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Gold is up over 3% but it's on track to be the worst month for gold since 2008.
Gold was up on Tuesday but still on course for its'severest monthly decline' since October 2008 as inflation fears and expectations of higher interest rates due the Iran War weighed heavily on the metal. By 1:31 pm EDT (1731 GMT), spot gold had risen 3.2%, to $4652.31 an ounce. This was the highest price since March 20. U.S. Gold Futures closed 2.7% higher, at $4678.60. The U.S. Dollar slipped but was still on track for a gain of 1% per month. A stronger dollar increases the price of greenback-priced gold for holders of foreign currencies. The current gold rally is encouraging, and it's due to increased optimism regarding de-escalation of the Middle East. "I need to see more upside performance before I can say that this is a pattern to continue," said Peter Grant. "In the longer term, the underlying trends remain bullish and the key fundamentals such as de-dollarization and the central bank buying of bonds are still in place." The Wall Street Journal, citing officials in the administration, reported that Donald Trump would be willing to end his military campaign against Iran, even if the Strait of Hormuz remained largely closed. U.S. defense secretary Pete Hegseth warned Tehran to make a decision soon in the war with Iran. The price of spot gold fell 11.8% in march as the Middle East war?weighs on bullion. Energy prices have risen dramatically, causing inflation fears to increase and for markets to reassess their expectations of interest rates. High rates increase the opportunity costs of holding metal, despite it being a hedge against inflation and uncertainty. Goldman Sachs and BMI both forecast that the price of gold will reach $5,400 per ounce by 2026. Spot silver increased 6.7%, to $74.64, however it was down 20.4% in the last month. BNP Paribas analysts expect silver to trade in the range of $65-$75 per ounce until 2026, and that physical markets will be surplus by 2027. Palladium rose by 5.2%, to $1,479.25, and platinum gained 3.1%, to $1,958.05. Both metals are on course for a monthly decline. Ashitha Shivprasad, reporting from Bengaluru and Paul Simao, editing by Tasim Zahid
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OMV Plastics CEO: Profits will increase dramatically for the giant plastics company
Alfred Stern, CEO of Austria's OMV said that the giant new plastics group Borouge International is a significant step towards increased profitability. He added that a listing was expected to take place in 2027. The new group was completed on Tuesday and was created by combining ADNOC with OMV subsidiaries, along with the acquisition of NOVA Chemicals. Stern stated that the group is expected to have higher margins than average and a stronger price premium compared with other companies in the market. Stern stated that around 70% of the production is based upon low-cost raw materials, while premium products enjoy an average price premium of 18%. EARNINGS ARE ALREADY HIGH, AND WE EXPECT THEM TO RISE Borouge International, based on its existing companies, would have had a margin of earnings before interest tax, depreciation, and amortisation?of about 25% in the past five years. OMV, the Austrian group that combines oil, chemicals and gas, reported profits higher than expected earlier this year. The chemicals division was a major contributor to these results. In order to launch Borouge International in 2026 with a solid balance sheet and an investment grade rating, OMV and ADNOC have said that they would forgo the half of their dividend. Stern stated that this will not change OMV's dividend policy. In the beginning, it was planned to list Borouge International in this month around the time of the company's formation. The company denied that the delay was directly related to the Middle East conflict, saying they were simply trying to choose the best date for their shareholders. Stern stated that the company is now targeting a 2027 initial public offering through a three stage process. Borouge's existing shares will first be exchanged and then listed in Abu Dhabi, at the same time that a capital increase is being carried out to allow its inclusion in the MSCI Emerging Markets Index. Borouge International's headquarters will be in Vienna where a secondary IPO has been planned. In a press release?on Tuesday, it was stated that the merger would generate synergies worth at least $500 million, with 75% occurring within the first 3 years. However, the statement did not provide details as to how this would be achieved. Borouge International will have a production capacity of more than 12,000,000 metric tons per year, placing them in the fourth position globally. In Abu Dhabi, new plants are expected to be commissioned this year. This will add 1.4 million tonnes of additional capacity. Reporting by Alexandra Schwarz Goerlich, writing by Maria Rugamer. Editing by Olaf Brenner, Barbara Lewis and Barbara Lewis.
