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Tesla sales drop 28.2% in March as European car sales increase
According to the European Automobile Manufacturers Association's (ACEA) data, Tesla new car sales in Europe fell 28.2% from a month earlier. However, overall sales of battery-electric vehicles rose 23.6% during the same period. The data shows that total new car sales in Europe increased 2.8% during the month. This was boosted by double-digit increases in Britain and Spain. Why it's Important Tesla's drop in sales in Europe is a sign that some drivers are turning away from Elon Musk's brand of electric cars as the competition with China increases and others protest his political views. While European carmakers also face competition from China and are battling high costs on home markets, they now have to deal with the effects that President Donald Trump’s 25% tariffs will have on auto imports. Trump's 145% tariffs on Chinese imports, and Beijing's retaliatory duties have also caused global growth predictions to be revised downwards. This has created new risks for automakers. By the Numbers The ACEA reported that the sales of cars in March rose from 1,42 million to 1,42 million after two months of decline, according to the ACEA. Stellantis registered a 5.9% decline in registrations, while Volkswagen and Renault saw their numbers increase by 10.3% and 130% respectively. Tesla's third-month sales were down 28.2% on a year-over-year basis, and its market share dropped to 2%, from 2.9%. The EU's total car sales declined 0.2% on an annual basis, falling for the third consecutive month, despite a 17.1% increase in battery electric cars (BEV), a 23.9% rise in hybrid electric vehicles (HEV), and a 12.4% jump in plug-in hybrid vehicles (PHEV). In March, 59.2% more passenger cars were registered with electric vehicles, either BEVs, HEVs or PHEVs, than the previous year. Sales in Spain and Italy grew by 23,2% and 6,3%, respectively, whereas in France and Germany, they fell by 14,5% and 3,9%. Registrations in Britain increased by 12.4%. CONTEXT According to market experts, Europe is the second largest EV market in the world. This growth in interest is largely due the new EU emission standards and the introduction of cheaper electric cars. However, the EU recently proposed a loosening of the targets.
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Shares of UK auto distributor Inchcape fall amid fears of tariffs
Inchcape, a British auto distributor, said tariff uncertainties could affect supply from automakers as well as reduce market demand. This sent its shares tumbling on Thursday after it reported a drop in revenue for the first quarter. The shares of the company fell by nearly 17%, to 575 pence, their lowest level in almost four and a quarter years. The tariffs imposed by U.S. president Donald Trump have disrupted the global supply chain, even though he had earlier in the month suggested possible exemptions for auto-related taxes. The CEO Duncan Tait stated that the current tariff situation is not affecting demand, but we expect to see possible impacts on the supply from our OEMs. The company that exports cars to global manufacturers in 40 countries said it was taking steps to manage inventory levels and costs. Inchcape reaffirmed their 2025 guidance as well, but excluded any impact from tariffs which they did not quantify. Peel Hunt analysts wrote in a report that OEMs are focusing on the strongest distributors, and this could create opportunities. They also said Inchcape's shares remain a good value. In April, UK Finance minister Rachel Reeves stated that Britain worked with Washington in order to get an exemption from U.S. automobile tariffs. Britain could also review a credit program that benefits Elon Musk’s Tesla in an effort to boost support for the UK auto industry. Inchcape’s revenue for three months ending March 31 was 2.1 million pounds ($2.79 million), 5% less than the previous year, on a constant-currency basis. This is due to a challenging economic environment in key markets such as Asia-Pacific and Europe.
