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Malaysia's Prefchem restarts its gasoline unit after repairs, say sources
Four sources with knowledge of the matter have confirmed that Malaysia's Pengerang Refining Company, or Prefchem, has restarted its residue fluid catalytic (RFCC), after it was shut down for repairs in early 2018. One source said that the run rates of the Pengerang complex, in Johor which produces primarily gasoline, are still not at full capacity. They said that the unit had been closed since the end of January because of technical problems. In addition, the crude processing rate at the 300 000 bpd refinery has also fallen to an average of around 50% in the last four months. Prefchem, the joint venture between Malaysian state-owned energy giant Petronas, and Saudi Aramco did not respond immediately to a comment request. Three sources confirmed that Prefchem's RFCCs experienced production problems in the fourth quarter of last year. Since last Friday, a source has reported that there have been sporadic offers from refineries for gasoline cargoes to be loaded in June. Kpler data on ship tracking showed that the refiner should receive 4 million barrels or more of crude oil imports in May, which is similar to April. According to an estimate from a trade source, diesel should load 5-6 300 000 barrel cargoes in May. Shiptracking data from LSEG & Kpler revealed that diesel exports were less than one million barrels in May. Three other sources confirmed that Prefchem had also taken offline the only cracker in the complex, which produces 1.2 million metric tons of ethylene per year, for repairs. The unit is expected to be restarted by the second half of June. (Reporting and editing by Florence Tan, Louise Heavens and Trixie Yap)
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German Spot rises due to higher demand
The European spot electricity price for Tuesday delivery increased on Monday, compared with the previous week, due to a decline in wind production and a rise in demand, which outweighed heightened German solar production. French nuclear production also increased. LSEG data show that the German baseload electricity price for Tuesday at 0930 GMT was 92.25 Euros per Megawatt Hour (MWh), up 13.2% compared with last Monday's price. Data showed that the equivalent French contract had not been traded. LSEG analyst Florine Engl said that residual load in Germany is expected to rise on Tuesday as a result of decreasing wind energy supply and increased consumption. Imports are expected throughout the day. LSEG data indicated that the German wind power production was expected to drop by 1.6 gigawatts to 5.7 GW while French output is projected to decline by 340 megawatts to 4.4 GW. The data indicated that the German solar generation is expected to increase by 1.6 GW to 17.1 GW on February 2. The Netherlands has decided to postpone the tendering of two offshore wind farms, with a combined capacity of 2 gigawatts (2 GW), due to a lack interest among potential bidders. The Dutch government announced this on Friday. On Tuesday, power consumption in Germany will increase by 2.1 GW. Demand in France will rise by 1.4 MW. The French nuclear capacity has increased by one percentage point, to 65%. The German baseload power for the year ahead fell by 1%, to 87.75 Euros/MWh. The French equivalent fell 3% to 57.5 Euros. The benchmark contract on the European carbon markets fell by 1%, to 70.25 Euros per metric ton. Reporting by Forrest Crellin, Editing by
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According to Ukrainian media, Russians have killed an elderly woman and man in Kherson.
Police and regional officials confirmed that a man and a woman in their 70s were both killed in separate Russian strikes on Kherson in southern Ukraine. Local authorities and police reported on Telegram that a 75-year old woman died and two others were injured in shelling of the central part of Kherson late Sunday night. Police said that a 76-year old man was killed by a drone on Monday morning in the Kakhovka District of Kherson, on the Dnipro River. The police posted photos on Telegram of the damaged buildings and vehicles following the attacks. They said that the attacks had caused damage to two apartment buildings, seventeen private homes, a factory and other infrastructure. Russia, who began its full-scale invasion in Ukraine in February 20, did not comment immediately on the reports. On Sunday, it carried out the largest drone attack in the war. The White House is stepping up its efforts to stop Russia's war against Ukraine, and President Donald Trump will speak with Russian President Vladimir Putin on Monday.
