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Dalian iron ore prices steady as traders evaluate mixed Chinese macro-data
Dalian iron ore prices were little changed Tuesday, as traders assessed mixed macroeconomic indicators and the resilient steel demand of top consumer China. The day-trade price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 699 yuan per metric ton. As of 0704 GMT, the benchmark July iron ore traded on Singapore Exchange had fallen 1.24% to $92 per ton. Analysts at ANZ say that iron ore prices fell after data revealed that China's steel output dropped in May. The National Bureau of Statistics reported on Monday that China's crude-steel output fell 6.9% in May from a similar period a year ago to 86.55 millions tons. Official data released on Monday showed that new home prices in China dropped in May, continuing a two-year stagnation. This highlights the challenges facing this sector, despite several rounds policy support measures. Retail sales, which are a measure of consumption, have picked up, providing temporary relief in the midst of a fragile truce between China and the United States. Galaxy Futures, a broker, stated that while blast furnace production peaks, profits are high and steel mills do not feel the need to reduce production. According to Mysteel, as of June 12th, 60% of China's blast furnace steel mills reported positive margins. Mysteel data revealed that the volume of iron ore arriving at ports fell by 8.62% on a weekly basis to 23,85 million tonnes as of 13 June. Coking coal and coke, which are both steelmaking ingredients, increased by 0.7% and 1.0%, respectively. The benchmark steel prices on the Shanghai Futures Exchange were flat. Hot-rolled coil and rebar both gained 0.13% and 0.17% respectively, while stainless steel and wire rod were down almost 0.5%. (Reporting and editing by Harikrishnan Nair Rashmi aich; Michele Pek)
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Thames Water's crumbling assets are a sign of the challenges ahead as it fights to survive
The sheer volume of waste entering Thames Water’s Mogden Sewage Works in southwest London, overwhelms the 90-year old concrete tanks. This forces the utility to pump excrement directly into the River Thames 15 times per year. The plant, hidden by trees, is a symbol of the crisis in Thames, which provides water and sewage to 16 million people in southern England. The company, which was privatised in 1989 and is now heavily indebted, struggles to survive let alone deal with the crumbling infrastructure in its care. The U.S. Private Equity firm KKR walked away this month from a plan of injecting 4 billion pounds ($5.4billion) of equity. This leaves Thames' fate in senior creditors who are now negotiating a deal to rescue the water regulator Ofwat. The group, which includes investment-grade banks and hedge funds, has offered to write off 20% of their debt in exchange for a new environmental and investment regime. If there is no deal, the British Government - which already struggles with limited public finances – may be forced to take over a company that polluted waterways and paid dividends and bonuses for its former owners and managers. Investors are unnerved by the prospect of a collapse. This could increase borrowing costs for upgrading UK infrastructure such as electricity grids, transport systems and other UK infrastructure. The rescue plan would have its own financial and political costs. Creditors believe that turning around the company will require some leniency in the fines and penalties of 1.4 billion pounds Thames Water expects to receive from the regulator Ofwat, and the Environment Agency during this five-year period. A senior creditor in the plan said that "time is running out" and added that Ofwat had listened to their proposal now after months without engagement. We're just asking for a small amount of movement, and we are there. The creditor who spoke anonymously because the talks were private is one of over 100 creditors who hold debts totaling more than 17 billion pounds ($17.7billion) and are willing to invest in places like Mogden. Dave Chowings of Mogden Plant Manager, described the magnitude of the challenge during a recent site visit. He pointed to storm tanks that were the size of Olympic-sized swimming pools and said, "All this concrete is 90 years older." It's time to rebuild." DOOM LOOP KKR spent months assessing the amount of money needed to upgrade plants such as Mogden. Martin Young, a water industry consultant, said that Ofwat was at a critical moment when it came to finding a solution. It had been criticised for not being able to prevent the scandal. If they don't change, we run the risk being trapped in this doomsday loop. "That's a doomsday loop for Thames but you can also extend it out to the larger industry," he said. Ofwat announced that it has begun reviewing the submissions of senior creditors, including their turnaround plan, approach to financial stability and proposals for governance. A spokesperson stated that "our focus is to assess whether the plans are real, achievable and will bring substantial benefit for customers and the environmental," The government referred to an earlier statement that said Thames was stable, and it was closely monitoring the situation. POLITICALLY TOXIC The failures at Thames, according to critics, are the result of decades