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Aluminum tariffs are reduced as the US adds derivative products to its 50% list
Aluminum prices in Shanghai, London and other major cities fell on Monday as the United States imported more derivatives of the metal under the 50% import tax, which distorted the outlook for demand. The Shanghai Futures Exchange's most traded aluminium contract closed the daytime trading 0.68% lower, at 20,600 Yuan ($2,869) a metric ton. In the early part of the session, the contract reached 20,550 yuan. This was its lowest level since 6 August. The benchmark three-month aluminum on the London Metal Exchange fell 0.65%, to $2,590 per ton, as of 8am GMT, after reaching its lowest level since August 12. The Trump administration expanded the scope of its tariffs of 50% on imports of steel and aluminum on Friday by adding hundreds more derivative products to their list of goods that are subject to levies. On August 18, the levies will be implemented on all goods included on the expanded list. A Singapore-based aluminium dealer said that "Sentiment soured" after Trump's new Tariff plans. The trader, who asked not to be identified because he was not authorized to speak with media, said that the rising inventory pressured prices. The increased supply of aluminium in China, which rose by 0.6% to 3,78 million tons from a year ago, also pushed up the price. Customs data shows that China's imports in July of unwrought aluminum and its products grew 38.2% compared to the previous year. SHFE Zinc fell by 0.8%, Lead shed 0.3%. Copper slipped 0.01%. Nickel slid by 0.29%. Tin gained 0.17%. The LME's other base metals have also declined. Lead fell 0.53%. Nickel dropped 0.47%. Tin lost 0.13%. Zinc shed 0.45%.
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Iron ore prices fall on concerns about demand and inventory.
Iron ore futures lost their gains on Monday due to rising inventories and concerns about looming demand sparked by recent market talk of production controls in the north region of China, the top consumer. The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 0.64% lower, at 772 Yuan ($107.52) per metric ton. This is the lowest price since July 16. Iron ore benchmark for September on the Singapore Exchange fell 0.25% at $101.65 per ton as of 0715 GMT, after having touched its lowest level since August 4, $101. Portside inventories increased as a result of the pressure on prices Steelhome reported that the weekly steel production increased by 0.7% to 131.05 millions tons on August 15th, the highest level since July 25. Steelmakers in the key Chinese steel hub Tangshan reportedly received verbal instructions to reduce output between August 31 and September 3, which is the day of the military parade celebrating the end of World War Two. This was to improve the air quality in Beijing. The authenticity of the production restrictions could not be verified. The morning trade saw prices rise amid firmer demand for the near-term. Data from Mysteel revealed that the average daily output of hot metal, which is a measure of ore consumption, increased by 0.1% on a week-to-week basis to 2,41 million tons as of August 14. Market participants downplayed the potential impact of additional steel tariffs announced by U.S. president Donald Trump in the coming week. Analysts at ANZ said that they expect China's Steel Industry to be relatively unaffected by ongoing trade tensions between the U.S. and Europe, while trade to Asia and Europe will pick up the slack. Coke and coking coal, both steelmaking ingredients that are also used to make coke and coking coal, have eased by 2.94% and respectively. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. Rebar fell by 0.88%; wire rod dropped by 1.26%; hot-rolled coils were down 0.2%, and stainless steel remained unchanged. $1 = 7.1799 Chinese Yuan Renminbi (Reporting and editing by Sherry Jackson, Harikrishnan Nair and Lewis Jackson)
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As wildfires in Spain spread to Picos de Europa Mountains, pilgrimage routes are cut.
Wildfires raged in Spain on Monday, spreading to the southern slopes the Picos de Europa range of mountains. Authorities closed a part of the popular Camino de Santiago route. In the last week, more than 115,000 hectares (285,00 acres) of land in Galicia, Castile, and Leon were destroyed by 20 wildfires. Margarita Robles, Minister of Defence, told Cadena SER radio that "this is a fire scenario we haven't seen in 20 years." The fires are unique because of the climate change and heat wave. She said that thick smoke affected the performance of helicopters and planes carrying water. The Spanish army has sent 1,900 soldiers to assist firefighters. The area has seen the closure of highways, rail lines, and the ancient "Camino de Santiago", a pilgrimage route that is walked by thousands every summer. The road connects France with the westernmost tip of Spain in the city of Santiago de Compostela, where it is believed that the apostle St James' remains are buried. The authorities in Castile and Leon have closed the trail between Astorga, about 50km (30 miles), and Ponferrada. They warned hikers not to "put their lives at risk". A firefighter was killed when his truck collided with a forest trail near the village Espinoso de Compludo. So far, four firefighters have been killed. Since June, the Interior Ministry has arrested 27 people and is investigating 92 others for arson suspicions. Spain is one of the worst-hit countries in Southern Europe, experiencing its worst wildfire season in 20 years. According to the ICNF forestry institute, Portugal has seen 155,000 hectares of forest burned this year - more than three times the average between 2006 and 2024. According to the ICNF forestry protection institute, wildfires in Portugal have burned 155,000 hectares so far this year - three times more than average for this period between 2006 and 2024. Robles stated that the situation is unlikely to improve until Monday or Tuesday evening when the heatwave, which has seen temperatures reach 45 Celsius (113 Fahrenheit), begins to ease. This heatwave is the third-hottest one since 1975 when the National Weather Agency began tracking it. Wildfire warnings are in effect for most of the country. (Written by Inti landauro, edited by Giles Elgood).
