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Sources say that Shandong province in China has increased the fuel oil import tax exemptions for certain refineries.
Industry sources reported this week that the provincial government of Shandong in China, China's refinery hub, increased the fuel oil import tax exemptions for six independent refining companies to improve their profitability, as they struggled with low margins due to fuel demand and high fuel prices. Three sources who have direct knowledge of this matter confirmed that the Shandong provincial office of taxation increased the consumption tax refunds for independent refiners (also known as teapots) on gasoline and diesel refined using imported fuel oil from 75% to 95%. Sources said that the change is applicable to Chambroad Petrochemicals and Hongrun Petrochemicals. One of the sources said that the refiners had been notified two weeks prior. Requests for comments were not responded to by the Shandong Provincial Tax Service or the National State Taxation Administration. When crude oil prices are too high, the teapots will often process straight-run fuel oils or bitumen blends (a tar-like residue) into transportation fuels. They may also be subject to crude oil import quotas which can limit their purchases. China increased the import tariffs for fuel oil in 2025, and reduced the tax rebates at the end last year. Customs data shows that fuel oil imports fell to their lowest level ever between January and May. Mia Geng, FGE's associate director of the East of Suez Oil Service, said in a note dated June 27, that independent refiners were suffering from low profit margins and shut downs due to the rules. The provincial government also likely wanted refineries to be running more to boost economic output and industrial activity. Geng believes that the new tax laws will increase the demand for high-sulfur fuel oil and the run rates of refineries. The changes will not spur demand for fuel oil in the near future, as crude oil is cheaper at the moment, according to a trading source, and one of those with direct knowledge about the change. Shandong refineries are China's largest buyers of sanctioned Russian and Iranian oil.
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Morning bid Europe: Trade optimism is replaced by caution about US jobs
Stella Qiu gives us a look at what the future holds for European and global markets. The session in Asia has been pretty quiet, and for good reason. Payroll data from the U.S. due later that day could be the deciding factor in a rate cut in July and cause big movements in Treasuries or foreign exchange markets. Investors in Asia didn't seem to share President Donald Trump's optimism about trade, which pushed Wall Street overnight to record-high closes. Details are still unclear. Markets did not react significantly to the latest developments regarding Trump's "big beautiful bill" for tax cuts. The Republicans in the House of Representatives moved closer to advancing the tax package on Wednesday, seemingly overcoming the objections of a few party hardliners that raised concerns over cost. Trump announced that the U.S. would impose a tariff of 20% on all imports coming from Vietnam. This is lower than the tariff of 46% which was threatened but still higher than previous rates. Uncertainty surrounded the implementation of a 40% tax on all transshipments through Vietnam aimed at products made primarily in China, but labelled as "Made in Vietnam". Vietnamese shares rose a modest 0.5% - the most since April 2022. Vietnam's dong currency fell to a new record low of 26218 per US dollar. Other Asian countries complain that the U.S. is making it difficult to negotiate, partly because the White House's intentions are not very clear. South Korean President Lee Jae Myung stated on Thursday that he was unable to say whether tariff negotiations would be concluded by next Tuesday. Meanwhile, Japan invoked its national interests when talks with the U.S. were struggling. The Wall Street Futures have gained 0.1%, while the EuroStoxx 50 futures have gained 0.2%. The main risk for the markets is the release of U.S. payroll figures later that day. The stakes are high following a surprise drop in the private sector payrolls for the first time in over two years. Analysts predict that the unemployment rate will rise to 4.3% in June, with a 110,000 job increase. A weak report, given that the market only prices in a 25% chance of a Fed rate cut in July, could have a major impact on the markets, sending Treasuries higher and the dollar down. The sterling was unchanged at $1.3633. Sterling fell 0.8% overnight due to investor concerns about Britain's finances following the government's decision to reverse welfare reforms. This also caused gilt yields and prices to rise. The following are key developments that may influence the markets on Thursday. Payrolls for non-farm workers in the U.S. ISM Services PMI -- U.S. initial and continued jobless claims -- U.K. S&P Global services, composite PMIs The ECB has released its June Minutes (by Stella Qiu, edited by Edmund Klamann).
