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INSG predicts a nickel surplus of 198,000 tons in 2025.
The International Nickel Study Group, (INSG), on Thursday predicted a surplus of nickel market of 198,000 tons by 2025. The group forecasts that global primary nickel consumption will be 3.537 millions tons in this year, and global production of primary nickel at 3.735million tons. Lisbon-based group stated that the market balance for 2023 would be a surplus 170,000 tons. This will rise to 179,000 tonnes in 2024. The primary use of nickel in the world was 3.193 millions tons and 3.347 tons respectively. The report stated that delays in issuing mining permits (RKABs), led to nickel ore shortages on the market. It also added that the impact of new royalties in Indonesia's mining sector had yet to be fully assessed. The report stated that the primary nickel output in China will also increase due to increased production of nickel cathode, nickel sulphate, and other nickel-containing products. Nickel prices, which are used in electric vehicles and stainless steel, have fallen by over 7% since 2024. They are up about 3% this year. (Reporting and editing by Anjana Anil in Bengaluru, Ashitha Shivaprasad)
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PG&E's lower expenses cause it to miss first-quarter earnings estimates
PG&E Corp. missed its first-quarter profit estimate on Thursday as it was hit by higher operating expenses and interest costs. Interest rates that are higher for longer increases the borrowing costs of utility companies. These companies need to borrow more money for their expenses, such as grid maintenance. PG&E's interest costs rose by 2.7% in the first quarter of this year, to $734 millions. In January, multiple wildfires scorched thousands of acres in Los Angeles. This is expected to be the costliest natural disaster in U.S. History. Electric utilities in the area have also been under increased scrutiny. PG&E will upgrade its wildfire safety systems and underground powerlines by nearly 700 miles and 500 miles between 2025-2026. PG&E reported that the average residential electric rate in March was lower than it had been a year before. It expects natural gas rates to stay flat until 2025. LSEG data shows that the company's total revenue for the quarter was $5.98 Billion, which is less than analysts' estimates of $6.14 Billion. Total operating expenses for the quarter ending March 31 were up 3.8% to $4.76 billion. The Oakland-based company confirmed its forecast of adjusted core earnings between $1.48 to $1.52 per common share. Analysts had expected $1.50 a share. Utility also reported that it added almost 3,000 new customers to its electric grid in the last quarter. PG&E's adjusted profit per share was 33 cents, compared to the analyst average of 34 cents. (Reporting from Bengaluru by Pooja menon; editing by Maju Sam)
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CenterPoint will spend more on AI power despite a fall in quarterly profits
CenterPoint Energy announced a decline in its first-quarter profits on Thursday. However, the U.S. utility increased its capital expenditure plans to meet anticipated demand from data centres used for artificial intelligence technology. In January, a winter storm along the U.S. Gulf Coast slowed down major cities such as Houston and New Orleans and broke the record for coldest day in the region. Damage to power lines, and the widespread outages that followed, increased operating and maintenance costs for utilities. CenterPoint reported that its O&M cost rose by 5.4% compared to a year earlier, reaching $747 million in the third quarter. Natural gas, fuel costs and power purchases rose by nearly 28%. The company increased its 10-year capital spending plan to 2030 by $1 billion, taking it up to $48.5 billion. They were expecting an increase in demand from AI firms. U.S. utilities are adding billions to their capital expenditure plans, as they respond to massive requests from Big Tech companies for additional power capacity. These firms are searching the country for suitable locations for new data centres. CenterPoint also increased its 10-year budget for capital expenditures in the previous quarter. The utility announced on Thursday that the number of requests for new connections has increased by almost 7 gigawatts from the end January. This "conviction" in the robust economic forecast for Texas and the increase in capital investment we announced today, strengthens its "conviction". CenterPoint offers electricity and natural gas for more than 7,000,000 customers in Indiana, Louisiana and Mississippi. Houston-based company, Texas, reported that its net income dropped to $297.9 million or 45 cents a share in the March 31 quarter from $350.9 million or 55 cents a share compared with a year earlier. (Reporting from Vallari Srivastava, Bengaluru. Editing by Sahal Muhammad)
