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The Russian central bank defends its high interest rates while warning of the risks associated with oil prices
In a report published on Wednesday, the Russian central bank defended their tight monetary policies, saying that high rates contributed to a slower lending pace and signs of deflation. However, they cited low oil prices for a major risk to the Russian economy. The central bank has been battling high inflation for months, and has resisted the growing pressures to lower borrowing costs. At the same time, critical companies have cut back on their investment plans, while government officials are complaining about a slowing economy. On Monday, Economy Minister Maxim Reshetnikov said that the cooling economy faced "hypothermia", and urged the Central Bank to consider the slowing inflation when they next meet to set interest rates in June. In a review of financial stability, the bank said that "tight monetary policies are a temporary factor and necessary for a sustained reduction in inflation." It has kept its key interest rates at 21% since last October. The central bank sought to cool the overheating caused by the military spending boom in the past two years with higher rates. The growth of Russia's domestic product slowed from 4.5% to 1.4% during the first quarter. The bank stated that external conditions are still difficult. It cited risks such as global market volatility and trade wars, along with the possibility of increased sanctions towards Moscow. The bank warned that further drops in the prices of Russia's export products, notably oil, could be a "key" risk for Russia. Price drops can affect exporting companies' revenue and, therefore, the budget. The bank stated that the overall risk to financial stability is limited because of Russia's low level of debt and its reserves, which were accumulated over years with high oil prices. The bank stated that the increased credit restructuring of large and medium-sized Russian firms at the end March was only a temporary phenomenon, expressing its confidence that most companies are resilient to interest rate risks. The bank stated that banks should still conduct regular stress testing to ensure the stability of corporate loan portfolios.
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Poland will seek a partner for a second nuclear reactor in June
Poland will start selecting a partner in June for its second planned nuclear power plant, said the country's top energy security official on Wednesday. Wojciech Wrochna, Deputy Minister of Industry, had said previously that the process would begin in January. Poland is reducing its coal reliance and has chosen Westinghouse Electric for the construction of its first nuclear power plant along the Baltic Sea Coast. Although the financing has not been finalized, work is already underway on a second nuclear plant. "We'd like to find a capital partner but don't know whether we will." We need to confirm the interest. "We want to conclude this dialogue next Year," Wrochna said at a press conference. "We will have a dialog with the market. We will not include a model, or a contractor. We will negotiate the best possible solution in terms of contractor, technology, financing, and operation. We will speak to everyone, including the French, Americans and Canadians," added he. Wrochna stated that the participation by Polish companies in construction of the first nucleus plant would be "crucial" to the negotiations of the contract for engineering and construction with the U.S. contractor, which has already started. The plant will be completed in 2036 instead of 2028, as originally planned. (Reporting and editing by Barbara Lewis, Bernadettebaum, and Marek Strzelecki)
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Tereos warns that low EU sugar prices will make this year difficult for Tereos
Tereos warned on Wednesday of a challenging year as the fall in European sugar and the weak margins of the starch industry are likely to continue to impact results in the first halves of the company's financial year, after the initial bite in 2024/25. The European Union sugar price dropped by 35% between March and the end of last year due to a surplus of sugar in Europe, as well as competition from cheaper Ukrainian sugar. Tereos CEO Olivier Leducq said to reporters that 2025 would be a difficult year. Leducq stated that the EU sugar market will likely rebound due to lower supply, but this would not be noticeable until October or January. Tereos, which is in the starch industry, hopes to take advantage of low grain prices and rebuild margins following two bad years, but this will not happen until 2026. Leducq stated that the world sugar prices which affect Tereos Brazil's large activities were likely to increase, supported by a smaller than expected cane crop in Brazil. However, Leducq added that market conditions remained uncertain. The group reported a 17% decline in sales, to 5,9 billion euros ($6,69 billion), and a 29% drop in earnings before tax, depreciation, and amortization (EBITDA), to 801 millions euros, in the financial period that ended March 31. Sales and EBITDA will reach record levels in 2023/24 due to high prices and improved margins. This is the third-best (core profit result) ever recorded. Leducq said, "If I can achieve that in the next 5 years, I will be a very happy man." Suedzucker (Germany) and Nordzucker (Norway), Europe's largest sugar producers, reported lower earnings. They expect EU prices to rebound only later this year. Tereos’ net debt, a subject of intense scrutiny on the bond markets, decreased to 2.22 billion euro by March 31 from 2.37 billion euro a year earlier.
