Latest News
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The European Commission has proposed a reprieve from Russia sanctions for dealings with Chinese chip firm
A spokesperson for the European Commission said that it had proposed a nine month derogation on dealings with a Chinese semiconductor company listed in its 20th set of sanctions against Russia. The spokesperson stated that the company, Yangzhou Yangjie Electronic will remain on?European Union sanctions list, but the temporary reprieve?will allow automakers?to find alternative chip suppliers and?avoid?a "severe interruption"?. The EU will need to agree 'unanimously' on the proposed measure for it to come into effect. European automakers have become more dependent on Yangzhou Yangjie Electronic in order to replace products that were previously listed as being made by Chinese competitors and included in previous Russia sanctions packages. "This company was added to our list of sanctions because they significantly helped?Russian military capabilities." The products were used in glide bombs and drones by Russian troops operating in Ukraine," said the?spokesperson. "Our sanctions are designed to change behavior and we try to find a balance so that they don't have a significant impact on the EU." (Reporting and editing by Tomasz Janovski and Emelia Sithole Matarise).
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Copper prices rise as LME stock falls
Copper prices rose Friday, as falling inventories overshadowed expectations of seasonal muted demand from China's top metals consumer and uncertainty about progress in U.S. Iran peace talks. In open-outcry official trading, the price of a metric ton of three-month 'copper' on the London Metal Exchange rose 0.6% to $13,599 per tonne. Copper stocks available in LME registered warehouses LME data daily showed that the price of crude oil fell to its lowest level in 10 weeks after 53 325 tons had been earmarked for shipment. COMEX traded at a higher price than the LME benchmark, as the market waited to see if Washington would impose import tariffs before the end of June. Ben Davis, RBC Capital Markets' head of European Metals and Mining Research, said that the tightness on the copper market was exacerbated because tons were brought into the U.S. If Washington's tariffs are removed, the copper market could see a return of massive stocks to the supply chain. Yangshan copper premium is a demand-side premium. This week, the price of copper in China remained at $73 per ton. It was its highest level since mid-April. The demand for copper in China will likely fall as China enters its off-season. Shanghai Exchange monitors copper stocks in warehouses This week, the price of oil rose for only the second time since mid-March. It gained 1.6%. Analysts at Chinese broker Galaxy Futures said that "downstream consumption has weakened and cargo pickup?has slowed." LME aluminium increased?0.1% in official activity to $3,641.5. Reduced supply in the Gulf due to the Iran War is keeping the premium on the LME Aluminium Cash Contract?over the benchmark High indicates tightness. Last, the premium was $67. After hitting a high of $2,010, LME lead fell by 0.4% to $1.997. This week, the discount of the LME Cash Contract compared to the benchmark contract changed from a discount to a premium. . Zinc increased by 0.7%, to $3,547. Tin gained?1.3%, to $53,955, while nickel remained at $18,730. Indonesia, a major producer of nickel pig iron, said that it would exclude the metal from its plan to centralise commodity exports. (Reporting and editing by Jonathan Ananda, Janane Venkatraman, and Dylan Duan. Additional reporting by Polina Devitt.
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Hindalco, India's largest steel company, misses its profit forecasts on Novelis fire-related costs
Hindalco Industries, India, posted a surprise drop in profit for the'second consecutive quarter' on Friday. This was despite higher base metal prices. According to data compiled by LSEG, the Aditya Birla Group's firm reported a 50% drop in consolidated net profits for the?three-month period ended March 31. Analysts had expected a profit of 43.12 billion rupees. Hindalco is one of India’s largest?aluminium- and copper-producing companies. It benefited from higher base metal prices, and increased demand during the seasonally strong third quarter, when construction activity peaks and automotive companies are pushing to meet their production and sales targets by financial year end. Aluminium and copper benchmark three-month prices rose by 21.8% and 36.7 percent respectively, year-on-year in the quarter. Mining companies typically enjoy higher profits when commodity prices rise. Fires at Novelis' New York facility in September and November of last year caused production to be interrupted. The company incurred a?charge of 41.71 billion rupees for the quarter relating to the 'plant fires' in Oswego (New York). Hindalco’s total revenue from operations increased by 20.4% to 781.33 billion Rupees. Analysts had, on average, expected revenue of 723,96 billion rupees. $1 = 95.6900 Indian rupees (Reporting and editing by Ronojoy Mazumdar, Tasim Zaid and Anuran Parmar in Bengaluru)