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Chinese coal buyers reject new Indonesia price benchmark
Indonesia's efforts to introduce a price set by the government for coal are not making any headway in China, its top customer. This undermines Jakarta's attempts to gain more control over its commodity exports. On March 1, Indonesia started using the HBA, a new price set by the government that was previously only used to calculate royalties. This is to give Indonesia more control over both the domestic and export value of the fuel commodity. Despite the fact that it has been almost two months since the HBA was introduced, two Chinese coal traders claim the majority of Chinese buyers still use the old Indonesian Coal Index. The new benchmark, according to traders, is less transparent and updated less often. It is also more expensive. Most exporters are not using the ICI price, according to the Indonesian Coal Mining Association. This is partly because buyers have a better understanding of the ICI pricing system. "We conducted an evaluation and are currently reviewing the impact." We will then present the results of the assessment to the policy-making leadership. Julian Julian refused to reveal details of the assessment of the Ministry and didn't comment on the low take-up rate of the HBA benchmark. Indonesia, the top thermal coal exporter in the world, struggles to influence pricing for its coal exports, valued at $17.2 billion in China last year, according to China’s customs data. This highlights the challenges Indonesia faces to assert its role on global commodity markets, as it strives to reform its mining sector and boost domestic processing. According to the Ministry of Finance, the new benchmark is intended to be used for spot trades starting in March. Exporters are expected to honor long-term contracts that have been priced using the ICI standard. Josua Paradede, Chief Economist at Permata Bank said that the new pricing policy aimed to increase revenues for coal exporters as well as the government. He said that the strategy might "backfire" in case higher prices push buyers to other sources. A coal company in Indonesia, who asked to remain anonymous, said that high HBA costs made the switch difficult. The company still uses ICI sales. Toby Hassall is the lead coal analyst for LSEG. He said that many Indonesian producers already operate at a loss. This policy could deter investors from investing in Indonesia's mines. WEAK DEMAND IN CHINA HITS PRICES Su Huipeng is an analyst with the China Coal Transportation and Distribution Association. Customs data shows that China's imports of coal were down by 6% on an annual basis in March, to 38.73 millions metric tons, due to a weaker demand at home and lower prices. Indonesian shipments also fell, with a further 9% decline. In March, China Shenhua Energy, a major importer of coal, stopped all purchases due to the increasing port stocks. Analysts predict that China's coal exports will fall in this year's comparison to 2024. This will further reduce Indonesia's leverage. CCTD forecasts that China's thermal imports – which accounted for virtually all Indonesian coal shipments to China in the past year – will drop by 5%. Analysts at Guosheng Securities also predict a decline. Reporting by Colleen Hogue in Beijing and Bernadette C. Christina and Fransiska Naangoy in Jakarta. Editing by Tom Hogue.
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Dalian iron ore's rally of three days is broken by stronger supply outlook
Iron ore futures dropped on Thursday, ending a three-day gain, due to a better supply outlook from increased shipments. However, seasonal demand for this key ingredient in steelmaking limited the decline. The September contract for iron ore on China's Dalian Commodity Exchange closed 0.28% down at 720.5 Yuan ($98.76). As of 0703 GMT, the benchmark May iron ore traded on Singapore Exchange dropped by 0.99% to $99,25 per ton. Hexun Futures, the broker, reported that shipments to China increased by 178,000 tonnes this week and that port inventories increased slightly on Monday. Mysteel, a consultancy, reported that the volume of iron ore exported to China by Port Hedland - Western Australia's top iron ore port - increased 30.3% in March following a decline in February. Despite the increase in steel production, improved ore prices supported some of the price increases. ANZ noted that "improved profitability at steel mills saw production recover to 93 millions tons in March. This kept Q1 production growth positive." Lange Steel, citing data from the China Iron and Steel Industry Association, reported that in mid-April the daily average production of steel by key steel companies was 2,113 million tons, an increase of 3.3% on a month-to-month basis. China's equities were largely in decline on Thursday, as Washington indicated a willingness for tariffs to be lowered against China but rejected unilateral actions. U.S. Treasury secretary Scott Bessent stated on Wednesday that the high tariffs between Washington, D.C. and Beijing were not sustainable. The Trump administration was open to de-escalating a trade conflict between Washington, Beijing. Bessent said that Trump would not take this unilaterally. Coking coal and coke, two other steelmaking ingredients, gained on the DCE. They rose by 0.84% each and 1.56% respectively. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Wire rod and hot-rolled colum both fell around 0.1%. Stainless steel, however, rose 0.12%.
