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Copper prices fall as investors prepare for US tariffs
The price of copper in London and Shanghai fell slightly on Thursday as the markets continued to be under pressure in anticipation of the United States' imposition on August 1st a 50% tariff on imports. As of 0123 GMT the three-month copper price on the London Metal Exchange fell 0.07%, to $9,628 a metric ton. The most traded copper contract on Shanghai Futures Exchange also declined 0.04%, to 77,930 Yuan ($10,855.12) per ton. ANZ stated that the U.S. market will likely draw from existing stocks, putting downward pressure COMEX and LME Copper prices in the short-term. In an interview with Real America's Voice, Trump stated that the U.S. was very close to reaching a deal with India. An agreement with Europe could also be possible, but it's too early to tell if a deal will be struck with Canada. Copper stocks in LME registered warehouses will be depleted by Wednesday The LME warehouses in Hong Kong that began formal operations on Tuesday received 5,975 tonnes of copper. Nickel - 396 Tonnes 100 Tons of Zinc 25 tonnes of tin . These warehouses were built by the LME to enhance its presence in Hong Kong. Hong Kong is the gateway into China, which is the largest metal consumer on the planet. LME tin rose 0.67%, to $33,020 per ton. Zinc fell 0.35%, to $2,701.5. Lead dropped 0.13%, to $1,974. Aluminium was down 0.12%, at $2,574.5. SHFE nickel dropped 0.8% to 119.640 yuan per ton. Tin fell 0.32% at 262,640, lead was off 0.27% to 16,850, zinc grew 0.32% at 22,085 and aluminium gained 0.1% to 20,450. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0600 UK Claimant Enem Chng. HMRC Payrolls May 0600 EU HICP Final June 0900 US Retail Sales MM and Import Prices June 1230 1230 1230 1230 1230 1230 1230 1230 1230 1230 1230 1230 1230 1230 1230 12 30 US Philly Fed Business Index July
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South Korea pounded by heavy rains, 1 dead and over 100 evacuated
Safety ministry reports that one person died and over 100 people were evacuated after torrential rains pounded South Korea on Thursday. The Ministry of the Interior and Safety reported that as of Thursday morning some areas of the South Chungcheong Region, south of the capital Seoul, had received over 400 millimetres (15,7 inches) of rainfall since Wednesday. According to the Korea Forest Service, the Korea Forest Service has raised the alert level of landslide dangers to the highest possible level in several areas including Chungcheong due to heavy rains. The Yonhap News Agency reported that two people who were trapped in a South Chungcheong landslide had been rescued. (Reporting and editing by Joyce Lee, Ju-min Park, and Jack Kim)
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G20 Finance chiefs meet in South Africa under a tariff cloud
The G20 finance chiefs are meeting in South Africa this Thursday, under the shadow cast by President Donald Trump’s tariff threats. Questions will be raised about their ability to work together and tackle global challenges. Since years, the club has been hampered by disagreements among its key players, exacerbated in part by Russia's conflict in Ukraine and Western sanctions against Moscow. Under its motto of "Solidarity Equality Sustainability", the host South Africa has sought to promote an African agenda. Topics include high capital costs and funding climate change action. The G20 is a group that aims to coordinate policy, but its agreements are not binding. U.S. Treasury Sec. Scott Bessent won't attend the two-day gathering of finance ministers, central bank governors and other officials in Durban. This is his second absence at a G20 meeting in South Africa in this year. Bessent skipped the Cape Town meeting in February, when several officials from China and Japan were absent. Washington will assume the rotating G20 presidency at the end the year. Michael Kaplan, acting U.S. undersecretary of state for international affairs, is Washington's representative at the meetings. G20 delegate who requested anonymity said that Bessent's lack of presence was not ideal, but the United States were engaging in discussions about trade, global economy, and climate language. The finance ministers of India, France and Russia will also miss the Durban Meeting. Lesetja Kganyago, the governor of South Africa's Central Bank, said that it was important to represent. What matters is that there is a person with a mandate behind the flag, and is everyone represented by someone behind the banner? Kganyago said. U.S. officials are not saying much about their plans to assume the presidency in the next year. However, a source who is familiar with Washington's plans says that Washington will reduce the number non-financial groups and streamline the summit agenda. Brad Setser said that he was expecting it to be a "scaled-back G20, with less expectations of substantive results." 'TURBULENT TIMES' Trump's tariff policy has rewritten the rules of global trade. The tariffs will be implemented on August 1 with a 10% base rate on all U.S. imported goods and rates up to 50% on steel, aluminium and autos. The threat of further tariffs of 10% on BRICS countries -- eight of which are G20 members -- raised concerns about fragmentation in global forums. German sources in the German Finance Ministry said that on Tuesday, Durban would be a meeting to strengthen global relationships during "turbulent" times. Duncan Pieterse, South Africa's Treasury director general, said that the group hoped to release the first communiqué under the South African G20 Presidency by the end the meetings. The G20 last issued a communique that was agreed upon by all members in July 2024. They agreed on the necessity to resist protectionism, but did not mention Russia's invasion into Ukraine. Reporting by Olivia Kumwenda Mtambo, Kopano Goko, Colleen GOKO, Philip Blenkinsop in Durban and Andrea Shalal, Washington. Writing by Olivia Kumwenda Mtambo. Editing by Philippa FELTCHER
