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China's coal power plant approvals grow after 2024 decline
China approved 11.29 gigawatts (GW) of new coal power plants in the first three months of 2025, already exceeding the 10.34 GW approved in the first half of 2024, a new Greenpeace report showed on Thursday. WHY IT'S IMPORTANT Last year, Chinese approvals of new coal-fired power capacity fell 41.5% year-on-year to 62.24 GW, the first annual decline since 2021. The new data suggest approvals are tracking higher this year. While all the approved projects may not be built, the growing pipeline signals a continued reliance on coal. Reducing coal use to cut emissions is key to China's goal to hit peak carbon emissions by 2030 and carbon neutrality by 2060. KEY QUOTE "The year 2025 marks a pivotal moment in the country's energy transition. There is already enough existing capacity to meet today's peak demand. Approving a new wave of large-scale coal projects risks creating overcapacity, stranded assets, and higher transition costs," said Gao Yuhe, Greenpeace's climate and energy project manager for East Asia. State planner, the National Development and Reform Commission, and the National Energy Administration did not immediately respond to faxed requests for comment. BY THE NUMBERS This year marks the last in China's 2021-2025 five-year plan, in which China has approved 289 GW in new coal capacity, around double the 145 GW approved for the 2016-2020 period. CONTEXT China has said it will start to phase down coal during the 2026-2030 five-year plan, but Beijing has not committed to any specific targets. WHAT'S NEXT Greenpeace called for more ambitious carbon emissions goals from China and a clear timeline for phasing out coal. It also said China's power sector emissions could peak this year as growth in wind and solar outpaces coal. (Reporting by Colleen Howe; Editing by Tom Hogue)
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Tullow Oil Lines Up Production Extension for Jubilee and TEN fields off Ghana
Tullow Oil and its partners have signed a memorandum of understanding (MoU) with the Government of Ghana to extend the West Cape Three Points (WCTP) and Deep Water Tano (DWT) licenses to 2040, which cover the Jubilee and TEN fields off the West African country.The MoU has been signed between the Government of Ghana, Tullow Oil, Kosmos Energy, PetroSA, Ghana National Petroleum Company (GNPC) and Explorco.It includes approval to drill up to 20 additional wells in the Jubilee field, representing investment of up to $2 billion in Ghana over the life of the licenses.As a result of the extension the JV partnership expects to realize a material increase in gross 2P reserves.A number of principles are covered within the MOU that will help underpin the continued development of the Jubilee and TEN fields, including a commitment to work to increase in the supply of gas from the Jubilee and TEN fields to c.130 mmscf/d, a reduced gas price for Jubilee associated gas, and a guaranteed reimbursement mechanism for gas sales.Also, it provides for investment in Ghana National Petroleum Corporation (GNPC) and the Petroleum Commission's capacity with a focus on the use of advanced technologyAll terms and conditions of the existing WCTP and DWT Petroleum Agreements remain in place and continue unchanged.The next steps, following this MOU, are the submission for approval of a Jubilee Plan of Development (PoD) Addendum, entering into new fully termed gas sales agreements (GSA), and the submission for parliamentary approval of the payment security mechanism and license extensions planned before the end of the third quarter of 2025."This Memorandum of Understanding between the Republic of Ghana and the DWT and WCTP partners marks a significant step forward in our nation's energy sector. Extending the licenses to 2040 demonstrates our commitment to fostering a stable and attractive investment climate.“This MOU will not only ensure the continued production of oil, supporting our economic growth, but also allow us to further develop our infrastructure and create more job opportunities for our citizens. We are dedicated to responsible resource management and look forward to a prosperous future fuelled by sustainable energy practices,” said John Abdulai Jinapor, Ghana's Minister for Energy and Green Transition."This is a valuable step forward for the Government of Ghana, Tullow and our JV partners, highlighting the collaborative and constructive relationship we all have in reaching our shared goal of building a better future for the people of Ghana, through responsible oil and gas development. "This extension and the fiscal stability of our contracts emphasizes the opportunity Ghana represents to deliver additional value through production and reserves additions, providing greater long-term optionality and materiality to these core assets,” added Richard Miller, Chief Financial Officer and Interim Chief Executive Officer of Tullow.
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Iron ore prices fall as the focus shifts from China's steel demand to a softening of iron ore.
