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Sources say that ADNOC, the UAE's LPG supplier, will supply US LPG in India after China and US tariffs.
Industry sources have confirmed that Abu Dhabi National Oil Company will begin replacing some of its liquefied gas supplies to India from June with cheaper U.S. cargoes, as U.S. China tariffs are reshaping global trade flows. ADNOC will be able to ship more LPG from its own production to China. Buyers in China are paying a higher price to replace U.S. supplies after Beijing raised tariffs on U.S. products. This move will also reduce LPG prices for India, which is the No. 2 importer. India imports more than 80% its LPG from the Middle East including Saudi Arabia and the United Arab Emirates. It also sources LPG through annual contracts with Qatar, Kuwait, and Qatar. In the first week of this month, Indian refiners asked Middle East suppliers for a very rare swap: some of their long-term supply was to be replaced with U.S. LPG. Sources said that Indian refiners requested U.S. LPG be delivered at a discount to the Middle Eastern benchmark Saudi Contract Price. ADNOC has, according to sources, agreed to supply U.S. LPG to refiners in India under annual contracts between June and July. They said that the U.S.-China conflict has widened price gaps between Middle Eastern LPG and U.S. LPG. One of the sources stated: "It's difficult to replace all volumes with U.S. LPG." LPG." June Goh is an analyst with Sparta Commodities. She said that India's LPG consumption is mostly for domestic purposes and therefore requires a higher percentage butane. She added, "India can therefore benefit from the diversion but not propane cargoes of U.S. LPG." ADNOC and Indian refiners Indian Oil Corp., Bharat Petroleum Corp. and Hindustan Petroleum Corp. did not respond to requests for comments. According to data from the government, India imported approximately 60% of its total LPG consumption in 2023/24. This equates to 29,66 million metric tonnes. Yousef SABA in Dubai contributed additional reporting; Florence Tan, Jan Harvey and Jan Harvey edited the article.
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Copper prices rise ahead of National Holiday due to China demand
The price of copper rose on Tuesday due to a combination of factors: a strong yuan, a high demand in China, which is the world's largest consumer, ahead of its holiday in May, and concerns over a tight supply of copper. The benchmark three-month copper price on the London Metal Exchange was up 0.9% at $9,458.50 a metric ton by 1019 GMT. However, it failed to overcome the resistance from its 50-day average of $9489. Arthur Parish, analyst at SP Angel, said: "We're seeing a trend in China of restocking ahead of the May Day holiday." The mainland China market will close on May 1 to celebrate a five-day Labour Day break. Yangshan Copper Premium The price of copper, which is a measure of the demand for imported copper into China, reached its highest level since December 2023 at $93 per tonne. This premium has increased by 6% since last Friday when official data revealed a weekly decline of 32% in copper inventories monitored by the Shanghai Futures Exchange. Alastair Munro is a senior base metals analyst at Marex. He said that the SHFE data for Wednesday will show a further decline. This topic, he added, would be crucial in May. Parish stated that "the restocking requirements were made worse after stocks were redirected to the U.S. from Asia amid the tariff-driven increase in COMEX premiums." Copper stocks in COMEX owned warehouses The Comex premium to the LME benchmark is unusually high at $1,443 per tonne, as Washington continues to investigate possible new U.S. Copper Import Tariffs. Spread between LME Cash Copper and the Three-Month Contract The premium was increased to $30 per ton, up from $16.5 just a week earlier. This indicates that the LME system is also experiencing a tightening of nearby supplies. According to the International Copper Study Group, the surplus on the global copper markets is expected to grow this year from 138,000 tons to 289,000 tons, and will continue next year. The Chinese yuan reached a new one-month high in relation to the dollar on February 2, providing additional support for Chinese purchasing activity. Other London metals saw aluminium rise 1.3% to $2.465 per ton, while zinc rose 1.2% to 2.663, lead increased 0.2% to 1.970, and tin rose 0.5% to 32,155. Nickel fell 0.1% to 15.595. (Reporting and editing by Freya Whiworth; Polina Devitt)
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Burkina Faso will nationalise additional industrial mines: PM
