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Consultancy says that Russia could increase LPG exports from China to China by 40% by 2026.
Petromarket 'consultancy' said that Russia could increase its liquefied gas supply to China next year by 40%, to?1.125 millions metric tons, as Moscow pivots towards the East. In response to Western sanctions regarding its invasion of Ukraine in 2022, Russia has redirected oil flows from Europe towards China and India. The European Union's sanctions against Russia's LPG?took effect December 20, 2024. Russia now aims to increase its natural gas and LPG exports?to China. LPG (or propane and butane) is used primarily as fuel in?cars and heating systems, and for the production of other petrochemicals. Russia also supplies LPG to:?Turkey and Mongolia. The traders have stated that Russia's China exports are likely to grow. Petromarket estimates that Russia's LPG imports to China are expected to increase to 800,000 tonnes this year, up from 416,000 tonnes in 2024. Gazprom’s Amur Gas Processing Plant?in Eastern Siberia has increased LPG exports into?China since it began processing gas earlier this summer. Sergei Stepanov, the Gazprom manager in St. Petersburg told a conference last week that his plant is primarily supplying LPG to China. He did not provide figures. According to industry sources the Amur Gas Processing Plant now produces between 40,000 and 45,000 tonnes of LPG each month. (Reporting and Editing by Joe Bavier).
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Copper prices drop from record highs; Market awaits Fed policy
The price of copper fell from its record high on the previous day as traders continue to be dominated by talk about this week's Federal Reserve rate decision, and the possibility of a?tight supply. The Shanghai Futures Exchange's most traded copper contract closed the daytime trading at 91,090 Yuan ($12,883.65) a metric ton, down 1.46%. As of 0717 GMT, the benchmark three-month price for copper at the London Metal Exchange was also down by 1.59%. It stood at $11,450 per tonne. Shanghai copper is up 25% in the last year, while London benchmark copper is up more than 30%. Sucden Financial analysts expect that copper prices will be "characterized by sharp rallies, followed by shallow consolidation", since there is little interest in selling?at the present level. Investors are expecting a U.S. interest rate cut this week, as well as comments from Fed chair Jerome Powell that will be hawkish about further reductions. Markets now predict fewer rate reductions in 2026 due to lingering concerns about inflation and the resilience of the U.S. economy. Copper is a market that continues to be affected by supply issues due to the disruption of mines and the constant dislocation of copper stocks into the U.S. After reaching a record on December 5, the Comex copper stocks continued to rise on Monday. They now total 439,510 short tonnes (398,717 tons metric tons). Lead fell 0.89%. Nickel declined 0.58%. Tin dropped 1.36%. $1 = 7.0702 Chinese yuan renminbi $1 = 7.0702 Chinese Yuan Renminbi (Reporting and editing by Mrigank Aich and Rashmi aich; Mrigank Duan and Lewis Jackson)
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EU scientists predict that 2025 will be the second or third hottest year in history.
