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Valterra CEO: Platinum price rally brings producers back from the brink
Valterra Platinum CEO Craig Miller stated on Monday that the platinum price rally in the first half 2025 helped most mines to recover from losses, but the industry was still far away from adding new production. South African miners, who account for 70% of the world’s platinum supply cut unprofitable production in the last two years, after metal prices crashed, amid warnings about the terminal decline of the industry. The price of metal used in catalytic converters to reduce vehicle emissions soared by 36% during the second quarter. This was due to the increase of Chinese imports as well as the heavy flow of stocks into the NYMEX under threat of U.S. tariffs. Miller said in an interview that "about 90% of the industry now makes money or is just breaking even compared to 40% at the end last year." He added that prices were still too low for the industry, to add new production. You need another 50% increase in price to encourage that new production. Miller stated that there is still a long way to go. Valterra, previously Anglo American Platinum reported a 81% drop in its half-year profits, due to lower production and costs associated with the demerger of Anglo American. In the six-month period ending June 30, headline earnings fell from 6.5 billion rand to 1.2 billion rand (67.62 millions). Valterra announced an interim dividend per share of 2 Rand, down 79% on the payout from a year ago. In June, the world's largest PGM producer in terms of value merged and is now listed separately on the Johannesburg and London stock exchanges. Meanwhile, global mining giant Anglo restructuring its business to concentrate on copper.
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Demand outweighs gains in renewable energy and nuclear
On Tuesday, wind and solar energy supply will likely increase throughout the region, offsetting growing demand while French nuclear power supply rises. LSEG data shows that the German baseload contract for Tuesday had reached 77.75 Euros ($90.77 USD) per megawatt-hour (MWh), while the French equivalent was 45 Euros/MWh. On Friday, both Monday contracts were not traded. LSEG analyst Xiulan he said that a general bearish outlook for Germany is expected on Tuesday, as the supply of wind and solar energy increases, with imports into Germany expected throughout the day. LSEG data indicated that the German wind power production was projected to increase by 2.5 gigawatts to 15.1 GW while French output is expected to decrease by 1.4 GW resulting in 3.6 GW. The data indicated that the German solar generation is expected to increase by 3.6 GW to 15.1 GW on February 2. The French nuclear capacity has increased by five percentage points, to 80%. On Tuesday, power consumption in Germany will rise by 1.6 GW. In France, demand is expected to increase by 1.3 GW. Analysts at Engie Energy Scan say that the lower French demand for electricity due to the cool weather and higher nuclear availability led to strong exports Monday. The analysts expect the cooler temperatures to continue through the week. LSEG data show that the German baseload power for the year ahead increased by 0.2% to 85.65 euros/MWh. The French equivalent fell 0.8% to 61.90 euro/MWh. The benchmark contract on the European carbon markets fell by 0.2%, to 71.23 Euros per metric ton. The U.S. and the European Union reached a framework agreement on trade on Sunday. It imposed a 15% tariff on the majority of EU goods, half the rate that was threatened. This avoided a larger trade war by making major commitments on EU energy purchases.
