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Fuel producers can challenge California emission standards in US Supreme Court
The U.S. Supreme Court agreed on Friday that the legal challenge against California's vehicle emission standards and electric cars, under a federal law on air pollution, should not have been dismissed. In a 7-2 decision, the justices overturned a lower-court's dismissal of a lawsuit filed by a Valero Energy affiliate and groups from the fuel industry. The lower court concluded that plaintiffs did not have the legal standing required to challenge the 2022 U.S. Environmental Protection Agency's decision to allow California to set its own regulation. The majority wrote: "The government cannot target an industry or business through a stringent, allegedly illegal regulation and then avoid the lawsuits that result by claiming the targeted businesses and industries should be excluded from court as bystanders who are not affected by the regulation." Liberal Justices Sonia Sotomayor, Ketanji Jackson and Ketanji brown Jackson were dissidents from the ruling. The dispute revolved around an exception given to California under former Democratic President Joe Biden’s administration in relation to the national vehicle emissions standards set by the agency pursuant to the landmark Clean Air Act. California can set regulations that are more stringent than federal standards, even though states and municipalities generally are preempted by the preemption rule. The EPA action in 2022 reinstated a California waiver to set its tailpipe emission limits and mandate zero-emission vehicles through 2025. This reversed a decision taken during Republican President Donald Trump’s first administration rescinding this waiver. Valero Diamond Alternative Energy, along with other groups, challenged the reinstatement California's waiver. They argued that the decision exceeded EPA's authority under the Clean Air Act. It also hurt their bottom line because it lowered demand for liquid fuels. The U.S. Court of Appeals, District of Columbia Circuit, dismissed the lawsuit in 2024. They found that the challengers lacked standing to make their claims as there was no proof that a decision in their favor would affect auto manufacturer decisions in a manner that could result in fewer combustion and more electric vehicles being sold. California, the largest state in the United States, has been granted more than 100 Clean Air Act waivers. In recent years, the Supreme Court has, with its conservative majority of 6-3, taken a sceptical view towards the broad authority granted to federal regulatory agencies. It has also restricted the power of the EPA through some significant rulings. The court blocked in 2024 the EPA "Good Neighbor Rule" aimed at reducing ozone emission that could worsen air pollution for neighboring states. The court weakened the EPA’s ability to protect wetlands, and combat water pollution in 2023. In 2022 it limited the agency's ability to reduce carbon emissions from coal and gas-fired plants under the Clean Air Act.
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Fuel producers can challenge California emission standards in US Supreme Court
The U.S. Supreme Court agreed on Friday that the legal challenge against California's vehicle emission standards and electric cars, under a federal law on air pollution, should not have been dismissed. In a 7-2 decision, the justices overturned a lower-court's dismissal of a lawsuit filed by a Valero Energy affiliate and groups from the fuel industry. The lower court concluded that plaintiffs did not have the legal standing required to challenge the 2022 U.S. Environmental Protection Agency's decision to allow California to set its own regulation. The dispute revolved around an exception given to California under former Democratic President Joe Biden’s administration in relation to the national vehicle emissions standards set by the agency pursuant to the landmark Clean Air Act. California can set regulations that are more stringent than federal standards, even though states and municipalities generally are preempted by the federal government. The EPA action in 2022 reinstated a California waiver to set its tailpipe emission limits and mandate zero-emission vehicles through 2025. This reverses a decision taken during Republican President Donald Trump’s first administration rescinding this waiver. Valero Diamond Alternative Energy, along with other groups, challenged the reinstatement California's waiver. They argued that the decision exceeded EPA's authority under the Clean Air Act. It also hurt their bottom line because it lowered demand for liquid fuels. The U.S. Court of Appeals, District of Columbia Circuit, dismissed the lawsuit in 2024. They found that the challengers lacked standing to make their claims as there was no proof that a decision in their favor would affect auto manufacturer decisions in a manner that could result in fewer combustion and more electric vehicles being sold. California, the largest state in the United States, has been granted more than 100 Clean Air Act waivers. In recent years, the Supreme Court has a conservative majority of 6-3 and has a sceptical view towards the broad powers granted to federal regulatory agencies. The court ruled that the EPA "Good Neighbor Rule" was invalidated in 2024. This rule was designed to reduce ozone emission levels, which could worsen air pollution for neighboring states. The court weakened the EPA’s ability to protect wetlands, and combat water pollution in 2023. In 2022 it limited the EPA's authority to reduce carbon emissions from coal and gas-fired plants under the Clean Air Act.