The Copernicus Climate Change Service of the European Union (C3S), said Tuesday, that this year will be the second or third warmest in history, possibly only surpassed by the record-breaking heat in 2024. The latest data from C3S is the result of last month's climate?summit at which governments failed to agree on substantial new measures to cut greenhouse gas emissions. This reflects strained geopolitics, as the U.S. rolled back its efforts and some countries sought to weaken CO2-cutting mechanisms. C3S stated in a bulletin that this year is likely to be the last of the three-year period where the average global temperature has exceeded 1.5 degrees Celsius. (2.7 degrees Fahrenheit). This was the time when humans first began using fossil fuels in industrial quantities, between 1850-1900. Samantha Burgess is the strategic lead for Climate at C3S. She said, "These milestones do not reflect abstract figures - they show how climate change is accelerating." Extreme weather has continued to affect?regions across the globe in this year. Last month, Typhoon Kalmaegi caused the deaths of more than 200 people in the Philippines. Spain suffered the worst wildfires in 30 years due to weather conditions scientists said were more likely because of climate change. The planet was at its hottest ever last year. Scientists have confirmed that the primary cause of global warming over time is greenhouse gas emission from fossil fuels. World Meteorological Organization reported earlier this year that the last decade has been the 10 hottest years since records began. The Paris Climate Agreement of 2015 set a global warming threshold of 1.5 degrees Celsius as the limit that countries would try to avoid, in order to avoid the worst consequences of climate change. Technically, the world hasn't yet?breached this target. This refers to a global average temperature of 1.5 Celsius for decades. The U.N. stated this year that the 1.5 Celsius target is no longer achievable and encouraged governments to reduce CO2 emissions more quickly to avoid overshooting. C3S records date back to 1940 and are cross-checked against global temperature records dating back to 1850. (Reporting and editing by Michael Perry; Kate Abnett)
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Gold prices drop as markets prepare for Fed's hawkish tone
Gold ?edged down on Tuesday as investors, having mostly priced ?in ?a Federal Reserve rate cut, looked ahead for clues that the U.S. central bank might opt for a gentler-than-expected easing cycle when its two-day policy meeting begins later in the day. As of 0609 GMT, spot gold was down by 0.3% at $4,174.91 an ounce. U.S. gold futures for delivery in December fell 0.4% to $4.202.70 an ounce. Kelvin Wong, senior market analyst at OANDA, said that investors are largely repositioning themselves ahead of the Federal Reserve's meeting. During his press conference earlier in the month, Jerome Powell signaled hawkish guidance on rate cuts. Investors in the U.S. Treasury Market are now adjusting their "positions." The benchmark 10-year Treasury yields in the United States held close to a peak reached?on Monday, which was a two-and-a half month high. Analysts expect to see a "hawkish" cut this week, accompanied by forecasts and guidance that indicate a high threshold of further easing next year. The U.S. The Fed's preferred inflation indicator, the Personal Consumption Expenditures Price Index (PCE), was in line with expectations. Consumer sentiment also improved in December. The private payrolls for November recorded their sharpest decline in over 2-1/2 years. However, jobless claims for the week ending November 28 fell to a 3-year low. According to CME’s FedWatch Tool, the markets now give an 89% chance of a quarter point cut at the Fed’s meeting on December 9-10. Gold is a non-yielding asset that tends to be favoured by lower interest rates. Silver fell by?0.6%, to $57.76 an ounce. The white metal reached a record high of $59.32 per ounce on Friday. Wong stated that silver was a more risky play than gold, due to its low inventories, high industrial demand and the expectation of Fed rate reductions. Palladium fell 0.4%, to $1459.78, while platinum lost 0.2%, to $1638.35. (Reporting and editing by Sumana Aich, Rashmi aich and Sherry J. Phillips in Bengaluru)
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Russell: China's steel exports are up, but its aluminium exports are down.
Exports of China's steel products are surging this year, as the domestic demand – particularly in property development – is slumping. However, those of aluminum have fallen due to increased activity in the manufacturing and energy sector. China produces more steel and aluminum than the rest of the world combined. Beijing has set informal production ceilings for both sectors in order to curb overcapacity. Informally, steel production is limited to no more than 1.005 billion metric tonnes. Given that production for the first ten months of this year was 817.87 millions tons, 2025 production will likely dip below 1 billion metric tons. This would be the first time since 2019. Steel mills are trying to compensate for the soft demand by increasing exports. Customs data released on Monday shows that China's steel exports increased 6.7% in the first eleven months of this year, compared with the same period of 2024. If December exports are on par with the average of the year, then China's steel shipment will be around 117 million tonnes, which would?mark an all-time high, surpassing the 112,39 million tons in 2015. Steel mills are currently able to benefit from exports as domestic prices have been near their lowest levels in five years. On Monday, Shanghai exchange rebar ended at 3,128 Yuan ($442.43) per?ton, after trading mostly sideways, since the low of 3,012 Yuan was reached early June. Chinese steel is competitively priced against other benchmarks. Last week, LME contracts for Turkish rebar ended at $560.50 per ton. China has been able to increase steel exports, despite the fact that several countries have placed tariffs on imports to protect domestic producers. Buying cheaper Chinese steel is a good idea, as much of China's production goes to other Asian nations, particularly those with limited steel production. ALUMINIUM SLUMP China's exports of refined aluminum and its products, which have fallen by 9.2% in the first 11 month of the year, totalled 5.59 million tonnes. China's aluminum production is expected to be very close to the 45-million-ton annual cap. More demand for metal from the manufacturing and energy sectors of the country has also led to less available metal to export. Loss of Chinese aluminum on global markets pushed benchmark London prices up to $2,920 per?ton in December 5th. This was the highest price since May 2022. The contract has increased by 27% from its early April 2025 low price of $2,300. The rising prices of metals have provided some relief to Western based smelters that have been struggling to stay competitive in the past few years. This is especially true for those in Europe and Australia who have had to contend with increasing energy costs. Beijing's annual aluminum output cap of 45 million tons is likely to further tighten global supply in 2026. It is a question of whether China's Steel sector will follow in the footsteps of aluminium. It will depend on the speed of recovery in domestic demand if Beijing limits annual steel production at a maximum 1 billion tons. While construction is a drag on China's steel industry, the mills are likely to continue trying to reduce capacity or export their way to profitability by retiring old furnaces. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist who writes for.