Burkina Faso intends to take over more industrial mines owned by foreign companies, said its Prime Minister, as it seeks to increase its revenue from its natural resources. Burkina Faso, like its neighbours Mali, Niger and Mali, is seeking greater control over their resources. Last year, it revised its mining code and created a new mining company for the state, Societe De Participation Miniere Du Burkina (SOPAMIB). In a late-last-year deal, it used SOPAMIB in order to take control of two industrial mines that were previously owned by Endeavour Mining, a London listed company. In a late-night broadcast of a national television speech, the Prime Minister Jean Emmanuel Ouedraogo announced that the government intended to expand its control over resources. He said that "SOPAMIB had already recovered two mines industrial, Boungou and Wahgnion. This will continue." Investors are worried about the reforms in the mining sector. Burkina Faso’s military-led Government says that changes are needed to maximize revenue and relaunch an economy affected by insecurity. The price of gold has risen over 25% in the past year due to geopolitical unrest and President Donald Trump’s unpredictable trade policies. Burkina Faso has been fighting jihadist militants in the country since 2015. In 2023, it produced more than 57 tons. There are mining companies such as West African Resources Ltd. and IAMGOLD, both of Australia. The new mining code gives priority to national expertise and local providers, as part of a government-led revolution in the way its mineral wealth is managed. Burkina Faso has shifted its focus to Russia in order to increase economic and security cooperation. It granted a licence for industrial mining to Russian miner Nordgold last week. The project is a gold one in the Kourweogo Province of Burkina’s Plateau-Central Region. Ouedraogo stated that existing state-controlled mines have been successful. The National Precious Substances Company collected over eight tons gold in 2024, and more than eleven tons in the first three months of this year. This was primarily due to artisanal mining. He added that the government will also establish a national reserve of gold for the first ever time in its history. He said, "We need to see the benefits of mining and not just the negative effects on the Burkinabe population." (Writing and editing by Maxwell Akalaare Adombila, Louise Heavens, Joe Bavier and Jessica Donati)
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Afreximbank launches $3 billion credit line to reduce Africa's fuel imports
African Export-Import Bank launched a $3 billion revolving line of credit that will allow African and Caribbean buyers easier access to petrol, jet fuel, diesel and other products produced by refineries in the continent. It said that the bank expected the facility to provide trade finance of $10-14 billion over the first three years, and to help reduce the region's $30?billion fuel import bill. This year, both oil-exporting and import-dependent countries have seen their economies shook by the sharp drop in crude prices as well as a rise in freight costs. Brent crude has fallen more than 20% in price since mid-January, mainly due to supply dynamics and fears of a global trade conflict. Insurance costs for ships that use the Red Sea are also on the rise. This is because U.S. Airstrikes in Yemen, which were prompted by renewed Houthi attack, have increased hundreds of thousands of dollar to a typical cargo of fuel. By securing bank credit and shifting purchases to refineries nearby, governments can reduce the shock budgets from external swings. The Revolving intra-African oil Import Financing Program is the result of Afreximbank’s recent efforts to increase regional processing capacity. The Cairo-based lender is the largest financier of Nigeria's 650,000-barrel-per-day Dangote refinery. The lender has also helped revamp Nigeria's Port Harcourt Oil Complex and is currently arranging financing for plants in Angola, Ivory Coast and Angola. The ventures that could be added to the 1.3? million? Refinery capacity in bpd. In a Monday statement, Afreximbank's President Benedict Oramah stated that the programme would galvanize efforts to make the Gulf of Guinea an important refining hub. Afreximbank issues or confirms letters of credit and discount trade instruments, and provides advances to energy ministry, state fuel importers, and private traders who buy from African refineries. The credit line is also a test bed for the African Continental Free Trade Area (ACFTA), which aims to increase regional trade and industrialisation. Afreximbank is also a controlling shareholder in Atmin, which was founded by ex-Shell oil traders with a focus on African oil trade, according to two trading sources.