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Prices of gas in Europe are little changed despite a strong supply and US-EU trade agreement
Dutch and British wholesale prices for gas were not much different on Monday morning, as more supplies from Norway helped offset the strong demand from power stations. The news of a U.S./EU trade agreement also helped calm fears about a general economic slowdown. LSEG data shows that the benchmark Dutch front-month contract was 32.22 euros or $11.03/mmBtu at 0830 GMT. This is a decrease of 0.27 euro. The Dutch September contract is down by 0.14 euros at 32.80 Euro/MWh. The British gas front-month price fell by 0.30 pence to 78.25 pence a therm. In a daily note, LSEG analyst Yuriy Onieshkiv stated that "Total Norwegian Export Nominations rose to 341 Million Cubic Meters/Day today from 316 mcm/d Friday mainly because of more flows to the UK." Onyshkiv stated that the increase in gas demand helped offset the increased demand. The day-ahead demand for gas from British power plants was up 13 mcm/d "due a further decrease in wind speeds in the next three weeks compared to previous forecasts." In Northwest Europe, the non-local distribution zones demand (which includes power plants and industrial companies) is expected to rise by 153 gigawatts/day, to 1,845GWh/d, in the days ahead. German wind power will also be forecast to drop. Mind Energy analysts said that the market had also been calmed down by the news that the United States, the EU and Canada have reached a framework agreement on trade imposing a 15 percent tariff on the majority of EU goods compared to the 30 percent previously proposed. Mind Energy stated in a daily report that "the agreement eliminates the fear of trade war, but it is not well received by the European media because it is perceived as too pro-U.S." The benchmark contract on the European carbon markets was down by 0.21 euros at 71.13 euro per metric ton. Reporting by Susanna Twiddale Editing Mark Potter
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European stocks gain, euro dips after US-EU strike trade deal
The euro dropped in the early hours of trading on Monday, as investors welcomed a trade deal between the United States an the European Union. The STOXX 600 index opened 0.7% higher, and the euro was 0.3% lower against the dollar. This is the beginning of what appears to be an important week for President Donald Trump's trade war with the rest of the world. The EU will spend $600 billion in U.S. investment and impose a 15 percent import tariff on the majority of EU goods. It will also open up important parts to its market. Chris Turner, an ING analyst, said: "The deal is much better than the 30%-50% tariff rate that was threatened in the last few months. However, it is likely to be as bad as universal tariff rates discussed late last year." The U.S./EU agreement averts a potentially damaging standoff between two blocs that account for almost a quarter of global trade. However, a number European capitals have complained about its lopsidedness in favor of Washington. There are still major deals to be finalised before Trump's deadline of August 1. The U.S.-China talks in Stockholm, Sweden on Monday will likely extend the 90-day trade truce. Meanwhile, the deal struck by Europe and Japan last week is expected to be followed closely by the one reached between Europe and the U.S. MUFG FX Strategist Derek Halpenny stated that the EU deal is ultimately "good news for financial markets as it further reduces uncertainty ahead of the 1st August which now looks like an insignificant day." Prashant Nnewnaha, TD Securities, called it "a huge win for the U.S." due to the forced purchase of U.S. military and energy equipment as well as "zero tariff retaliation" by Europe. After the first hour, Germany's exporter heavy DAX, France’s CAC40, Italy’s FTSE MIB, and Spain's IBEX all rose between 0.4% to 0.8%. Meanwhile, S&P500 and Nasdaq Futures point towards new Wall Street record highs when trading resumes. As the dollar grew across the board, the euro began to fall. The yields on government bonds in the Eurozone, which is a proxy for borrowing cost, have also been pushed down. The benchmark yield for the euro zone, Germany's 10-year bond, fell 0.5 basis points to 2.71%. It had risen more than 10 basis point at the end last week, when the European Central Bank tempered talk of impending rate cuts. FED, BOJ AWAIT Overnight, MSCI’s broadest regional share index ended 0.3% lower. Japan’s Nikkei fell more than 1% from its one-year high set last week. The Australian dollar was trading at $0.657 and hovered around its near eight-month high. The week ahead is packed with action as traders await the interest rate decisions of both the U.S. Federal Reserve Bank and Bank of Japan. They also wait for monthly U.S. Non-Farm Payrolls, and earnings from megacap companies Apple and Microsoft. Investors will need to pay attention to the comments of officials to determine the future interest rate path. The BOJ can now raise rates this year because of the trade agreement with Japan. The Fed will likely be cautious about any further rate cuts, as they are awaiting more data on the impact of tariffs and inflation to make a decision. Trump has repeatedly criticized Fed Chairman Jerome Powell's refusal to cut rates. Two Trump-appointed members of the Fed Board have outlined reasons to support a rate reduction this month. Oil prices have risen in commodities after the U.S. EU trade agreement. Brent crude futures as well as U.S. West Texas Intermediate crude rose both by 0.5%. Gold prices fell 0.1% to $3334 per ounce, their lowest level in two weeks due to a reduced appetite for safe-havens.
