, or at least at the time we thought they would be.
The yen dropped more than 0.5%, to 153.35 dollars. Bank of Japan Governor Kazuo Ueda stated on Wednesday that the central bank would continue to conduct monetary policy in order to achieve its 2% target of inflation sustainably and steadily.
Brent crude fell 0.36% per barrel to $76.72. This is a retreat from recent highs, which were triggered by Russian and Iranian concerns about supply. U.S. crude also fell 0.41%, to $73.02 per barrel.
Spot gold was nearing a record at $2,894 per ounce.
(source: Reuters)