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China's State Asset Regulator will support companies with share buybacks
China's regulator for state assets announced on Tuesday that it would help central government-owned firms increase their stock holdings, and buy back shares to reduce the impact of a escalating trade war in the world on the stock market. Sinopec and other state-owned Chinese companies have announced plans to purchase shares in order to boost investor confidence. In a press release, the government's Assets Supervision and Administration Commission will guide state-owned companies and their listed subsidiaries in order to protect the rights and interest of shareholders and consolidate market confidence in listed firms. The U.S. President Donald Trump imposed additional tariffs on Chinese goods of 34% last week as part of the steep levies that were imposed against most U.S. trading partners. This brings the total tariffs on China for this year to 54%, and sends global stock markets into a tailspin. In response, the Chinese government has increased its efforts to protect its economy from the turmoil on global markets. Trump also threatened to impose an additional 50% tariff on Chinese goods if China did not remove the 34% levies it announced on U.S. products last week. The benchmark Shanghai Composite Index in China edged upwards on Tuesday after plummeting by more than 7% just the day before. (Reporting and editing by Farah master and Yukun zhang; Rachna uppal)
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Asian stocks are up, and so are major Gulf markets.
The major Gulf stock markets rose early on Tuesday following gains in Asian stocks, recovering from a global selling off on hopes that the United States would be willing to negotiate its high import tariffs. Saudi Arabia's benchmark Index advanced 2% on track to extend gains made in the previous session. This was led by Al Rajhi Bank's 2.3% increase and Saudi National Bank's 2.1% rise. Saudi Aramco, the oil giant, rose by 1.2%. The Saudi index fell 6.8% on Sunday, its largest one-day drop since the beginning of the COVID-19 Pandemic in 2020. A survey revealed that the non-oil sector of the private sector in the Kingdom grew rapidly during March, with new orders being boosted by the lower prices and improving economic conditions. However, the rate of growth has slowed down from the near-14-year-high reached in January. Dubai's main stock index rose 1.9%. Blue-chip developer Emaar Properties rose 1.7%, and sharia compliant lender Dubai Islamic Bank jumped 2.4%. In Abu Dhabi the index rose by 1.3%. Oil prices, a key catalyst for Gulf financial markets, were up about 1%. They had fallen to a four-year low the previous session, on fears that U.S. Tariffs could depress demand, leading to a recession worldwide. Analysts warned, however, that downside risks still remain. Qatar National Bank, the largest lender in the Gulf, increased 2.8%.
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Saudi's Ma'aden weighs foreign partner for minerals processing pact
Three sources familiar with the matter have confirmed that Saudi Arabia's Ma'aden, the country's largest mining company, is looking at forming a rare-earths processing partnership. The kingdom wants to be a global hub for critical minerals. Sources said Ma'aden was considering a partnership with MP Materials in the United States, China's Shenghe Resources or Australia's Lynas rare earths, as well as Canada's Neo Performance Materials. According to sources who weren't authorized to speak publicly about the discussions, Ma'aden intends to select at least one partner before the end of the month to assist in developing plans for a rare-earths processing facility, and ultimately a magnet plant, within the kingdom. Details of the selection process have never been revealed before, but it shows how minerals processing has become a necessity in tech-focused countries that want to build their own building block for artificial intelligence, electrical vehicles, and other sectors. Saudi Arabia's mining industry has grown rapidly and is an important part of Crown Prince Mohammed Bin Salman’s Vision 2030 plan to diversify Saudi Arabia's economy. The