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Japan steel groups are seeking reforms to prevent tariff evasion, as China exports soar.
Japanese steel lobby groups have demanded early measures to stop the evasion and avoidance of anti-dumping duties aimed at protecting the domestic industry from unfair imports. This move coincides with record steel exports by China, the largest producer in the world, which have sparked protectionist reactions around the globe. Since January of last year, almost 40 countries have launched anti-dumping investigations. The Japan Iron and Steel Federation and other four industry groups have said that swift action is required as countries like China try to avoid antidumping tariffs by routing their exports through a third country or performing minimal processing in order to evade duty. Japan launched a recent anti-dumping probe into hot-dip-galvanized steel imported from China, South Korea and Taiwan. This follows a similar probe that was started in July into stainless steel cold-rolled sheets and strips with nickel-based, imported from China, Taiwan and Taiwan. Takanari Yamashita is the managing director of Japan's steel federation. He told reporters that even if antidumping measures were imposed, their effectiveness would be "significantly undermined" if they weren't taken to prevent circumvention. He said that he was not pursuing protectionism, but rather strengthening the anti-dumping system to ensure fair competition and ensuring fair competition. According to the Federation, 18 of Group of Twenty nations (G20), have already implemented anti-circumvention measures, leaving Japan and Indonesia as the only two countries without these measures. If Japan wants to combat circumvention it will have to launch a brand new anti-dumping probe. Industry groups urge the government, for this reason to separate the existing anti-dumping tariffs from the tax rules under the planned tax reform that will begin the next fiscal period on April 1, 2019. The group also calls for the hiring of more investigators to conduct trade investigations and improvements in the system. (Reporting and editing by Yuka Obabayashi.
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After Geneva's failure, the US takes a tough stance on plastic pollution.
The failure of the sixth round of U.N. discussions on Friday to curb plastic production has dampened hopes for tackling this major source of pollution. Many supporters of restrictions are pessimistic that a global agreement will be reached during the Trump Administration. Participants said that a three-year push for a legally binding treaty to reduce plastic pollution, which chokes the oceans and damages human health, now seems to be drifting. Many states and activists blamed the failure of oil producers, including the United States. They said that the United States had hardened their long-held views and encouraged others to reject limits on new plastic production which would have curtailed output of polymers. Debbra Cisneros is a Panamanian negotiator who told us that the United States was less open in the previous rounds under Joe Biden’s administration. "This time, they just didn't want anything." "It was difficult because they were always against us on each of the key provisions," she said after the 11-day negotiations. The anti-plastic campaigners did not expect Washington to change its position after President Donald Trump signed in February an executive order encouraging the purchase of plastic drinking straws by consumers. Bjorn Bealer, International Coordinator of International Pollutants Elimination Network, a global network consisting of more than 600 public interest NGOs, said: "The mentality has changed, and they are looking to extract even more oil and natural gas from the ground." The U.S. State Department didn't immediately respond to an inquiry about its position and role in the negotiations. John Thompson, the U.S. delegates to the talks, declined to answer questions about its outcome. Washington expressed concern that the new regulations could raise the cost of all plastics. A spokesperson for the State Department said previously that each party must take actions according to their national context. Trump's administration has also reversed a number of U.S. environmental and climate policies, which it claims place an excessive burden on the national industry. Washington also showed its strength in the talks on another global environmental accord earlier this week when it threatened to take action against states that supported a proposal intended to reduce shipping emissions. Production limits are crucial for a coalition of 100+ countries looking to reach an ambitious agreement in Geneva. Sivendra Michael, Fiji's delegate, compared excluding this clause to "sweeping the floor while not turning off the water." The World Wildlife Fund (WWF), said that for every month of delay, nearly a half-million tons of plastic waste are accumulated - some of it washing up on beaches in island states. "CONSENSUS IS DEAD" Some participants blamed the organizers as well, the International Negotiating Committee Inc. (INC), an U.N.