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Utility Entergy exceeds profit estimates on the back of growing demand for power and lower costs
Entergy, a U.S. utility company, surpassed analysts' estimates for the first-quarter profits on Tuesday thanks to strong demand for electricity and lower costs. The U.S. Energy Information Administration predicts that power consumption will reach new records in 2025 and in 2026. This is due to the rapid expansion of data centres dedicated to artificial intelligence, cryptocurrency and home and business use more electricity to heat and transport. According to a study backed by the Department of Energy, power demand for U.S. data centres is expected to triple by 2028. This could use up to 12% of all electricity in the country. Residential sales at Entergy increased 13.2%, to 8,784 gigawatt hours (GWh), while industrial sales grew 9%, to 13,833 GWh. Entergy supplies electricity to almost 3 million customers in Arkansas, Louisiana and Texas. According to data compiled and analyzed by LSEG, the New Orleans-based Louisiana company reported an adjusted profit per share of 82 cents for the three-month period ended March 31. This compares with an average analyst estimate of 69cents per share. Its total revenue increased by nearly 2%, to $2.85 Billion during this period. This was mainly due to higher sales of electric and natural gases. Total operating costs fell by 16%, to $2.15 Billion. The company reaffirmed that its adjusted profit forecast for 2025 is $3.75 to 3.95 per share. Analysts predict that Entergy will post a profit of $3.87 per share. Reporting by Vallari Shrivastava, Bengaluru. Editing by Shilpa Majumdar.
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Finland's Fortum rejects a return to Russia and continues to pursue Uniper assets
Fortum, the Finnish utility, has announced that it will not be returning to Russia, but is still interested in purchasing the Nordic assets from its former German subsidiary Uniper. This announcement came after Fortum beat market expectations with its first-quarter profit. Since the Russian authorities seized Fortum and Uniper's Russian assets in response to Western sanctions for Russia's 2022 invasion of Ukraine, they have been managed by executives from Moscow. Markus Rauramo, Fortum's CEO, ruled out any return to Russia if the war were to end. He also said that the arbitration process regarding the Russian seizure was still ongoing. The company is also directly claiming the unpaid loans and interests from its former Russia division. He said that if the control of the shares could be obtained, they would be able to be sold. Fortum lost control of Uniper in the 2022 European energy crisis sparked by the invasion of Ukraine when the German government bailed it out. Berlin now plans to sell it. "Previously, the German Government was looking at an IPO for Uniper as they needed to reduce their shares to under 25% by 2028. Now they've commissioned advisors to examine the possibility of a bilateral sales," Rauramo explained. Fortum, a company that produces electricity and heat from hydroelectric and nuclear power plants in the Nordics, Poland and other countries, still holds a first right offer on Uniper's Nordic assets. Rauramo stated that "we continue to be interested" in nuclear, hydro and renewable assets. But for all these, the logic is the same - we examine our balance sheet and our return target. Rauramo also mentioned Poland as an additional potential growth market. He said that Poland is one of Europe's largest and fastest-growing markets, but it must decarbonise. Fortum's first-quarter comparable operating profits fell less than expected to 462 millions euros ($526million) from 530 millions a year ago, thanks to an improved performance in the power generation sector. In a poll commissioned by the company, 14 analysts predicted an average of 364 million euro. Nordic power prices were lower in the first three months of this year due to a milder winter. Fortum has raised its forecast for 2025 for the optimisation premium that is included in the achieved electricity price for its portfolio of generation to 7 to 9, euros per megawatt hour from 6-8, euros per MWh. In Helsinki, its shares rose 4% at midday.
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Mombak, a Brazilian startup that specializes in reforestation, raises $30 Million through a USV-led round
The Brazilian reforestation company Mombak announced on Tuesday that it had secured $30 million from venture capital firm Union Square Ventures. This is another indication of the growing interest among investors in Brazil's carbon-removal sector. Mombak is a pioneer in this new industry. It restores farmland and pastures to Amazon rainforest using native species, and then sells carbon credits to companies that want to offset their greenhouse gas emission. Mombak stated that the latest Series A round included existing investors Kaszek and Bain Capital, as well as AXA's AXA IM Alts. Also, new investors Lowercarbon Capital, and Copa Investimentos were also present. The funds will be used to expand business operations. Mombak has already planted native trees in 45,000 acres of land under its management, an area that is three times larger than Manhattan. The company hopes to have 8 million trees in place by June. "We're moving from startup to scaling-up." "We decided that it was time for a new round of capital to invest in the new phase, which is to take our original business and do it on a larger scale," Mombak's