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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.
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JSW Steel CEO: India's steel safeguard tariff will help control imports
Jayant Acharya said on Thursday that India's decision to impose a temporary 12% tariff on certain steel imports would help reduce imports in some cases. India, the world's second largest crude steel producer, has imposed temporary tariffs, or a provisional safeguard duty on certain steel imports. The duty will last for 200 days. The country's imports for finished steel products increased for the second consecutive year in fiscal 2025, with imports reaching an all-time high amid increased shipments from China. The influx of steel cheaper from China has forced Indian mills into reducing their operations and considering job cuts. Acharya, in an interview said that India is still vulnerable to imports at low prices. "We must determine if the (duty of 12%) is enough or if we need to calibrate our safeguard duty." Acharya said that Europe's plans for tightening steel import quotas will restrict JSW Steel's existence in the region. He did not elaborate. The European Commission announced in March that it would tighten steel import restrictions to protect the European steel industry from soaring imports. Separately Acharya stated that JSW Steel will explore Indian coal assets, and make acquisitions on the basis of strategic and commercial viability. The company currently sources coal, a crucial raw material for steelmaking, from Australia, Mozambique and the United States. (Reporting and writing by Neha Arora, Mumbai; Editing and proofreading by Sonia Cheema).
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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 a limbo. By 0840 GMT, the benchmark copper price on the London Metal Exchange was up 0.2% to $9,400.50 per metric tonne. It had previously reached a high of $9,481.50, 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. The stocks in Asia fell 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 between them were not sustainable. The dollar index dropped after U.S. president Donald Trump softened his stance towards China and backed off from his threats to fire the 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 0.3% in aluminium to $2.440 per ton. Zinc rose 1.5% to $2.679, while lead increased by 0.7% to $1.959. Tin gained 1.2% at $31,700, and nickel was up by 0.9% to $15,810 per ton.
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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.
Oil prices steady after a 2% decline on OPEC+ production increase
Oil prices rose on Thursday, after falling by nearly 2% the previous day. Investors weighed a possible OPEC+ production increase against contradictory tariff signals from White House as well as ongoing U.S. Iran nuclear talks.
Brent crude futures gained 8 cents or 0.12% to $66.20 a bar by 0505 GMT. U.S. West Texas Intermediate crude rose 9 cents or 0.14% to $62.36 a bar.
The previous trading session saw prices drop by 2% after it was reported that several OPEC+ member countries would suggest to the group to increase oil production for a second consecutive month in June. This information came from three sources who are familiar with OPEC+ discussions.
"While a move to increase risk yesterday lifted risk assets, oil fell behind due to OPEC+'s discord," ING analyst wrote in a report.
Reports on Wednesday said that Kazakhstan, which produces 2% of the global oil output, and has consistently exceeded its quota in the past year, would prioritize national interest over OPEC+ when deciding production levels.
OPEC+ has had disputes in the past over production quotas. One of these disputes led to Angola leaving OPEC+ by 2023.
The ING analysts stated that "further disagreements between OPEC+ member countries is a clear downside threat, as they could lead to a pricing war."
Prices rose on signs that U.S.-China trade talks could be nearing completion. The Wall Street Journal reported the White House was willing to reduce its tariffs against China by as much as 50% to start negotiations.
Treasury Secretary Scott Bessent stated on Wednesday that the current import tariffs of 145% for Chinese goods heading to the U.S., and 125% for U.S. products going into China were unsustainable and had to be reduced before trade negotiations between the two parties could begin. White House Press Secretary KarolineLeavitt told Fox News that the tariffs would not be reduced unilaterally.
Rystad analysts believe that a prolonged U.S. China trade war would reduce China's oil consumption growth by half, to 90 000 barrels per day. This is down from 180,000 barrels per days.
The Financial Times reported that Trump was also considering tariff exemptions for imports of car parts from China.
The U.S. will meet with Iran for a third round this weekend to discuss a possible agreement that would reimpose restrictions on Tehran's nuclear enrichment program. This could put downward pressure on the oil price. The market is looking for signs that a U.S. and Iran rapprochement may lead to easing sanctions on Iran's oil, and boosting supply.
The U.S. imposed new sanctions on Iran on Tuesday, according to the Iranian foreign ministry's spokesperson. This showed "a lack of goodwill and a seriousness" in regards to dialogue with Tehran. (Reporting and editing by Sonali Paul, Tom Hogue and Colleen Hogue).
(source: Reuters)