country and its mining companies are looking at projects to mine and refine minerals such as lithium, copper and zinc, which is used to produce magnets for electric vehicles, cell phones, and other devices. Ma'aden MP and Ma'aden declined to comment. Shenghe and Neo didn't respond to comments. Lynas stated that it was focused on rare-earths processing projects in Australia and Malaysia, as well as the United States. It also said that it "regularly held discussions with emerging rare-earths companies around the globe." Ma'aden and the selected partner will then study the best way to mine and process Saudi Arabia’s vast reserves of rare earth minerals. This is expected to be completed by December this year, according to one source. Shenghe, Neo, and MP have the most expertise in rare earths processing, and magnet production. However, MP is working to increase both within the United States. Lynas refines rare earths and processes them in Malaysia. Scientists are pushing for better processes to refine rare Earths because the standard method can be messy, expensive, and time-consuming. The geology of a rare earth deposit can lead to 17 different metals that are all nearly the same size, atomic weight and density, which makes separation difficult. These rare earths have to be separated in a certain order. This is a challenge for Ma'aden or any potential partner, as it would make it impossible to pick and choose the elements that they want. MP, who supplies Shenghe rare earths for processing in China from its California mine, invested with Shenghe 2023 in a Vietnamese facility to process rare earths. Both companies announced earlier this year that they intended to dissolve their partnership. CHINA'S UPPER HANDS According to the International Energy Agency, China began rapidly expanding the industry in the 1980s. It now controls almost 90% of the global capacity for rare earths refinement. Since 2023, geologists from the China Geological Survey, a state-controlled organization in China have been mapping Saudi Arabia's minerals reserves. China's mineral prowess has helped propel its economy to second place in the world. The U.S., among others, have acknowledged this and are trying to change it, particularly after Beijing banned exports of rare earths technology processing in 2023. Beijing imposed export restrictions last week on rare earths as well as magnets and finished products. Last month, U.S. president Donald Trump invoked his wartime powers in order to boost American metals refinery. Saudi officials nearly doubled last year their estimate of the kingdom's mineral reserves, bringing it to $2.5 trillion. This increase was largely due the additions of rare earths. According to one source, Riyadh wants to process the rare earths into a form which can be used for electronics in the Kingdom and doesn't want the supply chain exported anywhere else. BROAD INVESTMENTS This is just one of Riyadh’s recent efforts to enter the minerals supply chain. Global Supply Chain Resilience Initiative is a government program that falls under the National Investment Strategy of Saudi Arabia. Last November, it announced plans to invest 35 billion Riyals ($9.32 billion), in copper refineries and smelters from India's Vedanta, and a zinc-smelter by China's Zijin. Saudi Arabia's sovereign fund is the biggest shareholder in California-based EV maker Lucid. In 2023, Lucid will open its first factory outside of the U.S. Hastings Technology Metals, based in Australia, has signed a memorandum-of-understanding with the National Investment Strategy to explore a rare earths facility. Last year, Critical Metals of the United States signed a MOU that was non-binding to explore construction of a Lithium refinery in Saudi Arabia. The company is based in Riyadh. Ma'aden - a company controlled by the Saudi wealth funds - announced in May that it had extracted lithium from seawater. It is now working on making the process commercially feasible. Reporting by Ernest Scheyder and Clara Denina; Editing by Veronica Brown, Nik Williams and Nita Williams
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TASS cites the head of Russia's central bank as saying that a fall in oil prices is a risk to the economy.
