Latest News
-
Sources: Sinochem will sell two refineries in bankruptcy to local operators
Seven trade sources and auction documents indicate that China's state owned Sinochem Group is selling two more bankrupt refineries to local refiners in eastern Shandong Province for a much lower price than their value, via auctions which closed on Friday. The new owners would increase crude imports and restart operations at the troubled facilities, boosting oil purchases in the world’s biggest importer. The refineries, Zhenghe Group, which operates a 100,000-barrels-per-day refinery, and Huaxing Petrochemical, which has a 140,000-bpd plant, were listed for sale on last Monday, according to the Shandong Property Right Exchange Centre. Sources with knowledge in the matter have said that Shandong Qicheng Petrochemical should acquire Zhenghe, while Shandong Qirun Petrochemical would take over Huaxing. All three are located in Dongying. Sinochem, when contacted by a reporter from, said that the company would not comment on speculation in the market. Qicheng Qirun have not responded to any requests for comment. Sinochem will be leaving Shandong where most Chinese independent refiners are located, commonly known as teapots. These refiners account for about a fifth China's crude oil imports. Sinochem acquired the refineries in Shandong via a state-organised merger with ChemChina. Local courts declared the plants bankrupt last year due to debts and unpaid taxes. Documents on the website of the Shandong Property Right Exchange Centre showed that Zhenghe's minimum transfer price was 2.62 billion Yuan ($365.12 millions), while its valuation was 6.3 billion Yuan. Documents show that Huaxing's minimum transfer price was 3.24 billion Yuan compared to its valuation of 8.7 billion Yuan. The website didn't reveal the names of bidders, and it wasn't immediately clear if these deals would be completed at those prices. The Shandong Property Right Exchange Centre refused to comment. Sinochem sold Changyi Petrochemical in March to Shandong Hongrun Petrochemical. The acquisition will allow Qicheng's and Qirun’s refinery capacities in Dongying to increase from 170,000 bpd to 184,000 bpd respectively, thereby improving their economies-of-scale. Three sources said that the two Shandong refiners will also receive a government quota for crude oil imports of approximately 3.56 million tons (26 millions barrels) in the remainder of 2025 after purchasing Sinochem's factories. A fax sent to the Ministry of Commerce for comment was not returned. Changyi has recently resumed its operations, and purchased crude oil from Brazil and Canada with the 2025 import quota. Reporting by Chen Aizhu in Singapore, Siyi LIu in Beijing Newsroom and Trixie Yap. Editing by Florence Tan and Helen Popper.
-
Indonesia removes the requirement for benchmark prices to be used in mineral and coal sales
A mining ministry order reviewed on Monday revealed that Indonesia has removed the requirement for minerals and coal sales to be priced at government benchmark prices. The decree, which was issued earlier this month by the government, allowed miners the option to sell coal and minerals below benchmark prices set by the government, but the production levies, and taxes resulting from these transactions, would be based upon the benchmark prices. Jakarta mandated the use of benchmark prices for coal transactions as of March 1. The intention was to have a greater control over the value domestic and international transactions of the fuel commodity. The price was already used to calculate royalty payments before that. Both buyers and sellers preferred the Indonesian Coal Index for pricing shipments, because it is opaque, less often updated, and more expensive. Indonesia also publishes benchmark prices for nickel, copper, tin and cobalt, among other things. Indonesia exported 238 millions tons of thermal coal during the first half of 2014, an increase of 20% from a previous year. (Reporting and editing by Jan Harvey; Bernadette Christopher)
-
Dollar strength causes gold to fall from two-week peak.
