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Sona Comstar, an Indian company, plans to produce magnets domestically in India and reduce imports from China
Sona Comstar plans to manufacture locally the crucial components used in electric cars, taking advantage of a government initiative to encourage their production in India as China limits their exports. As a response to U.S. Tariffs, China, which makes around 90% of all rare earth magnets in the world, imposed restrictions on exports of these products. The U.S. signed an agreement with China this month that would speed up the approval of rare earth exports. However, companies and governments around the world are scrambling for alternative solutions. India, with the third largest car market in the world and the fifth largest reserves of rare Earths, has launched a new incentive program to encourage magnet production at home to reduce dependence on China. Sona Comstar in Gurgaon, also known as Sona BLW Precision Forgings is the first Indian company to announce its plans to manufacture magnets at home after the government program was made public. We are the biggest importers of rare earth magnets in the country. Vivek Vikram, CEO of Sona Comstar, said in an interview that they are working closely with the government to ensure India is self-sufficient on magnets. In the last financial period, the company that supplies motors and gears to car manufacturers such as Tesla and Stellantis imported 120 metric tons of magnets from China. Singh said that the company would consider the Indian incentives, once they were finalised, as well as other factors to determine the investment it will make in local manufacturing. He claimed that the company had the money to invest in local manufacturing. The five-fold growth of revenue, from $400 million to more than $500 million, over the last five years was cited as evidence. Plans to mine and process the rare earths will take many years to develop. This means that reducing dependence on China is not an immediate solution. Sona Comstar had planned to import 200 tons of magnets to meet the needs of its electric vehicle customers, which account for about a third its revenue. Sona Comstar generates about 40% of its revenue in the U.S., followed by India and Europe. The company's revenue will be dominated by India this year after it acquired the Indian Railways business from Escorts. Sona Comstar wants to expand its customer base in China, Japan, and South Korea. Plans for growth are a response to the sudden death of Sona Comstar chairman Sunjay Kapur in June, which caused the shares to fall due fears about the future direction of the company. Jeffrey Mark Overly was appointed as the company's new chairman. Singh said that this would not affect the company's direction as the team is led by professionals and the firm has the "management bench strength" necessary to deal with crises and disruptions. Aditi Sharma, Aditi Anantharaman and Muralikumar Aantharaman contributed to this report.
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Police: At least 8 dead in fire at Sigachi Plant in India's Telangana State
Police said that at least eight people were killed and over 26 injured in a fire Monday caused by an explosion inside a unit of the pharmaceutical company Sigachi Industries, located in India's Telangana State. V. Satyanarayana is the Inspector General for the Hyderabad Region. He said that four people were in "extremely serious condition" and 10 others are still trapped inside the plant. Satyanarayana stated that there is still fire and a flame near the area of the reactor where the accident appears to have started. Sigachi Industries has not responded to any requests for comment. The local media reported, citing the news agency PTI earlier that day, that the explosion had killed at least 10 individuals. The shares of the pharmaceutical company fell by more than 13 percent to their lowest level in a single month. They were also on track for their worst day ever since mid-March, 2024. Sigachi provides services to a variety of industries including pharmaceuticals, food, cosmetics and chemicals.
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Fashion brands slow down on green promises
Few fashion brands invest to reduce emissions from the supply chain Suppliers struggle with low-carbon technology Brands want to share the costs of production, not just loans Tahmid Zami Tahmid Zami Researchers, companies, and industry insiders claim that there hasn't been much done to move this forward in the supply chains of major textile producing countries such as Bangladesh, India, and Cambodia. Todd Paglia is the executive director of Stand.earth in North America, a non-profit environmental advocacy group. About a third (32 brands) of 42 brands that were surveyed for a Stand.earth Report in 2025 will have reduced their emissions by 10 percent compared to baseline years, while 40 brands will see their emissions increase. The study found that only a small fraction of major brands provide funding to reduce emissions in their supply chain, which puts financial pressure on factories and other suppliers who lack the financial power