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India Oil reports revenue losses on LPG in May
Indian Oil Corp., the country's largest fuel retailer, has suffered a revenue loss on the sale of one cylinder of LPG of 617 rupees, compared to 171 rupees back in April after the Iran war pushed up the price, according to its finance chief. Anuj Jain, an analyst, said that the company lost 100 rupees on the sale of 14.2-kilogram LPG cylinders, which are mainly used for cooking. Indian state-run fuel retail outlets sell LPG to households at discounted prices. India, the second-largest LPG exporter in the world, is experiencing its worst gas shortages in decades. The government has cut supplies to industry, to protect domestic cooking fuel needs. India will consume 33.15 millions tons of LPG by 2025. About 60% of the demand was met by imports, and 90% of those supplies came from the Middle East. The U.S. and Israeli war against Iran has led to the closure of the Strait of Hormuz, which has caused a disruption in the supply of LPG. Indian Oil (IOC), in response to the closure of the Hormuz Strait, has been forced to diversify their sourcing of crude oil, LPG and liquid natural gas to meet local demands. We have changed our refinery diet to accommodate this change. Jain said that we have changed the dietary requirements of our refineries. IOC operates its refineries to full capacity. He said that the company had about a months' worth of crude oil in its inventory. He said that IOC bought LNG from Oman as well as?Nigeria Angola, and Indonesia, after the Middle East's major suppliers declared force majeure. Jain stated that IOC hopes to expand its Panipat plant to 500,000 barrels a day by the end of the year. Its Gujarat refinery will be expanded to 360,000 barrels a day and its Barauni facility to 180,000 barrels a day.
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Oil prices drop after Trump's Iran remarks, but shares and bonds remain steady
The global stock market was mixed on Tuesday, and bond markets were stable after U.S. president Donald Trump postponed an attack against Iran. He also said that there was a high chance of a nuclear deal. This sent oil prices down. Trump announced on Monday that he had halted the planned resumption in attacks against Iran, to give time to negotiate a peace deal after Tehran sent Washington a new proposal. The U.S. has a "very high chance" of reaching an agreement with Iran that would prevent Tehran from getting a nuclear bomb. European stocks gained 0.7% on Monday, regaining ground they lost last Friday when they fell 1.5% due to bond market volatility. Stocks in Europe are still below their pre-war level and lag behind the U.S. counterparts. Futures for U.S. S&P 500 fell 0.3% in pre-market trade as memory chip and storage companies declined. These companies had helped push U.S. stocks to record highs over the past few weeks, as part of a?AI boom. "We've already seen a lot back and forth," said Fabien YIP, a market researcher at IG about the Iran negotiations. "Until we see real action (in the Strait of Hormuz), in which?ships pass through safely, and we see material rebound in traffic through the Strait I think that?the general market is shrugging?off?the comments from either side." Brent crude futures dropped 1.1% to $109.90 per barrel, on the backs of Trump's remarks. U.S. crude fell 0.4% at $108.30 a barrel. Both were still more than 50% higher than their pre-war level. Overnight, MSCI's broadest Asia-Pacific index outside Japan dropped 1.2%. Earnings from Nvidia, the world's largest chipmaker, are expected to be released on Wednesday. Expectations for this company are sky-high. Richard Reyle is chief investment officer of Questar Capital Partners. He said that "Nvidia" was the shorthand used by the market for all things AI. The market has seen a lot of growth in the last few years, largely due to AI. BOND SELLOFF ABTENS Oil prices fell on Tuesday and helped to stop a massive sell-off of global bonds, but there are still concerns about a possible inflationary shock caused by the?Iran war. The yields on the benchmark U.S. Treasury 10-year note have fallen from a high of more than 4.63% to just 4.61%. Yields are inversely related to prices. British bond yields dropped after reports that the most likely candidate to succeed Prime Minister Keir?Starmer would not change the country's borrowing regulations. The markets are pricing in major central bank rate increases?this coming year, on the expectation that policymakers will need to tighten their policy to combat an inflation resurgence driven by high energy prices for longer. Florian Ielpo is the head of macro investment at Lombard Odier Investment Managers. He said that the micro story was still strong and AI remained the main supporter of US?equities. However, the macro story has become less forgiving, referring to rising oil prices, bond yields, and other factors. The dollar, which has been a safe-haven since the start of the war, was up by 0.15% to 159.10yen. This puts traders on high alert for any Tokyo intervention in order to support its currency. The euro fell 0.3% to $1.162. The dollar fell by 0.2%, to $1.341. Rae Wee and Harry Robertson reported from Singapore and London, and Jamie Freed and Tom Hogue edited the article.
