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Hong Kong Customs Seize Antimony Amid China's Export Controls
Hong Kong Customs seizes suspected antimony ingots. In a statement from April 2, customs announced the seizure. This comes after China, which is the largest producer of this metal in the world, placed export controls on the metal's shipments back in September. Hong Kong Customs and Excise Department reported that the 25,171.85 kilograms of antimony were found in a container of 40 feet near the border of the mainland, at the cargo compound of the city, located north of Hong Kong. The department did not give a reason for the discovery. China exported 3.9 million kg each of wrought antimony and unwrought in the past year. However, since September when controls were implemented, shipments have almost stopped. China's customs data only shows a shipment of 20,000 kg to Japan in January. Hong Kong Customs didn't immediately respond to an inquiry for comment. Antimony, a grey metallic oxide, has been used since antiquity in cosmetics and medicine. The use of this chemical in military equipment such as infrared weapons, night vision goggles and nuclear weapons, as well as bullets and tanks, has made it a strategic material. According to CICC, the biggest application is for flame retardants, which will account for about half of global use in 2023. China's export restrictions have fueled a rise in the global price of strategic metal. China's antimony restrictions, which will produce almost half the global supply by 2023, have disrupted supply chains. Antimony is used in semiconductors and solar power equipment, as well as munitions. According to the U.S. Geological Survey, China will account for 48% and Tajikistan 25% of antimony production in 2023.
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Seven & i Japan saw its Q4 profits fall by 24%, increasing takeover pressure
Seven & i Holdings, a Japanese retailer, is expected to report a 24% decline in its quarterly profit on March 28, as the underperformance of its convenience stores hampers its ability fend off a Canadian takeover bid by Alimentation CoucheTard. Seven & i will likely book an operating profit of 94.45 trillion yen (US$639.52 millions) for the period December-February. This is according to a LSEG average of eight analyst predictions. This compares to 124.23 bn yen for the same period last year. 7-Eleven's profits have fallen in recent quarters, as its domestic convenience stores underperformed their competitors. Its North American division also suffered due to lower consumer spending amid accelerating inflation. Seven & i is also trying to block a $47billion bid from Circle-K operator Couche-Tard. It argues that initiatives to revamp its business will increase the value of the company and that U.S. antitrust laws may prevent any deal. In February, a management buyout led the founding family of Seven & i failed after it was unable to secure financing. Since then, the company has adopted strategies such as selling non-core business and appointing Stephen Dacus CEO. In March, it announced that its North American convenience-store subsidiary would be listed by the second half 2026. Analysts said that Seven & i shares, which have traded between 1,850 yen to 2,250 yen in the past few months, are still far below Couche-Tard’s offer of 2,700 yen. This shows investors' scepticism about Seven & i plans. In their most concrete expression of their engagement, Seven & i & Couche-Tard announced last month that they are working together to find purchasers for around 2,000 convenience stores in the U.S. Seven & i said a divestiture is needed to pass a U.S. Federal Trade Commission examination. According to sources, private equity firms are the main buyers. Investors and analysts are now awaiting the outcome of the store-sale negotiations and an update regarding the listing of Seven & i North American subsidiary.
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After a selloff, the price of base metals in China has stabilised.
The base metal price in China stabilized on Tuesday, after the previous day’s drop, as the market took a wait-and see stance, amid an escalating trade war that has fueled recession fears. As of 0120 GMT the most traded copper contract at the Shanghai Futures Exchange dropped 1.4%, to 73.270 yuan a metric ton, a drop of three months. The market had opened Asia Monday with a 7% drop. The benchmark copper price for three months on the London Metal Exchange was up 0.4% at $8,768 a metric ton. This is a rebound from its Monday low of $8,105, which marked the lowest since November 2023. China's Commerce Ministry stated on Tuesday that it would never accept "blackmail" from the United States, after President Trump threatened on Monday to impose a 50% additional tariff on China if Beijing did not remove its retaliatory duties. China, the world's largest consumer of metals, responded last Friday by imposing additional tariffs of 34% on all U.S. products from April 10 after U.S. President Donald Trump imposed 34% on most Chinese items as part his sweeping tariff program. Base metals traders said that prices have stabilized after yesterday's steep decline. People are waiting and watching as the retaliatory trade tariffs continue. SHFE aluminium rose 0.9% to 19.725 yuan per ton. Zinc gained 0.7% to 22530 yuan. Lead fell by 0.3% to 16.660 yuan. Nickel was up 0.1% at 119,400, and tin dropped 0.8% to 268630 yuan. Other metals include LME aluminium, which rose 0.6% to $2384 per ton. Lead was up 0.4% at $1877. Zinc was up 0.4% at $2624. Tin was down by 0.1%, at $33,900, and nickel was 1.2% higher at $14,540. (Reporting and editing by Janane Vekatraman; Mei Mei Chu and Violet Li contributed to this report.)