to switch to cleaner processes. Fashion Revolution, an organization that campaigns for sustainable fashion, released a report in 2024 stating that about half of major fashion brands around the world have set scientifically-based emission reduction targets. While many brands are still not making visible efforts to fund their climate plans or support suppliers in decarbonising, others have made some. "What we see is a dangerous disconnection," said MohiuddinRubel, former director of Bangladesh’s garment manufacturers' associations and now director at Denim Expert Ltd. The FINANCING Gap By switching to energy-efficient equipment, using renewable energy sources and using low-emission transportation, apparel manufacturers can reduce emissions at the factory level. A report by the consulting firm FSG stated that in Bangladesh, the garment industry hub, 83% emissions come from the burning of fossil fuels on site, such as natural gas to generate electricity or to run boilers for heat and steam. According to a report by the Apparel impact Institute (AII), an organization that promotes sustainable investments, many suppliers are reluctant to make the large capital investment required to replace gas-based heating systems with energy-efficient technology, such as heat pumps. AII says that Bangladeshi fashion manufacturers face a $4.8 billion investment gap to reduce emissions by half between 2030 and 2020. Clothing manufacturers in India and Vietnam face similar challenges to reduce their dependence on fossil fuels for heat and steam production, which is used in the washing, dyeing and finishing of fabrics. According to Bangladeshi supplier Rubel, about half of the brands that Stand.earth surveyed offered some kind of support. However, most of this involved audits and assessments of carbon footprints or small-scale projects. He said: "This is just a drop of water and doesn't address the industry-wide, systemic transformation that is required." Abhishek Bhasal, the head of sustainability for Arvind Limited, an Indian textile supplier, says that brands should also offer long-term agreements with suppliers and premium prices to encourage them to invest in cleaner manufacturing. BRAND ACTION Stand.earth's report stated that only six brands had reported offering project financing to suppliers for their decarbonisation efforts. H&M is one of them, a Swedish retail giant that has helped 23 smaller suppliers invest in low carbon tech. Kim Hellstrom is the senior sustainability manager for H&M. She said that brands need to accept there will be costs associated with climate change. The retailer plans to test energy efficient thermal technologies in China, India, and Vietnam. Hellstrom said, "The low carbon technology is already here. You don't have to talk about innovations - you just need to test them out first in this industry." Kristina Liljas is the senior director for sustainable finance and engagement of AII. She said that if brands backed their goals with budgets, they would be able to establish better relationships with suppliers.
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Dalian Iron Ore records first monthly increase in four months on strong near-term demand
Dalian iron ore contracts edged up on Monday. This was their first rise in four month due to a strong near-term Chinese demand. However, the protracted property crisis held back gains. The day-traded price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 0.21% higher, ending at 715.5 Yuan ($99.88). The contract increased by 2.06% in June. As of 0746 GMT the benchmark July Iron Ore traded on Singapore Exchange fell 0.16%, to $94.4 per ton. This is a drop of 1.3% for this month. According to data from Mysteel, hot metal production, which is a measure of iron ore consumption, was stable at 2.42 million tonnes as of 27th June. Mysteel reported that the average rate of blast furnace capacity utilization rose by 0.04 percentage points, to 90.83%, in the period from June 20 to 26. The non-manufacturing PMI, which includes construction and services, grew from 50.3 up to 50.5. The manufacturing sector in China contracted for the third consecutive month in June. However, it did so at a slightly slower pace. Analysts said that a combination of weak domestic demand and a long-lasting property crisis has led to factory owners holding onto inventory while they wait for Beijing to ease tensions in trade with the U.S. Investors priced in possible interest rate cuts as Federal Reserve Chair Jerome Powell indicated in his testimony in which he said that if inflation was kept in check, despite tariffs, then cuts would be likely. The reports that Donald Trump had asked Powell to resign also added pressure. Dollar-denominated investments are cheaper for holders of currencies other than the greenback. Coking coal and coke, which are used to make steel, also fell, by 1.08% and 0.466% respectively. The benchmarks for steel on the Shanghai Futures Exchange have largely increased. Rebar gained 0.23%. Hot-rolled coils rose 0.13%. Stainless steel gained 0.16%. Wire rod fell 0.09%. ($1 = 7.1638 Chinese yuan). (Reporting and editing by Lucas Liew, Sumana Liew, Eileen Soreng).