of political and regulatory failures, as successive governments have focused on reducing customer bills rather than driving investments. It would be toxic to the political system if Thames Water were given the special treatment that the creditor group wants in terms of regulation. Ash Smith, from the campaign group Windrush Against Sewage Pollution, said that the terms demanded by creditors proved that nationalisation was only the answer. He said that customers had grown tired of business owners who based their model on the ability to break the law. The senior creditors' 20% "haircut", which threatens to wipe out junior debt holders has angered them as well. Tradeweb data shows that the Thames Water 2040 bond has been bid at 68.99p on the pound. Thames is a big challenge for whoever takes it over. Mogden has struggled with the population growth and weather changes associated with climate-change. Thames spent 100 million pounds on the site over five years, and will spend the exact same amount in the next five. Four of the storm pumps on the Titanic were manufactured in the 1930s, but it's getting harder to locate people who can maintain them. Thames Water's Chief Executive Chris Weston wrote to a legislative committee on May 30, "Historically, the funding for our asset replacement has not been enough to offset our assets deterioration." Customers want clean rivers but don't want to pay for mismanagement. Laura Reineke is a 52-year-old charity worker who works for Thames Water. She said, "I think water has been cheap for far too long, but I am not willing to pay what we have already paid for." ($1 = 0.7362 pounds)
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Volvo Group and Daimler to form technology joint venture to reduce costs
AB Volvo, a European truckmaker rival, and Daimler Truck, a European truck manufacturer, hope to reduce costs and rely less on suppliers through collaborating on implementing a software defined vehicle program. Like automakers, truck and fleet manufacturers are racing to create vehicles with advanced technology while also battling the need to cut costs. Daimler-Volvo's new venture, Coretura, aims to reduce this dependence by developing a software defined vehicle platform. Daimler Trucks CEO Karin Radstrom said that the companies were looking to create a "standard industry". Radstrom stated that they are looking to see how to move away from the current situation where suppliers drive both costs and timelines. They will instead be looking to see what is the next generation software we should bring to vehicles. The Gothenburg venture will initially employ 50 people, and hopes to deliver its first connectivity platform by 2027. Further deliveries are expected towards the end decade. Johan Lunden is a Volvo veteran who has just been appointed as CEO of Coretura. He said, "Everything about the automotive industry revolves around software. He added that software will be a vital tool in achieving future sustainability, productivity and safety goals. Volvo Group and Daimler, while rivals, have worked together on various projects in the past, including hydrogen fuel cell and charging technology. Reporting by Marie Mannes and Jesus Calero from Gdansk, editing by Matt Scuffham
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WGC survey: Central banks prefer gold to dollar as reserves
A survey by the World Gold Council showed that central banks expect to see their gold reserves as a percentage of their reserve increase in the next five year while their dollar reserves will be reduced. Gold demand has increased significantly in the last three years, despite gold's price record-breaking rally. Gold reached an all-time record price of $3,500.05 per ounce in April. This is up 95% from February 2022, when Russia invaded Ukraine. WGC's survey was conducted between February 25 and may 20 and 73 central banks responded. 76% expect their gold to be higher five years from now compared to 69% last year. Nearly three quarters of respondents expect dollar-denominated reserve levels at central banks to fall in five years, compared with only 62% last year. WGC stated in a press release that "gold's performance during crisis times, portfolio diversification and the hedging of inflation are some key themes" driving plans to acquire more gold in the next year. WGC reported that central banks had accumulated over 1,000 metric tonnes of gold each of the past three years. This was a substantial increase from the average of 400-500 tons in the previous decade. WGC stated that "this marked acceleration of the pace of accumulation occurred against a background of geopolitical uncertainty and economic insecurity". WGC's survey shows that 95% of respondents believe central bank gold reserves will rise over the next year. This is up from 81% in the previous survey. The Bank of England continues to be the most popular place for gold reserves. The survey revealed that 59% of the central banks surveyed cited potential trade conflicts and tariffs as being relevant to their management of reserves. The council stated that a greater percentage of respondents came from developing and emerging economies (69%) than those who responded from advanced economies (40%)
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Analysts say that Le Vot and Stellantis' Picat could be included in Renault's search for a new CEO.