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Gold prices rise on dollar weakness and US downgrade
Gold prices increased by more than 1% Monday. This was due to a weaker US dollar and a demand for safe-haven assets after Moody's lowered the credit rating of the U.S. Government amid persistent trade concerns. At 0839 GMT the spot gold price was $3,234.41 per ounce, reversing previous session losses. U.S. Gold Futures rose 1.6% to $3237.70. Carlo Alberto De Casa is an external analyst with Swissquote. He said that gold has recovered above $3,200 after a week of negative performance. This is due to the increased appetite for safe-haven assets as a result of concerns about the U.S. economy outlook. Moody's, the largest rating agency, downgraded the United States' sovereign credit rating on Friday by one notch. The ratings agency cited concerns over the growing debt of $36 trillion. The dollar fell 0.7% against a basket other major currencies. This made greenback priced gold more affordable for overseas buyers. In television interviews, U.S. Treasury secretary Scott Bessent stated that Donald Trump would impose tariffs on trading partners who do not negotiate "in good faith" at the same rate that he had threatened last month. The risk sentiment on the financial markets was also affected by China's soft economic data. Gold, which is often used to store value during times of political or financial uncertainty, reached an all-time record of $3,500.05 for one ounce of gold on April 22, and has risen 22% this year. Goldman Sachs stated in a report that despite the delayed Fed cuts and lower U.S. economic risk, they maintain their gold price forecast at $3,700/oz for year-end, and $4,000/oz for mid-2026. In a Saturday social media post, President Donald Trump said that the Federal Reserve "should cut rates sooner rather than later". Spot silver increased 0.6%, to $32.46 per ounce. Platinum rose 0.7%, to $994.60. Palladium gained 0.8% to $968.32.
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Six dead, 14 missing after landslide at Indonesian Papua gold mine
Officials said that torrential rains on Monday forced a halt to the search for Indonesia's 14 missing people in its easternmost region, Papua. A landslide at a gold-mining site killed six workers and injured four others. Abdul Muhari said that the rains were responsible for the landslide on Friday, which struck a small mine operated by residents in the Arfak Mountains of West Papua Province. The authorities will resume their search on Tuesday for the missing following the disaster that engulfed temporary housing used by miners. Yefri Sabarruddin, leader of a 40-person team, which included police and military officers, and recovered five bodies, said that the search was hindered by "damaged tracks and mountains as well as bad climate". He said that it would take 12 hours to travel from the nearest city to the site. The Monday tally has been updated from the earlier figure of 19 missing and one dead. In Indonesia, accidents caused by illegal and small-scale mining have often occurred in areas where minerals are found in remote locations with conditions that are difficult to regulate. The number of fatalities could increase. In September last year, heavy rains caused a landslide that led to the collapse of a gold mine illegal in West Sumatra. In July of last year, another landslide at a gold-mining site on the island of Sulawesi killed 23 people. (Reporting and editing by Ananda Teresia, Clarence Fernandez, and Raju Gopalakrishnan)
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China's economic data weakens, causing iron ore to fall
Iron ore futures declined on Monday due to weaker than expected economic data from China, the top steel-making consumer. The day-traded price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 722.5 yuan (US$100.15). As of 0704 GMT, the benchmark June iron ore traded on Singapore Exchange was down 0.71% at $99.35 per ton. Official data released on Monday showed that the growth of China's retail sales and industrial output slowed down in April. A trade war was threatening to slow this momentum. Official data revealed that property investment in China dropped 10.3% from the same period a year ago, after a drop of 9.9% in the previous quarter. Last month, new home prices remained lukewarm as well, signalling a persistent downward pressure despite efforts to stabilize the industry. Data showed that China's crude output of steel in April was down 7% compared to March, but production was still high. Everbright Futures said that the drop in hot metal production, which is typically used as a gauge of iron ore demand to determine whether it's increasing or decreasing, was 8,700 tons per month. They attributed this to blast furnaces being maintained. Steelhome data shows that the total iron ore stocks in China increased by 0.26% per week to 137 millions tons on May 16. According to Mysteel, the number profitable blast furnace steel mills in China increased week-on-week from May 15 to date, thanks to the recovery of finished steel prices. Coking coal and coke both fell by 2.2% and 1.79 % respectively. The benchmarks for steel on the Shanghai Futures Exchange have fallen. The price of rebar, hot-rolled coil and wire rod all fell. Stainless steel also dropped 0.42%. $1 = 7.2142 Chinese Yuan (Reporting and editing by Sumana Dhaniwala, Mrigank Dahniwala).
