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China's iron ore prices fall due to declining steel production and rising inventories
Iron ore prices weakened on Monday due to a decline in steel production in China and rising port inventories. There was also concern about a weakening of downstream demand. By 0240 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange fell by 0.75% to $791 yuan (US$111.05) per metric ton. The benchmark December Iron Ore at the Singapore Exchange fell 0.56% to $105.55 per ton. According to Mysteel, the capacity utilisation rate at Chinese blast-furnace steel producers fell by 1.3 percentage point to 88.6% on average, for the fifth consecutive week between October 24-30. Mysteel's data shows that the daily hot metal production, which is a measure of iron ore consumption, fell 1.5% from one week to another, reaching 2.36 million tonnes. Everbright Futures, a Chinese broker, predicted that overseas supply would continue to improve in November. Shipments and arrivals are expected to increase. Analysts from Galaxy Futures stated that while domestic steel production may improve in the fourth quarter of this year, the main issue is the rapidly declining end-user demand for iron ore. As part of China's government pledge to reduce the overcapacity, China's steel association, which is backed by the state, announced that its steel production would drop below 1 billion tonnes in 2025. SteelHome data shows that the total iron ore stocks across Chinese ports increased by 1.53% in a week to 135.6 million tonnes as of October 31. Coking coal and coke, which are both steelmaking ingredients, have lost ground. They fell by 0.5% and 1.06 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange fell. Rebar fell 0.8%, while hot-rolled coils dropped 0.63%. Wire rod slipped 0.24%, and stainless steel declined 0.59%. ($1 = 7.1230 Chinese yuan) (Reporting by Lucas Liew; Editing by Subhranshu Sahu)
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Sources say that India's BPCL will buy Upper Zakum crude in December to replace Russian oil.
Two trade sources reported on Monday that India's Bharat Oil Corp bought crude oil in Abu Dhabi as part of a spot-tender to replace oil imported from Russia, after the U.S. imposed sanctions against two major Russian producers. They said that the Indian refiner bought 2 million barrels Upper Zakum crude to be loaded in December. ADNOC Trading is said to be the supplier of the cargo, according to a source. Washington imposed sanctions last week on Rosneft, and Lukoil - the two largest Russian oil companies - in an effort to increase pressure on President Vladimir Putin for ending the war in Ukraine. Last week, a BPCL spokesperson said that the company will only buy Russian oil from entities not sanctioned. BPCL purchases 2 million metric tonnes (14,66 million barrels), mainly Russian oil, from the spot markets every month. The source stated that BPCL hopes to continue buying Russian oil through non-sanctioned sources for half of the supply.
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Malaysia PM says $142 Million magnet plant will boost rare earth industry, reports state media
State media reported that Malaysian Prime Minister Anwar Ibrahim stated that the development of a 600-million-ringgit ($142-million) super magnet production facility in Pahang would strengthen the nation's rarity earth sector. In July, Australia’s Lynas Rare Earths signed a contract with South Korea’s JS Link to build a 3,000-tonne neodymium magnetic manufacturing facility near Lynas’ advanced materials plant located in Malaysia’s Kuantan District. Anwar told state news agency Bernama that Malaysia's Trade Minister would monitor the project, as it involves rare earth processing. Anwar stated that "JS Link already bought the land and is ready to start operations. This is no longer a Memorandum of Understanding." The investment has been made, and the land is prepared, so it's about speeding up the process. Anwar stated that the collaboration would help Malaysia to become a leader in advanced materials and clean technologies, as well as support efforts to create a supply chain of critical minerals. According to government estimates Malaysia has 16.1 million tons of rare earths deposits but lacks the technology required to mine and process these. The country seeks foreign investment to mine and process rare earths. Rare earths play a vital role in the production of high-tech products, such as electric vehicles, semiconductors, and missiles. Malaysian officials are reportedly in discussions with China about rare-earth processing. Last month, they signed an agreement with the United States to seek cooperation for diversifying their critical mineral supply chains.