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Gold prices are impacted by the risk-on sentiment following the US-EU tariff agreement, with Fed in focus
The gold price was stable on Monday. Gains were curtailed by an improved risk outlook following a trade agreement between the United States of America and the European Union. Investors looked forward to upcoming U.S. Federal Reserve meeting this week. As of 0736 GMT spot gold was unchanged at $3,336.75 an ounce, after reaching its lowest level since 17th July earlier in the day. U.S. Gold Futures remained unchanged at $3.336.20 per ounce. On Sunday in Scotland, the U.S. and the European Union reached a framework agreement that imposed a 15% tariff on the majority of EU goods. This is half the rate threatened. It also averted a larger trade war. The risk appetite on the financial markets has increased, with European shares rising to a record high of four months. This was led by auto and pharmaceutical stocks. The United States and China will meet in Stockholm on Monday amid hopes of a 90-day extension of the truce to the trade war between the two world's largest economies. Gold is in equilibrium because of two factors. "The (U.S. EU) trade deal weighs down on demand for safe haven assets," said UBS commodities analyst Giovanni Staunovo. The deal also removes uncertainty about inflation for the Fed and allows the Fed to reduce rates later in the year. This is normally gold-supportive. After its two-day meeting, the U.S. Central Bank is expected to keep its benchmark rate at 4.25%-4.50% after Wednesday's conclusion. The markets continue to price-in a possible rate cut in September. Donald Trump, the U.S. president, said on Friday that he met with Fed chair Jerome Powell and had a good meeting. He suggested Powell might be inclined towards lowering interest rates. In an environment of low interest rates, gold tends to perform well. Silver spot gained 0.3%, to $38.23 an ounce. Platinum was unchanged at $1,402.48. Palladium grew 2%, to $1,244.73.
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World Bank to focus on climate and gender in Pacific Islands that rely on aid
Anna Bjerde, the managing director of operations at the World Bank, said this on a recent visit to Australia. This is despite the fact that the United States, its largest shareholder, has reduced its aid in these areas. Bjerde, who met with Pacific Islands' economic ministers in Fiji said that countries in the area continue to be concerned about the effects of climate changes and have grave concerns over food security and increasing debt levels. The bank warns that six Pacific Island nations are at risk of high debt distress. She said that the World Bank will be moving a regional Vice President from Washington to Singapore and directors from Australia to Fiji, Papua New Guinea and Papua New Guinea in order to be closer a $3.4 billion Pacific Aid Programme, which has grown seven times in 10 years. We are committed to developing projects that take into consideration the vulnerability of countries in which we work. She said that countries in this region of the world are particularly vulnerable to climate change. She added, "We haven't changed our language in relation to that." Bjerde stated that Pacific road projects designed for flood resilience provide better infrastructure to withstand climate change and can also be included in climate finance programs. She said that the World Bank is focused on increasing women's participation in the workforce to boost the economic growth of the region. This was after she met with women leaders from Fiji, who stressed the importance of childcare for women so they can work. Bjerde met with officials of the Australian government on Monday. Australia is the largest bilateral donor in the region. The World Bank, under the reforms implemented last year by Ajay Bana as its president, has begun to implement regional programmes in order to make a greater impact on Pacific countries with smaller populations. Eight countries are part of an agreement that prevents small island states from being cut off by the international financial system. A health programme aimed at non-communicable diseases will reach up to 2 million people in the Pacific Ocean, and 16,000 health professionals. She said a trade program is being developed to provide goods more quickly and at a lower cost. Reporting by Kirsty Mayberry in Sydney, editing by Kate Mayberry
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Coking coal withdraws from profit-taking activities
The prices of coking coal futures declined in China on Monday as investors liquidated their long positions in order to take advantage of the dramatic rise in the price. Coking coal, the most traded commodity on China's Dalian Commodity Exchange(DCE), closed daytime trading 11% lower. It hit a limit of 1,100.5 Yuan ($153.47 per metric ton). The price of coking coal reached the daily limit in five consecutive trading sessions. Last week, it gained 33%. The Dalian exchange announced a drop in price, ending a seven-day rally fueled by expectations of a reduction in supply after the National Energy Administration had ordered inspections at major coal production hubs for the purpose of checking excess production. After the Dalian Exchange imposed restrictions on holding positions, some investors liquidated their long positions in order to avoid risks, resulting in an abrupt price drop, said Zhou Tao. An analyst with broker Galaxy