Iron ore futures fell on Thursday as the focus returned to a softening of steel consumption during China's off peak demand season. As of 0238 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.14% lower. It was 701 yuan (US$97.61) per metric ton. As of 0228 GMT, the benchmark July Iron Ore traded on Singapore Exchange fell by 0.69% to $94.8 per ton. Galaxy Futures analysts said that due to the lack of driving forces, the price of the main steelmaking ingredient is expected to fluctuate despite the seasonal weak demand. The iron ore market is not changing fundamentally. "The wave of upward momentum caused by the price rally of coal has faded so ore prices have also weakened," said Zhuo Guqiu, a broker at Jinrui Futures. Zhuo said that the downside potential of hot metal production is limited by its relatively high output despite reductions in production and declining inventories at ports. Iron ore demand is usually gauged by the hot metal production. Galaxy's analysts noted that despite a recent trade truce, the steel exports are showing signs of a slump, which is dragging down demand. A weak steel demand is also a risk to feedstocks. Following Wednesday's rally of more than 6%, other steelmaking ingredients coking coal, and coke, have also seen gains, albeit slower. They rose by 1.01% and 0.11 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange are range bound. Hot-rolled coils fell 0.19% while wire rods and stainless steel gained 0.2%. ($1 = 7,1820 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Gold prices remain stable as US payroll data is awaited for direction
Gold prices were stable on Thursday, as investors looked at weaker than expected U.S. economic data and global economic and political uncertainty. They also anticipated U.S. employment data to provide further economic signals. As of 0210 GMT, spot gold remained unchanged at $3,372.82 per ounce. U.S. Gold Futures fell 0.1% to $3395.50. Matt Simpson, senior analyst at City Index, said that gold is in a holding pattern, and it's at the mercy of Trump's headlines on trade. It's supported but hesitant to move above this week’s high. The volatility is also suppressed as we wait for the comments of FOMC members, and Friday's NFP Report. It could be a sign of a more positive jobs report, which would weigh on gold. In May, the U.S. service sector contracted for the first month in almost a year as businesses were faced with higher input costs amid fears of stagflation. The Federal Reserve announced a slowdown of U.S. Economic Activity, citing increased costs and prices due to tariff increases since the previous policy meeting. Bullion has gained momentum since U.S. president Donald Trump reiterated on Wednesday his call for Fed chair Jerome Powell to reduce interest rates. Investors are awaiting the nonfarm payrolls data on Friday for more information about the labor market. Trump's doubled tariffs on imports of steel and aluminum took effect. His administration is seeking "best offers from trade partners" to avoid additional levies scheduled for July. Trump said that Xi Jinping, the Chinese president, was "extremely difficult to deal with", highlighting tensions before a long-awaited phone call between two leaders scheduled for this week. In a low interest rate environment, gold, which is a safe haven during periods of economic and political uncertainty, tends thrive. Other than that, silver spot fell by 1.3%, to $34.51, platinum increased 0.9%, to $1,093.07, and palladium remained at $1.001.70.
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Asian shares continue to rise, while the dollar languishes in front of the ECB
The U.S. Dollar remained stagnant as the European Central Bank released its outlook on a turbulent global economy. Dollar fell in the previous session due to weak U.S. data on jobs and services. Friday will bring more important employment data. The damage to the U.S. economic system is becoming more evident as a result of President Donald Trump's erratic trade policies, and bilateral agreements remain unrealised. Canada was preparing possible retaliations against new U.S. tariffs on metals, while the European Union announced progress in its trade negotiations with Washington. Market watchers will therefore pay more attention to the signals that Christine Lagarde gives about future decisions. Kyle Rodda is a senior analyst for Capital.com. He said that there's uncertainty regarding the guidance given by the central bank, due to the uncertain outlook of U.S. global trade policy and U.S. Trade Policy. If the central bank fails to provide sufficiently dovish advice, it could disrupt the equity markets and give the euro upward momentum. Trump's doubled tariffs on imports of steel and aluminum took effect on Wednesday. They were aimed at Canada and Mexico. On the same day, Trump's administration asked trading partners for "best offers" to prevent other import levies from taking effect in July. Ryosei Acaza, Japan's top trade negotiator, will be in the U.S. for a second round of negotiations on Thursday. Friedrich Merz is due to travel to Washington as well. MSCI's broadest Asia-Pacific share index outside Japan rose 0.7% in the early trading, while Japan's Nikkei index fell 0.2%. The dollar index (which measures the greenback versus a basket currencies) was flat at 98.85, after a 0.5% decline on Wednesday. The dollar gained 0.1% to 142.92 yen. The euro traded at $1.1416, unchanged from the previous trading session when it had gained 0.4%. Gold lost its gains of the previous day, while oil fell after an increase in U.S. stocks and Saudi Arabia slashed its July crude prices for Asian buyers. Spot gold was down 0.1% to $3,372.7 an ounce. U.S. crude fell 0.2% to $62.75 per barrel. The Euro Stoxx futures for the entire region were not much changed, while U.S. stocks futures, S&P 500 E-minis were down by 0.1%.
