Latest News
-
The weekly iron ore loss is set to rise on the back of renewed US-China tensions and rising supply
Iron ore futures are headed for a loss of 1% per week, as concerns about the demand outlook are exacerbated by the U.S.-China tensions. This coincides with the prospect of a rising ore supply in the rest of the year. The contract for January iron ore on China's Dalian Commodity Exchange closed the daytime trading 0.19% lower, at 771 Yuan ($108.19), pushing the weekly decline to 3.1%. As of 0755 GMT, the benchmark November iron ore price on Singapore Exchange was $0.65% lower. So far, it has declined by 2%. The price of key steelmaking ingredients was supported by the strong demand from China, the top consumer. This helped to limit further declines on Friday. Mysteel data showed that the average daily hot metal production was 2.41 million tonnes in the week ending October 16. This level indicates a steady ore supply despite a small drop of 0.2% from week to week. Trade frictions between the United States, China and other countries have re-ignited concerns about China's ability to achieve its economic growth goal of 5%. U.S. president Donald Trump has threatened to end some trade relations with China and slap additional 100% tariffs upon imports after Beijing expanded export restrictions last week on rare earths, which are essential for electric vehicles and the defense sector. The expectation of increased supply in the fourth-quarter added pressure to ore prices. Rio Tinto, the world's biggest iron ore supplier, said Tuesday that it must finish strong in order to reach its target for iron ore shipments. Analysts said that other steelmaking ingredients such as coking coal, coke, and others gained 1,46 and 1,64 percent, respectively, due to supply restrictions caused by safety checks. The benchmarks for steel on the Shanghai Futures Exchange have been moving sideways. Rebar was little altered, while hot-rolled coils dropped 0.16%. Wire rod climbed 0.72%, and stainless steel rose 0.68%. $1 = 7.1262 Chinese Yuan (Reporting and editing by Harikrishnan Nair; Amy Lv, Colleen Howe)
-
SIG, a British construction company, reports a slowdown in sales
SIG, a British building materials company, said on Friday that the demand for construction materials in Europe remained tepid in the third-quarter, and showed no signs of improvement. As with Travis Perkins and Ibstock, the company has also been hampered by cautious customers who have backed off on projects because of rising costs. SIG of Sheffield, which operates across six European key markets: UK, France Germany Ireland Poland and Benelux said that demand was below historical levels in all markets. European construction is stuck in a cycle and the recovery has taken longer than expected. SIG reported that overall like-forlike sales, which is a measure of revenue from ongoing operations excluding acquisitions or closures, were 664 million pounds (893.81 million). The full-year profit forecast was also unchanged and remained at 31.6 million pounds. SIG's UK revenue grew by 1% during the period due to a strong performance from its interiors division. Ireland and Germany saw the biggest declines, with 11% apiece.
-
Gold gains above $4,300/oz for the best week since 17
Gold reached a new record high of $4,300 per ounce on Friday, and was set to have its best week since over 17 years. Investors were drawn to gold by signs of weakness among regional U.S. banks, global trade frictions and a firming bet for rate cuts. As of 0615 GMT spot gold was up 0.8% at $4,359.31 an ounce after reaching a record high earlier of $4,378.69. U.S. Gold Futures for December Delivery jumped 1.6% at $4,372.10. Bullion is on track to have its best week ever since September 2008. Each session has seen a record-high price. Silver spot rose by 0.1%, to $54.26 an ounce. This represents a weekly gain of 8%. Prices reached a new record high earlier in the session of $54.35 as they tracked the rally in spot gold and a squeeze on the short market. Tim Waterer, KCM Trade's Chief Market Analyst, said that the $4,500 target for gold could be reached sooner than expected. However, it will depend on how long the concerns over U.S. China trade and the shutdown of the federal government continue to linger. China has accused the U.S. again of creating panic with its controls on rare earths, but it rejects calls to reverse the export restrictions. Christopher Waller, the U.S. Federal Reserve governor, has also expressed support for a further rate cut in response to concerns about the labour market. Investors expect a reduction of 25 basis points at the Fed meeting on October 29-30 and another in December. Wall Street also closed lower Thursday. Signs of weakness among regional banks have frightened investors who were already jittery over the U.S.