The sudden departure of Luca de Meo as CEO of Renault has sparked a search for a successor. Analysts have mentioned longtime insider Denis Le Vot, and Maxime Picat from Stellantis rival as candidates to continue the French carmaker's turnaround. Investors worried about Renault's future with de Meo gone, pushed the shares down by up to 8%. This was the biggest percentage drop in a single day since February 2022. Kering shares, where de Meo will be CEO, rose. Picat, the head of global procurement and supply chains for Stellantis, was in the running to be the CEO at the No.4 automaker in the world. 4 automaker. Antonio Filosa, one of two internal candidates he was competing against, won the race. Le Vot, the executive vice president of Renault, joined Renault after graduating and is now in charge of its Dacia low-cost brand. Analysts from French brokerage Kepler Cheuvreux believe both men are potential successors. JP Morgan analyst Jose Asumendi also noted Renault's "strong" bench of brand managers including at Dacia. He said: "We (...) would also envision external candidates (from other companies) like Stellantis Group, VW Group and Nissan, amongst others." Le Vot and Picat are both French citizens. They did not respond immediately to our requests for comment. Renault has declined to comment about its succession plans. Anyone who succeeds de Meo must be ready to go. While he revitalized Renault and restructured its strategic alliance between Nissan during his five-year tenure as CEO, it faces increasing competition from Chinese competitors. It is also smaller than other manufacturers, so it must rely on partnerships. De Meo's exit will increase concerns over Renault's independence, according to Jefferies analysts. This is a challenge that has always existed in an industry based on scale. Renault was the No. According to Felipe Munoz's data, the 15th largest automaker in terms of sales will be in 2024. This is down from 2023, when it was 14th. It is expected that Changan will surpass BYD in sales. Renault, under de Meo, teamed up with Google, Qualcomm, and China's Geely to make up for the small size of the company, as the auto industry struggles with the high cost of going electric. Although the partnerships have reduced costs, labour unions say they are a threat to in-house knowledge. INSIDER VS OUTSIDER Dacia has been a success under Le Vot, thanks to the Sandero and Duster. The subcompact Sandero, behind the Renault Clio, was Europe's number 2 selling car in April. According to research firm JATO Dynamics, the subcompact Sandero was Europe's No. According to research firm JATO Dynamics, the Duster SUV was ranked No. 7. Le Vot has held previous management positions in Turkey and Russia where he served as chief operating officer between 2011 and 2013, and he ran North American operations for alliance partner Nissan where he managed the launch of the Altima sedan in 2018 Picat spent all his career with PSA, and then Stellantis when the French group merged FCA in 2021. He headed the Peugeot brand in 2012 and oversaw two of the SUVs' bestsellers: the 2008 model and the 3008 model. A Stellantis insider who is familiar with Picat told us that while he did not know whether Picat was interested in a top position at Renault, he "wouldn't be surprised" to hear him speak with the French automaker. Source, who spoke under condition of anonymity as he wasn't authorised to speak publicly about the matter, said that it was normal for a CEO to consider other options after losing the race.
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Australian accused of mushroom killings had no motive to kill, court heard
The lawyer for an Australian woman accused in the murder of three elderly relatives by her estranged spouse using toxic mushrooms in a meal had told the court Tuesday that the victim's motive was not to kill the victims. Erin Patterson has been charged with the murders and attempted murders of Gail Patterson's mother, Donald Patterson's father, Gail's sister Heather Wilkinson as well as Heather's husband Ian Wilkinson in July 2023. The prosecution accuses the woman of scouring for poisonous death caps mushrooms, drying them, and then knowingly serving these mushrooms in portions of Beef Wellington, at her home, in Leongatha. This town has a population of 6,000, about 135 kilometers (84 miles), from Melbourne. Patterson denies all charges that carry a sentence of life imprisonment. Her defence called the deaths "a terrible accident" earlier. Colin Mandy, Patterson's lawyer, said on Tuesday that the prosecution's evidence that the accused and her estranged spouse Simon Patterson's relationship soured over a disagreement about child support was illogical. He told the court that "whatever we call these spats, disagreements, and frustrations," it does not provide a motive for murdering someone's parents. He said that the accused actually had a good working relationship with the Pattersons, and had even loaned hundreds of thousands to Simon Patterson's sisters in order to purchase property. On Tuesday, Nanette Rogers concluded the closing argument of the prosecution by accusing Patterson a trail of calculated deceptions before and after lunch. Rogers said that Erin Patterson had told so many lies, it was difficult to keep track of them. She's told lies after lies because she knew that the truth would expose her. After the closing statement of the defence, Justice Christopher Beale, the presiding judge will instruct the jury on how to proceed before the jury retires to deliberate a verdict. The trial that has gripped Australia for eight weeks and is expected to end later this month.
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Profit taking by palm oil rivals Chicago soyoil
The Malaysian palm futures market extended its losses on Tuesday. This followed three consecutive sessions of gains. It was dragged lower by a drop in soyoil prices in Chicago and profit-taking actions. By midday, the benchmark palm oil contract on Bursa Derivatives Exchange for September delivery had fallen 19 ringgit or 0.46% to 4,075 Ringgit ($961.54) per metric ton. A Kuala Lumpur based trader stated that "the futures are in profit-taking mode following recent rally tracking Dalian and CBOT Soyoil sentiment". Chicago Board of Trade Soyoil was down by 0.83%. Dalian's soyoil contract with the highest volume was up by 0.63%. Palm oil contracts rose 1.29%. As palm oil competes to gain a share in the global vegetable oil market, it tracks the price fluctuations of competing edible oils. U.S. Biofuel Blending Proposals are likely to increase Demand. Soybean futures reached a month-high before losing gains. The oil prices rose on Tuesday amid fears that the conflict between Israel and Iran could intensify. This would increase the likelihood of unrest in the Middle East - a major producing region - as well as a disruption to the oil supply. Palm oil is a better option as a biodiesel feedstock because crude oil futures are stronger. Intertek Testing Services, a cargo surveyor, reported that exports of palm oil products from Malaysia for the period June 1-15 were up 26.3% over May 1-15. AmSpec Agri Malaysia, an independent inspection company said that shipments increased 17.8%. Palm oil could test the support level of 4,042 Ringgit per metric tonne. A break below this mark would open up the possibility for a drop to 3,998 Ringgit.