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Atlantic Lithium makes concessions in order to save Ghana project
Atlantic Lithium, a miner based in Australia, has asked Ghana's government to make fiscal concessions so that it can salvage the Ewoyaa lithium project. The global price collapse threatens the viability and profitability of the first lithium mine for the West African country. Ahmed-Salim Adam is the general manager of Atlantic Lithium. He said: "We've done the maths, and it makes no sense at all." "We wrote to the Minister of Lands and Natural Resources for urgent assistance on fiscals. "If not, this project will not proceed", he said. The price of battery metal has fallen more than 80% since its peak in November 2022. This is due to a global supply glut that coincided with slower adoption rates for electric vehicles. Ghana, Africa's leading gold producer, has granted an Australian miner 15 years to build the mine before the end of 2024. The miner hopes to take advantage of the electric vehicle boom. According to Atlantic Lithium's estimates, the Ewoyaa Project, with its estimated resource of between 35 and 40 million tonnes of ore containing lithium, will become one of top 10 producers of spodumene in the world. This is a major new source of supply outside of the dominant markets of Australia Chile and China. The U.S. is expected to import around 360,000 tonnes of lithium per year. The project's construction was halted due to a delay in parliamentary approval. In addition, the collapse of the lithium price has further complicated its viability, and the timeline for the company. Analysts remain cautious despite a recent recovery in prices, which is attributed to a normalization of global auto production. Tom Price, Panmure Liberum’s head of commodities said that while "EV-led growth is strong, it's still being overwhelmed by mine supply," noting the 25% tariff imposed by U.S. president Donald Trump. Price says that because West Africa is relatively new to the lithium market, investors prefer to remain in established markets during times of low prices. Atlantic Lithium, in its appeal to Ghanaian officials, said that the internal rate of returns for the project had fallen from 105% initially to only 13.6%. "Nobody will invest their money into that." Adam explained that it should have been 30 percent to make sense. Requests for comment from the Ghanaian mining regulator and other relevant ministries were not answered. CONCESSIONS SOUGHT The company wants to make several adjustments to its fiscal policy, such as reducing the royalty rate from 10% to 5% to match Ghana's gold-mining sector or using a sliding scale based on lithium prices. The company also proposed revising the corporate income tax rate of 32.5% and removing import duties on capital goods. Atlantic Lithium has said that it spent $70m since 2016, but is now facing "significant" challenges which could stall the project. The miner has been forced to drastically reduce operations. It dismissed 25 employees in October and plans to layoff approximately 50 additional workers in May. Adam stated, "We will only maintain a skeletal staff." He said that while parliamentary approval is still important, construction can't begin until the fiscal framework has been addressed. Even if we do get the ratification, we still can't get this off the ground. Adam concluded. (Reporting and editing by Veronica Brown, David Evans, and Maxwell Akalaare Adombila)
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Metlen sales in Greece up 31% year-on-year, boosted by the energy and infrastructure sectors
Metlen, a Greek energy and metals company, reported on Thursday a 31% increase in sales revenues for the first quarter of this year compared to last year. This was largely due to growth in energy and infrastructure. In the first quarter of this year, the group reported sales of 1,50 billion euros ($1,70 billion), compared to 1.14 billion euro in the same period the previous year. Metlen reported that its first-quarter energy sales rose to 1,18 billion euros from 904 millions euros a decade ago. Global energy production increased 35% over the past year, to 3.1 Terawatt-hours. On the retail market, the market share of the company has increased from 17.4% to 19,4%. The group stated that the infrastructure and concessions sector achieved a turnover growth of over 100% in the first three months compared to the same period in 2020, and all projects are progressing smoothly and according to schedule. Metals division has reported a 11% increase on the previous year in revenue for first quarter, reaching 228 million Euros. The total volume of aluminum production decreased by 2.1%. Alumina production also declined by 3.3%. Metlen was formerly known by the name Mytilineos. In January, an additional investment of 300 million euros was made to extract the critical mineral gallium out of raw materials used in aluminum production. China has placed restrictions on exports of gallium. This metal is used to make high-quality smartphones and semiconductors.