Elvira Nabibullina, governor of the Russian central bank, was quoted by the state news agency TASS as saying that the sharp drop in oil prices caused by Donald Trump's tariffs is a threat to the Russian economy. She was quoted saying that she was analyzing the fallout with the central bank, but that a technical rule for budgeting would help to smoothen the effects on the budget. Brent and WTI prices had fallen by 14% and 15 % respectively on Monday following Trump's announcement of "reciprocal duties" on all imported goods. "You're absolutely right, the main influence could be via changes in oil price. Specifically a reduction in oil price," Nabiullina told members of the Russian lower chamber of parliament. She said that if tariff wars continue to escalate, they will lead to a decrease in global trade and the global economy. They may even reduce the demand for energy. Last week, the central bank stated that U.S. Tariff hikes could slow global economic growth and fuel inflation. Oil prices may also be lower than expected for several years due to reduced demand globally. The central bank predicts that the average price of oil will be $60 per barrel by 2026 and $65 per barrel in 2025. The central bank's board will review the forecasts on April 25, 2019. Reporting by Elena Fabrichnaya; writing by Gleb Brianski; editing by Andrew Osborn
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Dalian iron ore falls to a five-month low due to Sino-US tariff tensions
Iron ore futures declined for a third consecutive session on Tuesday, as the escalating tensions in trade between the U.S. The price of the most traded May iron ore contract at China's Dalian Commodity Exchange dropped by 3.15%, finishing at 738.5 Yuan ($100.73). In the early part of the session, the prices reached 735.5 Yuan, their lowest level since November 19, 2024. As of 0704 GMT, the benchmark May iron ore traded on Singapore Exchange had fallen 3.14% to $94.55 per ton. Atilla Wiednell, Navigate Commodities' managing director, said that iron ore futures had unsurprisingly responded to the tit-fortat trade measures taken by the two world superpowers. Beijing The Chinese government has vowed to fight to the bitter end, rejecting requests to remove its 34% tariffs on U.S. imported goods after President Donald Trump of the United States threatened to impose an additional 50% duty. If imposed, the new levy could bring total U.S. tariffs on Chinese products to 104%. Hexun Futures, a broker, says that the global outlook has fallen, and the higher than expected U.S. Tariffs could affect steel demand in the manufacturing sector. According to data collected by Chinese consultancy Mysteel, the total production of iron ore concentrations in domestic mining companies reached a new high. Coking coal and coke, which are used to make steel, also fell, by 4.68% and 40.88% respectively. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar dropped nearly 1.3%; hot-rolled coils fell 1.9%; stainless steel declined 1.2%; and wire rod was flat. Widnell said that the latest escalation of U.S. initiated trade measures increases the likelihood of China releasing further stimuli. $1 = 7.3316 Chinese Yuan (Reporting and editing by Sherry Jab-Phillips, Sumana Nady).
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Tronchetti Provera: Sinochem's share in Pirelli is affecting the US business of the company
Marco Tronchetti Provera, executive vice chairman of the Italian tyremaker, said that Pirelli has difficulty investing in the United States as its largest shareholder is China’s state-owned Sinochem in a newspaper article on Tuesday. Pirelli's Chinese shareholders and Italian investors are in disagreement over the group's management as Washington clamps down on Chinese tech in the auto industry by banning software and hardware. Tronchetti Provera, a journalist for the Italian newspaper La Repubblica, said that Sinochem's stake of 37% had been a problem when Pirelli was negotiating with local authorities about doing business in Alabama and Virginia. "Now, we are negotiating in Georgia, where there is already a factory and objections have been raised once again," said Tronchetti, Provera who was Pirelli CEO from 1980 to 2022. Tronchetti said that he believed an agreement could be reached between Sinochem and the U.S. to address their concerns. He said, "We will find ways to comply with American law in the interest of Pirelli." It is too important for us to not be able play on an equal playing field with our competition. (Reporting and editing by David Goodman, Jamie Freed, and Gavin Jones)
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Wall Street Journal, April 8,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. PNC Financial Services Group appointed Mark Wiedman, a former BlackRock executive, as its president on Monday. Apple intends to send more iPhones from India to the U.S. to offset the high tariffs on China, according to people familiar with the situation. According to a memo by Chief Executive Tobi Lutze, Shopify will not hire new employees unless their managers can prove that artificial intelligence cannot do the job. Iran's Foreign Minister Abbas Araqchi announced on Tuesday that the United States and Iran will hold indirect high-level discussions in Oman on 12 April. The President Donald Trump directed on Monday a U.S. National Security Panel to take another look at Nippon Steel’s bid to acquire U.S. Steel in order to determine whether "further actions" are appropriate. This has raised hopes that this deal may finally get the green light. The Supreme Court, with a 5-4 vote, lifted an order from a judge that blocked the deportation to a Salvadoran jail of suspected Venezuelan gangsters. It also granted the Trump Administration's request for expedited removals in accordance with the 18th century Alien Enemies Act.