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Asian petrochemical producers chase ethane gains as margins dwindle
As they struggle with thin margins and a global oversupply of petrochemicals, executives from several Asian companies said that they plan to reconfigure crackers in order to process more Ethane. This will reduce costs and allow them to take advantage of the rising U.S. supply. SP Chemicals, a Chinese company, and YNCC in South Korea are two of the largest cracker operators. Mitsui Chemicals in Japan is researching the use of ethanol to fuel existing crackers. This change will enable operators to maintain flexibility in their feedstocks, with U.S. exports of ethane expected to increase by about 7% by 2025. Ethane is a byproduct from shale gases and it's usually cheaper than naphtha, which is more commonly used. You-Jin Lee, the CEO of South Korea's YNCC, said that it is reevaluating its investment plan to improve cost-efficiency at its crackers. These have run at a minimum utilisation rate of 70-80% this year. Lee said that one way to do this is by increasing the use of ethane. SP Chemicals in China is studying the possibility of increasing ethane usage at its petrochemical facility in Jiangsu Province, eastern China to as much as 90%. Source at east-China naphtha cracker, who refused to be identified because they weren't authorised to talk to the media: "Flexible Crackers will be the most fit to survive when margins plummet." Armaan Ashraf is the global head of Natural Gas Liquids at the consultancy FGE. He was referring to the petrochemical project in the Middle East. PTT Global Chemical, Thailand, will use U.S. ethane at its petrochemical facility as an alternative feedstock, starting in 2029. The company announced this in a report presented at APIC. The U.S. Energy Information Administration reported in its report of May 6, that INEOS was building a cracker capable of producing 1.45 million tonnes per year. This is happening because global chemical giants are closing plants due to high costs and low margins. EIA estimates that this project will use up to 75,000 barrels of ethane per day when it becomes operational in mid-2026. An Indian industry source stated that other importers such as India will need to invest in infrastructure, including storage and vessels, to increase the use of Ethane in their plants. For example, ONGC seeks partners to build large ethane carrier ships to ship in 800.000 metric tons of ethane per year starting May 2028, for its Western India petrochemical plants. EIA predicts that U.S. production of ethane will rise to a record 3.1 millions bpd by 2026, up from 2.9million bpd. EIA stated that this will increase U.S. Exports to 540,000 BPD in 2025, and 640,000 BPD in 2026. EIA estimates that Wanhua Chemicals' newly opened cracker in Yantai, eastern China, which can either process ethane, or naphtha will add between 50,000-75,000 barrels per day (bpd) to U.S. demand for ethane this year.
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Australia's Mineral Resources names Malcolm Bundey the next chair; share prices slide
Mineral Resources, Australia's lithium miner, announced on Monday that it had appointed Malcolm Bundey to the position of non-executive chairman. McClements was replaced after 10 years in the role. The move sent the shares down 9% as part of a wider governance shake-up. Bundey currently serves as the deputy chair of brick manufacturer Brickworks. He previously served as managing director and executive head at packaging solutions provider Pact Group. The mining services provider fell 8.8% to A$24.08, its lowest trading session in almost five weeks. It had fallen as high as 10.2% in the previous session. This made it one of benchmark's worst performing stocks. Grady Wulff is a market analyst for Bell Direct. He said that the lack of mining expertise could have been a factor in today's sell-off. However, he was surrounded by an experienced board and management team. Wulff added, "His extensive management and leadership abilities are what give him his experience and the role he can play." The billionaire-founded company, founded by Chris Ellison, has been working to repair its damaged image after scandals last summer that were linked to its founder and led to the departure of a number of its board members. Wulff stated that the Onslow Iron Ore Project haulage road will be a top priority for the new management because of several incidents that have negatively impacted the performance and success of the project. The company resumed haulage services in March after a week of recovery from a road-train accident.
Pertamina Indonesia is seeking up to 2.8 millions barrels of petrol for July-December. This excludes Singapore supplies
Documents released on Monday showed that Indonesia's Pertamina had issued five tenders to supply nearly 3 million barrels per month of gasoline for delivery between July-December. Two of the bids excluded Singapore from the source of supply.
Indonesia may reduce fuel imports from Singapore in order to increase the supply of fuel from the United States, as part of negotiations regarding steep U.S. Tariffs.
Documents reviewed by revealed that the state-owned refiner wants to purchase up to 1.6 millions barrels of 90 octane gas per month, for delivery between July-September or July-December this year.
The company is also looking for another 1.2 millions barrels of gasoline with 92-octane per month during the same time period.
Offers are valid until 30 May.
The majority of cargoes are likely to be delivered in Tuban, Tanjung Uban Merak, Semarang Balongan Plumpang.
Pertamina Patra Niaga's trading arm did not respond immediately to a comment request.
Pertamina is seeking to cancel or delay at least 1,000,000 barrels of gasoline with June loading purchased through a term contract, according to two sources who were familiar with the situation late last week. The sources also said that it was unclear if any seller had accepted the request.
LSEG Shiptracking data shows that Indonesia imported an average of 8.4 million barrels per month between January and April in this year.
(source: Reuters)