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Oil prices rise 1% following US tariff-driven selling
The oil prices increased by more than 1% Tuesday. This is a rebound after recent heavy losses, mainly due to fears that U.S. Tariffs could depress demand or lead to a recession. Brent crude futures increased 81 cents or 1.26% to $65.02 a barrel. U.S. West Texas intermediate crude futures increased 92 cents or 1.52% to $61.61 at 0051 GMT. Oil prices fell 2% on Monday, approaching a four-year record low. This was due to concerns that the latest tariffs imposed by U.S. president Donald Trump could push global economies into recession, and reduce energy demand. The markets, however, expect a possible limit to the downward trajectory for oil prices. Trump claims that tariffs of at least 10% on all U.S. imported goods, and targeted rates up to 50% would help revive the U.S. industry base. He says it has declined due to decades' worth of trade liberalisation. Many countries, such as China, the second largest economy in the world after the U.S. have announced plans to reciprocate tariffs. Trump has said that he will impose more tariffs against China if Beijing doesn't withdraw its countermeasures. Tony Sycamore of IG said that if China were to remain firm, its total tariff rate for imports into the U.S. could reach 104%. This would likely trigger a further deterioration of risk sentiment and steep falls in global stock markets, as well as accelerate the pace at which the global economy is heading towards recession. The market expects a weak demand for crude oil. A preliminary poll conducted on Monday showed that U.S. crude and distillate inventory levels were expected to rise by an average of 1.6 million barrels last week. Analysts estimate that the break-even cost for oil production in America, the world’s largest oil producer, is around $60 per barrel. This could set a ceiling on how low oil prices can go if some decide to reduce investment and drilling. If prices continue to be low, which is likely, this would lead to a slowdown in the growth of output and a fall in U.S. production from its current level at 13.4 million barrels / day. Eurasia Group stated in a report that the reduced activity is likely to support WTI prices in the $50s. (Reporting and editing by Muralikumar Aantharaman, Jacqueline Wong, and Katya Glubkova from Tokyo)
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China's state-owned firms pledge to increase share purchases in order to stabilize the market
On Tuesday, several Chinese state-owned companies pledged to increase their share investments as Beijing intensifies efforts to stabilize the stock market that has been soaring due to U.S. trade tariff woes. China Chengtong Holdings Group, and China Reform Holdings Corp made their announcements after Chinese state fund Central Huijin announced the day before that it would increase its shareholdings in order to promote stability on the markets. China's benchmark stock index fell 7% on Sunday amid investor concerns about the possibility of a trade war that could cause damage and a global economic recession. Washington imposed tariffs of 34% extra on China last week, and China responded with 34% additional levies against U.S. imports. Chengtong's investment units are increasing their holdings of stocks and exchange-traded funds (ETFs), to ensure market stability. The state investment firm stated in a press release that it was "firmly optimistic" about the growth prospects for China's capital market. It also pledged to support the high-quality growth among Chinese listed companies. China Reform Holdings Corp., or Guoxin as it is also known, announced in a separate press release that its investment unit would increase holdings of tech companies, ETFs and state-owned firms, utilizing a refinancing scheme to buy back shares. The initial investment will be 80 billion Yuan ($10.95billion). China Electronics Technology Group is another state-owned holding company that has announced it will increase share buybacks of listed units in order to boost investor confidence.