-China tensions. Waterer stated that "the resurgence of regional bank credit concerns in the United States has given traders another reason to purchase gold." The non-yielding gold, which does well in low-interest rate environments, has gained over 65% in the past year, thanks to geopolitical tensions and aggressive bets on rate cuts, central bank purchases, dedollarisation, and strong exchange-traded fund inflows. On Thursday, U.S. president Donald Trump and Russian president Vladimir Putin agreed to hold another summit about the war in Ukraine. The West continued to pressurize Russia on its oil sales. Britain even imposed sanctions against major Russian oil companies. Palladium dropped 0.2%, to $1,611.24. Platinum declined 0.7%, to $1699.45. Both metals are headed for weekly gains. (Reporting and editing by Rashmi Soreng, Subhranshu Saghu, and Anmol Choubey in Bengaluru)
-
Sources say that Indian refiners rarely purchase Guyanese grades
Sources in the trade said that two Indian refiners bought 4,000,000 barrels of Guyanese oil from Exxon Mobil, a U.S.-based major, to be delivered by the end of 2025, or early 2026. This is a rare import from the South American producer. Indian Oil Corp., the largest refiner in the country by capacity, purchased 2 million barrels (or a grade of crude oil called Golden Arrowhead) for its first purchase. The shipment will arrive late December or early January. Sources said that Hindustan Petroleum Corp., another refiner, had purchased Liza and Unity Gold for the first time. 2 million barrels are due to be delivered during the same period. India diversifies its crude supply by experimenting with new grades of crude oil from South America, where production is increasing. Addition of crude sources will also assist refiners in replacing some Russian oil imports. The U.S. has urged New Delhi to stop purchasing Russian crude in order to end the conflict in Ukraine. Guyana has increased its exports after the fourth floating production facility of a consortium led Exxon reached 770,000 barrels per daily (bpd). Data from Kpler, an analytics firm, showed that the country's crude oil exports hit a record high of 938, 000 bpd last month, since July, when it began exporting GAH, its latest grade. Reporting by Nidhi in New Delhi, and Florence Tan in Singapore. Editing by Clarence Fernandez, Jamie Freed and Clarence Fernandez.
-
Huayou will begin production of lithium sulphate in Zimbabwe by early 2026
The company announced on Thursday that Zhejiang Cobalt, a Chinese company, will begin producing lithium sulphate in the first quarter 2026 at its $400 million plant located in Zimbabwe. Zimbabwe is pushing for more local processing. A senior executive told a group of journalists that the newly-completed plant at Huayou’s Prospect Lithium Zimbabwe’s Arcadia Mine has a capacity of more than 50,000 metric tonnes of lithium sulphate per year. Lithium Sulphate is a product intermediate that can be refined to a battery grade material, such as lithium hydroxide and lithium carbonate. Henry Zhu, general manager of Prospect Lithium Zimbabwe, told reporters that the company would begin production at the start of next year. Zhu continued, "The amount of lithium sulphate will be greater than 60,000 tons. However, it depends on the configuration of this plant because it's brand-new." Zimbabwe, Africa's largest lithium producer, has encouraged miners to process this mineral in Zimbabwe to help boost its economy. Huayou acquired Arcadia Lithium Mine for $422 Million in 2022. In 2023, Huayou commissioned a 300 million dollar lithium concentrator. Sinomine, Chengxin Lithium Group and Yahua Group are among the Chinese companies that dominate Zimbabwe's mining of lithium. They produce concentrates, which they then ship back to China. Huayou export 400,000 tons lithium concentrate to Zimbabwe by 2024 In order to encourage more local processing, the country in southern Africa will ban exports of lithium concentrates by 2027. Sinomine announced plans to build an $500 million lithium-sulphate facility at its Bikita Mine in Zimbabwe. (Reporting and editing by Nelson Banya, Lincoln Feast, and Chris Takudzwa Muronzi.