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The Financial Times reports that Apollo will fund $6 billion of the UK's Hinkley Point Nuclear Project.
The Financial Times reported Friday that the U.S. private-equity group Apollo Global would provide 4.5 billion pounds (6.08 billion dollars) of financing to help Britain complete its long-delayed Hinkley Point Nuclear Project. This was based on information from people who are familiar with the project. The project is controlled and funded by French power giant EDF. It's the first new nuclear reactor in Britain for more than 20 years. London wants to replace its aging fleet to improve energy security, achieve climate targets, and create new job opportunities. Apollo refused to comment on the FT article, while Britain's Energy Department, as well as EDF - who runs Europe's biggest nuclear fleet - did not respond immediately to requests for comments. Hinkley has experienced several delays and cost increases, particularly after China General Nuclear Power Group withdrew in 2023. The project is expected to begin operations in 2029 at a cost estimated between 31 billion pounds and 34 billion pounds, based on 2015 prices. The report stated that the funding would be given as unsecured debt with an interest rate just below 7%. It also said it could be used by EDF for other projects, but Hinkley Point is the main target. The British government announced last week that it will invest an additional 14,2 billion pounds in the construction of the Sizewell C Nuclear Plant in southeast England. This is the second major nuclear project to be undertaken by the country.
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Andy Home: Copper smelters face both market and price crises
Copper smelters have become so desperate for raw materials that they pay miners to convert their concentrates into refined copper. The so-called treatment-and-refining-charges (TCRC) are supposed to be a major revenue source for copper smelters, but the spot charges have been in the negative since the beginning of the year. The copper bull narrative is that there are too few mines. However, the current collapse in processing fees can be attributed to too many smelters and too much demand. The imbalance is unsustainable, especially if the smelters accept to pay a negative amount for the mid-year discussions, which established the price for volumes much higher than those on the spot market. Copper industry pricing concentrations that are done annually or semi-annually is also unsustainable. ACID LIFELINE Smelters can rejoice that spot treatment costs have stopped dropping. Benchmark Mineral Intelligence reports that spot treatment charges have not done more than stabilize at $-45 a ton and -4.5 cents a pound. Smelters who chose to lock-in tonnages for the entire year are partially protected, but this year's benchmark term of $21.5 per tonne was also the lowest since at least 20 years. Mid-year negotiations are likely to produce a lower result, but smelters may balk at locking in a TCRC that is negative for contracts which could extend into 2026. The smelters are able to survive financially by producing valuable by-products, such as silver and gold. Smelters also produce sulphuric acids, which are in high demand in China due to the phosphate fertiliser industry. Copper should be the main source of revenue for a copper smelter, but that is not what we are seeing. Too Many Smelters The mines are not denying that production has increased. According to the International Copper Study Group, global output increased by 2.1% in 2020, 2.8% by 2024, and another 1.2% by the first quarter this year. China's copper concentrate imports are on the rise. They reached a record 28.2 millions tons of bulk weight in 2018 and grew 7.5% from year to year during the first four month of 2025. The problem is that Chinese smelting capacities have been brought online too quickly, and newcomers are chasing the available tonnage. The scrap is an alternative source of feed for some, but the market is becoming more competitive and Chinese imports are flat this year compared to 2024. In China's refined metal production, the rapid expansion of processing capacity can be seen. According to the National Bureau of Statistics, May's output increased by 14% compared to last year. Shanghai Metal Market, a local data provider, estimates that production has increased by 11% this year compared to 2024. Several Western smelters are already closing due to the squeeze on margins. In February, Glencore put its Pasar smelter located in the Philippines into care and maintenance. Sinomine has done the same at its Tsumeb