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US Health Department to issue new recommendations on fluoride
A spokesperson announced on Monday that the U.S. Department of Health and Human Services would reconvene an independent panel of experts in order to make a recommendation regarding fluoride being added to drinking water. Since decades, the use of this mineral in water, which strengthens tooth enamel and promotes dental health, is a controversial political issue. A spokesperson for HHS said that "HHS will reconvene the Community Preventive Services Task Force in order to study fluoride and make new recommendations on it." This statement was made in response to an Associated Press article quoting Robert F. Kennedy Jr., Secretary of Health and Human Services, saying that he would tell the Centers for Disease Control and Prevention not to recommend fluoride for drinking water at an event held in Salt Lake City. According to an EPA announcement, the U.S. Environmental Protection Agency, in coordination with HHS will also review the new scientific information regarding the potential health effects of fluoride, as an initial step towards deciding standards for its inclusion. Administrator Lee Zeldin stated this at the same event. Utah is the first U.S. State to have banned the use of fluoride as a water treatment agent after Governor Spencer Cox passed legislation in this regard last month. The American Dental Association has opposed the Utah law, and continues to support community water fluoridation as a way to prevent tooth decay. The U.S. Public Health Service suggests that fluoride levels in drinking water should not exceed 0.7 milligrams per liter. It is known that levels above 1.5mg/l, or twice the recommended limit of that level, increase health risks, such as thyroid disease, bone fractures and nervous system damage. The EPA has set a limit of 4.0 mg/L as the enforceable limit. A federal judge in California issued an order to the EPA on September 20, 2024 to tighten its regulations. The judge said that the compound poses a risk to children, even at the levels currently common across the country. Kennedy, who opposes adding fluoride in public water systems has claimed that, despite the lack of conclusive proof, water fluoridation is linked to numerous health problems including cancer. According to CDC data, as of 2022, fluoride is present in the water of 63% of Americans. Ahmed Aboulenein, Washington; Jasper Ward, Additional Reporting Editing by Caitlin and Matthew Lewis
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Maple Leafs extend division lead with Panthers' loss
Toronto Maple Leafs are aiming for a win against the Florida Panthers in Sunrise, Fla. on Tuesday night. This would help them tighten their grip on first place in the Atlantic Division. The Maple Leafs (46-25-7, 98) were four points in front of the Tampa Bay Lightning (94 points), and six points ahead of Carolina (44-29-4). Toronto will face Tampa Bay on Tuesday. Last Wednesday, the Maple Leafs won their first game against Florida in three years by beating the Panthers with a short-handed team 3-2 at Toronto. The Panthers lost 2-1 to the Detroit Red Wings in Detroit on Sunday. It was their fifth consecutive loss as they played with a reduced roster. Aleksander Barkov, Matthew Tkachuk, Nico Sturm, Sam Reinhart, Sam Bennett, and Gustav Forsling were all missing. This trio rested on Sunday. Panthers coach Paul Maurice stated, "You want to get every advantage, home ice, and all of that, but you have to heal these guys." We have to give ourselves the chance to play in the playoffs physically and our schedule will not allow that at this time. Rasmus Asplund Jesse Puljujarvi, and Matt Kiersted have been recalled by Charlotte's AHL affiliate and thrust into the fire on Sunday. Kiersted's first NHL appearance was since December 23, 2022. "We had some guys come in, and they did a great job," said Panthers' forward Mackie Samoskevich who was credited with an assist. It was almost seamless. "They played well and fitted into the game immediately." Anton Lundell's goal at 19:20 in the third period saved the Panthers from being shutout for two consecutive games. The Panthers had been defeated 3-0 by the Ottawa Senators in their previous game. Maurice commented, "It's good to think about how we measure ourselves by what we give up regardless of who is in the lineup." Samoskevich stated, "I would not say that it matters where we finish." You have to beat everyone if you want to win the championship. It's not about opening our game. I think we need to stay tight and work on our forecheck. This is what works during the playoffs. "I think we're already doing it." The Maple Leafs won 5-0 at home against the Columbus Blue Jackets on Saturday, following their victory over the Panthers. William Nylander scored twice, as did Nicholas Robertson. Mitchell Marner's 70th career-best assist extended his point streak to seven (three goals and eight assists). Toronto goaltender Anthony Stolarz said, "I thought we were very disciplined in our third period. We didn't just sit back." Stolarz made 27 saves