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Saipem Marks First Steel Cut for Tangguh UCC Project at Karimun Yard
The First Steel Cutting ceremony took place at Saipem’s Karimun fabrication yard, marking the official start of construction activities for the Tangguh UCC project, awarded by bp Indonesia.The event was attended by representatives of the client, local and national government bodies, together with key members of Saipem’s management team gathered to celebrate this significant milestone achievement.The Tangguh UCC project, located in Papua Barat province, Indonesia, is a national strategic project that includes the development of the Ubadari gas field, increasing gas acquisition through carbon capture, utilization, and storage (CCUS) technology, and onshore compression. It is expected to unlock around 3 trillion cubic feet of additional natural gas resources from the Ubadari offshore field.Saipem's activities include the engineering, procurement, construction and installation and commissioning of two wellhead platforms, a CO2 reinjection platform, and approximately 90 km of associated pipelines, cables and tie-in to existing brownfield facilities.The Karimun Yard, recognized as Saipem’s strategic fabrication centre in Southeast Asia, is Saipem’s largest one worldwide and one of the largest in the Southeast Asian region, with over 5,000 employees and approximately 1.4 million square meters area including the marine base and docks.
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Steel prices and weak China data are lowering iron ore prices
Iron ore futures fell on Thursday as a result of signs of weaker demand, after China's new loans in yuan unexpectedly contracted for a first time in 20 years, and steel prices dropped due to high supplies and seasonal lower consumption. By 0259 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange fell by 1.88% to 783.50 yuan (109.25 dollars) per metric ton. The benchmark iron ore for September on the Singapore Exchange fell by 0.78% to $102.7 per ton. China's new loans in yuan contracted in July, for the first time since two decades. This indicates a weak demand from the private sector amid ongoing trade negotiations with Washington. The central bank has not loosened policy despite the first contraction of new yuan loan since July 2005, and the largest decline in credit since December 1999. The Chinese consultancy Mysteel stated that the demand for steel construction in China is expected to be stable in August. This will be supported by new projects. However, recent bad weather has affected outdoor construction. Galaxy Futures, a broker, says that despite speculative demands for finished steel products the high supply of crude steel and seasonal lower demand is pushing prices down. Galaxy said that despite reports of production restrictions at steel mills for the rest of this month, the 90-day extension on a tariff truce with China and the "anti involution" campaign aimed at reducing price wars, prices were still supported by Galaxy. Coking coal and coke, which are used to make steel, also fell, by 5.17% and 3.59 %, respectively. Mysteel reported that China's coking market softened after a shopping spree. End-users increased material cost control, Mysteel stated in a separate report. The benchmarks for steel on the Shanghai Futures Exchange have fallen. The Shanghai Futures Exchange saw a decline in steel benchmarks. ($1 = 7.1713 Chinese yuan) (Reporting by Lucas Liew; Editing by Subhranshu Sahu)
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US explores cooperation with Pakistan in critical minerals and hydrocarbons
In a statement released by the State Department to mark Pakistan's Independence Day, Secretary of State Marco Rubio stated that Washington was looking forward to exploring collaboration with Pakistan in relation critical minerals and hydrocarbons. WHY IT IS IMPORTANT Washington hailed an agreement last month between Islamabad and Pakistan, which Pakistan claimed would lead to lower tariffs and more investment. Jam Kamal, Pakistan's Commerce minister, has stated that Islamabad is offering U.S. companies the opportunity to invest in mining in Balochistan and other areas of southwest Pakistan through joint ventures. Reko Diq is one of the largest gold and silver mines in the world, and it's run by Barrick Gold. KEY QUOTES Rubio stated late on Wednesday that he was looking forward to exploring new economic areas, including hydrocarbons and minerals of critical importance, as well as fostering dynamic business relationships. The United States is deeply appreciative of Pakistan's efforts in counterterrorism and trade. CONTEXT Prior to President Donald Trump’s administration, Islamabad’s relationship with Washington had cooled over the past few years as, among other things, the U.S. moved closer to Pakistan’s traditional rival India in order to counter China’s rise. Washington was also angry with Islamabad for Afghanistan, particularly under the administration of former President Joe Biden, who oversaw the chaotic withdrawal of troops from Afghanistan and tookover of the nation by the Taliban, whom Washington had accused Islamabad to be supporting. Pakistan denied this charge. Washington's relations with Islamabad improved in recent months. Trump credited him with a ceasefire in India and Pakistan in May after both countries engaged in hostilities following an attack on India-administered Kashmir in April. Pakistan has praised Trump, while India maintains that New Delhi and Islamabad must resolve their differences directly between themselves without external involvement. Tuesday, the U.S. held a round of counterterrorism discussions with Pakistan in Islamabad. Washington has declared the separatist militant Balochistan Liberation Army a "foreign terror organization." Michael Kugelman is a Washington-based South Asia expert and writer at Foreign Policy magazine. He said: "The US-Pakistan Counterterrorism Dialogue joint statement is the most positive and effusive that I've heard from these countries in quite a number of years."