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Philippines uses mangrove buffer zones to protect its coasts
Negros Occidental is the first to introduce a coastal greenbelt Natural protection against storms, flooding and erosion The Senate is currently considering a bill to create a national coastal greenbelt. By Mariejo Ramos Local leaders, instead of relying on man-made barriers, have re-established natural barriers, such as 100-metre wide strips of vegetation. These include coastal mangroves, beach forest species, and other plants that can protect against storms and erosion. Negros Occidental started establishing its "coastal Greenbelt" in 2022. It was the first network of its kind to be established in the Philippines. The project led to the creation and protection of over 1,000 hectares in Negros Occidental of mangroves and beach forests, as well as wetlands, which serve now to protect against typhoons and coastal erosion, and to reduce the risk of disasters. Negros Occidental's coastal greenbelt can serve as a model to protect the thousands of kilometers of coastline in Indonesia, which is threatened by deforestation, urbanization and climate change. Gloria Estenzo Ramos Vice President of Oceana Philippines, a group dedicated to ocean conservation, said: "Local governments are aware of the benefits that coastal greenbelts can provide in saving lives and property from destruction." According to her organization, more than 90 local governments have passed policies or ordinances designating certain areas of their area as greenbelt zone. Negros Occidental also contains the 89,000-hectare Negros Occidental Coastal Wetlands conservation area, which is home to several endangered species such as turtles and Dolphins. This wetland was declared of international importance by 2016 According to a study conducted by British scientists in 2012, a 100-metre mangrove strip can reduce waves' energy by as much as 66%. Wetland experts have been pushing for similar measures nationwide, and legislators have introduced legislation to create national coastal greenbelts zones. 60% of Filipinos live in coastal areas that are vulnerable to climate catastrophes. The Philippines House of Representatives passed a coastal-management bill unanimously in 2023, which would require coastal towns across the country to establish 100-m greenbelts similar to Negros Occidental. The bill has yet to be approved by the Senate, as it was not deemed a priority. THREATS TO COASTAL Ecosystems According to Wetlands International Philippines, coastal ecosystems such as mangroves, seagrasses and corals are beneficial for both rural and urban Filipinos. These coastal protections have been under threat for many decades. In the 1990s, nearly half of the 450,000 hectares (or 1.2 million acres) of mangroves in Philippines were gone. Kisha Murana, Wetlands International Philippines' policy and advocacy officer, stated that mangroves were cut down because of "destructive coastal projects like reclamation". Muana said that the bill will help the government to monitor the greenbelts and identify areas where they could be restored. She said that there are some areas of the Philippines where mangroves do not cover the required 100 metres to block wave energy. The law could force these territories to add beach forests to make up the difference. Julie Ann Bedrio is the provincial environmental officer for Negros Occidental. She said that proposed developments such as land reclamation projects and wind power had a greater impact on coastal areas than individual vegetation cutting. Bedrio also said that coastal areas had suffered from a lack of enforcement of coastal laws, as well as pollution caused by marine litter. This includes plastics wrapped around mangrove stems or trunks. Bedrio added that the establishment of a greenbelt zone network in Negros Occidental helped to encourage dialogue between local leaders, NGOs, and environmental experts, so they could monitor and, if necessary, block projects which might harm coastal environments. First Line of Defence Greenbelts were recognized by the International Union for Conservation of Nature (a conservation group) as an important solution to some coastal problems including wind and sea erosion as early as 2007. The proposed policy in the Philippines would require the creation of coastal greenbelts that are based on the vulnerability to storms surges, tsunamis, and other threats. It would also create a plan for protecting coastal biodiversity. Oceana's Ramos, who is a member of Oceana, said that she believes the bill will be passed quickly as soon as the Senate resumes its session in June. Oceana has been invited to join the technical working group which will examine the current version. Bedrio stated that local governments are using limited funds to implement policies for coastal greenbelts. It would be helpful if they were supported by the national government with financial or technical support. The environmental officer is still haunted by thousands of deaths caused by Yolanda or Haiyan in 2013. He hopes that coastal greenbelts become a legislative priority.