-
Gold rallies above $4,300/oz for the best week since 17
The price of gold reached a new record high on Friday, surpassing $4,300 per ounce. Investors were pushed to the metal as signs that regional U.S. banks are struggling, trade tensions around the world, and hopes for further rate cuts pushed them. As of 0439 GMT spot gold was up 0.9% at $4,362.39 an ounce after reaching a record high earlier of $4,378.69. U.S. Gold Futures for December Delivery jumped 1.7% at $4,375.50. Bullion is on track to have its best week ever since September 2008. Each session has seen a record-high price. Silver spot rose by 0.3%, to $54.41 an ounce. This represents an 8.2% increase in the weekly price. Prices reached a new record high earlier in the session of $54.35, following the rally in spot gold and a squeeze on the short market. Tim Waterer, KCM Trade's Chief Market Analyst, said that the $4,500 target for gold could be reached sooner than expected. However, it will depend on how long the concerns over U.S. China trade and the shutdown of the federal government continue to linger. China has accused the U.S. again of creating panic with its controls on rare earths, but it rejects calls to reverse the export restrictions. Christopher Waller, the U.S. Federal Reserve governor, has also expressed support for a further rate cut in response to concerns about the labour market. Investors expect a reduction of 25 basis points at the Fed meeting on October 29-30 and another in December. Wall Street also closed lower Thursday. Signs of weakness among regional banks have frightened investors who were already nervous about the U.S.-China tensions. Waterer stated that "the resurgence of regional bank credit concerns in the United States has given traders another reason to purchase gold." The non-yielding gold, which does well in low-interest rate environments, has gained over 66% in the past year, mainly due to geopolitical tensions and aggressive bets on rate cuts, central bank purchases, dedollarisation, and strong exchange-traded fund inflows. On Thursday, U.S. president Donald Trump and Russian president Vladimir Putin agreed to hold another summit about the war in Ukraine. The West continued to pressurize Russia on its oil sales. Britain even imposed sanctions against major Russian oil companies. Palladium increased 0.3%, to $1 618.95, while platinum fell by 0.4%, to $1 706.45. Both metals are headed for weekly gains. (Reporting and editing by Rashmia Aich, Subhranshu Saghu and Anmol Choubey in Bengaluru).
-
Reliance's IT counter-pressure helps India's Nifty reach a one-year high
India's equity benchmarks reversed their early losses on Friday. The Nifty 50 reached a new high of one year, with gains from Reliance Industries before its results, outweighing losses by Infosys, and Wipro. Both companies fell due to margin concerns, despite strong earnings. As of 10:36 am IST, the Nifty 50 index rose by 0.42%, to 25,693.3. This is its highest level since October 1, 2024. The BSE Sensex also increased by 0.50%, to 83887.58. Both indexes dropped about 0.2% when they opened. The benchmarks reached a three-month high on Thursday and are now less than 3% off their record peak in September 2024. Two analysts said that the markets are experiencing a bullish consolidate following a recent rally and before the results from ICICI Bank and HDFC Bank this Saturday, as well as Reliance Post Market on Friday. Reliance Bank and ICICI Bank both rose by 0.9% and 0.6%, respectively. HDFC Bank gained by 0.4%. VK Vijayakumar is the chief investment strategist of Geojit Investments. He said that "good results from HDFC Bank, ICICI Bank, and Reliance can support the markets and if Reliance joins in the rally after its results, then the market can continue to sustain the momentum." Ten of the sixteen major sectors posted gains. Small-caps gained 0.2% while mid-caps lost 0.1%. Analysts raised concerns over margin pressures resulting from recent acquisitions and deal ramp-ups, causing the IT sub-index to drop by 1.3%. Wipro fell 4.5%, despite exceeding second-quarter revenue expectations. Infosys, which reported strong results for the September quarter, also fell 1.8%. CLSA said that the company's revenue forecast for fiscal 2026 of 2% to 3% was too conservative. Asian Paints, a major paintmaker's input, rose by 5% among individual stocks. This was aided by the drop in oil costs, which is a significant factor. Nestle India rose 1.2% after rising 4.5% Thursday, following the release of a report on sales and volume growth for the third quarter. Zee Entertainment dropped 3% following a dramatic drop in its second-quarter profits. (Bharath Rajeswaran, Bengaluru. Sumana Niandy, editing)
-
ASIA GOLD - India's festive rush drives gold premiums over 10-year high