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China's North and West on Alert after Deadly Floods Caused by Sweeping Rains
China's west and north were bracing for flash floods on Thursday, as the annual "Plum Rains" left a path of destruction. This prompted thousands of rescue workers from across China to help pull people out of floodwaters. The red alerts traced the rains from the southwest province of Sichuan, through the northwestern provinces of Gansu and Liaoning to the northeastern region of the province. On Wednesday night and early Thursday morning, some Beijing-bound trains had been suspended. Meteorologists have linked climate change to extreme rainfall and severe floods. These events pose a major challenge to policymakers, as they threaten to overwhelm the ageing flood defences and displace millions of people, and wreck havoc on China’s $2.8 trillion agriculture sector. Natural disasters caused economic losses of over $10 billion in July last year, which is when the "Plum Rains" - so named because they coincide with plums maturing along China's Yangtze River at the time of the East Asia Monsoon – usually reach their peak. The state media reported that over 1,000 rescue workers had been dispatched on Wednesday to the town Taiping, in central China's Henan Province, after torrential rainfall caused a river nearby to burst it banks. Five people were killed in a flash flooding and three others are still missing. A separate report by state media said that two more people were killed in a landslide in the province of Gansu caused by heavy rainfall on Wednesday and Thursday. During a visit of two days to Hebei province, which borders Henan in the north, Vice Premier Zhang Guoqing urged officials to increase efforts to minimize casualties ahead of heavy rains by preemptively evacuating residents, according to a report from Xinhua, a state news agency. Scientists say that while China has a national severe weather monitoring system and a forecasting system for it, very localised forecasts remain a challenge. They test the ability of rural communities, with less forecasting resources, to evacuate their local population quickly before any extreme weather. Local media reported that in China's Guangxi province, further south, several buildings have slid off hillsides in the past two days, after their foundations gave in to waterlogged soil. Video footage verified by shows a five storey building in Xinzhou, China collapsing within seconds into a river nearby as the ground underneath it suddenly gave way. A separate report in local media cited the Ministry of Water Resources to say that between June 30 and 1 July, the Lengshui River, which runs through Xinzhou, experienced its worst floods since records began. The report also provided readers with information on how to recognize early signs of flooding. Other local media reported that in Pingliu Village (about 80 km west of Xinzhou), 21 people from 7 households were evacuated after a landslide damaged and destroyed four houses. The national meteorological center forecasts scorching heat along eastern coast of the country.
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PMI: UAE non-oil industry grows steadily as regional tensions impact demand
A survey on Thursday showed that the UAE's private non-oil sector grew steadily during June, even though regional tensions affected demand and firms increased output to clear backlogs. The S&P Global UAE Purchasing managers' Index (PMI), which is a seasonally-adjusted index, increased to 53.5 from 53.3 in June, indicating continued growth for the sector. However, new orders grew at their slowest rate in almost four years. The subindex of new orders dropped to 54.5 from 56.2 in may, the lowest reading since Sept. 2021. The tensions between Israel, Iran and other countries dampened demand. David Owen, senior economic analyst at S&P Global Market Intelligence, said that the impact of the conflict in Israel and Iran is mostly felt on demand, with some slowed down orders. Owen stated that the impact of this on business conditions overall was minimal. As firms reduced backlogs, output growth increased. The supply chain continues to face challenges, as delivery times improve at their slowest pace for 14 months and input costs rise at the slowest growth rate in two years. The survey found that non-oil companies in the UAE remained subdued about their business outlook despite the fact that the level of confidence has risen to its highest levels since November. Dubai's headline PMI fell to its lowest level for nearly four years, to 51.8 in June from 52.9 in the previous month. This was due to a sharp decline in sales growth amid competition pressures and weaker tourist numbers. Business activity increased sharply and the number of employees increased for a third consecutive month. (Reporting and Editing by Hugh Lawson).
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PMI data shows that Saudi Arabia's growth in the non-oil sectors accelerated in June due to strong demand.