facility in Namibia. Chinese operators appear to be intensifying their efforts in what is a strategy of the last man standing. BREAKING POINT China's increased smelting capability will not allow the world's mines to increase their collective output to the same extent. The raw materials supply chain will only get more stressed as new smelters are built in Indonesia. This will end the country's position as a major supplier of concentrates to Asian smelters. It is inevitable that something will give, especially since the Chinese copper market demand is expected cool down due to the reduction of subsidies in the solar panel industry. It could be some time before more capacity is closed to correct the current imbalance between supply and demand. This puts more pressure on the price-discovery process in the industry, which is still based on annual deals. In China, there has been a move towards quarterly and spot pricing. Smelters have learned that a negative annual price can be a serious problem. A mid-year negative deal is a bad precedent. Iron ore markets, for example, have shifted away from annual benchmarks that could not capture price volatility on the spot or sudden changes in supply dynamics. CME contracts are now available for the hedge of lithium, a commodity that is widely perceived to be too unique to trade on standardised futures. Copper smelters may need to rethink their pricing strategy in the processing chain. They are literally handing money to miners. The author is a columnist at
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Pakistan signs $4.5 Billion Loans with Local Banks to Reduce Power Sector Debt
Officials from the Pakistani government announced on Friday that 18 commercial banks had signed term sheets for an Islamic finance facility worth 1.275 trillion Pakistani Rupees ($4.50 billion), to help reduce debts in the power sector. The government, who owns or controls most of the infrastructure for power, is struggling with a ballooning "circular" debt, unpaid bills, and subsidies that have weighed down the sector and the economy. The liquidity crunch disrupted the supply, discouraged investments and increased fiscal pressure. It is therefore a major focus of Pakistan's IMF program worth $7 billion. Finding money to fill the gap is a constant challenge. Limited fiscal space, as well as high-cost debt from legacy obligations make it more difficult. Khurram Schéhzad, advisor to the finance ministry, said that 18 commercial banks would provide loans using Islamic financing. The IMF has agreed to a formula that secures the facility at a rate below the 3-month KIBOR benchmark rate, which banks use when pricing loans. Awais leghari, the Power Minister, said that it will be paid back in 24 quarterly installments over a period of six years and won't add to the public debt. Existing liabilities are subject to higher costs. These include late payment surcharges for Independent Power Producers up to KIBOR + 4.5% and older loans that range slightly above benchmark rates. Meezan Bank HBL National Bank of Pakistan UBL and UBL are among the banks that participated in the deal. The government will repay the loan with 323 billion rupees per year, which is capped at 1.938 Trillion rupees in six years. The agreement is also in line with Pakistan's goal of eliminating interest-based banks by 2028. Islamic finance accounts for about a quarter (25%) of the total banking assets.
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Oil plunges and stocks rise after Trump Middle East pause
The stock markets rose on Friday, while oil was headed for its largest daily drop since April as President Donald Trump delayed a decision about U.S. involvement in the Israel/Iran conflict. This week, the Middle East has again been a major factor in the top world indexes. The main European bourses all rose between 0.5%-1.4% after similar gains in Asia. However, it was still unclear whether this would be enough for MSCI to avoid a second consecutive weekly loss. Israel bombed Iranian targets and Iran fired missiles against Israel overnight, as the war that has been going on for a week continued. But Friday's market movements, which included a slight drop in the US dollar, revealed reassurance. The White House's announcement on Thursday that Trump would decide whether to get the U.S. involved in the war in two weeks, rather than immediately, was the main factor. The European Foreign Ministers met their Iranian counterparts in Geneva, Friday. They were seeking to return diplomacy on the disputed nuclear program. Oil prices have dropped to $76.10 a barrel due to the relief that the U.S. is not rushing into