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War and weather focus on March gains for EU wheat
Euronext Wheat rose on Tuesday to confirm a gain for the month as dry weather threatened U.S. Harvest prospects and the latest developments in Iran war boosted gains on wider markets. The euro's sharp rise against the dollar has slowed down Tuesday's gains on 'Euronext'. The grain markets also took in the U.S. plantation estimates. The data surprised traders because it showed corn acres far above the average expectation of analysts, who were expecting a greater shift to soybeans due to rising fuel and fertilizer costs. Euronext's benchmark May milling wheat settled at 204.75 euro per metric ton, up 0.5%. The contract increased 1.6% in March, its third consecutive monthly gain. However, the increase was less than a 4.4% leap in February. Chicago wheat prices rose by more than 1%. Brent crude oil was on course to set a new monthly record, as news of an attack on a tanker in the Middle East heightened supply concerns. The broader market was buoyed by a report that U.S. President Donald Trump told his aides that he would be willing to end this war, even if the Strait of Hormuz remained largely closed. The price of grains has largely tracked the price of crude oil since the Iran War, a reflection of the use corn for biofuels as well as the rising costs associated with energy and fertilisers. The impact of the war in Iran on the wheat demand was also being assessed by traders. Tunisia won a tender to purchase 100,000 tons of soft grain at a price of $274.73 per tonne cost and freight. This was higher than the previous tender of $271.69. Jordan, on the other hand, completed its purchase of 60,000 tonnes of hard wheat at $275.95 per ton cost and freight (c&f), lower than $277.50 per ton paid in a tender held on March 17. The traders reported that for the April/May shipment,?Russian, Polish/Baltic and 12.5% Wheat was priced between $238 and $239 per ton (free on board) while German and Romanian wheat was priced between $240 and $243 per ton. U.S. hard-red winter wheat remains less competitive with a price of more than $279 per ton FOB. U.S. prices have increased as the drought has worsened conditions for crops. The European Union's soft wheat exports have risen 7% on an annual basis to 17.48 million metric tons so far this year, according to data released by the European Commission on Tuesday. Other traders were puzzled by a sudden jump in Danish barley imports to China.
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Suncor has a major shift planned to focus on in situ oil sands production by 2040
Suncor Energy, a Canadian oil sands giant, announced on Tuesday that the majority of their bitumen production?by?2040 would be produced by steam-assisted extract technology. This announcement marks a structural shift in the company's business model and will lead to lower costs and greater cash flow. Suncor produces 70% of its oil sands at large-scale operations in northern Alberta. Trucks and shovels extract the heavy, thick bitumen deposits, which are located?near the surface. The remaining 30% is from deeper deposits, which require steam technologies (also called in situ) to loosen the oil before it can be pumped up. Rich Kruger, Suncor CEO, said that over the next 15-years, Suncor will change its production mix so that by 2040, 60% will come from oil sands in situ development and only 40% will be from mining. Suncor's Base Plant, which will be mostly depleted in the mid-2030s is expected to decline, and the company wants a lower-cost product. Kruger stated that "all barrels aren't created equal." In situ mining produces two times more cash per barrel than today's mining. Suncor's Firebag site is already its most profitable asset. It produces 245,000 barrels of oil per day with in situ technology. Suncor filed a regulatory request on Monday to increase the permitted capacity of the site from the existing limit, which is 368,000 barrels per day, to 700,000. Suncor is expecting to be able, through debottlenecking projects and optimization, to increase Firebag's output to 275,000 barrels per day by 2028. Kruger also said that the company has proposed a?development in situ, called Lewis. It is expected to generate 160,000 bpd. The project will be built in phases, according to Kruger, to correspond with the gradual depletion of the Base Plant Mine. Suncor's Investor Day was eagerly anticipated by the market. They wanted to know how the company planned to replace the Base Plant production with a reliable bitumen supply. The company previously?proposed a 225,000 bpd open-pit expansion of its oil sands operations, located next to the existing Base Plant. It is unclear whether a similar?project would be approved by Canadian?regulators. Kruger stated on Tuesday that the company's newest estimate of reserves indicates it has 11 billion more barrels in reserves than originally estimated. This brings its total bitumen reserve to 30 billion. Suncor plans to increase its upstream production of about 100,000 barrels per day by 2028.