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Minister: Greece will deploy record number firefighters this year due to global warming
Greece's climate crisis minister announced on Thursday that the country will deploy an unprecedented number of firefighters in anticipation of "bad scenario" scenarios. This comes after a series of destructive wildfires. The World Meteorological Organization said that the weather has become more extreme and erratic due to climate change. 2024 was also the hottest recorded year. The summers in Greece are becoming increasingly hotter and drier, while the winds change rapidly, causing more destructive wildfires. In August last year, Greece experienced its hottest summer ever. A woman was killed and 10,000 acres of land burned in a wildfire which raged from a forest to the northern suburbs of Athens. Giannis Kefalogiannis, Minister for Civil Protection and Climate Crisis, said that this year there will be 18,000 firefighters, the highest number ever, with thousands of volunteers. He said: "We should not be fooled that the climate conditions seem milder this year than they were in previous years." "The worst scenarios are yet to come." Kefalogiannis' comments were made during a discussion with Greek Prime Minister Kyriakos Mistitakis about preparations ahead of the official wildfires season that begins on May 1. Last year, Greece decided to change its traditional firefighting strategy and began dispatching air and ground forces within the first few hours of a fire breaking out. It also increased patrols. These measures have helped contain damages to land and property. The Mediterranean nation has also allocated around 2 billion euros ($2.3billion) for the purchase of new aircraft, weather stations and drones in order to improve their capabilities against wildfires. Kefalogiannis said that 80 drones equipped with thermal cameras, nearly twice as many as last year, will be available in 2019. The aim is to speed up the detection of forest fires. ($1 = 0.8783 euro) (Reporting and editing by Gareth Jones).
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The gains in copper on a softer dollar are capped by uncertainty about tariffs
The copper price hovered just below its three-week peak on Thursday. A weaker dollar boosted the prices, but continued uncertainty about U.S. tariffs kept them in limbo. By 1000 GMT, the benchmark copper price on the London Metal Exchange was up 0.4% to $9,418 per metric tonne, after hitting a high of $9,481.50 the previous session, its highest level since April 3. LME copper is up more than 15 percent since it hit a low of $8.105, a level not seen in 17 months. It's difficult to predict what will happen from day to day. "There is no doubt that the tariff optimism which triggered the risk on rally in the early part of the week has faded once again," said Ole Hansen. He is the head of commodity strategy for Saxo Bank, in Copenhagen. The stock market slid as traders digested Wednesday's latest news about the trade war between China and the United States. A U.S. official had said that the high tariffs were not sustainable. Hansen continued, "There is no way to avoid the economic damage that will be caused by any solution to China. It's not going to happen over night. U.S. Comex Copper Futures rose 0.5% to $4.87 per lb. This brings the premium over LME Copper to $1,314 per ton. Hansen stated that the premium has recovered steadily from $480, when traders who held long or bullish Comex positions were forced to liquidate their positions. The dollar index dropped after U.S. president Donald Trump softened his stance towards China and backed off from threats to fire Federal Reserve head. Dollar-priced goods become more expensive to buyers of other currencies when the U.S. dollar weakens. Other metals saw an increase of 0.4% in aluminium to $2.442 per ton. Zinc rose 1.5% to $2.679; lead increased 0.6% to $1.958.50; tin grew 1.5% at $31,770, and nickel rose by 0.9% to $15,805.