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The Fed's rate-cutting drumbeat brings the dollar down; Asian stocks are taking a break
The U.S. Dollar was under pressure Thursday, as traders bet that the Federal Reserve would resume lowering interest rates in January. Bitcoin reached a new record high while regional stocks saw a pause from their explosive rally. MSCI's index of Asian stocks excluding Japan remained near its highest level since September 2021. It took cues from Wall Street where the S&P 500 Index and Nasdaq Index hit new closing highs on the second consecutive day. On Wednesday, the MSCI All Country World Index reached a new record for the second consecutive session. Japan's Nikkei index fell following a six-day rally which saw it surpass the 43,000 level for the first. Korea and Taiwan also saw a slight decline in their shares. Hong Kong's shares and China's blue chip index both gained. The dollar dropped to a 2-week low versus a basket major counterparts on changing expectations of U.S. interest rate cuts. Comments from the U.S. Treasury secretary also helped bolster expectations for an outsized cut of 50 basis points. Early trading saw the Japanese yen reach a three-week peak of 146.38 to the dollar. Treasury Secretary Scott Bessent stated on Wednesday that a half-point reduction in September was possible after the revised labour market figures from last week revealed that job growth in May, July and June had been sharply slowed. Goldman Sachs stated on Wednesday that it expects three interest rate reductions of 25 basis points this year, and two additional ones in 2026. The odds of a 50% cut have risen to 7% from 0% one week ago. While the tame U.S. Inflation Report this week has boosted the case to cut rates, some analysts cautioned that market complacency may be a result of upcoming data. Carol Kong, an economist and currency analyst at Commonwealth Bank of Australia, said: "We are not as confident as the financial markets that a 25bp FOMC interest rate cut will be implemented in September, let alone 50bp." Kong stated that "another CPI and payrolls reports will be released before the September meeting, which can make or break a case for a cut in rates." BITCOIN AND GOLD Analysts also point to recent financial reforms for a boost to the asset class. Bitcoin is up 32% in 2025. Ethereum, the second-largest cryptocurrency, is up 41%. It's just a little bit shy of its November 2021 high. Gold prices increased 0.5% on commodity markets to $3371. Crude oil prices also edged upwards after hitting a low of two months on Wednesday, as investors focused on the Friday summit between U.S. president Donald Trump and Russian President Vladimir Putin. Trump warned on Wednesday that "severe consequences would follow" if Putin refused to agree to peace in Ukraine. He also stated that the meeting could be quickly followed by another one, which would include Ukrainian president Volodymyr Zelenskiy. Trump has previously said that both sides would have to exchange land in order to stop the fighting, which has resulted in thousands of deaths and millions of displaced people. Goldman Sachs analysts wrote that while a lack of progress on a ceasefire could lead to new threats of secondary oil sanctions/tariffs, they saw a limited risk of major disruptions of Russia's supply. They said that the large volumes of Russian energy exports and the potential for deeper price discounts in order to maintain demand as well as the eagerness of India and China to continue their energy cooperation will likely prevent major disruptions. Trump signed a executive order last Friday, imposing an additional 25% on India's imports into the U.S. He claimed that India directly or indirectly imported Russian crude oil. He has hinted that he may impose similar tariffs against China.
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Gold prices continue to rise as Fed hopes for rate cuts and a weaker dollar drive the price up.