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Stocks drop as nervous markets await Fed decision, rates outlook
Investors worried about the direction U.S. interest rates could take next year amid fears about a divided Central Bank. Asian stocks dropped while the dollar remained steady on Tuesday. Investor sentiment was cautious after a shaky start to the week, with key central bank meetings. Markets are looking for clarity on the outlook of global interest rates. Reserve Bank of Australia kept rates unchanged as expected on February 2, ruling out any further policy easing. They warned that the next step could be an increase if inflation pressures remain stubborn. The Australian dollar traded just below a three-month high. Bank of Canada, Swiss National Bank, and the Federal Reserve are expected to keep rates unchanged this week. Many Wall Street banks predict that the Fed will not cut interest rates as much in 2026 due to lingering concerns about inflation and expectations for a stronger U.S. economic recovery. MSCI's broadest Asia-Pacific share index outside Japan fell by 0.65% after a weak session overnight on Wall Street. European futures point to a subdued opening as a cautious air grips the markets. Prashant Nnewnaha, senior Asia-Pacific rate strategist at TD Securities, said that "the low-hanging fruits from risk management reductions are likely over" and that Chair Powell's upcoming press conference is likely to reflect a more conservative approach in the future regarding policy recalibration. The dot plot is likely to show a single cut in 2026. If the dot plot indicates two cuts next year, this would be considered dovish. According to LSEG, traders are pricing in 77 basis point of easing at the end of the next year. Some strategists believe that the Fed's Policy Committee could be deeply divided. The meeting is also being held in the context of increased market interest about who will replace Powell as Fed chair when his current term ends next May. Kevin Hassett, White House Economic Advisor and leading contender for the Fed chair role, said in an exclusive interview that the Fed should continue to reduce interest rates. Xiao Cui is a senior U.S. economics from Pictet Wealth Management. He expects that a solid economy, inflation above target, and a slowing labor market will increase the internal divisions within the FOMC, making 2026 a challenging year for policymakers. We see risks that Fed reductions are delayed until the second half 2026. Asian chip stocks sank after U.S. president Donald Trump announced that the United States would allow Nvidia to export its H200 processors -?its second best artificial intelligence chips - to China, and charge a 25% tax on these sales. China's CSI Semiconductor Industry Index fell 0.5%, while the broader CSI300 Index dropped 0.47%. The dollar was stable on Tuesday. The euro was last trading at $1.1649, while the pound sterling was up 0.11% to $1.3336. The Aussie dollar was up 0.33% at $0.6646. It is hovering near its highest level since September after RBA Governor Michele Bullock warned of the possibility of an increase in interest rates due to inflationary forces. The yen remained unchanged at 155.91 to the dollar, after a sharp decline immediately following a powerful earthquake in Japan. The Japanese authorities lifted the tsunami warnings Tuesday, hours after a powerful 7.5-magnitude quake shook Japan's northeastern region, injuring 30 people at least and forcing 90,000 residents from their homes. Oil prices continued to fall in commodities after a 2% drop in the previous session, as traders kept an eye on the peace talks that were taking place in Ukraine to end Russia's conflict. Brent crude futures fell 0.3% to $62.32 per barrel. U.S. West Texas Intermediate Crude was down by 0.41% at $58.64. (Reporting and editing by Shri Navaratnam in Singapore)
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US military develops small refineries for critical mineral substances
The U.S. Military said it plans to build a fleet small-scale refineries that will produce the critical minerals needed to manufacture bullets, armor, and other types of weaponry. This is a step to create domestic sources of niche materials, which Chinese miners have 'long controlled. Plans, not previously announced, are being developed jointly by the U.S. Army, the Idaho National Laboratory, and the antimony and gold mining company Perpetua Resources. Antimony is the first mineral that the military wants to refine. The Army has said that it will not produce large quantities of minerals for private consumption. However, a small-scale approach could provide a constant stream of building blocks, without having to rely on commercial refineries which are often much larger and primarily focused on