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Investors demand creation of International Minerals Agency
On Monday, a group of mining investors called for the creation of a new independent agency to oversee the sector. This would be modeled after the International Energy Agency. A statement from the group of investors said that they manage or advise assets worth $18 trillion. The new International Minerals Agency will be able monitor global mineral demand and supply as well as illegal flow. It added that the agency would also provide information about how companies are progressing towards global performance standards in sustainability. The Global Investor Commission on Mining 2030 includes PIMCO as well as ING, L&G and Allianz Investment Management. Church of England Pension Fund, Royal London Asset Management and Allianz Investment Management are also members. After meeting with the President of Brazil, Luiz inacio Lula da S Silva, it released a report aimed at providing a 10-year roadmap for a responsible mine sector. This was ahead of United Nations Climate Negotiations. Peter Kindt is the global head of transition accelerators at ING. This will require collaboration between multiple stakeholders and new initiatives, such as an International Minerals Agency. Reporting by Eric Onstad, London Editing by Matthew Lewis
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CATL sources lithium ore from outside suppliers as flagship mine remains closed
Sources say that China's CATL placed orders for lithium ore with external suppliers in November as the battery giant is seeking alternative feedstock since its flagship Jianxiawo Mine has closed. Two sources who have direct knowledge of the matter and requested anonymity because they are not authorised to talk publicly, said that a CATL joint venture in Yichun near the mine placed the orders earlier this month with traders. One source said that the two companies rarely did this when the mine was at full capacity. CATL has not responded to our request for comment. CATL has suspended mining at its Jianxiawo lithium site in Yichun, Jiangxi Province, since early August, after the expiration of its mining licence. CATL announced in August that it would apply to renew the mining license as quickly as possible. The Chinese newspaper Securities Times announced a month later that the mine would reopen in a few weeks. CATL, however, has not yet announced such a move. According to Australian government data, the Jianxiawo Mine has a production capacity of 46,000 metric tonnes of lithium carbonate per year, which is 3% of global output in 2025. The mine was closed in the last year. It reopened in February, before closing again in August. The mine is a major source of lithium for the global market, so prices have been affected each time. Mark Potter, Shanghai Reporting Editor
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Draft shows that the EU is considering lowering its 2040 climate target due to forest CO2 absorption.
A draft EU compromise proposal revealed that the European Union was considering a clause to slow down its climate targets for 2040 if the forests of the countries were not able to absorb enough CO2 to reach the target. The EU is trying to get their new climate target approved at a meeting of their climate minsters on November 4, just in time for Ursula von der Leyen, the President of the European Commission to not go empty-handed with other world leaders to the U.N. COP30 Climate Summit on November 6, The EU is looking at various options and flexibilities to reduce the climate goal, which, according to the Commission, should be a 90% reduction in global warming emissions by 2040. The latest draft of the negotiating agreement, which was seen on Sunday by, included a clause that stated that if forest and other land-based activity that absorbs CO2 emissions fail to meet the EU's target, it will be permitted to propose an "adjustment of the intermediate 2040 target that corresponds to and is within the limits" of any possible shortfalls. It said that Brussels could respond by suggesting additional measures to get the forest sector on track with the emission goal. This move is similar to a proposal by France made last week. As reported previously, France had called for an "emergency break" that would reduce the 90% target of emissions by 3% if the forests and land-use sectors fail to deliver. In the past decade, Europe's forest and land use sector has absorbed less CO2, mainly due to wildfires and inefficient forest management. In previous drafts of negotiations, it was revealed that countries had already considered allowing the EU to revise its 2040 target every two years. This could have weakened the goal in the future. On Tuesday, their ministers must still resolve key issues. This includes the percentage of the 90 percent reduction in emissions that countries can cover by purchasing foreign carbon credits. To achieve the target, at least 15 out of 27 EU member states must support it. A spokesperson from Denmark, the rotating EU presidency, and the author of the document, stated that all the ingredients are in place for a successful deal. The spokesperson stated that the COP30 is about to begin and now was the right time to set the target of 2040.