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Nigeria's NNPC accuses Dangote Refinery of monopolizing fuel in court filing
According to court documents, Nigeria's state 'oil' firm NNPC accused Dangote 'Petroleum 'Refinery' of trying to limit competition and expose Nigeria's fuel markets to monopoly by challenging import licenses issued to competitors. In a defense filed before the Federal High Court of Lagos, NNPC stated that granting Dangote’s request?to void import permits or restrict them would expose Africa’s largest oil producer?to supply disruptions, price instabilities?and risk to national energy security. The Nigerian Midstream and Downstream Petroleum Regulatory Authority has filed a request to?join in the case. This will increase the legal battle regarding import policy and the market position of the Dangote refinery. The dispute comes months before Dangote's ?planned September IPO of its refinery business, adding uncertainty over market rules, import competition ?and the revenue outlook investors ?may assign to the 650,000-barrel-per-day plant. Dangote Petroleum Refinery, a subsidiary of Dangote Petroleum, filed a lawsuit against Nigeria's Attorney General in April, challenging fuel import licenses granted or renewed by Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to marketers and NNPC. Dangote claims that the licenses violate Nigeria's Petroleum Industry Act and undermine local refinery. NNPC rejected 'that argument. It said that the law allows companies with local refinery licences or proven record in international crude oil and petroleum product trading to import licences. It said that regulators have discretion in managing imports as part of Nigeria's policy for backward integration and that there is no mandatory ban on imports. The court documents also show that NNPC said Dangote did not provide "credible, independently verifiable or verifiable proof" that the refinery would be able to meet Nigeria's entire fuel demand or guarantee a?uninterrupted national supply. Dangote has declined to comment on the ongoing case. NNPC has denied that it sabotaged Dangote’s refinery, or intentionally?withheld oil, saying allocations of crude depend on 'operational, logistical, commercial and security factors. A hearing has been scheduled for the court in the next few weeks. Fuel marketers also oppose Dangote’s suit, warning that it could harm competition and supply security. (Reporting and editing by Susan Fenton; Isaac Anyaogu)
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Finance Minister says Senegal's fuel subsidy costs may exceed budget by 2 billion dollars
Senegal could see its fuel subsidy bill exceed the budget for 2026 by as much as $115 per barrel if oil prices rise during the Iran War, said Finance Minister Cheikh Diba on Friday. Premier Ousmane sonko stated that this level would represent a fifth or less of the budget. Diba said that the prime minister turned down his request to increase fuel prices in order to share the financial burden with him when the Iran Crisis erupted and oil prices soared. Senegal’s $40 billion economy is in turmoil since the end of 2024 when the newly-elected government revealed debts that were not reported by the prior administration. These debts are estimated to be as high as $13 billion. The IMF responded by freezing?its funding and access to the international bond markets disappeared, leaving Senegal dependent on regional markets, and tax revenue, to meet its financial needs. Oil price?rises The West African nation budgeted 250 billion CFA in fuel subsidies for this year, before the war began in February. The current budget working assumption is $85 per barrel. Diba, in response to a parliament question, said that fuel subsidies at this level would cost 774 Billion CFA in 2015. He said that if the crisis continues and the price of a barrel reaches $115, then subsidy costs may rise to 1,39 trillion CFA. Brent crude futures rose $3.3, or 3.2% to $105.88 per barrel on Friday morning. "As soon the crisis broke out, I contacted the Prime Minister to suggest raising prices and sharing burdens with the people. Diba stated that the response so far has been "negative". "We have updated our framework and are trying to suggest, based upon different scenarios,'situations that allow us, other things equal, to at least remain on track with fiscal consolidation." Senegal also produces oil and natural gas. According to Diba, the country will earn 135 billion CFA more in 2026, if oil costs are $85 per barrel, or 185 billion CFA if prices reach $115 per barrel. Sonko stated: "We will avoid passing on price increases to the people." He said: "When it's no longer possible, we will go back to the people and tell them it's no longer feasible." It was not clear if he meant fuel prices. Reporting by Portia Crowe, Diadie Bá and Ayen Deng Bior; Editing and proofreading by Tomasz Janowski and Alison Williams