the conflict, but they are still up by 4% this week and 20% in the last month. Derek Halpenny, MUFG's strategist, said: "Brent crude has fallen 2.5% today as a clear sign that concerns over an imminent escalation of the Israel/Iran Conflict have eased." Gold, another safe-haven investment for traders, also fell on the day. Nasdaq, S&P500, and Dow futures all rose as Wall Street was preparing to resume after Thursday's closure. Asian shares gained 0.5% over night thanks to a 1.2% increase in Hong Kong's Hang Seng. The stimulus plans of newly elected president Lee Jae Myung also saw South Korea's Kospi surpass 3,000 points for first time since 2022. China's central banks kept its benchmark lending rates unchanged as was widely expected in Beijing. Meanwhile, data from Japan revealed that core inflation in Japan hit a 2-year high in may, putting pressure on the Bank of Japan. This in turn helped to lift the yen, and in Tokyo, the Nikkei stock market which is heavily export-oriented fell. OIL RETREATS The dollar ended a positive week with a slight decline, as the euro was up 0.3% versus the U.S. dollar at $1.1527. And the pound was 0.2% higher at £1.3494. The U.S. Bond market, which also was closed on Thursday, resumed its trading, with the 10-year Treasury yield at 4.39%. German 10-year yields, which are Europe's benchmark borrowing rate, dropped 2.5 basis points to 2.49 percent. Gold prices fell 0.8%, to $3,345 per ounce. This means that they will lose 2.5% on a weekly basis. The main focus of the commodity markets remained oil. Brent crude futures in London were down $2.45 or about 3% at $76.43 per barrel, but they are still on course to finish the week with a gain of almost 3%. PVM analyst John Evans stated that oil producers' nightmare scenario was Iran or its proxy could blockade the Strait of Hormuz. This has never occurred and 20 million barrels are shipped through this route each day. JPMorgan estimates this amounts to approximately 20% of global oil trade, and 30% of oil traded by sea. Francesco Arcangeli, of JPMorgan, wrote in a report that the market currently believes there is a low probability for this to happen. He estimated that oil prices could rise to $120-$130 per barrel if the Strait was completely closed.
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Teck Resources aims to boost output for metal-metal germanium chipmaking
Doug Brown, Teck Resources' VP of communications and government affairs, explained that the company is looking at options to increase production of germanium. This metal is crucial to chipmaking and Teck is in talks with various governments including Canada and United States about funding. Teck's plan is part of a growing effort to diversify the supply of minerals critical to the tech and defense sectors. Trade barriers and geopolitical tensions are making it difficult to access materials produced or refined mainly in China. He said, "We are looking at options and support from the market to increase production capacity of Germanium." China, which provides around 60% of all refined germanium in the world, has restricted its exports to the United States. This metal, along with antimony and gallium, have broad military applications. Trade tensions between two of the largest economies of the world are escalating after Washington cracked down on Beijing's chip industry. Export curbs are part of a larger effort that began in 2023 when China started imposing restrictions on vital mineral shipments citing national safety concerns. China wants to influence industries such as renewable energy, chip manufacturing, and defence by controlling the exports of these minerals. Germanium can also be found in solar cells, infrared and semiconductor technology. Brown stated that Teck is looking at ways to expand the existing processing line, using the technology already in place. Teck is the largest germanium producer in North America and fourth globally. Teck exports most of its germanium - a byproduct of its Red Dog operations, located in Alaska - to the United States via British Columbia, where it is melted and refined. The USMCA trade agreement (United States of America, Mexico and Canada) exempts Canadian exports of germanium to the United States from tariffs. Jonathan Wilkinson, Canada's Minister of Energy and Natural Resources, welcomed the United States in a speech he gave in Washington in January last year. He praised their partnership in investing in vital minerals including germanium. The Canadian Energy Ministry refused to comment on the funding of Teck. However, it did say that the Prime Minister is leading trade negotiations with the United States.