Gold gained for a third consecutive session on Thursday. This was boosted by expectations that the U.S. Federal Reserve will cut interest rates in September due to the tame inflation figures, which also weighed down on the dollar. As of 0156 GMT, spot gold increased 0.4% to $3367.53 an ounce. U.S. Gold Futures for December Delivery increased by 0.3% to $3416.70. Markets are pricing the possibility that the Fed will cut 50 basis points this September. The dollar is weakening and gold has risen as a consequence. Yields have also fallen, said Kyle Rodda. The technical setup for gold is very positive. The trend is still upward. "We just need to see the market consistently break through the $3,400 mark." Dollars of rival currencies were at multi-week lows, making gold cheaper for those who hold them. Benchmark 10-year Treasury yields in the United States held at a one week low. The U.S. consumer price index rose marginally only in July, boosting expectations for a Fed rate reduction next month. Treasury Secretary Scott Bessent noted that there's a good possibility the central bank would opt for a 50% reduction. LSEG data shows that traders now consider a September 17 cut as a near-certainty. They even place odds of around 6% on a half-point reduction. Gold that does not yield is more likely to thrive in an environment with low interest rates. Investors await the U.S. Economic Data due this week. This includes the U.S. Producer Price Index (PPI), weekly claims for unemployment and retail sales. These data will provide clues as to the Fed's future rate path. In the geopolitical arena, Ukrainian President Volodymyr Zelenskiy warned U.S. Donald Trump before his meeting with Vladimir Putin about the Russian leader's "bluffing". Spot silver rose 0.3% per ounce to $38.59, platinum gained 0.1% to $1340.55, and palladium climbed 1.5% to $1139.52. (Reporting and editing by Sumana Nady and Subhranshu Sahu in Bengaluru.
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Court officer overseeing Citgo's auction requests adjournment
The court officer overseeing the Delaware auction of shares of Citgo Petroleum, the Venezuelan-owned refiner, has requested to adjourn the final hearing of the sale, which was originally scheduled for the week after next. This is so that the winner of the auction can be decided. This request was made after two bids, including those from Elliott Investment Management affiliates and Vitol commodities house, were submitted recently. The court officer recommended that a unit of Gold Reserve miner submit a different offer. Due to parallel court cases, procedural complications, and disagreements with creditors pursuing the same assets and debts in Venezuela in the past, the auction by the court of the seventh-largest U.S. refiner has been delayed. Gold Reserves opposes the adjournment request made by Robert Pincus, the court officer. Pincus will submit an updated proposal this week on how to proceed in the sale hearing. He told the court.
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The Lithium Rally promises a breather to struggling Australian miners
Sources and analysts say that the recent rise in lithium prices may ease pressure on producers in Australia who are struggling to reduce their exposure to battery materials, causing them to abandon plans to sell certain projects. The shares of Australia's lithium mining companies have increased by up to a third in the past month. They also extended their gains this week, after news that China had cut back on its supply sparked hope for a turnaround. This follows years of falling prices due to slower sales than expected. Lithium companies were forced to close down operations, and in recent times to sell assets to rebuild balance sheets. Sources, who spoke on the condition of anonymity said that Australia's Mineral Resources and Chile's SQM had tried to sell stakes this year. IGO is looking to restructure its joint venture for lithium refining with China's Tianqi Lithium. Analysts say that despite the fact that speculators have fueled this rally, it will calm down producers who are burning through their cash. This could remove assets from the market once they are listed, denying buyers the opportunity to buy them at a low point in the business cycle when the West is racing against China to create a battery supply network outside of China. Analyst Dan Morgan from Barrenjoey, Sydney, said: "The common thread is the diabolical price and market conditions." All Australian producers would breathe a huge sigh... They may have to put some of the less-than-pleasant and permanent options that they were considering back into the bottom drawer. The lithium-bearing hard rock spodumene mineral has rebounded from its four-year lows of $610 per tonne, reached in mid-June. However, it is still far below the peak of $6000 that will be achieved by 2022. E&P Financial, in a report, said that it was difficult to determine whether the supply cuts were temporary or permanent. The giant Chinese electric vehicle battery manufacturer Contemporary Amperex Technology said Monday that it had suspended its mining operations in Yichun, a southern region, after a licence to mine expired on August 9. Analysts said that the surge in share price was likely fuelled by rallies to cover shorts. Shortman, a data provider, reports that Australian lithium miner companies are among the five most-shorted ASX stocks. Selling Potential Two sources, who spoke on condition of anonymity, said that MinRes, a debt-ridden company, tried to sell its