A survey released on Thursday showed that the expansion of Saudi Arabia's private non-oil sector activity increased in May due to a strong client demand as well as a spike in hiring. The Riyad Bank Saudi Arabia Purchasing Managers' Index, which is adjusted for season, rose from 55.8 in May to 57.2 this month. This puts it above the 50 point line that indicates growth. The subindex rose to 64.3 from 62.5 in may, indicating a rapid acceleration in new order growth. This upturn was primarily driven by domestic sales, which were supported by client acquisitions that went well and improved marketing strategies. Export sales were marginally up. "Firms have largely attributed the improvement in activity to improved sales, new projects starting, and better conditions for demand, even though the pace of growth was slower than previous highs," Naif Al Ghaith said, chief economist at Riyad Bank. Private non-oil companies have hired more staff than ever since May 2011 as they expand their teams to handle increased workloads. The input prices rose as well, in line with the trend of the second quarter, which led firms to pass higher costs on to their customers. The output prices rose strongly, marking the biggest increase in over a year and a half, after months of declines. The survey revealed that despite cost pressures, Saudi firms in the non-oil sector remained confident about the future. In fact, the Future Output Index reached a record high of two years. The resilient economic conditions in Saudi Arabia and robust demand boosted confidence. The International Monetary Fund increased its forecast of Saudi Arabia's GDP growth in 2025 to 3.5%, from 3%. This was partly due to the demand for government-led initiatives and the OPEC+ plan to gradually end oil production cuts. Hugh Lawson, Editor (Reporting)
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RightBridge Ventures Agrees Reverse Takeover of Swemar
RightBridge Ventures Group has announced a proposed reverse acquisition of Swemar, which has entered into an agreement to acquire an offshore oil service company with operations across the Middle East, India, and South-East Asia.The company to be acquired by Swemar operates a fleet comprising Anchor Handler Tug Supply (AHTS) vessels and crew transportation vessels. It owns three vessels outright and operates an additional five to ten vessels under charter or management agreements.The acquisition marks a strategic first step toward establishing a strong maritime presence in Asia. It will provide RightBridge with a robust technical and operational platform, with the potential for further expansion into other segments of the maritime industry.The acquisition is immediately accretive, with an estimated EBITDA contribution of $11 million over the next 12 months, based on fixed employment contracts with blue-chip clients such as Saipem, NMDC Group, Larsen & Toubro, Aramco, and others.The transaction is firm from the seller’s side and conditional only on the buyer, subject to standard due diligence processes, which are currently underway.It is planned to be finalized in the third quarter of 2025 and is expected to have a positive impact on RBV’s EBITDA result for the 2025 financial year. The acquisition price will be announced in connection with the closing of the transaction.The acquisition will not change the price or the terms for the transaction with Right Bridge Ventures Group, the company noted.“This acquisition is the first step towards creating a strong maritime presence in Asia. It will provide us with a solid maritime technical and operational platform, with scope for expansion into other sectors of the maritime market.“The acquisition is convincingly accretive for RightBridge. Together with our ownership in U.S.-based shipbuilding and defense related industries we strive to become a full-service defense and maritime company with global operations,” said Dagfinn Lunde, newly appointed Chairman of RightBridge Ventures.
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OEG to Assist with Inch Cape Offshore Wind Farm Buildout
Energy solutions business OEG has signed a significant multi-million-dollar contract to support the construction phase of the Inch Cape offshore wind farm in Scotland, being developed by ESB and Red Rock Renewables.Over 100 OEG personnel will support the delivery of this contract, which includes the recent addition of six new appointments.The 1.1 GW project is located in the North Sea, 15 km from the Angus coast on a site covering 150 km2. It is set to become operational in 2027.Once completed, it will feature up to 72 wind turbines and an offshore substation and generate enough clean energy to power the equivalent of more than half the homes in Scotland.Scottish Inch Cape Offshore Wind Farm Reaches Financial CloseUnder the terms of the contract, OEG will supply an integrated package of specialist topside and marine services including marine coordination, high voltage and ancillary port services.These will all be managed under a central project team and delivered from the company’s new flagship facility in Edinburgh.OEG will also operate up to ten vessels, seven guard vessels for on location round-the-clock safety and three crew transfer vessels to support offshore wind technicians working at the wind farm.Furthermore, the firm will provide a comprehensive allocation of metocean sensors and navigation buoys, as well as any additional support equipment as required.“As we enter the project’s critical offshore construction phase it is vital to have trusted and experienced suppliers, so we welcome OEG’s integrated support during this next stage of the project,” said John Hill, Inch Cape’s Project Director.