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Aluminium nears four-year high amid supply fears
Aluminum prices rose on Tuesday. They were near their four-year highs and poised to make the biggest monthly gain since?almost 2 years. This was due to fears that a supply shortage would continue after Iranian strikes over the weekend damaged some of the Gulf's key smelters. The benchmark 'three-month' aluminum on the London Metal Exchange increased 2.1% by 1600GMT to $3,471.50 per metric ton, after earlier reaching $3,536, which was its highest level since March 12. Metal prices are up 10.6% in March. The attacks on Iran damaged two aluminum plants in the Gulf region operated by Aluminium Bahrain, and Emirates Global Aluminium. These two companies account for 8% global supply. The companies have not provided an update on their operation. David Wilson, BNP Paribas' commodities strategist, said that the market was waiting for more information about what happened. We haven't received any official confirmation of the damage yet. If the market is able to break through the $3,546.50 peak reached on March 12, it could lead to record prices four years ago when markets were still dealing with the immediate effects of Russia's invasion in Ukraine. Goldman Sachs increased its second-quarter aluminum price forecast from $3,200 to $3,450 due to further supply disruptions. The global aluminium market is expected to have a deficit of 570,000 tonnes in 2026, compared to a surplus of 550,000 tons previously. Aluminium stocks registered with the LME The aluminium market has been tightening up in March. At 416,775 tonnes, it is at its lowest level since July. The premium for LME Cash Metal?over a?three-month Contract On Friday, the price of a ton reached $61, its highest level since 2007. This was a sign that there were concerns about immediate supply. The premium last stood at $54 on February. On the former Gulf?supply?side, Indonesian aluminium state company PT Inalum called on the government on Tuesday to impose a?moratorium?on alumina and aluminum?plants. Other LME metals include copper, which rose 0.9% to $12.329.50 per ton. Zinc gained 1.2%, lead dropped 0.2%, tin remained at $46,720, and nickel fell by 0.8% to $17.110. (Reporting and editing by Shailesh Kumar and Diti Pjara; Reporting by Polina Devitt)
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Six Palestinians killed in Gaza Strip by Israeli strikes, say medics
Israeli strikes?killed six people in a separate attack in 'the Gaza Strip on Tuesday, according to health?officials. This is the latest violence that has overshadowed a 'fragile five-month old U.S.-brokered truce deal. A medic said that an Israeli airstrike on Jabalia in the north of the enclave killed at least three earlier in the day. Another airstrike, which took place in Khan Younis in the south, killed a father, and his son. Health officials reported that an Israeli airstrike on Tuesday afternoon?against Palestinians near a checkpoint in Mawasi? in the southern Gaza Strip? killed one person and injured eight others. Israeli officials have not commented on any of these incidents. Hamas and Israel have exchanged blame over violations of the ceasefire agreement reached last October. Gaza's health ministry reported that Israeli fire killed at least 700 civilians since the ceasefire. Israel claimed that four soldiers in Gaza were killed over the same period by "militants". Israel and the U.S. are also involved in a 'conflict with Iran. Israeli forces have also invaded southern Lebanon as part of a new campaign to combat Iran-backed Hezbollah. According to Israeli figures, Hamas' attacks on Israel in October 2023 killed 1,200 people and 251 were taken as hostages. According to Gazan health authorities, Israel's two year-long offensive has resulted in the deaths of more than 72,000 Palestinians. Most of them were civilians. It has also spread famine, destroyed most buildings and forced most of Gaza's residents to move, often multiple times.