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Iraq and Turkey sign agreement on Iraqi water infrastructure
A Turkish official confirmed that Iraq and Turkey signed a deal on Sunday, under which the revenue from oil sales will be used to finance water infrastructure projects carried out by Turkish companies. In a press release, the office of the Iraqi Prime Minister said that both countries had agreed on a mechanism to implement a water-cooperation agreement they signed last year. The statement did not give any details about the mechanism. The Turkish official stated that the Iraqi government would establish a committee to oversee water infrastructure projects, and will invite Turkish companies to bid for these projects. Payments for the projects will be funded by the revenue generated from Iraqi oil exports to Turkey. An Iraqi official in charge of water resources said that the initial set of projects to be implemented under this agreement will include three projects for water harvesting and three initiatives for land reclamation. The first framework water agreement was originally signed by Turkish President Tayyip Erdoan in April 2024, during his visit to Baghdad. This marked the beginning of improved relations between two neighbours following years of tension. Water scarcity in Iraq has long been a problem between Iraq and neighbouring countries. Around 70% of Iraq's resources come from the neighboring countries via the Tigris River and Euphrates river. Both rivers flow through Turkey. Reporting by Tuvan Gümrukcu from Ankara, and Ahmed Rasheed from Baghdad. Writing by Darrel Butler. Editing by Jan Harvey.
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Belgium investigates new drone sightings near military base
Theo Francken, Minister of Defence in Belgium, said that police are investigating recent drone sightings in military areas. Francken, in a posting on X, said that the government had received reports of drones flying above Kleine Brogel in north-east Belgium on Saturday. He said that a helicopter and police cars pursued the drone but were unable to capture it. A drone jammer also failed to intercept it. Francken stated that the flight was not just a simple flyover, but rather a command to target Kleine Brogel. Police are investigating the incident, according to a spokesperson from Francken's office. Ministers from the government will meet this week to discuss sightings. In recent weeks, NATO countries were on high alert after drone sightings as well as other air incursions. These included at airports in Copenhagen and Munich, and the Baltic region. In September, 20 Russian drones were detected in the airspace of Poland. In Belgium, investigations are underway into the multiple sightings of drones last month over a military facility in the south-east and another base near the German border at Elsenborn. In Belgium, it is illegal to fly drones above military zones. Last month, the European Commission proposed four European defense projects, including an anti-drone system, and a plan fortifying the eastern border of Russia as part a push to prepare the continent to defend itself before 2030. Francken has called on the Belgian government to increase its spending on anti-drone defenses. (Reporting and editing by Kate Abnett)
PetroChina's Jieyang refinery to get very first Venezuelan oil freight
PetroChina's Jieyang refinery will get its first direct crude oil freight from Venezuela this weekend, according to trade sources and shiptracking data on Kpler, after Washington temporarily lifted sanctions on the OPEC manufacturer.
The 2 million barrels of Venezuelan Merey crude onboard supertanker Elysia is due to get to Jieyang on March 24, Kpler data showed.
PetroChina did not immediately react to an ask for remark.
reported in November that mention oil company Petroleos de Venezuela SA (PDVSA) and PetroChina remained in talks for an unrefined supply deal during the six-month reprieve.
Washington in 2015 relaxed sanctions on Venezuela's oil market in return for pledges to open its governmental election to worldwide observers and permit the opposition to pick its prospect, which has not taken place.
If the U.S. does not renew next month the license given in October that lifted sanctions, PDVSA would probably go back to using intermediaries to offer its oil to purchasers such as China, likely at discounts.
Jieyang, a greenfield 400,000-bpd refinery and petrochemical complex in southern China Guangdong province, is the latest amongst PetroChina's refining centers.
The plant began trial runs in late 2022 and was designed to process heavy oil such as crude from Venezuela.
PetroChina dropped PDVSA as the partner for the Jieyang complex in 2019 after the United States imposed sanctions on PDVSA to weaken the rule of Venezuelan President Nicolas Maduro.
(source: Reuters)