bulk commodities, such as copper and iron ore. Washington hopes to refine other minerals, such as?tungsten and rare earths, which the U.S. government considers critical. Mark Mezger is a U.S. Army munitions adviser. He said, "We must find a way of making our own critical minerals that we can control and monitor within our borders." The Army spent $30,000,000 over several years developing the refinery programme for antimony. Westpro Machinery, a private company, designed a refinery which can be transported within four shipping containers. The refinery is able to produce between 7 and 10 metric tons of trisulfide (a type of antimony) annually, which is far less than what a commercial refinery could produce. However, it's enough to supply the Army in peacetime. Mezger stated that if a conflict breaks out, the Army could expand processing by adding more mini-refineries for ore from Perpetua’s Idaho mine. He added that the Army was in discussions with other U.S. Antimony Projects to source additional antimony. Primers, which are the explosive caps at the base of a bullet, are made from antimony trisulfide. The United States hasn't produced this version of antimony since the 1960s. "You can't make primers without antimony trisulfide." Without primers you cannot make bullets. "An army without bullets would be a mere parade," Mezger said. Idaho National Laboratory is testing the facility over the next six-months and if it passes muster will be operating it for Perpetua and the Army. Perpetua is backed both by JPMorgan Chase and the billionaire investor John Paulson. Officials said that refineries for other minerals could be situated on military bases or government properties. In March, was the first to report that the Trump Administration was considering placing metal refining plants on U.S. Military bases. The portable refinery will perform steps that are common in larger facilities, such as crushing rock. The type of mineral produced will determine the chemicals that are used. INL will also be involved in ensuring that the facility is not only a copy of existing refinery standards, but is also cleaner and more efficient. In 2021, the Army learned that China had stopped shipping Trisulfide. This triggered a rapid drawdown of its one-year supply and a rush to find alternative supplies in India. Mezger explained that the refinery plan was borne out of a recognition that a domestic alternative was essential. Jon Cherry, Perpetua CEO, said that the development of the plant should "pave a way for sustainable American mineral independence and resilient." (Reporting and editing by Ernest Scheyder)
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Bezos Earth Fund increases marine conservation by $24.5 million
Head of Nature of the world's largest climate philanthropy, gave $24.5 million for coastal ecosystem protection as part of a plan that aims to create a cross-border marine Biosphere Reserve. The Bezos Earth Fund has awarded four grants to local communities in Costa Rica and Panama. Colombia and Ecuador will also receive a grant. The grants are part of a $1 billion plan to protect 30% of the land and oceans of the planet by 2030. The group of donors aims to contribute $5 billion in the same time period as part of the "Protecting Our Planet Challenge" with 10 other philanthropies. The Bezos?Earth?Fund, and the wider coalition have deployed more than $3.5 billion of the $5 billion total. Re:wild, an organization that helps partners establish and strengthen coastal reserves for turtles, hammerheads sharks and other marine species. Cristian Samper, the Bezos Earth Fund’s director of nature, stated that "it's an extremely important area for species migration." "The only way to protect this area is by doing it transboundary." He said that in two years, the four countries tripled the size?of the protected seas, to more than 600,00 square kilometres (231,660 square miles), across 10 different areas. The goal now is to create a biosphere reserve. "That'll be the first of its kind in the world," said Samper, adding that the Fund is also examining a similar?"reserve" in the Pacific which would be five times as large as the continental United States. The fund agreed to spend 100?million dollars helping the Pacific Region implement the global biodiversity goals and would announce the second set of grant in 2026. This is the kind of work that you should be doing to move the needle toward 30 by 30. (Reporting and editing by William Maclean, Simon Jessop)
Asia stocks stumble over slipping yuan
Asian equities struggled for traction on Tuesday as mixed messages from U.S. monetary policymakers and a wobble in the Chinese yuan left traders unsettled and tentative with Friday's release of U.S. inflation information hanging over the outlook.