-established organization supported by the U.N. Environment Programme (UNEP). The delegates were able to laugh and jeer at a formal meeting that lasted for less than one minute, an hour before midnight was set as the time when negotiations would conclude. Ana Rocha Global Plastics Policy director for environmental group GAIA said, "Everyone was shocked as no one understood." It's like they are playing with children. Agnes Pannier Runacher, France's Ecology Minister, called the proceedings "chaotic." When asked what went wrong, INC chairman Luis Vayas Valdivieso attributed the failure to the division between the countries and described the negotiations as complex. "But we've made progress, and that is important," he added. U.N. provisions rules require that all states agree. This is a constraint some find unworkable, particularly under an administration that has retreated from multilateralism. "Consensus has died." "You cannot agree on a deal in which all countries that produce and export oil and plastics can decide what the deal will be," said IPEN’s Beeler. Some delegates, campaigners and others suggested voting as a way to break the impasse or to abandon the U.N. led process altogether. The WWF, among others, called for ambitious states to pursue their own deal in the hopes of bringing plastics-producing countries on board later. The talks produced two draft agreements, one of which was more ambitious than another. Both were rejected. The next meeting is not yet known. States have agreed to meet at a future date. David Azoulay is the Managing Attorney at the Center for International Environmental Law in Geneva. He said that it was a positive development when the top plastics producer, China, publicly acknowledged the importance of addressing the plastics' full life cycle. "This is a new development, and I believe this opens up an interesting opportunity." Reporting by Olivia Le Poidevin, Emma Farge and Valerie Volcovici; Additional reporting in Washington by Holger Hansen and Valerie Volcovici Editing by Dave Graham, Tomaszjanowski and Dave Graham
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US adviser Navarro: India's Russian crude oil purchases must stop
Peter Navarro, White House's trade adviser, said that India's purchases were funding the war in Ukraine by Moscow and must stop. He added that New Delhi is "now cozying up with both Russia and China." Navarro, in a recent opinion piece, wrote: "If India wishes to be treated like a strategic partner by the U.S. it must act as such." Published by: Financial Times. India's Foreign Ministry said that the country was unfairly singled-out for purchasing Russian oil, while the United States continues to buy goods from Russia. U.S. president Donald Trump imposed an additional 25% tariff on Indian products earlier this month citing New Delhi’s continued purchase of Russian oil. This brought the total tariffs for imports from India up to 50%. "India acts as a clearinghouse for Russian crude, converting embargoed oil into high-value imports while giving Moscow dollars it needs," Navarro stated. The adviser said that it would be risky to transfer advanced U.S. military capability to India, as New Delhi "is now cozying up with both Russia and China." China and India, longtime rivals, are quietly and carefully strengthening their ties in the face of Trump's unpredictable attitude towards both. Indian Prime Minister Narendra Modi will attend the upcoming Konferenz des Nations. Chinese President Xi Jinping will be visiting India at the end this month, while Chinese Foreign Ministry Wang Yi is scheduled to visit India on Monday for discussions about the disputed border. Source: A planned trip by U.S. negotiators for trade to New Delhi between August 25 and 29 has been cancelled. Over the weekend, this stalled talks on a proposed agreement for trade and dashed hopes that additional U.S. duties on Indian goods would be lifted by August 27. (Reporting from Shubham Kalya in Bengaluru, Editing by Christian Schmollinger).
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After Trump-Putin meeting, oil prices remain stable as Russia's supply concerns are eased
After a decline in the early trading, oil prices remained largely unchanged Monday as the United States did not exert any further pressure on Russia for it to end the Ukraine War by disrupting its oil exports after a meeting between the leaders of both countries. Brent crude futures fell 6 cents or 0.09% to $65.79 per barrel at 0342 GMT, while U.S. West Texas intermediate crude rose 2 cents or 0.03% to $62.82 per barrel. The U.S. president Donald Trump met with Russian President Vladimir Putin on Friday in Alaska and came away more aligned to Moscow regarding the need for a peace agreement instead of first a ceasefire. Trump will meet with Ukrainian President Volodymyr Zelenskiy on Monday, and European leaders to reach a quick deal to end Europe’s deadliest conflict in 80 years. Trump stated on Friday that he would not have to immediately consider retaliatory duties against countries like China because they bought Russian oil, but he might "in two to three weeks", easing concerns over a disruption of Russian supply. The market is still waiting and watching to see if the hostilities in Ukraine end, but it's more of a bearish perspective. China is the biggest buyer of Russian crude oil. India comes in second. Helima Croft, an analyst at RBC Capital, said that the primary issue was the secondary tariffs that targeted the main importers of Russian oil. President Trump has indicated he would pause the incremental actions on this front - at least in China. Croft stated that the status quo remained largely unchanged for now, and added that Moscow would not back down on its territorial demands. Ukraine and certain European leaders were likely to balk at a land-for peace deal. Investors will also be watching Jerome Powell, the Federal Reserve chairman's remarks at this week's Jackson Hole Meeting for clues about interest rate reductions that could push stocks to new records. Tony Sycamore, IG's market analyst, said that he expected him to remain noncommittal. He would also be dependent on data.