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Prices of copper remain near their multi-month highs due to supply constraints and US tariff fears
The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) both held copper near its highest level since late March. This was due to concerns about a tight supply in the region and an increase in shipments to the U.S., as traders rush to avoid potential import tariffs. As of 0103 GMT the LME's three-month copper contract was unchanged at $10,05 per metric tonne, but it hovered close to its highest level since March 26. The SHFE's most traded copper contract gained 0.27%, to 80,840 Yuan ($11285.77). This is its highest level since March 27. The United States may decide to deal with the copper tariff later. This has given traders more time to transport copper to the United States, when prices are higher. U.S. Comex Copper Futures climbed 2% on Wednesday to $5.199 per pound, with a premium of 14% over the LME copper contracts. The total copper stock in LME registered warehouses is still near its lowest level since August 2023 despite a small rebound over the past two days. Stocks have fallen 76% since the middle of February, due to cargoes being rushed into the United States after its investigation on copper imports. SHFE lead rose 0.7%, to 17,290 Yuan per ton. Zinc was up 0.7%, at 22,370 Yuan. Nickel climbed 0.6%, to 121550 Yuan. Aluminium edged higher by 0.2%, to 20,710 Yan. LME lead rose 0.2% to $2.064.5 per ton. Nickel climbed 0.15% to $15.325, tin grew 0.15% to $33,765, aluminium slid 0.1% to $2.622.5 and zinc fell 0.11% at $2.754.5. Click or to see the latest news in metals, and other related stories. DATA/EVENTS - (GMT 0750 France HCOB Services Composite PMI 060755 Germany HCOB Services Composite Final pmi 060800 EU HCOB Services Composite Final pmi 0830 UK Reserve Assets June 0830 US Non Farm Payrolls Unemployment Rate Average Earnings YY Jun 1230 US International trade $ May 1400 US Factory orders MM May1400 US ISM N Manufacturing PMI june
Leading proxy consultant ISS advises versus Tesla CEO Musk's 'extreme' $56 bln pay
Top proxy advisory company ISS advised Tesla investors vote versus ratifying CEO Elon Musk's $56 billion pay package, calling the settlement excessive in a rejection of the strategy set by the electrical lorry maker's board.
In a report sent by an agent late on Thursday, Institutional Investor Provider also recommended a vote versus Tesla director James Murdoch, however backed elect director Kimbal Musk, Elon Musk's sibling, and for the company's. proposed move to change its state of incorporation to Texas from. Delaware.
The move follows a comparable recommendation for a vote against. Musk's pay package by proxy advisory firm Glass Lewis last week.
The vote is seen as a referendum on Musk's management, as. investors stress that the billionaire entrepreneur is distracted. by his other ventures which his often questionable comments. are weighing on the reputation and sales of Tesla.
Tesla did not respond to a request for remark.
The massive payment arrangement, the biggest for a. corporate CEO in America, set benefits based on Tesla's market. worth and functional turning points. But in January, a Delaware. judge voided the plan, and Tesla subsequently sought to move its. state of incorporation to Texas.
Unusually, Tesla put the 2018 pay strategy up for a. re-ratification vote at its upcoming yearly conference on June 13.
PROXY INFLUENCE
While the suggestions from the big proxy advisory companies. play a role in concentrating on particular problems at corporate. yearly meetings, their exact influence on votes is up for debate. and criticism.
A current University of Utah study discovered their. suggestions can have a considerable effect on votes but also. discovered the firms themselves may just be funneling the views of. financiers, their customers.
Tesla responded to Glass Lewis' suggestions in a. securities filing previously today, stating Musk is creating. wealth for Tesla investors and has skin in the video game.
In recommending votes against Musk's pay, ISS composed that. although the structure of the grant's performance difficulties. arguably contributed to, along with reflect, the company's. considerable monetary growth during the efficiency period, the. overall award worth remains extreme, even given the company's. success.
In addition, the grant, in lots of ways, failed to attain the. board's other original objectives of focusing CEO Musk on the. interests of Tesla investors, instead of other service. ventures, and aligning his financial interests more closely. with those of Tesla investors, ISS' report stated.
Other issues consist of an absence of clearness on the board's. strategy for Musk's future pay, ISS wrote.
ISS recommended a vote against director and audit committee. member Murdoch given concerns about the danger oversight function. of the board.
ISS wrote that while it had issues about the procedure used. by the Tesla board to choose to transfer to Texas, it is not. readily apparent that the rights of investors would be. materially hurt as a result of the proposed reincorporation.
Tesla is making a public effort to rally assistance for the pay. plan and the company's board has actually validated the payment. by stating it is necessary to make sure Musk prioritizes Tesla. over his other commitments.
Tesla shares were a little lower in premarket trading on. Friday, and have decreased about 28% so far this year.
It's a really interesting case for Tesla, offered it is the. most commonly held stock globally by retail financiers who honestly. do not offer a hoot about what ISS informs them to do, said Ben. Laidler, global markets strategist at trading platform eToro.
About 44% of Tesla's common stock is held by. non-professional shareholders including retail financiers, the. highest portion of the 10 largest business in the S&P 500,. according to S&P Global Market Intelligence.
A report by eToro previously this month revealed that votes had. been exercised on around a quarter of all Tesla shares held by. users of the trading platform, with more than 80% ballot in. favor of Musk's pay bundle.
If anybody's going to buck the pattern of what proxy consultants. state, it's going to be Tesla. The vote is a genuine test case for. the power of retail investors, Laidler said.
(source: Reuters)