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South Africa increases steel import duties in order to protect struggling local industry
South Africa has imposed higher import duties of 10% to 30% on certain steel products to protect the industry from the weak demand and the rising imports of China. ArcelorMittal South Africa, among others, has closed some mills. The country's International Trade Administration Commission recommended that the government take immediate action to protect the steel sector by proposing import duties starting at 10%. The government's notice of May 15, 2015, announced the duties that will be applied to flat-rolled steel, non-alloy, bars, rods and tubes. South Africa had previously applied tariffs ranging from zero to as high as 15% to these products. ITAC Chief Commissioner Ayabonga Cawe stated on Tuesday that they hoped the decision would give local industries the necessary room to adapt in a way?that will allow them to invest in a manner that allows them to improve their capabilities. Cawe stated that the tariff rebates for processors who use products like heavy structural steel or?flat steel? used in electronics has also been adjusted. He added that the tariff adjustments wouldn't affect preferential treatment for certain geographies. The South African Iron & Steel Institute reports that imports account for?about 36 percent of South Africa's steel consumption. China accounts for 73%. South Africa also imposed steep import duty on structural steel imported from China and Thailand after finding evidence for dumping. Reporting by Olivia Kumwenda Mtambo; editing by Gus Trompiz
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As heavy rains flood southern and central China, at least 18 people have died
Authorities reported that torrential?rain continued to fall across central and southern?China Tuesday, with at least 18 people killed in flooding which also affected schools, businesses and transport. China's weather service said that areas in Jiangxi and Anhui, Hunan and Hubei, Guizhou and Guangxi as well as Guangdong, Guangdong, and Hainan were at high risk for rain-related disasters. These included landslides and flash floods, severe urban flooding, and waterlogging. Authorities have announced that they have set aside 150 million yuan (22.04 millions) for disaster relief. They also launched emergency response in several affected regions. Images posted on the Chinese video platform Douyin show that many residents of Jingzhou in central 'Hubei were able to swim in the water, and catch fish. Some cars were almost completely submerged in water on roads that are surrounded by commercial and residential buildings. CCTV reported that ten people died after a pickup truck carrying 15 farm workers fell in a river flooded by heavy rains. CCTV reported that heavy rains and flooding caused the deaths of four people in southwest Guizhou Province, three in Hubei's central low-lying province and one in Hunan. State media reported that schools, businesses, and transport services had been suspended and the authorities were relocating residents from certain parts of Hubei, Hunan. Heavy Rain Expected Along the Yangtze River According to Chinese?meteorologists, the high cumulative rainfall was also due to the?slow-moving nature of the weather system. According to Chinese'meteorologists, the'slow-moving weather system was also responsible for the high rainfall. The National Meteorological Centre of China said that severe weather will gradually move from east to south in China over the next couple of days. The heaviest rain is expected to fall along the middle and lower reaches the Yangtze River starting Wednesday. On Tuesday, authorities on China's southern Hainan Island?issued an earthquake warning after a mountainside collapsed into a highway in Lingshui. This led to the closure of several major roads within that area. Separately in Guangxi, authorities set up temporary housing on 99 sites for over 4,000 residents, and relocated another 7,000 after Monday's magnitude 5.2 quake, which caused tremors to be felt across many cities.
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Russia will impose duties on certain diamond exports in this year
A deputy finance minister said that Russia will introduce diamond export duties this year to help the struggling domestic industry. Alexei Moiseev, the Finance Minister, said that the ministry is discussing the proposed "lenient export tariff scheme" with Russian diamond exporter and miner Alrosa. Alrosa is the largest diamond producer in the world by carat. He said that tariffs will only be applied to stones that can be cut cost-effectively in Russia. Moiseev stated that the ministry did not see the need to purchase diamonds from Alrosa for the state owned repository Gokhran, even though the company is facing a prolonged crisis in the industry. Since 2022, the United States has imposed sanctions on Russia. In January 2024 the G7 countries prohibited?the importation of Russian diamonds. "As far as?Alrosa is concerned, firstly the situation isn't too bad. "We see signs of stabilisation on the market," said?Moiseev. Alrosa forecasts that production will fall a further 10% in 2026 to 25-26 millions carats. Reporting by Elena Fabrichnaya. Lucy Papachristou and Alessandra Prrentice wrote the article. Guy Faulconbridge, Mark Potter and Mark Potter (Editing)
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Agnico Eagle will redevelop Hope Bay in Canada's Arctic.
Natural Resources Canada announced on Tuesday that Agnico Eagle, a Canadian mining company, will begin the?redevelopment? of the Hope Bay Mine located in Canada's remote Arctic. According to the website of Agnico, which is the second largest gold miner in the world by production, it acquired the Hope Bay Mine located 'in the northern territory Nunavut' when it purchased Canadian miner TMAC Resource in 2021. The mine suspended production in the year following to conduct exploration work on the site. The company said that the mine could produce 400,000 ounces gold per year. Natural Resources Canada announced that Agnico will invest $2.4 billion in the redevelopment of the mine. In a statement, Sean Boyd, Agnico’s chairman of the board said that the Government of Canada places a strong emphasis on catalyzing national projects, those which drive economic growth and strengthen?the fabric?of the nation. The Canadian Arctic is rich in rare minerals but it lacks infrastructure. This, coupled with the extreme cold makes mining operations complex and expensive. Natural Resources Canada announced that the federal government will provide C$25,000,000 ($18.1 million) to support the construction of wind turbines for the mine. Natural Resources Canada stated that the mine would create close to 2,000 new jobs for indigenous people in the region and increase Canada's trade by $1.89billion. Tim Hodgson said that the Canadians had been discussing the huge opportunity of the Hope Bay deposit for the past 20 years. But now, the time to talk is over and it's "time to build", according the Minister of Energy and Natural Resources. Hodgson announced in his'statement' that Agnico Eagle, Canada's Department?National Defense and the Canadian government had reached an agreement to share knowledge on large infrastructure projects being undertaken in the North. This is part of Canada's strategy for defending its Arctic sovereignty. Canada's Prime minister Mark?Carney announced a C$35billion plan in?March to increase Canada's Arctic defenses as part of its efforts to reduce its dependence on the United States.