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Stocks climb despite Iran uncertainty, dollar near recent highs, oil up
The European stock market was set to post its biggest weekly gain since early April. Meanwhile, U.S. stocks were on track to make their eighth consecutive weekly advance, despite the lingering uncertainty surrounding U.S. and Iran peace talks. Iran's Foreign Minister met Pakistan's Interior Minister on Friday to discuss plans to end the 'U.S. - Israeli war', Iranian media reported. Tehran and Washington are still at odds about Tehran's uranium stocks and control over the Strait of Hormuz. Investors largely ignored the economic impact of the Middle East conflict, and the energy crisis. The S&P 500 is on track to gain its eighth consecutive weekly. This strength was only partially reflected in the major European and Asian indexes. They gained some ground but lacked behind the U.S. rally. Mark Haefele is the chief investment officer of?UBS Global Wealth Management. He said that "our view is that equity prices will move higher in the medium-term,?based on a mixture of strong earnings and oil prices that remain contained to avoid a wider growth shock. UBS predicts Brent crude to be at $105 by the end of September, and $95 by the year's end. They believe "that the bar is high for a Federal Reserve increase." The main MSCI world stock index increased by 0.21%. Europe's STOXX?600 index was up by 0.43%, and is on track to achieve a weekly increase of 2.8%. Nasdaq Futures rose 0.11%, while S&P futures rose 0.13%. S&P 500 index rose 0.17% to 7,445.72 on Thursday, after reaching 7,517.12 the previous week. MSCI's broadest Asia-Pacific index outside Japan rose by 0.74%. Japan's Nikkei rose 2.8% led by shares related to artificial intelligence. Matt Britzman is a senior equity analyst with Hargreaves Lansdown. He said, "Oil prices are also moving higher as investors weigh the risks that talks will drag on or fall apart." The truth is, nobody knows the outcome of these negotiations. But for the moment, the markets are acting as they do whenever a geopolitical off ramp appears. They are tentatively moving, as if good news was just around the corner. OIL PRICES Slightly Higher, But Still Below Recent Highs Brent crude futures increased 2.5% to $105.28 per barrel, but are expected to drop 3.8% for the entire week. They reached $126.41 at the end of April. Energy disruptions that continue to persist could lead to a global price increase, as traders are compelled to raise rates. According to CME FedWatch, the markets are pricing in more than 50% of a rate increase by the U.S. Federal Reserve before the war began, as opposed to expectations of two rate reductions. This has boosted Treasury yields, and the dollar has also benefitted from "safe-haven" demand. The euro is at $1.1614 and close to its six-week low, which it reached on Thursday. It will drop 1% this month. The dollar was up 0.18% against a basket of currencies at 99.37. The Japanese yen was last trading at 159.11 to the dollar. This is dangerously close to the 160 mark that traders fear will bring Japanese authorities back into the market. Energy prices must be reversed quickly, otherwise the combination of fiscal expenditure and capex boom will lead to a lot of price inflation, particularly in the U.S., said George Saravelos, global director of forex research for Deutsche Bank. Saravelos stated that the incoming Federal Reserve chair Kevin Warsh will have to choose between increasing volatility in front-end interest rates and helping the dollar or hurting the dollar at the back-end. He can't do both. Fed rate increases push up short-dated rates, but no action by the central banks could increase long-dated borrowing costs because markets are pricing in more inflation on the long-term. Since March, the European Central Bank has projected three rate increases by year's end. The dollar held its ground against the yen despite an intervention by Tokyo worth $65 billion to support the currency a few weeks ago. The last 0.1% increase was at 159.125yen.
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Sources say that Northeast Asia is the first region to ship jet fuel into Europe since the Iran War.