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Austria's OMV expects a petrochemicals joint venture to boost its Q1 earnings
OMV, Austria's oil and gas group, said that it expects its first-quarter results to be boosted by the merger of Borealis and Borouge with ADNOC. Abu Dhabi National Oil Company (ADNOC) and OMV agreed last month to merge their polyolefin business to create Borouge Group International. The new company will have a $60 billion enterprise valuation. Vienna-based company stated that the positive impact of its clean operating results would be a mid-double digit million euro range for the first quarter compared to the final three months in 2024. 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 stated that the future impact of the depreciation stopping on the clean operating results will be approximately 140 million euros (153.47 millions) per quarter. The company said that it also recorded higher average energy costs in the first three months, driven by an increase of nearly 25% in its average realized natural gas price. The average realized crude oil price increased by 1.25%, to $72.8 per barrel.
Russell: Imports from Asia in Q1 were lower than expected, indicating a slump in demand for crude oil.
Crude oil prices have fallen in response to President Donald Trump's disruption of global trade.
The shock of Trump's new tariffs masks a weakness that existed in demand, which was reflected in soft imports during the first quarter of the year in Asia, where crude oil is the most popularly purchased region in the world.
According to LSEG Oil Research, Asia imported 26.44 millions barrels of crude per day in the first quarter. This is down from 27.08million bpd in 2024.
The drop in imports is in contrast to the forecasts of groups like the Organization of the Petroleum Exporting Countries and the International Energy Agency, which predict that Asia will be the leading region for global oil demand in 2025.
There is one silver lining to Asia's first-quarter imports. They did show signs that they were recovering in March.
According to LSEG, the region imported 27,39 million bpd during March. This is up from 25,44 million bpd for February, and in line with 27.33 millions bpd of March last year.
China, the largest crude importer in the world, led the recovery with seaborne arrivals at 10,14 million bpd. This was the highest level for three months.
The addition of pipeline imports brings China's total crude oil arrivals to 11,04 million bpd in March, which is higher than the 10.42 millions bpd during the first two months, but below the 11.6million bpd registered for March 2024.
Why did China and the rest of Asia import more crude oil in March 2025 than they did in the first two month of 2025?
Refiners are restocking their inventories following planned maintenance, and before the seasonal increase in demand that occurs as the Northern Hemisphere's winter ends.
Price is the key
The most important factor, however, was probably the price. Most of the cargoes arriving in March were arranged during a period when crude oil prices worldwide were on a downward trend.
Brent crude futures, the global benchmark, reached a six-month peak of $82.63 per barrel on January 15 before beginning a decline to a low price of $68.33 on March 5.
The trend in lower prices was likely to have prompted refiners, particularly since Chinese refiners may have built up some stocks during the first two months.
According to calculations based off official data, China's refiners have processed about 30,000 barrels of crude per day more than was available in January and February.
China does not reveal the volume of crude oil flowing in or out of its strategic and commercial stockspiles. However, an estimate can still be made by subtracting the amount processed from the total crude oil available from both imports and domestic production.
The dynamics of drawing down inventories will likely reverse in March, as lower crude encourages more purchasing.
Oil markets are wondering if the higher imports seen in Asia in March will continue, given that crude oil prices have rallied since their low point in early March until April 2, when Trump announced his global tariff war.
Brent reached $75.47 per barrel on April 2. However, even if Asian buyers were reducing their purchases, the impact will be seen in imports only in May and/or June.
Will the drop in oil prices since last week lead to higher imports from Asia starting in June?
Brent fell to $63.01 per barrel during early Asian trade on Monday. This is the lowest price in over four years. It has also lost 16.5% from its high, before Trump announced blanket tariffs against virtually all countries, except Russia.
The sharp fall in oil prices was also a result of the OPEC+ exporters' decision to increase production by a greater than expected 411,000 bpd during May.
The main concern is the impact that tariffs will have on the global economy and, therefore, fuel consumption.
Even a sharply reduced price may not be sufficient to increase Asian demand for crude oil in the coming months.
These are the views of the columnist, an author for.
(source: Reuters)