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Oil prices rise as economic data and demand expectations lift sentiment
Oil prices rose in early trade on Thursday, reversing the previous session's losses, buoyed by stronger-than-expected economic data from the world's top oil consumers and signs of easing trade tensions. Brent crude futures were up 27 cents or 0.39% to $68.79 per barrel at 0000 GMT. U.S. West Texas Intermediate Crude Futures rose 31 cents or 0.47% to $66.69. Both benchmarks dropped more than 0.2% the previous session. The Energy Information Administration reported that U.S. crude oil inventories dropped by 3.9 millions barrels, to 422.2 million last week. This was a greater decline than the forecast of a 552,000 barrel draw. This suggests increased refinery activity, tighter supplies, and higher demand. The favorable margins associated with the refinery sector provide "some support". John Paisie of Stratas Advisors said that product spreads are still wide across all regions. The price increases were capped by the fact that gasoline and diesel inventories rose more than expected. The latest snapshot of the U.S. economy released by the central bank on Wednesday showed that activity has picked up in recent months. The outlook, however, was "neutral or slightly pessimistic", as businesses reported higher import tariffs pushing up prices. Data from China showed that growth in the second quarter slowed, but not as much as was previously thought. This is partly due to front-loading in order to beat U.S. Tariffs. Data also revealed that China's crude oil throughput in June was up 8.5% compared to a year earlier, suggesting a stronger fuel demand. John Paisie said that "the positive news regarding some easing in trade tensions between China & the U.S., with President Trump lifting his ban on the sales of AI chips to China as well as the announcement of an Indonesian trade agreement" has also been supportive. Donald Trump, the U.S. president, expressed renewed optimism regarding the prospect of a drug-related deal with Beijing. He hinted at a very near-term trade agreement with India, and that an agreement with Europe could be possible. Tariffs on trade could dampen global economic growth and, in turn, put downward pressure on fuel prices. (Reporting by Anjana Anil in Bengaluru; Editing by Sonali Paul)
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Couche-Tard withdraws its $47 billion bid to take over Seven & i
Alimentation Couche-Tard, a Canadian retailer, announced on Wednesday that it had withdrawn its $47 billion bid to acquire Seven & i Holdings. The company cited a lack "constructive engagement" with the Japanese family who founded the Japanese firm. Couche-Tard's attempt to merge Circle K and 7-Eleven into a global convenience-store giant with 20,000 stores ended after a year-long effort. In an effort to reduce regulatory obstacles, it had also agreed on a plan to sell stores. In a letter addressed to the board of directors, Couche-Tard stated that "we have sought to have a dialogue with the Ito Family on many occasions but they are not open to any discussion." Couche-Tard increased its offer from $38.5 billion to $47 billion in October of last year. In March, it offered to raise it even further if Japan cooperated and provided more financial data. The company's efforts to cement the acquisition gained momentum after a $58 billion rival white-knight offer from Seven & i Holdings founder family failed to secure financing. The companies had signed a non-disclosure (NDA) agreement earlier this year. However, "the quantity and content of the allowed due diligence, even at two closely constrained management meetings have been negligible," Couche-Tard stated in his letter. Couche-Tard wrote in his letter: "At this time, we have no idea when we will receive further information." (Reporting and editing by Shailesh Kuber in Bengaluru, Savyata Mihra from Bengaluru)
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MP Materials launches $500 million public offer of common stocks
MP Materials announced on Wednesday that it will sell $500 million worth of its common stock. This comes a day after a U.S. rare-earths miner signed a deal to supply Apple. In extended trading, shares of MP Materials dropped 5.8%. The company's market value has risen by $9.57 billion, a 275% increase in the past year. The $500 million deal with Apple is an impressive achievement for MP, and represents a rare investment from a tech firm that wants to reduce the risks associated with its supply of rare earth magnets. Last week, the Las Vegas-based firm signed a multi-billion dollar agreement with the U.S. Department of Defense as the government sought to reduce its dependence on China. China had restricted rare earths imports in April due to President Donald Trump’s tariffs. Although the U.S.-China agreement reached in June has settled much of the dispute over rare earths, wider trade tensions continue driving demand for non Chinese supply. MP Materials was not required to sell stock to the public as part of the Pentagon deal. MP stated that it plans to use the net proceeds of its offering to fund growth and general corporate purposes. The company announced that it would give underwriters the option to buy up to 15% more of its shares within a 30 day period. Morgan Stanley and J.P. Morgan are both book-running managers for the sale of stock. (Reporting and editing by Devika Syamnath in Bengaluru. Sumit Saha is based in Bengaluru.