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China builds up a crude-oil war chest amid Middle East tensions, says Russell
China continues to accumulate crude oil stocks, despite the fact that it refines less crude oil than it can produce or import. The world's largest oil importer can now buy less in the coming months, as prices rise due to Middle East tensions. Calculations based on data from the Chinese government show that the surplus crude in China reached 1.4 million barrels a day (bpd), the third consecutive month where it was above the 1,000,000 bpd mark. Since June 13, when Israel launched airstrikes against Iran, Tehran has responded with missiles and drones. Brent futures have risen almost 6% in the last week since the end of June, to around $73.58 per barrel on Tuesday. Refineries in China have reacted to rapid increases in crude oil prices by reducing their imports or using stored oil. Due to the two-month lag between cargoes being arranged and their delivery, any reduction in China's imports is likely to be noticeable only from August. China's ability to reduce imports and lower prices is not dependent on the crude oil price. China does not reveal the volume of crude oil flowing in or out of its strategic and commercial stockspiles. However, an estimate can still be made if you subtract the amount of crude oil that is available through imports and domestic production from the total crude. According to data released by the government on Monday, refiners processed 13.92 millions bpd during May. This is down from 14.12million bpd recorded in April, and 1.8% less than one year ago. In May, crude imports fell to 10.97 million barrels per day (bpd) from 11.69 in April. Domestic production rose slightly to 4.35 in May from 4.31 in April. After subtracting the refinery output of 13.92 millions bpd, the total crude oil available for refiners is 15.32 million barrels per day. This leaves a surplus of about 1.4 million barrels per day. The surplus crude was 990,000 barrels per day (bpd) in the first five of the year. This is up from 880,000 barrels per day for the first four. China's refiners used up their inventories for the first time since 18 months in the first two-month period of 2025. They processed around 30,000 bpd per day more than they could get from crude imports or domestic production. The massive surpluses of March, April and may have reversed this earlier draw. Not all this excess crude has likely been stored, as some is processed in plants that are not included in the official data. Even if you ignore the gaps in official data, there is no doubt that since March China has imported crude oil at a rate far greater than what it requires to meet its own domestic fuel needs. Imports, Prices The strong crude imports that LSEG Oil Research expects to arrive in June of 11,72 million bpd is a good indication of the price-sensitive nature of China's refiners. The increase is due to the decline in crude oil prices since the cargoes for June would have been purchased. Brent futures fell from a six week high of $75.47 per barrel on April 2, to a low of $58.50 per barrel, a four year low on May 5. This prompted Chinese refiners sucking up cargoes. The majority of these shipments are expected to arrive in June and early July, giving the impression that China's demand for crude oil is improving. The weak numbers for refinery processing show that China may be storing crude. Due to the high prices due to Middle East tensions it is likely that refiners would also cut their purchases and seek discounted oil from sanctioned suppliers such as Russia and Iran. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
Petronas estimates that the proposed ENI joint venture will take between one and two years to set up.
Petronas anticipates that it will take between one and two years to establish a joint venture proposal with Italian energy group Eni for some upstream assets located in Indonesia and Malaysia. This was revealed by a senior executive at the state-run company on Tuesday.
In February, the companies signed an agreement on a joint venture to combine approximately 3 billion barrels equivalent of oil (boe) with an additional 10 million boe in exploration potential.
The idea behind the combination was to create an independent entity that could be self-financed, Mohd. Jukris Abdul wahab, executive vice president of Petronas and chief executive officer of upstream, told the Energy Asia Conference in Malaysia's capital.
Eni's Chief Operating Officer, Guido Brusco said: "This is a major game changer in the region." We are combining assets in Malaysia and Indonesia, especially the Kutai Basin."
Eni's Kutai Basin investments include the Northern Hub and Gendalo Gandang Hubs, which contain massive gas reserves.
Petronas said that it would like to include oil projects in Indonesia’s Kutai Basin as part of the joint venture. It proposed to swap its assets and blocks in Malaysia and Indonesia for Eni’s blocks in Indonesia.
Petronas has said that it will exclude Indonesian assets awarded to the company recently, including the Binaiya block and the Serpang block. (Reporting and writing by Florence Tan and Ashley Tang, Emily Chow and Clarence Fernandez; editing by Tom Hogue and Clarence Fernandez).
(source: Reuters)