Gold prices fell on Monday, as the dollar strengthened. This was a retreat from the two-week high reached in the previous session following comments by U.S. Federal Reserve chair Jerome Powell that boosted bets for interest rate reductions. As of 0914 GMT spot gold was down 0.3% to $3,362.56 an ounce after reaching its highest level since August 11, on Friday. U.S. Gold Futures for December Delivery eased 0.3% at $3,407.30. Gold became more expensive to other currency holders due to the 0.2% increase in the dollar index. Powell said on Friday that the Fed may cut rates at its meeting next month. He noted that the risks for the job market are increasing, but that inflation remains a concern. A decision is not yet set in stone. UBS analyst Giovanni Staunovo said: "Powell indicated to me that he only expected a 25-bps reduction for September. So there is an adjustment based on this, which supports the dollar and weighs on gold." The markets now price in a 87% chance that the rate will be cut by a quarter point at the September meeting, compared to Nearly 90% CME FedWatch Tool predicts a 48-basis-point reduction in the aggregate by year's end, following Powell's Friday comments. "Another large cut depends on the incoming U.S. economic data. It must indicate a slowdown of economic activity which we anticipate. Staunovo said that gold is expected to reach USD 3,700/oz by mid-2026. Investors await the U.S. data on personal consumption prices due out Friday, which is expected to show core price inflation. Creeping up The rate of inflation has reached its highest level since late 2023, at 2.9%. In an environment of low interest rates, gold tends to increase in value. This reduces the cost of holding bullion that does not yield. Silver spot fell 0.2% at $38.75 an ounce. Platinum dropped 0.9% to $1349.35, and palladium declined 0.7% to $1118.26. (Reporting by Ishaan Arora in Bengaluru; Editing by Mark Heinrich)
-
Report: China's coal power commissioning at a 9-year high during the first half of the year
A new report released on Monday found that China built 21 gigawatts of coal power plants in the first half 2025. This is the highest amount since 2016, even though the country continues to build record amounts of renewable energy. The authors of a report from the Helsinki-based Centre for Research on Energy and Clean Air, CREA, wrote: "The commissioning surge of 2025 is a delayed reaction to the permit surge of 2022-2023." This surge was in response to the power shortages and blackouts of 2021 and 2022. Supply disruptions, higher coal prices and tighter emission standards all collided at the same time as China was recovering from its first phase. The CREA report stated that according to the projections of the industry group China Electricity Council, 80GW could be added in coal power for the entire year. This would make 2025 one of the largest years for coal power additions for a decade. The number of new coal-fired power plants approved in the first six months of this year was 25GW, a slight drop from the previous years. Researchers wrote that "the core tension for 2025 has become increasingly apparent: coal's share of power generation is at record lows yet the addition of new coal power capacity will reach decade-highs." "Broad capacity payment, inflexible dispatch, long-term contracts, and the lack of a retirement pathway serve to keep coal in place, whether or not it is still needed." China has committed itself to gradually reducing coal usage between 2026-2030. It says coal power will be used as a backup to clean energy in the future. However, CREA researchers say that this is not happening because there are no incentives to reduce coal power production. China's National Energy Administration failed to respond to a request for comments sent via fax. The rapid growth of renewables has led to progress in reducing carbon emissions, despite continued coal use, according to an analysis by CREA last week. China's CO2 emission fell 1% during the first half year.
-
Porsche cancels plans to manufacture batteries at Cellforce
The German automaker Porsche AG has scrapped its plans to manufacture high-performance battery at Cellforce, citing a slowdown in demand for electric cars and changing conditions in China and America. According to a source familiar with the situation, the move will result in the loss of 200 out of nearly 300 jobs. This is another blow to European efforts at challenging Asia's dominance when it comes to automotive battery manufacturing. Cellforce is to be transformed into an independent unit for research and development, the company announced in a Monday statement. Oliver Blume, CEO of Porsche and Volkswagen, stated on Monday that Porsche does not produce its own batteries due to volume and the lack of economies-of-scale. Cellforce, which has taken over the battery division of Varta, would also benefit from Cellforce's expertise. The company declined to provide specific details about job cuts. The collapse of Swedish EV Battery maker Northvolt in this year has frustrated hopes among industry and government to create a battery supply network in Europe. Porsche announced in April that it was no longer pursuing plans to expand the production at Cellforce. Porsche had originally planned to build a "start-up plant" in Baden-Wuerttemberg, a state in southwest Germany. This would be followed by an even larger second location. Michael Steiner said that "due a lack in volume around the world, it's not possible to scale its own production up to the planned costs position." He is a Porsche executive board member responsible for research and developments. (Written by Miranda Murray and Ludwig Burger, edited by Thomas Seythal Christoph Steitz Jan Harvey
-
Rio Tinto suspends Guinea mine work after iron ore reaches a record high of over a week
The iron ore futures reached a new high of one week on Monday, as Rio Tinto suspended its Simandou project after an incident. This heightened fears about a possible delay in the start of production at the mine. The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 2.27% higher, at 787 Yuan ($110.06), its highest level since August 14. As of 8:10 GMT, benchmark September iron ore traded on the Singapore Exchange was up 2.69% at $103.3 per ton. This is the highest price since August 14. Rio Tinto, world's biggest iron ore mining company, announced on Saturday that it has suspended operations at Guinea's SimFer Mine site following an incident which resulted in the death of a contract worker. Earlier, the miner had expected to receive the first shipment of iron ore in November. It owns two out of four Simandou blocks, as part of a joint venture between China's Chalco Iron Ore Holdings and the Guinean government. Rio Tinto has not responded to a comment request. The near-term demand for the main steelmaking ingredient remained strong despite the production restrictions imposed on mills at the top Chinese steelmaking center Tangshan in order to maintain clean air in Beijing before a military parade commemorating the end of World War Two. The average daily hot metal production, which is a measure of iron ore consumption, was unchanged at 2,41 million tons during the week ending August 21, according to data from consultancy Mysteel. Shanghai's announcement that it would relax restrictions on home ownership for families eligible also helped to boost sentiment. Coke and other steelmaking materials, such as coking coal, have risen by 6.48% and 4.36 percent, respectively. A recent mine accident has sparked the expectation of stricter safety checks, which could reduce supply and underpin coal prices," said a coal analyst in Shanghai on condition of anonymity because he was not authorized to speak to media. The Shanghai Futures Exchange has seen steel benchmarks rise due to higher raw material costs. Rebar grew by 0.71%. Hot-rolled coil climbed by 0.92%. Wire rod increased 0.65%. Stainless steel grew 0.98%. ($1 = 7,1509 Chinese Yuan) (Reporting and editing by Subhranshu Sahu, RashmiAich and Subhranshu Sahu)
-
Norway's Northern Lights CCS Project starts with the first CO2 injection
Shell, Equinor, and TotalEnergies announced on Monday that the first volumes of CO2 have been injected into and stored in Norway's Northern Lights Carbon Capture and Storage (CCS) Project, marking the beginning of operations. Companies said that the CO2 was being stored in a 2,600 meter reservoir (8,530 feet) below seabed. This marks a significant milestone for CCS. In a press release, Anders Opedal said that the industry of carbon capture transport and storage is scalable. The facility is a part of the heavily-subventioned Longship carbon storage and capture project in Norway, which aims to commercialise CCS to reduce CO2 emission levels. This is especially important for sectors that are dependent on fossil fuels and difficult to decarbonise. The CO2 that is now being stored was originally shipped from Heidelberg Materials' Brevik cement plant in southern Norway. It was first unloaded into tanks onshore, then sent via a 100-kilometer pipeline to the storage facility. Phase 1 of Northern Lights is now complete. It can inject 37,5 million metric tonnes of CO2 in a period of 25 years, or 1,5 million tons each year. The project has been fully booked. Partners also agreed to invest $743.93 million in a second phase that targets an extra 3.5 million tonnes a year.