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EDF France announces the closure of Cordemais coal power plant by 2027
EDF, a French power company, will decommission two of the four power-producing units at the Cordemais Coal Plant in Western France by May 31, 2027. The company is also looking into using the site as a nuclear pipe facility. The Cordemais Coal Plant is one of France's last coal-fired plants. It is operated mainly during winter, when the demand for electricity to heat homes increases. The utility said it has started a study to build a nuclear pipe plant on site. It is expected to be operational by the end of 2028 and employ 200 people. The company is planning to expand its nuclear fleet. It's working on funding six new reactors that a nuclear pipe plant could provide. EDF announced in September that it had cancelled plans to convert a coal-fired plant into a biomass power plant because the project's technical and economic requirements were not met. (Reporting and editing by Forrest Crellin, Sudip Kar Gupta)
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China relaxes export restrictions on rare earth for certain chip manufacturers
State media reported on Wednesday that China could relax restrictions on rare earth exports to Chinese and European semiconductor companies and other firms in their supply chains. China placed seven rare earths products and related items on its export control list in April. All exporters are required to apply for licenses regardless of their nationality. Several export licences for rare earth magnets used in the semiconductor industry, auto industry and defence industry have been granted. However, the licensing process is complex and can take several months. This has already caused confusion at customs. China Daily reported on Wednesday that it could ease the controls over the supply chains for Chinese and European semiconductor firms, citing one source. According to the newspaper, Chinese officials discussed the rare earth controls at a Tuesday meeting between Chinese semiconductor firms and European companies hosted by China's Commerce Ministry. They also explained the application procedure. Jens Esklund is the president of the European Union Chamber of Commerce of China. He said: "The meeting gave European Chamber members an opportunity to express personally the urgent need to speed up approval processes to ensure stability of their supply chain." He added that "this is essential, as many European manufacturing lines will soon come to a standstill due to a shortage of vital inputs." (Reporting from Beijing and Shanghai Newsrooms, Editing by Jane Merriman & Clarence Fernandez).
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Sources say that China, facing a declining coal demand, has asked power plants to simply buy more coal.
Sources with knowledge on the matter say that China is urging its coal-fired plants to stockpile the fuel more and import less to try to stabilize domestic prices. However, traders are skeptical the measures will stop the slide. After a massive increase in production following shortages and blackouts, the coal industry in China is facing rising stocks of the fuel. Sources said that to support the miners who are facing a decline in profits, the state planner asked power plants prioritise the domestic coal, and increase thermal stockpiles of coal by 10%. The overall target was 215 million metric tonnes by June 10. Sources spoke under condition of anonymity as they were not authorized to speak with the media. Two sources, both coal dealers, stated that the guidelines were unlikely to encourage much buying or support the price, due to the accumulation of inventories along the supply chain. National Development and Reform Commission, a powerful state planner and policy maker, did not respond immediately to a request for comment sent by facsimile. China Energy Daily, a state-run publication, reported that mine stockpiles were up by 42% compared to a year earlier, and port inventories in the northern Bohai region had increased by 25%. Three sources stated that buyers are being asked to purchase coal from northern port to reduce the high stockpiles of ports. The NDRC has taken these steps after months of industry groups and companies calling for a reduction in coal production and imports. However, Chinese coal prices are steadily falling. The price of medium-grade coal, with a heat content of 5,500 kilocalories/kg, was 620 yuan (86 dollars) per metric tonne on Tuesday. This is the lowest price since March 2021. The prices have dropped so much that some buyers are opting to sell on the spot rather than sign long-term contracts. China is expected to import a total of 542.7 million tonnes of coal this year, despite the record-breaking amount imported in 2024. In April, coal imports fell 16% on the previous year. MINES CONTINUE TO WORK Chinese mine production is growing despite the price collapse, and a government that fears shortages and blackouts in 2021 and 2020 will not consider reducing output. Toby Hassall, lead coal analyst at LSEG, said: "I believe they are very careful to avoid a repetition of that." "They are willing to tolerate a period of low domestic production." China's coal output increased 6.6% year-on-year from January to April to 1.58 billion tonnes. Official data released on Tuesday showed that industry profits dropped 48.9% from the previous year for the same time period.