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Sources say that Phillips 66 Bayway refinery is partially closed after a power outage.
Three sources with knowledge of the situation said that Phillips 66 partially closed its Bayway refinery, which produces 258,500 barrels per day, in Linden, New Jersey after rainstorms caused a power failure at the plant. Phillips 66 confirmed that the power outage occurred, but declined to give further details. According to a report filed on Tuesday with the New Jersey Department of Environmental Protection, a computer that monitors the emissions from the refinery flare stack was damaged by flooding. The report stated that all other monitoring equipment was working normally. Linden Police Department, posted on Facebook, Tuesday, that there was no damage to critical infrastructure and that the refinery flares worked properly following the overnight power failure. A second report submitted to the DEP Tuesday indicated that the sewer system of the refinery leaked unknown amounts residual oil into Morses Mill Creek. Two market participants reported that Phillips 66 has been actively buying refined products on the New York Harbor Spot Market since Tuesday. (Reporting and editing by Daniel Wallis in New York, Shariq Jao and Nicole Jao)
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Brazil takes on hotel costs for COP30, under pressure by developing nations
Brazil assured governments that it had enough rooms for the tens and thousands of people expected to cram into the rainforest city Belem in November for the United Nations Climate Summit, even though its listings fell short of their own projections. Valter Correia is Brazil's Special Secretary for the Summit, also known as COP30. He laid out a strategy to prioritize the needs and concerns of the developing countries, including island nations, who expressed their outrage at the high accommodation costs in Belem during a Bonn conference. He said, "We guarantee that everyone will be able to come at affordable prices." "We cannot leave out small countries or countries who suffer the most from climate change issues. It would be unthinkable." After three years of the climate summit being held in countries that did not allow for full public protests, environmental activists around the world eagerly anticipated Brazil's hosting the event. Brazil chose Belem as the venue for the climate talks in order to draw attention to the disappearing rainforests around the world. However, civil society groups have warned for months about the lack of accommodation available in the Amazonian City. Correia stated that authorities have identified more than 35,000 rooms in the city. This is compared to a figure of 20,000 that United Nations officials had told their Brazilian counterparts was required to accommodate delegations, journalists, and observers. Correia projected that 45,000 people would attend COP30, but the actual number is lower. He said Wednesday that he expected Belem will be able to meet the additional demand once more private homes, hotels rooms, and other alternatives, such as repurposed school, become available. UNFCCC's climate change office declined to confirm this number. Correia stated that Brazil launched this week a website for booking 1,500 rooms, with prices ranging from $100 to $220 per night, for a group consisting of 98 island and developing nations. He added that another 1,000 rooms, priced up to $600 per night, will be added soon to the platform, which is open to all delegations. Later, the platform will be opened to all. Brazil has also announced that it has signed contracts for 3,900 cabins on two cruise ships which will be parked in the port city during the COP. Correia also said that he expects groups from the civil society to be able to find accommodations. He said that while his office fights price gouging it will not be able offer rooms to everyone at lower prices.
India's imports of soyoil fell to a four-month low due to port congestion in June
Industry officials have said that India's imports of soyoil in June will likely fall 18% from the previous month to their lowest level in 4 months. This is because congestion in a major port will cause vessels to be unloaded in July rather than June due to congestion.
Nearly two-thirds (67%) of the world's largest importer of edible oils is met by imports. Delays in unloading ships could lead to a shortage on the local market, which would increase prices.
According to Rajesh Patel of GGN Research and edible oil trader, the June soyoil exports will likely fall to 325,000 tons from an earlier estimate of 400,000 tonnes, due to congestion at Kandla Port.
Kandla Port in Gujarat's western state accounts for one quarter of India’s total imports of vegetable oil. This is because many nearby edible oil refineries choose this port to import their products.
"At the moment, edible oil ships are subject to waiting periods between 9-10 days. According to the list of incoming ships, this wait could increase to 15 days, said B.V. Mehta. He is the executive director of Solvent Extractors' Association of India.
Mehta stated that delays result in high demurrage charges, which increase import costs overall and raise the price of edible oil for consumers.
A New Delhi-based trader at a global trading house said that the congestion at Kandla also affects palm oil imports. However, any impact on their supplies will be minimal, as a significant amount is being discharged in ports in eastern India.
India imports a lot of palm oil, mainly from Indonesia, Malaysia and Thailand. It also imports sunflower oil and soyoil from Argentina, Brazil and Ukraine. (Reporting and editing by David Evans; Rajendra Jadhav)
(source: Reuters)