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Gold gains on dollar weakness, US jobs data awaited
Gold rose on Monday, as the dollar remained near its lowest point in over three years. Meanwhile, the focus of the market shifted to the upcoming U.S. employment data that could influence the Federal Reserve’s rate-cut trajectory. Gold spot rose 0.7% at $815 GMT after falling to its lowest level since May 29. Bullion prices have risen by 5.4% this quarter. U.S. Gold Futures rose 0.6% to $3,305.50. The U.S. Dollar index is hovering near its lowest point since March 2022. The greenback price of bullion is less expensive to other currency holders when the dollar weakens. I see two interrelated factors that support gold. "A weaker U.S. Dollar and President (Donald Trump)'s continued pressure on the U.S. Federal Reserve, to reduce interest rates," Giovanni Staunovo said. Trump said that he wouldn't appoint someone to lead the Federal Reserve if they didn't support lower interest rates. Investors were waiting for the U.S. employment data, due Wednesday, as well as the non-farm payrolls, due Thursday. These reports could give insight into the Fed’s future interest rate cut plans. Staunovo said, "The focus will remain if data indicate a further decline in economic activity that would allow the U.S. Central Bank to lower interest rates." Investors expect a 65 basis point Fed rate cut by the end this year. In a low interest rate environment, gold tends to be more appealing as it has no yield. Canada has scrapped the digital services tax that targeted U.S. tech firms, late Sunday night, just hours before the tax was to go into effect. This is part of a move to progress the stalled U.S.-Canada trade negotiations. Silver spot rose 0.5%, to $36.16 an ounce. Platinum was up 1.9% at $1,364.72, and palladium gained 1.5%, to $1150.30. (Reporting and editing by Bernadettebaum in Bengaluru)
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HEDGE FLOW - Goldman Sachs says that hedge funds are selling energy stocks when oil prices fall.
Goldman Sachs' note from Monday shows that hedge funds sold energy shares at the highest rate since September 2024, and the second fastest in the past 10 years. Oil prices were falling on the back of easing Middle East tensions. Crude oil prices dropped over $10 following the cease-fire agreement between Israel and Iran. On Friday, oil prices shook on news of an increased supply of crude from the oil-producing group OPEC+. They remain below their recent high of $81. Goldman's note stated that hedge funds began selling energy-related stocks in every major region on June 23. Goldman's note sent to clients Friday said that the sales in the sector last week were the largest in nearly a year, and the second biggest in the past decade. The sale of shares in oil, gas, and consumable oil firms as well as energy equipment manufacturers and service providers was conducted. The note said that hedge fund sales were concentrated in every region, but especially North America and Europe. Goldman said that hedge funds in Europe increased their short positions while reducing long bets. A short position anticipates that asset prices will fall, whereas a long position anticipates an increase. The data showed that while many speculators increased their short positions against energy companies, the total combined position of speculators remained proportionally long on global energy shares. Goldman Sachs said that hedge fund gross leverage - a measure of how many hedge funds are involved - is at its highest level in five years. The bank added that hedge funds bought company shares in all global regions, and last week was the biggest stock-buying in five weeks. It said that the most popular stock sectors were financial, technology and industrial companies. Reporting by Nell Mackenzie, Editing by Dhara Raasinghe and Joe Bavier
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Copper prices are high as the market waits for US tariff clarification and trade talks.
On Monday, copper prices traded at a wide range on the London Metal Exchange (LME) and Shanghai Futures Exchange as investors awaited clarity about potential import tariffs and progress in U.S. Trade talks. As of 0700 GMT the price for three-month copper traded on the LME fell 0.06%, to $9,872.5 a metric ton, but was still on track to achieve a gain of 3.92% on the month. This is its second consecutive increase. The SHFE's most-traded copper contract gained 0.16%, to 79.870 yuan (11,150.36 USD) per ton. This was also higher for the second month in a row, and 2.8% more than the previous month. After President Donald Trump abruptly terminated negotiations with Canada, on Friday, he left the talks in a cloud of uncertainty. He called Canada's tax on U.S. technology firms a "blatant" attack and promised to impose tariffs on Canadian products within a week. While metal has been diverted to the U.S. due to expectations that it will be taxed on imports, there are shortages in other countries. "The continued squeeze on the LME also supported prices," ANZ stated. "Spot contracts for copper continue to trade at a huge premium to futures with a later date." The LME's warehouses are partly empty due to the record number of shipments made to the U.S. in anticipation of tariffs. Copper Stocks In LME-registered storages, Friday's total dropped by 1,800 tonnes to 91.275 tons, the lowest level since August 2023. Inventories In the SHFE monitored warehouses, the weekly average for the week ending Friday was 81,550 tonnes, the lowest level since May 9. LME lead rose 0.24%, to $2.049 per ton. Aluminium climbed 0.15%, to $2.599. Tin grew 0.04%, to $33,775. Zinc increased 0.04%, to $2.780. Nickel fell 0.13%, to $15,225. SHFE tin fell 0.6%, to 268,110 Yuan. Zinc gained 0.31%, to 22,495 Yuan. Nickel grew 0.17%, to 120,830 Yuan. Lead increased 0.03%, to 17,200 Yan, and aluminium rose 0.02%, to 20,580 Yan. Click or to see the latest news in metals, and other related stories.
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Sources say that the premium for Japan's Q3 aluminium has fallen to $108/T due to a lagging demand.