The threat of Japan intervening to prevent further falls in the yen squeezed the dollar, however it increased versus the yuan on speculation that China might endure a weaker currency.
MSCI's broadest index of Asia-Pacific shares outside Japan increased 0.3%, led by chipmaker gains for South Korea's Kospi. Other markets lacked direction and wandered either side of flat, with belief in China and Hong Kong still vulnerable after Friday's abrupt slide in the yuan.
Financiers in Hong Kong were waiting on signs of assistance for the residential or commercial property market and to see whether Friday's unexpected fall in the yuan indicated a policy shift, stated Steven Leung, director of institutional sales at broker UOB Kay Hian.
Insurance company AIA, down 17% in 10 trading days considering that the business did not assure brand-new buybacks in its outcomes announcement, highlighted the delicate mood.
Japan's Nikkei was stable as was the yen, which last traded at 151.38 per dollar. S&P 500 futures increased 0.1%. European futures were flat. FTSE futures fell 0.3%.
On Monday, the blended outlook from Federal Reserve authorities tossed a few wildcards into the policy outlook while markets wait on the next U.S. inflation indications due on Great Friday.
Chicago Fed President Austan Goolsbee said he had actually pencilled in 3 rate cuts this year, while Fed Governor Lisa Cook advised caution and Atlanta Fed President Raphael Bostic re-iterated Friday remarks cutting his expectations to one cut.
Comments by FOMC participants recommend to us that 4 voters-- Bostic, Bowman, Mester, and Barkin-- see absolutely no, one or two cuts this year, said Standard Chartered strategist Steve Englander.
We still think (chairman Jerome) Powell has eight choose Alleviating, but he probably does not want an 8-4 vote on the cut of the cycle. Rather, he might hope that great inflation outcomes will enable him to swing a couple of votes into the cutting camp in the coming months.
YEN STEADY, YUAN SLIPPERY
U.S. interest rate futures cost about 3 Fed rate cuts this year and about a three-in-four chance of the first cut in June.
U.S. two-year yields, which track short-term rates of interest expectations, rose in New york city trade over night then fell 3.5 basis points in Asia trade to 4.59%.
In foreign exchange, Monday's rhetoric from Japan's top currency diplomat, Masato Kanda, kept the yen stable as traders weigh the risk of Japan buying greatly. Kanda stated the yen's. current slide was unusual and speculative.
The Bank of Japan (BOJ) lifted interest rates last week. the yen has fallen near to three-decade lows on the dollar.
China's yuan opened consistent after a stronger-than-expected. fixing of its trading band, but selling pressure soon drove it. to the weak side of its 200-day moving average at 7.2184 per. dollar.
Markets were unsettled by a sharp drop in the yuan on. Friday, after months of tight trading, and some hypothesize China. is loosening its grip on the currency to permit it to fall.
Whether this shows a shift in FX policy remains to be. seen however accommodative monetary conditions are necessary in the. face of development headwinds, said BofA Securities' strategist. Adarsh Sinha.
If (yuan) depreciation sustains and corresponds with a weaker. credit impulse, Asia FX is vulnerable.
Later Tuesday, U.S. production, services and customer. self-confidence figures are due. U.S. core PCE information is due on Friday.
Gold and oil rates were broadly consistent in products. trade, with area gold at $2,172 an ounce and Brent crude. futures up 7 cents a barrel to $86.82.
Bitcoin hovered simply above $70,000 after increasing. greatly on Monday.
(source: Reuters)