-
Sasol makes a profit from higher chemical prices and lower write-downs
Sasol, a South African petrochemical company, announced on Monday that it had achieved an annual profit due to higher chemical prices and tighter cost control. The company that produces fuels and chemicals out of coal and gas posted basic earnings per shares of 10.60 rand ($0.6070), compared to a loss per share 69.94 rand last year. Sasol received a payout of 4.3 billion rands from Transnet after claiming in a lawsuit that the state-owned logistic firm overcharged oil transport over a period of several years. The company reported a 9% drop in its revenue, due mainly to a reduction in sales volume and rand oil price and margins. The capital expenditure of 25.4 billion rand, which was 16 percent lower than last year, is a result of the fact that it has managed to keep its cash fixed costs below inflation. Sasol recorded a significantly lower impairment of 20.7 billion Rand, compared to 74.9 billion Rand the previous year. Asset writedowns for the 2025 financial years were related to its Secunda liquid fuels refinery, Mozambique Gas Production Sharing Agreement and Exploration Project, as well as Italian chemicals business. Sasol's U.S. chemicals operations were hit hard by low prices and weakening demand. Sasol skipped another dividend payment as its $3.7 billion in net debt was above the debt cap of $3 billion under its dividend policy. (1 dollar = 17.4620 rand). (Reporting and editing by Nelson Banya, Himani Sarkar, and Subhranshu Shu.)
EU envoys are expecting to resolve the blockage of new Russia sanctions by this week

The European Union said that they expected to reach an agreement during a summit of the EU this week regarding an 18th package against Russia. Slovakia and Hungary use it as a bargaining tool for concessions about Russian energy.
The European Commission proposed the package to encourage Russia to negotiate with Ukraine a ceasefire after EU leaders demanded "massive sanction" in May. The package aims to target more of Russia's revenues from energy by listing its banks and destroying its shadow tanker fleet.
Hungary and Slovakia announced on Monday that they will not support new sanctions unless the proposal to prohibit imports of Russian oil by 2027 is changed.
The ban will be discussed by EU leaders at the European Council in Brussels on Thursday and Friday.
Ignacy Niemczycki is a Polish EU minister. He said, "We're waiting to see the result of the summit on Thursday, and I think that the conversation will be easier afterward." "We remain optimistic."
Slovak PM Robert Fico, however, reiterated that a vote be postponed until Slovakia's concerns about the energy ban have been addressed. He also said he would block sanctions if Slovakia did not address its concerns.
Slovakia claims that shutting down the Russian pipeline will increase prices, particularly in central Europe. Last week, Economy Minister Denisa Sakova stated that the country also wanted a mechanism for capping EU transit fees and guarantees in the event of a shortage.
A diplomat who is familiar with the talks said that Slovakia and Hungary are seeking "different treatment" for countries which have landlocked borders.
One diplomat said: "Hungary's not a big problem." If Slovakia lets go, then so will Hungary."
SPP, the state-owned gas company in Slovakia, said that Gazprom could demand compensation even if SPP declared force majeure if EU imports are banned. SPP's Russian gas contract, which ends in 2034, is valued at approximately 16 billion euros ($18.6billion) at current prices.
The lawyers have warned that it would be difficult to eliminate claims if the Commission went ahead with its plan of using trade measures to ban the product instead of formal sanctions which require unanimous approval.
A spokesperson for the European Commission said: "We've been working very closely" with member states that are most affected by the phaseout. $1 = 0.8623 Euros (Reporting and editing by Kevin Liffey, Julia Payne, Jan Strupczewski Jan Lopatka, Marek Strzelecki)
(source: Reuters)