and earned his second shutout this season, as well as his 10th career. We continued to forecheck, press their defence and force them turn pucks over, and that allowed us open ice to score some goals. Defensively, I think we were fantastic. We didn't give up any opportunities." Toronto had lost both previous meetings with Columbus. Toronto's playoff performance was disciplined. Craig Berube, the coach of Toronto, said that "staying in tight games is important. It's checking tight." "Not forcing it, not opening it up and then getting frustrated. Then taking over in the third." "That's what I love most about my life right now." Toronto's Jake McCabe, and David Kampf took part in the optional practice at the rink on Monday. However, they will not be traveling to Florida. Field Level Media
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Brazil's Energy Minister asks Petrobras CEO about diesel price reduction
Sources with knowledge of this matter said that Brazil's Mines and Energy Minister has asked Petrobras to consider a new reduction in the average price for diesel sold to Brazilian distributors. Sources said that Minister Alexandre Silveira had cited recent drops in oil prices as well as the stability of the US dollar to justify a price reduction for Petrobras Chief Executive Magda Chabriard. The talks took place last week, they added. CNN Brasil had previously reported Silveira's demand. The request is made as oil prices are falling due to President Donald Trump's tariffs, which could cause economies all over the world to go into recession and reduce the demand for energy. Petrobras announced its global tariffs on April 2, just one day before Trump. Diesel prices are being cut The first time since 2023 that fossil fuels have been reduced by 4,6%, or R$0.17 a liter. The Brazilian government is constantly pressuring Petrobras to lower fuel prices for distributors in an effort to lower the cost of living for Brazilians as well as boost Lula's popularity. Petrobras has recently increased its diesel prices above the import parity, and they were 5% higher on Friday according to Abicom.
Brent futures and options volume surpasses pandemic record, as oil market reels
Brent crude futures contracts and options traded on the Intercontinental Exchange, or ICE, reached record volumes on Friday. This was higher than the COVID-19 pandemic levels as investors prepared for a trade war around the world and OPEC+'s oil production increases.
The end of the last week saw oil prices plummet to their lowest level in four years, the biggest weekly drop since a year-and-a-half.
According to ICE, market participants traded 4.067 millions ICE Brent futures contracts and options, breaking the previous record of 4.063 million set in 2020 when the global pandemic shook energy markets and sent traders scrambling, as oil demand shrank.
The U.S. president Donald Trump shocked the financial markets by imposing a new tax on Wednesday.
Tariffs on sweeping goods
Some countries, such as China, face significantly higher duties on imports.
Oil prices fell further after the Organization of the Petroleum Exporting Countries (OPEC+), which is a group of oil-exporting countries and their allies, decided to move forward with plans for increased production. The group now plans to return to the market 411,000 barrels of oil per day in May. This is up from the 135,000 barrels per days that were originally planned.
Brent traded as low as $62.52 per barrel on Monday as Trump vowed to impose even higher tariffs against China, and major banks increased their recession risk estimates.
Benchmark Brent, as defined by the ICE is a barometer of three-quarters of all crude oil traded internationally, and therefore a good indicator of the health of oil markets.
"People were waiting to enter the market, but once they saw some of the tariffs and OPEC's news unfolding, they began to take a negative position," said Alex Hodes. He is the director of marketing strategy at StoneX, a financial services firm.
OIL INVESTOR WHIPLASH
Analyst Giovanni Staunovo of UBS said that in the days leading up to Trump's announcement, the oil market was focused on the growth of demand, low oil stocks, and the threat that sanctions against Russia, Iran, and Venezuela could disrupt supply.
Trump warned on March 30, that he would impose secondary tariffs ranging from 25% to 50% for buyers of Russian crude oil if he believed Moscow was blocking him in his attempts to end the conflict in Ukraine.
According to LSEG, in the week leading up to April 1, money manager positions on ICE for Brent crude futures or options were at their highest level since April 30, 2024.
Brent futures closed at an all-time high of $74.74 per barrel on March 31. This helped to boost bullish sentiment.
Staunovo stated that "now the focus is on how much the global economy will weaken as a result the trade war, and how much the oil demand growth will slow over the next few months."
Hodes, of StoneX, said that he expects this week's traders' data to be more bearish. (Reporting and editing by Nia William in Houston, Georgina McCartney from Houston)
(source: Reuters)