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Pakistan signs $4.5 Billion Loans with Local Banks to Reduce Power Sector Debt
The power minister announced on Friday that Pakistan had signed a term sheet with 18 commercial bankers for a 1,275 trillion rupees ($4.50 billion), Islamic finance facility, to help reduce the mounting debt in the country's power sector. The government, who owns or controls most of the infrastructure for power, is struggling with a ballooning "circular" debt, unpaid bills, and subsidies that have weighed down the sector and the economy. The liquidity crunch disrupted the supply, discouraged investments and increased fiscal pressure. It is therefore a major focus of Pakistan's IMF program worth $7 billion. Finding money to fill the gap is a constant challenge. Limited fiscal space and legacy debt with high costs make resolution efforts even more difficult. Awais leghari, the Power Minister, said that 18 commercial banks would provide these loans using Islamic financing. The loan will be paid back in 24 quarterly installments over a period of six years. The IMF has agreed to a formula that secures the facility at a rate below the 3-month KIBOR benchmark rate, which banks use when pricing loans. Leghari stated that it would not increase the public debt. Leghari said it will not add to public debt. He said that Meezan Bank was one of the participating banks, along with HBL, National Bank of Pakistan, and UBL. The government will repay the loan with 323 billion rupees per year, which is capped at 1.938 Trillion rupees in six years. The agreement is also in line with Pakistan's goal of eliminating interest-based banks by 2028. Islamic finance accounts for about a quarter (25%) of the total banking assets.
Oil prices fall, but stocks rise after Trump's Middle East pause
The stock markets rose on Friday, while oil was close to its largest daily decline since April as President Donald Trump delayed a decision about U.S. involvement in the Israel/Iran conflict.
This week, the Middle East has again been a major factor in the top world indexes.
All of Europe's major bourses rose between 0.5% and 1% following similar gains in Asia. However, it was still up for grabs whether this would be enough to stop MSCI's world index from suffering a second consecutive weekly loss.
Israel bombed Iranian targets and Iran fired missiles against Israel overnight, as the war that began a week ago continued. However, Friday's market movements, which included a slight drop in the US dollar, revealed reassurance.
The White House's announcement on Thursday that Trump would decide whether to get the U.S. involved in the war in two weeks, rather than immediately, was the main factor.
The European Foreign Ministers will meet with their Iranian counterpart at Geneva on Friday to try to find a diplomatic solution to the dispute over Iran's nuclear program.
Oil prices dropped to $76.10 a barrel when the U.S. decided not to enter the conflict. They were still at $77.10 a barrel last, but up 4% on the week and 22% for the month.
Derek Halpenny, MUFG's strategist, said: "Brent crude has fallen 2.5% today as a clear sign that concerns over escalating tensions between Israel and Iran have eased."
The price of gold, a traditional safe haven for traders, also fell on Friday, although Nasdaq futures, S&P500, and Dow Futures all ended the day in the red, after the U.S. market had closed on Thursday.
Asian shares gained 0.5% over night thanks to a 1.2% increase in Hong Kong's Hang Seng. The stimulus plans of newly elected president Lee Jae Myung also saw South Korea's Kospi surpass 3,000 points for first time since 2022.
China's central banks kept its benchmark lending rates unchanged as was widely expected in Beijing. Meanwhile, data from Japan revealed that core inflation in Japan hit a 2-year high in may, putting pressure on the Bank of Japan.
This in turn lifted yens and drove down Nikkei, the heavily export-driven stock in Tokyo.
OIL RETREATS
The dollar ended an otherwise positive weekend lower than the previous day. The euro was up 0.3% to $1.1527, and the pound was 0.2% higher to $1.3494.
The U.S. Bond market, which also was closed on Thursday, resumed its trading, with the 10-year Treasury yield at 4.39%. German 10-year yields, which are Europe's benchmark borrowing rate, dropped 2.5 basis points to 2.49 percent.
Gold prices fell 0.5%, to $3,354 per ounce. However, they were still set for a loss of 2.3% on a weekly basis.
The main focus of the commodity markets remained oil. Brent crude futures in London were down by $1.60 or 2.2% at $77.28 per barrel, but they are still on course to finish the week with a 4% gain.
PVM analyst John Evans stated that the biggest market risk from the Middle East turmoil was "unintended actions which escalate the conflict and touch upon oil infrastructure".
He said that the world had more than enough oil for 2025. However, he warned against the worst-case scenario, which would see 20 million barrels per day blocked on the Arabian Seas, no matter how briefly.
(source: Reuters)