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Kenya Transport Strike over Fuel Price Increases Suspended for One Week
The government of Kenya announced on Tuesday, one day after protests in the country left four people dead, that it would call off a strike by public transport workers to protest against fuel price increases triggered by war with Iran. Kipchumba Mukomen, the Interior Minister, said in a televised news conference that the suspension of the strike for one week would allow more discussions between the government and the transport operators. The government agreed to lower the price of diesel, but negotiations on Monday failed to produce an agreement. On Tuesday morning, bus and minibus services were disrupted across Kenya and some schools closed. As anger over the cost of living grew, many commuters had to walk or pay more to get to their jobs. Kenya imports ?nearly all ?its fuel products from the Middle East via government-to-government deals with ?Gulf suppliers. The recent fuel price increases have risen transport costs and increased the cost of basic goods, putting further pressure on households who are already struggling to pay their bills.
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Nickel prices jump as Indonesian supply concerns resurface
Nickel prices increased on Tuesday as concerns about Indonesian supplies resurfaced. China's Tsingshan group asked its Weda Bay Industrial Park smelters to divert their power to aluminum production. Benchmark nickel prices were?up?1.8% at $18,900 per metric ton as of 0946 GMT. The price of nickel hit a two-year high earlier this month at around $20,000, with the buying being sparked by a sulphur scarcity caused by the war in Iran and lower ore quotas. Tsingshan asked producers of nickel-pig iron used to produce stainless steel to "curb" output, according to reports on Monday. The group is now focusing more on aluminium, after higher prices improved margins. Electricity is used in both aluminium and nickel pig iron smelting. The traders said that reports that Indonesia had suspended nickel mining licenses because companies had failed to submit the required 2026 plans, had created further momentum. Aluminum prices are nearing four-year highs due to disruptions in Middle East smelting, where 9% of the global capacity is located. The closing of the Strait of Hormuz also caused a halt in the shipments of aluminum to the United States, Europe and Middle East smelters. Morgan Stanley analysts stated in a note that "events in the Middle East" had removed >4% from global aluminium supplies. Damage to facilities has caused a 12-month delay in restarting a large part of this. According to our estimates, the market will be in a deficit of 1.85 million tons by 2026 due to?China reaching its smelting cap and tight power markets. The withdrawal of aluminum from LME-registered warehouses is due to shortages The large premiums or backwardations for contracts with shorter maturities compared to those nearer the LME. Aluminium for three months was up by 0.8% at $3,597 per ton. Copper fell 0.8% to $13,474 per ton. Zinc gained 0.1%, to $3,528, while lead was down 0.6%, to $1970. Tin retreated by 0.4%, to $52,375.
Estonia claims NATO shot down suspected Ukrainian drone
The Baltic state of Estonia said that a NATO jet shot down an alleged Ukrainian drone above Estonia on Tuesday. This is the latest in a series of airspace violations occurring in the?region due to frequent Ukrainian attacks against Russia.
The Latvian army reported that neighbouring Latvia had also issued a drone warning, telling residents living near the Russian border not to leave their homes. NATO Baltic Air Police Jets were summoned in the area.
Ukraine has intensified long-range drone strikes on?Russia including in the Baltic. Since March, Ukrainian military drones strayed into the airspaces of NATO member countries Finland, Latvia and Lithuania, all of which border Russia. The Latvian government resigned last week over the handling?of these incursions.
Hanno Pevkur, Estonian Defence Minister, said that a Romanian F-16 fighter shot down the suspected Ukrainian drone on Tuesday. Hanno Pevkur, Estonia's Defence Minister, said that NATO did not respond immediately to a comment request.
Last week, Ukrainian President Volodymyr Zelenskiy announced that Ukraine would be sending experts to Latvia to protect the country's sky.
On?May 15, Finnish authorities warned that suspected drone activity was taking place in the capital's?region. They told people to stay inside and suspended traffic at Helsinki Airport for three hours.
No drones were found despite the?Finnish defense forces scrambling fighter jets and other emergency services. Reporting by Andrius Sytas, Janis Laizans, in Riga, and Essi Lehto, in Helsinki. Additional reporting by Lili Bayer, in Brussels, and Niklas pollard, in Stockholm. Writing by Anna Ringstrom. Editing by Terje Sollsvik and Peter Graff.
(source: Reuters)