Shiptracking data and three trade sources have confirmed that the first cargo of jet fuel from Northeast Asia to Europe has been shipped since the Iran war began at the end of February. Asian supplies are up, but European commercial stock levels remain low. Shiptracking data from Kpler and LSEG, as well as a fourth source, showed that around 745,000 barrels of aviation fuel from Yeosu, South Korea, were loaded onto the Seriana from May 1-6, and then transferred to Yuan Lan Wan, near the Strait of Malacca, on May 18-21. According to LSEG and two trade sources, the volumes are bound for France. The trading house Vitol that chartered the Seriana as well as the Yuan?Lan Wan did not respond immediately to a comment request. Trade Stopped Through the Strait of Hormuz Data from shiptracking showed that Asia had not?shipped any jet fuel along this route since February 28, when the latest phase in the Middle -Eastern Crisis began with U.S. and Israeli airstrikes against Iran. The crisis caused the Strait of Hormuz to be virtually closed, and Asian refiners reduced their refining operations to cater to Asian demand first. Asia is the swing supplier of jet-fuel to Europe, and traders send cargoes along this route when arbitrage is profitable. Kpler shiptracking showed that average monthly exports were 1.5 million barrels in the past year. A volatile arbitrage spread between Asia and Northwest Europe has also been a factor in limiting shipments to the West since the Iran War. The arbitrage situation for European jet supply remains tight. "All Asian?loading?routes are closed to Europe immediately and in a large part for the medium-term," said Sparta Commodities' analyst James Noel Beswick, in a client letter dated May 21, One of three sources said that the cost for shipping from Singapore to northwest Europe was estimated to be $4 million, or less. This equates to about $40 per metric tonne. Two industry sources who could not be identified because they weren't authorised to speak in public, estimated the price differential between the two regions to be around $20-30 per ton during recent trading sessions. This is less than the shipping costs. Therefore, the arbitrage has been closed. (Reporting and editing by Barbara Lewis; reporting by Trixie Yap)
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Document shows that the Indian steel ministry is pushing to eliminate metallurgical coal tariffs
According to a document reviewed by the Indian government, India's Ministry of Steel allegedly asked its Finance Ministry to remove anti-dumping duties on imports of low-ash metallurgical "coke". The ministry cited inadequate domestic supplies as well as higher prices. India, the second largest crude steel producer in the world, imposed an anti-dumping provisional duty on imports for six months of low-ash metalurgical coke, also known as metcoke. India imports met-coke primarily from China, Indonesian, Poland, Japan, and Switzerland. Industry experts claim that import volumes have dropped sharply after the curbs. In a memo dated 18 May, the steel ministry referred to anti-dumping duty with an acronym. Emails seeking comments from the ministries were not responded to. The steel ministry highlighted 'the difficulties faced by the state-run Rashtriya Ispat Nigam Ltd. (RINL),' saying that the company was unable to obtain adequate quantities of metcoke at reasonable rates from the domestic market. This resulted in a 20 percent increase in input costs. Concerns for Small and Medium-Sized Steelmakers The steel ministry's memo stated that RINL has been adversely affected in terms of its competitiveness and operational viability due to the lack of met coke. RINL didn't respond to an email asking for comment. The ministry has also raised concerns about small and medium sized steelmakers who rely heavily on?metcoke merchant suppliers. The domestic market was unable to provide met?coke to the steel industry at rates that were competitive. Since the government implemented?import limits in January of last year, steel mills have had difficulty obtaining met coke. Steelmakers such as JSW Steel, ArcelorMittal, and Nippon Steel India have expressed concern over the impact the curbs will have on the steel production in India. According to BigMint, data on commodities consultancy, the imports of met?coke will fall 21% in 2025 to 3.81 million metric tons, compared to last year. In October, it was reported that India's steelmills only procured about half their metallurgical coal needs from domestic suppliers during the first half 2025.
Investor's letter: Vietnam cuts retroactively subsidies for solar and wind farms
According to a petition from investors, Vietnam's state-owned power utility has reduced the subsidised prices that it pays for electricity generated by solar and wind farms. These farms now face defaulting on their bank debts.
The document was sent to Vietnam's highest authorities on May 16, and follows a letter from the majority of signatories in which they warned that billions of dollars were at risk due to retroactive changes made by Vietnamese authorities to subsidies, even though they were targeting a massive expansion of solar energy capacity.
Documents show that, starting with invoices for January, a subsidiary EVN's Vietnam power utility "unilaterally" withheld a part of its payments. It did this by applying a tariff provisional of its own.
The report added that "this has caused us breach our commitments to local and international banks, as well as to face the risk default due to monthly debt repayments and cash shortages."
The 16 signatories include the private equity fund Dragon Capital and the Vietnamese subsidiary ACEN energy group of the Philippines, as well as investors from Thailand Portugal the Netherlands South Korea Singapore and China. The letter was also signed by dozens of Vietnamese projects.
The Southeast Asian nation has seen a boom of renewable energy investments in recent years. This is due to generous feed-in-tariffs (FiTs) where the state agreed to buy electricity at inflated prices for a period of 20 years.
Nevertheless, in response to allegations that FiTs were being abused and that EVN was losing money from the subsidy program, the authorities have frozen or reduced some subsidies.
EVN did not immediately comment on the second complaint, but in recent weeks it said that preferential pricing could no longer be extended for projects that violated regulations.
It was not specified whether the rules had been changed retroactively or which projects were in violation of regulations. Reporting by Francesco Guarascio, Editing by Hugh Lawson
(source: Reuters)