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Copper prices rise on weaker dollar
London copper prices rose slightly on Thursday, despite a weaker dollar. The market's focus was on the ongoing trade talks between the U.S. As of 0102 GMT the three-month copper contract traded on the London Metal Exchange rose 0.31%, to $9,651 a metric ton. The most actively traded copper contract at the Shanghai Futures Exchange was largely unchanged, at 78.190 yuan. Dollar-denominated investments are cheaper for holders of currencies other than the dollar. On Wednesday, U.S. president Donald Trump said that his Chinese counterpart Xi Jinping was "extremely difficult to make a trade with". This exposed frictions, after the White House had raised expectations for a long-anticipated phone call between these two leaders. Canada was preparing possible retaliations, while the European Union announced progress in trade negotiations on Wednesday as the new U.S. Metals Tariffs caused more disruption to the global economy, and increased urgency in negotiations with Washington. ANZ reported that "Trump's tariffs of 50% on aluminum and steel have raised expectation that he would soon follow through on his pledge to impose tougher duties on copper, as well." Tin prices on the LME fell around 0.3%, to $31,935 per ton. This was after they had hit a record high of $17,648 a ton on Wednesday. The reason for this is that there are concerns about the slow resumption in supply from Myanmar's rich tin state Wa. Lead added 0.5% at 16,720 yuan and tin was up 1.4% on Thursday. Nickel fell 0.2% to 121.800 yuan. Aluminium gained 0.5%. Nickel edged up 0.1% to $15,415 and lead fell 0.4% to $1982. Click or to see the latest news in metals, and other related stories. DATA/EVENTS - (GMT 0600 Germany Industrial orders MM 0400 Germany Manufacturing O/P cur price, Consumer Goods SA 0830 US S&P GLOBAL pmi: MSC COMPOSITE – OUTPUT MAY 1215 EU ECB refinancing, deposit rate Jun 1230 US international trade $ Apr 1230 US initial jobless Clm 31 may, w/e
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US auto suppliers call for immediate action on China's rare earths restrictions
A group of auto suppliers from the United States has called for immediate action in response to China's restrictions on rare earths and minerals, as well as magnets. They warn that the issue can quickly disrupt auto part production. China, which controls 90% of the global processing capacity for rare Earths, used in everything from cars and fighter jets, to home appliances and household appliances, implemented restrictions in April, requiring exporters obtain licenses from Beijing. The new restrictions were imposed after the U.S. and China began a trade dispute following President Donald Trump's tariffs against Chinese imports. The Vehicle Suppliers Association, in a recent statement, said that parts manufacturers face "serious and real-time risk" to their supply chain. The group stated that "the situation is still unresolved, and the level concern is very high." "Immediate action and decisiveness are needed to avoid widespread disruptions and economic fallout in the vehicle suppliers sector." The White House has not yet commented. In a letter sent on May 9th, the supplier group expressed urgent concerns over the Chinese restrictions. The group was joined by the trade group that represents General Motors (GM), Toyota (Toyota), Volkswagen, Hyundai, and other major automakers. MEMA and Alliance for Automotive Innovation, in a letter to Trump's administration, wrote: "Without reliable, timely access to these magnets and elements, automotive suppliers would be unable produce key automotive components such as automatic transmissions and throttle bodies. They also could not manufacture sensors, seatbelts, speakers, lights and motors. Exports of rare-earth magnets from China have halved since April, as companies struggled to deal with a complex application process that requires hundreds of pages of documentation. In a post on social media last Friday, Trump accused China for violating the terms of an agreement reached in May that would temporarily reduce tariffs and other trade restrictions imposed by both sides. The restrictions are already having an impact on U.S. automobile companies. Ford said it shut down production at its Chicago plant of the Explorer SUV for a whole week in May due to a shortage of rare-earth metals. (Reporting and editing by Sandra Maler, Christian Schmollinger, and David Shepardson)
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Saudi Arabia cuts prices on the back of US stockpile building
The oil prices fell in the early hours of Thursday's trading after an increase in gasoline and diesel stocks in the United States and Saudi Arabia lowering its July crude prices for Asian buyers. Brent crude futures dropped 21 cents or 0.3% to $64.65 per barrel at 0047 GMT. U.S. West Texas Intermediate Crude lost 29 cents or 0.5% to drop to $62.58. The price of oil closed about 1% lower Wednesday, after data revealed that U.S. gasoline stocks and distillate inventories grew more rapidly than expected. This was due to a weaker demand for the top economy in the world. Saudi Arabia, which is the largest oil exporter in the world, has cut its crude oil prices to Asian buyers by nearly 40% since July. Saudi Arabia's price cut, a key oil producer in OPEC+ – the oil producing group which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies like Russia – follows the OPEC+ decision over the weekend to boost production by 411,000 barrels a day for the month of July. Reports state that Saudi Arabia and Russia, the two leaders of OPEC+, are pursuing a strategy to punish producers who overproduce and regain market share. The European Union and Canada both reported that they had made progress in their trade negotiations as the new U.S. tariffs on metals caused more disruption to the global economy. In a recent note, Ole Hansen of Saxo Bank stated that "Uncertainty fueled by President Trump's changing stance on tariffs" has increased fears of an economic slowdown. (Reporting from Tokyo by Katya Glubkova; editing by Tom Hogue).