Futures. Coke has also fallen 7.98%. Markets bet Beijing was finally serious in addressing overcapacity, and prices of commodities such as coking coal, coke, and other raw materials have soared in the last month. Iron ore, a key ingredient in steelmaking, also weakened on Monday as investors waited for clear signals from the upcoming Politburo high-level meeting that is expected to take place by the end of July and the new trade talks between two of the world's largest economies. As of 0723 GMT, the most traded September iron ore contract was 1.75% less than the previous day's closing price at 786 yuan per ton. The benchmark September iron on the Singapore Exchange fell 2.31%, to $100.9 per ton. The Shanghai Futures Exchange's steel benchmarks have fallen due to lower raw material costs. Rebar fell 2.05%, while hot-rolled coils dropped 2.3%. Wire rods also declined 2.92%, and stainless steel fell 0.73%. $1 = 7.1707 Chinese Yuan (Reporting and editing by Janane Soreng and Eileen Soreng; Amy Lv, Lewis Jackson)
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Iberdrola, Spain's Iberdrola, and Echelon, Ireland's Echelon create a joint venture to build data centres
Iberdrola, Europe's biggest utility and Echelon, an Irish data centre operator will create a joint venture in order to build and operate data centers in Spain. This was announced by the Spanish company on Monday. Iberdrola believes that the demand for data centers will continue to grow in future, both for its grids as well as renewable energy businesses. Companies like Iberdrola, which sells energy to data centres and connects them to the grid, can both benefit from this development. The Spanish company will hold a 20% share in the joint-venture, and provide energy as well as land that is connected to the grid. Echelon will handle the remaining 80% and be responsible for permitting, design, advertising, and day-today management of data centers. A joint venture has already started a project: a complex of 160,000 square metres with a processing capacity for data of 144 Megawatts. The joint venture has already secured a connection of 230 MW. The 1 terawatt-hour demand is expected to be met by 2030 by Iberdrola and a planned solar power plant. Iberdrola has already supplied 11 TWh to data centres located in Spain, Britain, America and Germany. It created a CPD4Green data centre unit last year and was looking for a partner. The alliance with Echelon allows us to value the portfolio of sites that have access to electricity and to provide these infrastructures with secure, competitive and clean energy 24 hours a days, 365 day a year, said David Mesonero Molina. David Smith, Chief Investment Office at Echelon Data Centres, said that the deal achieved the company's strategic goal of entering the Spanish market. (Reporting and editing by Mark Potter.)
Oil prices rise as US-EU trade deal boosts optimism
The oil prices increased on Monday, after the U.S. concluded a trade agreement with the European Union. It is also possible that the tariff pause will be extended with China. This reduces concerns about higher tariffs affecting economic activity and fuel demand.
Brent crude futures rose 22 cents or 0.32% to $68.66 a bar by 0035 GMT, while U.S. West Texas Intermediate Crude was at $65.38 a bar, up 22cents or 0.34%.
Tony Sycamore, IG's markets analyst, said that the U.S. - European Union trade agreement and a potential extension of U.S. - China tariff pause support global financial markets.
On Sunday, the United States and European Union reached a framework agreement that will impose an import tariff of 15% on most EU products. This is half the rate threatened. The agreement avoided a larger trade war between the two allies, who account for nearly one-third of world trade and could reduce fuel demand.
Senior U.S.-Chinese negotiators are also meeting in Stockholm, Sweden on Monday to try and extend the truce that has kept tariffs from rising sharply before the deadline of August 12.
The oil price fell to its lowest level in three weeks on Friday, as concerns about global trade and the prospect of increased Venezuelan oil supplies weighed.
Sources at the company said that Venezuela's PDVSA, the state-owned oil company, is preparing to resume its work in its joint ventures with terms similar to those of Biden's licenses once U.S. president Donald Trump reinstates authorizations for its partners, allowing them to export and operate oil through swaps.
Although prices rose slightly on Monday, the prospects of OPEC+ easing further supply restrictions limited the gains.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies will meet on Monday at 1200 GMT. Four OPEC+ delegates stated last week that it is unlikely the panel will recommend a change to existing plans for eight members to increase oil production by 548,000 barrels a day in August. A second source also said that it is too early to tell.
Summer demand helps absorb the extra barrels.
JP Morgan analysts reported that global oil demand increased by 600,000 barrels per day (bpd) in July compared to the previous year. Global oil stocks also rose 1.6 millions bpd.
As part of the fourth phase of the military operation against Israel in response to the Gaza conflict, the Houthis of Yemen said that they would attack any ships owned by companies doing business with Israeli ports regardless of the nationality of the owners. (Reporting and editing by Christian Schmollinger; Florence Tan is the reporter)
(source: Reuters)