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Savannah accelerates Portugal lithium project and sees longer life span
Savannah Resources, a London-listed company, is speeding up work on its 'lithium project' in Portugal. The CEO,?Emanuel Proenca, said that the company was confident of being able to?become globally competitive, and reduce Europe’s dependence on Chinese supplies for the metal used to make?batteries. Resources at the Barroso deposit in northern Portugal, a lithium bearing mineral, were increased in September from 28 to 39 million tons. This was already Europe's biggest deposit. Proenca stated that 'potential extensions between 35 and 62 millions metric tonnes could push resources above 100 million metric tonnage, more than doubling the mine lifespan projected to more than 50 years. Work has intensified in recent months, on all fronts. With each milestone, we are more and more confident that the project can be highly competitive at a global scale, even under difficult market conditions. The 110 million Euro grant from the Portuguese Government was also "a step in the right direction." Construction is planned to begin in 2028 and a final investment decision will be made by the end the year. As Europe moves away from fossil fuels, it aims to reduce its reliance on Chinese Lithium. However, the country's own capacity for extraction and refinement remains limited. Proenca said the project could break even with $600 per ton spodumene concentration, "allowing them to compete with majors" while supplying raw materials closer to Europe’s refineries, and "reducing their reliance on other countries especially China." Spodumene exported to China now trades at more than $2,000 Since Barroso became a World Heritage site in 2018, the project has faced local opposition. However, the CEO stated that this was "gradually declining" as the company hired locally and increased engagement with the local community. (Reporting and editing by Andrei Khalip, David Gregorio, and Sergio Goncalves)
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EU wheat gains for the third consecutive month
The European wheat futures are poised to make a third consecutive monthly gain in March. This is due to strong oil prices and a rebound on the wider markets, which was fueled by hopes for de-escalation in the Middle East. However, a strong euro on Tuesday dampened gains. Euronext's benchmark May milling grain was trading at 204.75 euro per metric ton as of 1600 GMT, up 0.5%. The benchmark May milling wheat on Paris-based Euronext was up 0.5% at 204.75 euros a metric ton by 1600 GMT. In Chicago, the price of wheat was $6.18 per bushel. One German trader stated that "Euronext's holding of well over 200 Euros is a burden for the export outlook." Brent crude oil was?on course for a monthly increase record. The grain prices are closely tied to the fluctuations in crude oil price during the Iran war, as a result of the increased use of corn for biofuels and the rising costs associated with energy and fertiliser. U.S. Department of Agriculture stated that U.S. Farmers plan to plant more soybeans and less corn in 2026 due to the rising fuel and fertiliser prices. Although international bids showed mixed signals, traders stated that the Iran War continues to affect?import prices. Tunisia won a tender to purchase 100,000 tons of soft grain at a price of $274.73 per ton, cost and freight. This was higher than the $271.69 paid for a tender on March 6. Jordan's purchase of 60 tons of hard grain was made at $275.95 per ton cost and freight (c&f), a price that is slightly below the $277.50 per ton paid on March 17th. The price of Russian and Polish/Baltic 125% wheat was $238-$239 per ton, while German and Romanian 125% wheat was $240 to $243 per ton. U.S. 'hard red winter grain remained 'less competitive, at more than $279 a tonne fob. Argentine supplies are also dwindling following large recent exports. (Reporting from Sybille De La Hamaide and Michael Hogan, in Paris; Editing by David Goodman)
Hegseth: Iran's future is in the hands of Hegseth, and Tehran has threatened US business interests in the region
Hegseth warned Tehran on Tuesday that the next few weeks in the war with Iran would be decisive. The conflict would escalate if Tehran did not reach a settlement.
Iran's Revolutionary Guards have responded with a new warning, saying they will "target U.S. firms in the region as retaliation" for attacks against?Iran starting Wednesday. They listed 18 groups, including Microsoft, Google Apple, Intel IBM, Tesla, and Boeing.
Iran'set ablaze' a fully-loaded oil tanker near Dubai. This is its latest attack against merchant vessels in Gulf waters or the Strait of Hormuz, since the United States attacked Iran on 28 February.
Donald Trump, the U.S. president, threatened to destroy Iran's power plants on Monday if Iran refused to agree to a deal for peace and to open the Strait of Hormuz. This vital waterway is used by oil shipping around world but has been effectively blocked by Iran.