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France seeks protection against Chinese steel imports following ArcelorMittal job losses
Sophie Primas, spokesperson for the French government, said that France and other European nations will push for measures protecting European steel against Chinese imports. Primas responded to ArcelorMittal's announcement that it would eliminate 600 jobs at seven French sites because of the crisis in Europe’s steel industry. Prima told CNews/Europe1 that "we have taken some initial steps, particularly on the issue of quotas as well as the introduction of Chinese Steel Quotas. But we must go even further, and France is leading the way." Steelmakers in Europe are being hit hard by the high cost of energy and cheap imports from China. Steelmakers in Europe are also facing higher tariffs for exports to the United States. Primas stated that the overproduction of Chinese steel is partly responsible for the decreased competitiveness of Europe’s steel industry. In a Wednesday statement to its Works Council, ArcelorMittal France North stated that it had "implemented the best short-term adaption measures but now the company must consider reorganisation to adapt its business in the new market context to ensure its competitiveness and future". Arcelor follows Tata Steel's announcement earlier this month that it would eliminate around 20% of jobs at its massive plant in The Netherlands. ArcelorMittal has been criticized for its job cuts. The steelmaker received subsidies from the French government as part of a drive to reindustrialise parts of France. "We fought hard for the funding of decarbonisation, which is crucial to ArcelorMittal", said Xavier Bertrand. The president of Hauts de France - a region that houses several sites that are affected by job cuts - Xavier Bertrand. He said this in a blog post on X. (Reporting and editing by Bart Meijer, Gareth Jones and Makini Brice)
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Gold prices rise on dip-buying; US-China trade updates are the focus.
Investors bought gold bullion on Thursday after a sharp drop in the previous session. However, U.S.-China tensions remained at the forefront of investors' minds. As of 0907 GMT, spot gold rose 1.6%, to $3,340.79 per ounce. Bullion fell over 3% Wednesday, its worst performance since November. U.S. Gold Futures rose 1.8% to $3.352.10. Gold's earlier pullback has removed some of the froth that surrounded its recent surge. This in turn attracted buy-the dip action amid persistent global trade war concerns, said Han Tan. Chief market analyst of Exinity Group. Gold bugs can be confident of achieving the $3,500 mark, given the apparent tailwinds that are still evident for this precious metal. Bullion that does not yield, which is traditionally viewed as a hedge to global instability, has increased by over 27% this year. The International Monetary Fund has reduced its forecasts for U.S. growth and global economic growth in 2018, citing President Donald Trump's tariff policies as the main reason. Ole Hansen is the head of commodity strategy for Saxo Bank. Scott Bessent, U.S. Treasury secretary, said that if Trump's policies were implemented, the U.S. economy will grow faster than the revised IMF estimate of 1,8%. This is down from 2,7% in January. He said that excessively high tariffs in the U.S.-China trade relationship are not sustainable and must be reduced to allow for further trade negotiations. The U.S. Dollar eased in support of gold, making greenback-priced metals cheaper for overseas purchasers. Silver spot fell by 0.5%, to $33.37 per ounce. Platinum was unchanged at $973.25 while palladium dropped 0.6% to $939.53. (Reporting by Rahul Paswan in Bengaluru; Editing by Varun H K)
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In April, Russia's oil revenues fell by 22% year-on-year.
Calculations showed that the revenue from oil and gas in Russia for April fell by 22%, to 0.96 trillion Russian roubles ($11.60billion), compared to the same month last year. This was due to lower oil prices and stronger roubles. The Kremlin's most important cash source has been oil and gas revenues, which have accounted for between a third and a half the total federal budget revenue over the last decade. Profits would also be down by 11% compared to March due to a lower profit-based tax. Calculations show that the Russian oil price per barrel has fallen to 4,620 roubles per barrel, from 6,965 roubles per barrel in April of 2024. Calculations show that Russia's oil-and-gas revenue could fall by 13% on an annual basis between January and April, to 3.6 trillion Russian roubles. The Finance Ministry will publish its estimates by May 7. Since the launch of its military campaign, or what it calls a special military operation in Ukraine in February 2022, Russia has increased its defence and security expenditures. According to a document from the Economy Ministry, Russia's forecast for oil and gas export revenues for 2025-2027, which are a major source of funding for state budgets, has been cut due to lower oil prices. The proceeds have fallen by 15% in this year. The Russian central bank warned that oil prices may be weak for several years. Urals prices dropped to their lowest level since 2023 at around $53 a barrel in April, and they traded under $60 per barrel last week.
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.
(source: Reuters)