Six sources involved in the pricing discussions said that the premium for aluminium shipped to Japanese buyers from July to September is $108 per metric tonne, a 41% drop compared to current quarter. This reflects a sluggish market, they added. This figure is lower than the $182 paid per ton in April-June. It marks the second consecutive quarter decline, and the lowest since the first three months of 2024. The initial offer of $122 - $145 per tonne made by producers around the world is below this figure. Japan is the largest Asian importer for premiums and light metals For primary metal shipments, it agrees to each quarter pay over the benchmark London Metal Exchange cash price that is set as the benchmark for the area. A trading house source stated that domestic aluminium demand had been low for a little over a year before U.S. Tariffs were implemented. This was in reference to the Trump Administration's tariffs on cars and aluminium. The source said that the decline in Japan premiums is due to a lack of demand in Asia and an abundance of supply. Three major Japanese ports have large stocks of aluminium Marubeni reports that the total volume of coal sold in Japan at the end May was 331,000 tonnes, an increase of 3.3% over the previous month. Another source from a producer stated that soft premiums overseas also contributed to this drop. The source stated that "U.S. premiums increased briefly, but have since eased as buyers built up stock ahead of tariffs." He said: "We expect inventory to be cleared and premiums to rise in the next three months, which could lead to a tightening of Asian supply." The U.S. President Donald Trump has doubled the aluminium import tariffs from June 4, to 50% to support the domestic production of this metal, which is used in transport, packaging, and the construction industry. Metal industry sources reported that physical market premiums in the U.S. fell after reaching a record high of 62.50cents per lb, on June 6, as traders speculated on possible tariff reductions for Canadian shipments. Although the impact on Japan was limited, buyers are concerned that automakers' demand could fall. Tokyo wants Washington to exempt their carmakers from the 25% auto tariff. Japan will also face a 24% "reciprocal tariff" starting July 9 unless it negotiates a deal. Due to the sensitive nature of the issue, the sources refused to identify themselves. Late May, the quarterly price talks between Japanese buyers, global suppliers including Rio Tinto, South32, and others began.
Volcano in Iceland erupts for fifth time since December
A volcano in southwestern Iceland sent radiant hot lava shooting more than 50 metres into the air on Wednesday, its 5th eruption since December and the most powerful one given that its volcanic system ended up being active three years earlier.
Authorities had actually alerted of the threat of restored volcanic activity in the location simply south of the capital Reykjavik as research studies revealed lava accumulated underground. The eruption began quickly after the end of an eight-week long eruption that occurred between Hagafell and Stora-Skogfell on the exact same Reykjanes peninsula.
The lava fountains reached 50 metres (164 feet) high and the length of the crack was around 3.4 km, Iceland's Met Office stated in a statement.
The very first assessment of scientists is that the start of this eruption is more powerful than in previous eruptions, the workplace stated.
Flights continued as usual at Reykjavik's Keflavik Airport, according to the airport's website.
The intense spectacle underlines the challenges faced by the island country of almost 400,000 people as scientists have alerted that repeated eruptions are possible in Reykjanes for decades or even centuries.
Wednesday's was the eighth eruption considering that 2021 on the peninsula, home to some 30,000 people, after geological systems that had actually lain dormant for 800 years ended up being active again.
It started as a very conventional fissure eruption with a. lot of lava water fountains and lava currently being spilled out, stated. Ari Trausti Gudmundsson, an Icelandic geophysicist.
The water fountain activity is generally most powerful in the. starting. It abates really gradually, and maybe in the next 24. hours, most of these lava fountains will slow, he stated, including. that the eruption could go on for days or weeks.
Such volcanic activity has interfered with district heating,. closed crucial roadways and took down a number of homes in the Grindavik. fishing town, to which only a few locals have returned given that. an evacuation in late 2023.
To avoid damage, manufactured barriers have actually been built to. steer lava away from facilities consisting of the Svartsengi. geothermal power plant, heaven Lagoon medical spa and Grindavik.
The fissure had actually reached less than a kilometer from the. defenses of Grindavik, the satisfied workplace said.
Iceland's civil defence was put on high alert, police said,. and authorities once again purchased an evacuation of Grindavik.
The nearby Blue Lagoon geothermal medspa, known for its large. outdoor swimming pools, was shut and its guests left.
Homeowners describe Iceland as the Land of Fire and Ice - a. tribute to its transcendent landscape of mountain peaks, ice. fields and fjords, a seismic hotbed located in between the. Eurasian and North American tectonic plates.
(source: Reuters)