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Copper prices rise on signs of tightening supply
The London Metal Exchange's system showed signs of tightening supply, which helped to support the copper prices on Wednesday. However, ongoing U.S. - China trade tensions kept this growth-dependent metal at a narrow range. The benchmark three-month copper price on the LME rose 0.5% to $9,639 per metric tonne by 0950 GMT after reaching a two-week-high of $9,655. Copper used in construction and power is up 5.7% this month, as global trade tensions have eased since April, when U.S. president Donald Trump announced reciprocal duties. Stocks in LME registered warehouses are decreasing, which is helping to support the metal. The lowest level in nearly a year, with a drop of 43% from mid-February. Spread between cash LME and three-month copper contracts Last week, was at a premium price of $40 per ton compared to $3 a few weeks ago. This indicates a tighter supply in the near future. Washington continues to investigate whether it should impose new tariffs on copper imports. This will keep the premium for COMEX copper over the LME benchmark high and encourage more metal into COMEX owned warehouses. . BNP Paribas analysts said that if a tariff was applied, it would stop the incentive for copper to be moved to the U.S. This, they believe, will lead to more physical flows into the LME and a price downturn. It added: "If there's no tariff, or if the tariff rate is much lower than expected, we think CME will crash with negative effects on LME." BNP Paribas anticipates that the average LME price of copper will be $8,610 during the third quarter, before rising to $9,180 for the fourth quarter. According to the International Copper Study Group, from the perspective of global supply the copper market had a surplus in January-March of 289,000 tonnes compared to 268,000 tons one year prior. Aluminium and zinc, among other LME metals rose 0.1%, to $2,485.50 per ton and to $2,707 respectively. Lead fell 0.3% to $1979, while tin dropped 2.0% to $30,870, and nickel fell by 1.7% to 15,150. (Reporting and editing by Jan Harvey; Polina Devtt)
March marks yet another record in international heat
The world just experienced its warmest March on record, capping a 10month streak in which each month set a brand-new temperature level record, the European Union's. climate change monitoring service stated on Tuesday.
Each of the last 10 months ranked as the world's hottest on. record, compared to the corresponding month in previous years,. the EU's Copernicus Environment Change Service (C3S) said in a. regular monthly bulletin.
The 12 months ending with March likewise ranked as the planet's. most popular ever recorded 12-month period, C3S said. From April 2023. to March 2024, the worldwide average temperature was 1.58 degrees. Celsius above the average in the 1850-1900 pre-industrial. period.
It's the long-lasting trend with remarkable records that has. us extremely worried, C3S Deputy Director Samantha Citizen informed. .
Seeing records like this - month in, month out - truly. shows us that our climate is changing, is altering rapidly, she. added.
C3S' dataset goes back to 1940, which the scientists. cross-checked with other data to confirm that last month was the. most popular March given that the pre-industrial period.
Already, 2023 was the world's hottest year in international. records returning to 1850.
Severe weather and remarkable temperatures have wreaked. havoc this year.
Climate change-driven dry spell in the Amazon jungle. region unleashed a record variety of wildfires in Venezuela from. January-March, while drought in Southern Africa has wiped out. crops and left millions of individuals facing hunger.
Marine researchers also cautioned last month a mass coral. whitening occasion is most likely unfolding in the Southern Hemisphere,. driven by warming waters, and could be the worst in the world's. history.
The primary cause of the remarkable heat were human-caused. greenhouse gas emissions, C3S said. Other aspects rising. temperature levels consist of El Nino, the weather pattern that warms the. surface waters in the eastern Pacific Ocean.
El Nino peaked in December-January and is now damaging,. which might assist to break the hot streak towards completion of the. year.
However in spite of El Nino alleviating in March, the world's average sea. surface area temperature level struck a record high, for any month on record,. and marine air temperatures remained uncommonly high, C3S stated.
The primary motorist of the warming is nonrenewable fuel source emissions,. stated Friederike Otto, an environment scientist at Imperial College. London's Grantham Institute.
Failure to decrease these emissions will continue to drive the. warming of the world, resulting in more extreme droughts,. fires, heatw aves and heavy rainfall, Otto stated.
(source: Reuters)