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Morning bid Europe- Geopolitics takes center stage before Fed.
Wayne Cole gives us a look at what the future holds for European and global markets. When the idea that Putin sent a body double to Alaska sounds plausible, you know we're living in crazy times. It's clear that President Trump is now tweeting Kremlin talking-points about Crimea and Zelenskiy. Putin seems to believe that Ukraine must give up the land that Russia has taken and that it has not been able to gain in three years of war. Zelenskiy, European leaders and others have repeatedly denied this. They will also be at his side when he meets Trump in Washington later today. The markets have judged that the threat of additional U.S. tariffs or sanctions on Russian oil exports has diminished. Oil prices have fallen modestly, with Brent down 0.3%. The share markets have been mostly stronger as Japan and Taiwan continue to make records and Chinese blue-chips reach a new 10-month high. European stock futures and Wall St. futures have both gained 0.2%. Goldman's report on S&P 500 earnings shows that the EPS has grown 11% year-on-year and 58% have raised their guidance for the full year. Home Depot, Target Lowe's, Walmart and Lowe's all report this week. The main event for monetary policy will be the Federal Reserve’s Jackson Hole Jamboree, where Chair Powell will speak on the economy outlook and the Fed’s policy framework. There doesn't appear to be a question-and-answer session yet. Panel discussions will feature ECB President Christine Lagarde, and Bank of England Governor Andrew Bailey. Futures prices are about 85% for a Fed rate reduction in September, so anything other than dovish comments from Powell will be a blow to the debt markets. The yield curve is steepening as long-term investors worry about inflation, the budget deficit, and the politicisation monetary policy. The yields on European bonds have also been rising, possibly due to the fact that governments have realised how much they will have to borrow in order to cover their increased defense spending. Market developments on Monday that may have a significant impact - EU Trade figures for June, US NAHB Housing survey
China still stores crude oil despite refinery run-up: Russell
China's refiners increased their processing rates in the month of July. However, strong crude oil imports from abroad and domestic production meant that there was still an excess of over half a million barrels a day (bpd).
Calculations based on data from the official sources show that crude oil surplus in July dropped to 530,000 barrels per day (bpd) from 1.42million bpd.
The key is that refiners will likely continue to add to their stockpiles despite the drop in oil surplus. This will allow them the ability to reduce imports if prices increase to levels they feel are not justified.
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 if you subtract the amount of crude oil that is available through imports and domestic production from the total crude.
Refiners in July processed 14.85 millions bpd crude, an increase of 8.9% over the same period last year. However, this was a decrease of 2% compared to June, which had been the highest month since September 2023.
According to data released by the government on August 15, the utilisation rate increased to 71.84%, an increase of 1.02 percentages points from June, and 3.56 percentages points from July 2024.
In July, China's crude imports were 11.11 million barrels per day (bpd), while its domestic production was only 4.27 million.
The refiners had a total of 15,38 million bpd available. Subtracting the 14,85 million bpd processed, leaves an excess of 530,000.
The surplus crude in China for the first seven month of the year was 980,000 bpd. This is mainly due to the fact that crude imports, domestic production and refinery processing increased at a higher rate from March.
Not all this excess crude has likely been stored, as some is processed in plants that are not included in the official data.
Even if you ignore the gaps in official data, there is no doubt that since March China has imported crude oil at a rate far greater than what it requires to meet its own domestic fuel needs.
CRUDE IMPORTS
The market will be looking to see if the recent strength of crude imports is going to continue or if it will decrease in the coming months, as refiners begin using more oil from their stocks.
Prices are the key. China's refiners tend to increase imports when prices seem reasonable but reduce them when prices have increased too much or too fast.
The rise in crude imports since March coincided with the decline in prices. Brent crude, the global benchmark, fell from an all-time high of $82.63 per barrel on January 15, to a low of just $58.50 per barrel on May 5.
Brent crude oil prices have been volatile since then. The conflict between Israel, Iran and the United States, which was later joined by other countries, sent Brent to an all-time high of $81.40 per barrel on June 23. Prices then dropped to $65.57 a barrel in the early Asian trading on Monday.
China may reduce imports of cargoes due to arrive in late August or early September because the prices have risen from their low in May to the high in June. This is the period when they were planned.
China may buy less cargoes as a result of the move by Saudi Arabia, the world's largest exporter, to raise its official selling price for August- and September-loadings.
Imports of crude oil may be held up if the rate of refinery processing continues to increase and Chinese refiners keep up their recent trend of supplying more fuels, such as gasoline and diesel.
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These are the views of a columnist, who is also an author.
(source: Reuters)