Mt Marion lithium assets and Wodgina Lithium assets in Western Australia but failed because buyers balked at a price of over $2 billion. A company spokesperson said that "MinRes does not comment on speculation in the market as a matter of policy." He added, "MinRes is always looking for opportunities to maximize returns to shareholders." Reports in March indicated that four Indian state-owned firms were in negotiations with SQM to acquire a 20% stake in two of its lithium projects in Australia, for $600,000,000, as New Delhi sought to secure supplies for the metal used in EV batteries. SQM has not yet responded to the request for comment. Analysts expect that IGO will sell its shares. IGO said in the last month it would be reviewing all options for the lithium refinery, which is losing money. IGO has declined to comment. As Australia has been the hardest hit by the global production cutbacks, the supply can return to normal, lowering prices. Due to the persistent weakness of spodumene, Pilbara Minerals put its Ngungaju facility in Western Australia on care and maintenance late last year. Dale Henderson, Pilbara's CEO, told journalists on August 1 that if the conditions improve, it could take as little as 4 months to ramp up production. (Reporting and editing by Clarence Fernandez; Melanie Burton)
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Tropical Storm Podul drenches Southern China
Tropical Storm Podul soaked southern China Thursday, dumping over 70 mm (2.76 in) of rain per hour on parts of Guangdong province, Hunan province, and Jiangxi province, and disrupting Hong Kong's hospitals and courts. As a line formed outside the court to get into the public gallery, the Asian financial hub issued the highest level "black" weather alert, and adjourned the hearing of Hong Kong media mogul Jimmy Lai, a pro-democracy activist. Accident and emergency services will remain open. Medical authorities have announced that all out-patient clinics in Hong Kong will close until the "black rainstorm" warning is lifted. Postal service also announced that it would suspend operations because of the rain. Podul weakened to a tropical cyclone after it made landfall on Taiwan, where wind speeds of up to 191 kph caused 143 injuries and one death. However, its vortex will continue to cause havoc in the south China region, which is still recovering from some of the heaviest rainfalls for generations. Meteorologists attribute climate change to extreme weather conditions that threaten China's economy. Each year, the risks are such that they could wipe out billions in commercial activity as cities flood, ships stall, and crops are washed away. Podul hit the coast of China’s southeastern Province of Fujian around 00:30 local (GMT 16.30 Wednesday) and is expected to move north at a rate of 30 to 35 kilometers (21.75miles) per hour. The ducks will be able to enjoy the Hong Kong Wetland Park, which has been closed temporarily. Reporting by Joe Cash from Beijing, Jessie Pang from Hong Kong, and Ben Blanchard from Taipei. Editing by Michael Perry.
Oil recovers from 2-month-lows ahead of Trump and Putin meeting
The oil prices rose on Thursday after losing ground in the previous session. The upcoming meeting between U.S. president Donald Trump and his Russian counterpart Vladimir Putin raised risk premiums.
Brent crude futures increased 28 cents or 0.43% to $65.91 a barrel at 0057 GMT. U.S. West Texas intermediate crude futures rose by 23 cents or 0.37% to $62.89.
The two contracts reached their lowest levels in the past two months after the U.S. Government and the International Energy Agency (IEA) issued a bearish supply forecast.
Trump warned on Wednesday of "severe consequences", if Putin did not agree to peace with Ukraine. Trump didn't specify the possible consequences, but warned of economic sanctions in the event that the meeting on Friday in Alaska proves to be fruitless.
Rystad Energy stated in a note to clients that "the uncertainty surrounding U.S.-Russian peace talks continues adding a bullish premium on risk, given Russian oil purchasers could face increased economic pressure."
The way the Ukraine-Russia crisis is resolved and Russia's flows change may bring about some unexpected surprises.
The expectation that the U.S. Federal Reserve would cut rates in September has reached close to 100%, after U.S. Inflation increased moderately in July.
Treasury Secretary Scott Bessent believes that a half-point reduction is possible, given the recent low employment figures.
According to CME FedWatch, the market has 99.9% odds that the Fed will cut rates by a quarter percentage point at its meeting on September 16-17.
Lower borrowing rates will drive oil demand. On Thursday, the dollar hovered near its multi-week lows versus the euro and pound sterling as traders increased their bets that the Fed would resume cutting interest rates in the next month.
According to the U.S. Energy Information Administration, Wednesday, oil prices remained stable as crude inventories unexpectedly increased by 3 million barrels during the week ending August 8. This was contrary to expectations based on a poll that predicted a draw of 275,000 barrels.
The International Energy Agency also predicted that world oil production would increase more quickly than expected in 2025 and 2026 as the Organization of the Petroleum Exporting Countries (OPEC+) and its allies increased output, and outside producers grew. (Reporting and editing by Tom Hogue in Tokyo, with Katya Glubkova reporting from Tokyo)
(source: Reuters)