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Anglo American reports lower copper output in the first quarter
Anglo American, a global miner, reported on Thursday a 15% drop in its production of copper for the first three months of the year. However, the company left the yearly forecast unchanged. The London-listed company said that copper production dropped to 169,000 tons in the first quarter of this year. It attributed the drop in production in Chile. The copper production in 2025 is expected to range between 690,000 - 750,000 tonnes. As the world shifts to cleaner energy sources, it is expected that metals will be used more for electric vehicles and renewable facilities. Prices for industrial metals have been affected by concerns about trade tensions around the world. The first quarter saw an increase of 2% in iron ore production, to 15,4 million tonnes. Anglo, who in February recorded a $3.8 billion impairment mainly related to De Beers' diamond division, maintained its annual guidance of 20 million to 23 millions carats after a 11% drop in production during the first quarter. The global economic slowdown has reduced the demand for diamonds. Traditionally, these are luxury items. After BHP Group failed to take over the miner last year, it is restructuring its business and focusing mainly on energy transition metals copper as well as on iron ore. The company has agreed to sell its nickel and coal assets, and spin out the platinum division. In a Thursday statement, it stated that "We are continuing to pursue a two-track process to divest De Beers' interest. We are committed to finishing this at the right moment and when market conditions permit." The company had said previously that the process would be accelerated in the second half.
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S&P lowers Bahrain's outlook from 'positive' to 'negative,' due to weak financing conditions
S&P Global, the global ratings agency, downgraded Bahrain’s outlook from “stable” to “negative” on Wednesday. It cited ongoing market volatility as well as weaker financing conditions which could increase government interest burden. Fiscal deficits are expected to remain high due to lower oil prices, maintenance of the Abu Sa'fah field, volatility in the market affecting financing costs, and increased social spending. Bahrain's reserve currency position is still weak, and fiscal reform may not be enough to reduce Bahrain's debt-to GDP ratio. Bahrain's non oil revenue measures have been offset by increasing social spending and interest rates, as the economy is still heavily dependent on oil. In 2018, Bahrain received $10 billion in aid over five years in an agreement tied to fiscal reform. Bahrain's state finances are the weakest of the entire region. It lacks the oil and financial resources that its neighbours have. Its Gulf Arab allies, however, have been providing political and economic support over the years to maintain Bahrain's stability due to the importance of the country in combating Iranian influence. S&P predicts that the fiscal deficit in the country will reach 7% in 2025. This is up from 5.2% in the previous review and 4.9% for 2024. Bahrain's sovereign foreign currency credit ratings for long- and shorter-terms were confirmed at "B+/B." Reporting by Aatrayee chatterjee from Bengaluru, Editing by Alan Barona & Bernadette Baum
As Russian and US officials begin talks in Saudi Arabia, the Russian rouble gains strength
The Russian rouble gained strength on Monday, as U.S. officials and Russian officials held talks in Saudi Arabia to make progress in a ceasefire for Ukraine.
On the OTC market, by 0930 GMT the rouble had gained 1% and was trading at 83.60 USD. The rouble suffered a slight correction against the dollar last week. It lost about 4% in just two days. However, it has gained over 26% so far this year.
Since the beginning of the year, the rouble has rallied on the back of expectations that a peaceful settlement would be reached in Ukraine as well as a easing of tensions with the United States.
The rouble is also supported by the high interest rates, which were held in place last Friday by the central bank.
The rouble, which is the most commonly traded currency in Russia, was up 0.5% to 11.41 at the Moscow Stock Exchange.
This week, we are prepared for a possible new wave of strengthening the rouble. Denis Popov, from PSB Bank, said that another positive round of geopolitical information is possible by Tuesday. (Reporting and editing by Gleb Brynski)
(source: Reuters)