The physical gold market in Asia was very strong during this week. Prices broke multiple records and premiums in India reached their highest levels in more than a decade, ahead of the major festivals in this month. Gold prices in the spot market surpassed $4300 an ounce on Thursday for the first. They have gained 7.6% over this past week, amid renewed U.S. China trade tensions, and anticipation of a U.S. interest rate cut. This week, the domestic gold price in India reached a new record of 131 699 rupees for 10 grams. Indian dealers quoted premiums Up to $25 per ounce above official domestic prices including import and sales taxes, compared to $15 last week. Ashok Jain is the owner of Mumbai's gold wholesaler Chenaji Narsinghji. A Mumbai-based bullion seller with a private banking firm said jewellers are stocking up on coins and bars of small denominations in preparation for the festival. Indians celebrate Dhanteras (Diwali) and Diwali later this month. These are occasions when purchasing gold is considered auspicious, and they're among the busiest days for gold purchases in the country. Officials from the government and industry have said that gold smuggling has increased in India due to high prices and shortages. Independent analyst Ross Norman stated that a retail rush on investment gold would normally signal a mature rally. However, almost all expectations regarding gold's price behaviour seem to have been proved wrong. Bullion prices in China were discounted anywhere from $20 to $66 per ounce compared with the global benchmark price . Hugo Pascal is a precious-metals trader with InProved. He said that the global demand for precious metals has returned, as has Chinese demand. Peter Fung of Wing Fung Precious Metals, the head of trading, said that "some people sell jewelry because they want to make a profit". Gold in Hong Kong Singapore sold the same product at a $1.30 premium, whereas Singapore Prices ranged from a $0.50 discount to a $1.30 premium. Pascal stated that "the dealers' inventories continue to deplete in Singapore as the demand for metals is strong." In Japan, gold The price was $1 higher than the spot prices. Tokyo-based trader: "Investors aren't deterred by the high prices; they just buy." (Reporting and editing by Harikrishnan Nair in Bengaluru, Anmol Choubey)
Stocks rise ahead of important US earnings and data as trade talks loom
On Tuesday, shares rose worldwide and the dollar retained most of its gains from July as investors entered a crucial week that will include U.S. earnings data, inflation figures and trade negotiations in a fairly optimistic mood.
Donald Trump, the U.S. president, threatened to impose 30 percent tariffs on Europe and Mexico starting August 1, which is higher than the 20 percent he originally proposed for the EU in April.
Trump, however, said that he would be open to more negotiations, despite investor predictions of lower final tariff levels.
Japan is also trying to schedule high level talks with the U.S. on Friday.
Andrzej szczepaniak is a senior Europe economist with Nomura.
"However, it is likely that this will be seen as a tool for bargaining ahead of the 1 August. This is in line with what investors thought about most of Trump's letters to trading partners from last week."
This view will only be challenged in a material way as we approach 1 August.
The MSCI world share index rose by 0.16% Tuesday, just a hair away from the all-time highs set last week.
The STOXX 600 index in Europe rose by 0.2%, lagging behind the broad APAC ex Japan benchmark of 1%. Nasdaq Futures gained 0.6% after Nvidia announced it would resume its sales of H20 chips into China.
Earnings and Inflation
Now, the focus shifts to the U.S. earning season that begins on Tuesday with major bank reports of their second-quarter results. According to LSEG, S&P profits are expected rise 5.8% over the past year.
The forecast has deteriorated sharply from the early April prediction of 10.2% growth before Trump's trade war.
Investors are also looking at the U.S. Inflation data due Tuesday to see if there is any impact from tariffs. Recent data has shown that tariffs have had little effect on the broader price pressures. However, this week's data will show an increase in gasoline costs and higher prices for certain tariff-sensitive products.
The stock market also saw a boost on Tuesday, as oil prices fell after Trump gave Russia a deadline of 50 days to end its war in Ukraine or face energy sanctions. This eased immediate supply concerns.
Brent futures fell last by 0.2%.
JAPANESE ELSTION
Investors are not only focused on U.S. politics. The upcoming Japanese election for the upper house of parliament is causing a stir in the Japanese government bonds market, which is spreading to other markets.
According to polls, the ruling coalition could lose its majority of the upper chamber to opponents who support more spending.
The 10-year benchmark yield rose to 1,595%, its highest level since October 2008, as a result of concerns about the impact of the crisis on Japan's finances.
In recent days, higher Japanese yields also pushed long-dated European yields and even U.S. rates higher. However, Germany's 30-year rate, which had hit a two-year-high on Monday, fell 5 basis points to 3.20% on Tuesday.
The benchmark 10-year Treasury yield in the U.S. fell by 1 basis point to 4.42%.
In Asia, the data also showed that China's economy slowed down less than expected during the second quarter as a result of its resilience to U.S. Tariffs.
On the currency markets, there was a slight weakening of the dollar against European currencies. The euro and the pound were both up by around 0.2%, at $1.1684 each, and $1.13449, respectively. The euro and pound both rose around 0.2% from their previous lows of over two weeks.
Spot silver rose 0.3% to 38.25 dollars per ounce. Gold gained 0.5% to $3361 an ounce.
(source: Reuters)