co-founder Gabriel Silva said. Fundraising is the latest indication of increasing activity in Brazil's industry for carbon removal. Startups such as Biomas, founded by blue-chip companies, and re.green, backed by billionaire Joao Salles have also launched major projects recently. This sector has been attracting firms like Alphabet, Microsoft, Facebook's Meta, and McLaren Racing. All of these companies have signed agreements to purchase carbon credits from Brazilian projects. Mombak has signed contracts for carbon offtake worth $150 million and expects this volume to increase up to four-fold in the coming year. Since its founding in 2021, the startup has received around $200 million in investment. Andy Weissman, managing partner of USV, said: "We think that carbon removal is going to be a defining industry of the 21st Century." "We are proud to support Mombak in its mission to transform the Amazon into a world-class engine of climate restoration." (Reporting and editing by David Gregorio; Gabriel Araujo)
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Vattenfall CEO: Rising tariffs may curb European electricity demand
The CEO of Swedish utility Vattenfall said on Tuesday that the uncertainty caused by trade tariffs may slow down growth in Europe's energy demand as companies stop investing in new factories. Trade barriers are the most significant threat to large industrial clients who operate on global markets. Vattenfall CEO Anna Borg commented on the first-quarter results. The company reported a underlying profit of 8.5 billion Swedish Crowns ($886.4 Million) from January to March. This is down 21% compared to 10.7 billion crowns the year before. The company said that underlying earnings were boosted last year by sales of offshore wind assets and heating. Borg stated that "even though it is a quarter of great turbulence, there are many comparable items in our results which show a stable performance." She added that there may be room for negotiation when it comes to its own investment projects, as fewer projects have been built in comparison with projections from a few year ago. Vattenfall made its final investment decision in March for the German Nordlicht 1 & 2 wind farm project. This included buying back 49% of the German BASF stake and agreeing to a long-term contract with the chemicals company. Borg stated that the project was a good one for the market, where there will be a need for more fossil-free energy in all types of industries. She added that Vattenfall does not have any immediate plans to look for a new investor. $1 = 9.5896 Swedish Crowns (Reporting and editing by Terje Sollsvik, Susan Fenton).
Dollar steadies as US auto tariffs are lifted, but stocks fall
The dollar and stocks both edged up on Tuesday, as the Trump administration softened some tariffs in response to automakers' pressure. This comes ahead of an important week for economic data.
Officials said that the U.S. will take steps to reduce the impact on domestically produced cars of foreign parts, and prevent tariffs on imported cars from piling up.
The European and S&P500 futures both rose by 0.1%. However, the gains were not significant as China's levies remain high.
The Asia session was slowed by a public holiday in Japan. However, the U.S. Dollar rose broadly, even against the Canadian dollar which fell a bit. Mark Carney's Liberals won Monday's elections in Canada, but they fell short of a majority government.
The dollar is still struggling to recover from its recent losses, despite some rollbacks on Trump's tariffs.
The euro is on track to have its biggest monthly gain against the dollar since nearly three years. Meanwhile, the greenback has seen the most significant drop in the Swiss franc in the past decade, with a 6.7% decline.
The markets were affected overnight by the statement made by U.S. Treasury Sec. Scott Bessent to CNBC that it was up to China to "de-escalate" its tariffs. There are also growing concerns about permanent damage to supply chains if there is no breakthrough.
China has made some concessions, but has not yet introduced any stimulus measures. They are hoping that Washington will blink first.
Hong Kong's Hang Seng index rose 0.3% during afternoon trading, while the blue-chip index on mainland China fell 0.2%.
J.P. Morgan analysts stated in a report that the first-quarter U.S. jobs and GDP figures for April are expected to be boosted by purchases made in advance to avoid new taxes. However, a decline in China shipments indicates a reckoning could be coming soon.
The analysts warned that "the clock is ticking" on the hard data resilience. They highlighted a 42% drop in China's shipments to the U.S. from peak to trough in the last 10 days. This, if it continues, would have a ripple effect throughout supply chains.
"A worrying decoupling between U.S. and China trade appears to be underway. We expect the damage will increase in coming weeks and month."
In addition to the U.S., Europe will be reporting inflation data starting with Spain and Belgium on Tuesday. They will also report major corporate earnings.
BP, Adidas Coca-Cola General Motors, Visa and Coca-Cola are all due to release their earnings reports on Tuesday, while Apple, Microsoft Amazon, Meta Platforms, and Meta Platforms will report at the end of this week.
Gold fell 1%, to $3305 per ounce. Brent crude fell 1% to $65.21 per barrel.
Treasuries were not traded in Asia, leaving benchmark 10-year yields unchanged at 4,206%. Futures prices remained largely stable.
(source: Reuters)