Britain faces race to avoid $1 Billion in EU Carbon Tax Costs
Market experts say that Britain will have a difficult time linking its carbon market with the EU's within the next seven months to avoid UK companies being charged the carbon border tariff by the EU and facing annual bills of around 800 million pounds ($1.08billion) for the UK.
As part of the "reset" after Britain's exit from the European Union in 2016, the two sides announced that they would link their carbon emission trading systems last month.
The two sides have not set a deadline or described the steps that need to be taken before the European carbon border tax takes effect in January.
It will probably take several years for the linkage to become effective. Ben Lee, senior emission analyst at Energy Aspects, said that the earliest date is 2028. However, it's likely to be 2030 or 2029.
The UK government stated that a major benefit of joining the EU carbon market (or emissions trading system, ETS) is the ability to avoid being charged by the EU carbon border tariff, which will be implemented next year. This fee will be imposed on CO2 emissions associated to imports of goods such as steel, cement, and others. The UK government claimed that avoiding these costs could save them 800 million pounds a year.
EU officials claim that in order to be exempt from the border tax on carbon, Britain must link its carbon market with the EU.
Yan Qin, ClearBlue's carbon analyst, said that a full linkage would take several years due to the technical complexity of the process. He added that if the scenario is "optimistic", the link could be formed in 2027.
A British government spokesperson said that the British government will try to reach an agreement on a carbon market connection as soon as possible. They said that they would not be providing a constant commentary on the negotiations.
A spokesperson for the Commission said that the EU executive will "follow up quickly" on the agreement and propose to EU countries a negotiating mandat to start talks with Britain about the carbon market connection.
TECHNICAL HURDLES
For the UK to make this link, it must adjust its national rules on carbon trading permits. It also needs to bring its emission permit auctions into line with EU regulations and change the national cap for how much carbon can be emitted by companies that are covered by the market.
Not only that. EU and UK schemes have not aligned yet on the number of free CO2 permits that they offer industries. The EU carbon market also has a "reserve", which can add or remove permits to the market in order to stabilize prices.
The EU scheme lacks the "reserve" that Britain has, but it does have a mechanism to control costs and set a price ceiling.
Ingvild Sörhus, senior analyst at Veyt, said that resolving the issue of an adjustment mechanism for supply will be one of many technical calibrations needed before the two systems are linked.
Many businesses claim that these problems are easily resolved.
Alistair McGirr is the Head of Policy and Advocacy for British energy company SSE. He said that with the right political will an ETS linking accord between the EU and UK can be signed in 6 months and operational by the year 2028.
Energy UK, an industry group, said that linkage negotiations might be concluded within a year. However the UK should request a waiver from the EU border carbon tax until the link has been sealed in the event the talks drag on into 2026.
"It's not a matter of major political roadblocks but rather of technical processes," said Adam Berman, Energy UK Policy Director. Adam Berman, Energy UK's Policy Director, said that the problems were not small, but not insurmountable.
The UK is planning to introduce its own carbon-border tariff in 2027, a year after the UK.
Brussels might be less in a hurry. Britain's carbon markets are less than one tenth the size of those in the EU, so any link would give British businesses access to a more liquid market.
Although EU officials claim that the EU wants to extend carbon pricing to as many countries as is possible, in order to ensure they all put a price tag on greenhouse gas emission. The companies also claim that the move will reduce costs and avoid competitive distortions for EU and UK consumers.
Pascal Canfin is a French member of the European Parliament who said that the benefits for Britain are more evident than those for the EU.
Canfin said that the EU was motivated by a "political move". "The UK used to be part of [the EU] ETS." It's not a big deal. $1 = 0.7387 lbs. (Reporting and editing by David Evans, Susanna Twiddale, Kate Abnett)
(source: Reuters)