HEGSETH SAYS THAT TRUMP IS WILLING TO MAKE DEAL
Trump criticized countries on Tuesday that had not contributed to the war. This included France and Britain. He said they should have "some delayed courage" and cross the Strait and obtain their own oil. According to sources, France has not allowed the use of its airspace for U.S. weaponry to be used in the war.
Hegseth said that he had visited U.S. soldiers in the Middle East, and that talks were continuing and strengthening. However, if Iran refused to comply, the U.S. would be prepared to continue its war.
Hegseth, who spoke in Washington, said: "We have many more options and they have fewer. In only one month, we have set the terms and the next days will be decisive." "Iran is aware of this, and they have little to no military options."
The conflict, which has lasted for a month, has affected the entire region. It has killed thousands of people, disrupted energy supplies, and threatened to throw the global economy in a tailspin.
OIL PRICES SET FOR RECORD GAIN MONTHLY
After the attack on the tanker which could carry 2 million barrels worth of oil at current prices, the price of crude oil briefly spiked.
The higher oil and fuel costs have begun to affect the household finances of Americans and Trump's Republican Party ahead of November's midterm elections.
GasBuddy, a price tracking service, reported that the average U.S. retail?price for gasoline surpassed $4 per gallon on Monday. This was the first time in over three years. Brent crude futures rose 4.7%, to $118 per barrel. This is on track for a record-breaking monthly gain.
The authorities in Dubai confirmed that the fire aboard the Kuwait-flagged Al-Salmi was brought under control after a drone strike. There were no oil spills and no injuries among the crew. Kuwait Petroleum Corp., the ship owner, confirmed that the vessel's hull had been damaged. Photos of the Al-Salmi also confirmed this.
According to TankerTrackers.com, LSEG data indicated that the vessel was headed to Qingdao, China and carried 1.2 million barrels Saudi crude oil, and 800,000 of Kuwaiti crude.
Al-Salmi was not the intended target. Iran's Revolutionary Guards claimed they targeted a container vessel in the Gulf because of its links with Israel. According to shipping data, they seemed to be referring to the Singapore-flagged Haiphong express, which was anchored near the Al-Salmi.
INTERNATIONAL ATTEMPTS TO MEDIATION
U.S. Gen. Dan Caine, Chairman of the Joint Chiefs of Staff in Washington, told reporters that the U.S. continued to destroy and degrade Iran's capability.
He claimed that the U.S. Military was still striking key research and manufacturing sites, and had "taken out more than 150 Iranian naval ships". Hegseth claimed that U.S. attacks were leading to widespread desertions from Iran.
Two U.S. officials said on Monday that thousands of elite soldiers from the U.S. Army 82nd Airborne Division had begun arriving in the Middle East. These reinforcements could increase Trump's options, including a ground attack in Iran.
Pakistan seeks to mediate the conflict as attacks show no signs of abating. China and Pakistan's foreign ministers called for a ceasefire immediately on Tuesday, after their meeting in Beijing. They also urged peace talks as soon as possible.
Iran has been defiant in the face of heavy U.S., Israeli and other attacks over the last month. The U.S. peace proposal was received via intermediaries but the foreign ministry spokesperson said that they were "unrealistic and illogical".
NEW ATTACKS
The war continues to spread. Houthis, who are aligned with Iran, in Yemen have entered the conflict by firing on Israel. Turkey reported Monday that an Iranian ballistic missile had entered Turkish airspace, before it was shot down.
The war has also rekindled conflict between Israel, which is backed by Iran, and Hezbollah in Lebanon. Iran, which has suffered the most casualties, has targeted targets in Gulf Arab states where the U.S. maintains military bases.
An official from the province told Iranian media that a strike on a Shi'ite muslim congregation hall in Zanjan, located in northwestern Iran, killed three people.
Under intelligence guidance, the Israeli military announced on Tuesday that it had carried out airstrikes overnight in Tehran, targeting a factory producing ballistic missile warheads, research sites for weapons and missile launchers.
In two separate incidents, three U.N. Peacekeepers from Indonesia were killed by four Indonesian soldiers in southern Lebanon.
(source: Reuters)