Latest News
-
Prices of EUROPE GAS have fallen by over 10% following the news that Iran and Israel had reached a ceasefire
The wholesale gas prices for the Dutch and British front months fell by more than 10% Tuesday morning, following the news that Iran had agreed to a ceasefire with Israel. This removed the risk premium that the market had built in due to potential disruptions of oil and gas supplies. LSEG data shows that the benchmark Dutch front-month contract for the TTF hub dropped by 4.61 Euros to 36.63 Euros per megawatt hour (12.41/mmBtu) or 12.41 euros/MWh by 0818 GMT. The contract has fallen to its lowest price since June 12, the morning of the first Israeli strike on Iran. A trader explained that Tuesday's decline was due to the news from Israel that it had agreed to U.S. president Donald Trump's proposal of a ceasefire between Iran and the United States. The daily market report by consultancy Auxilione stated that "at the open today, we have seen a tremendous sigh relief as more than 10% of the price levels were eroded." They warned that any breach of the ceasefire by either party would immediately bring back concerns to the market. Israel said that Iran had already violated the ceasefire, and it would be responding. Gas prices were at an 11-week high before due to fears that hostilities would lead to the closure of the Strait of Hormuz and lock in 20% of the global supply of liquefied gas (LNG). The oil price also fell sharply on Tuesday. Arne Lohmann, GRM's chief analyst said that the talk of a Hormuz Strait closing and a broader war threat has faded completely for the moment. A trader stated that gas prices could fall even lower, to levels not seen before the war, due to the high LNG supply, and the need to unwind some long positions by market participants. The Dutch day-ahead contracts fell by 5.25 euros, to 35.92 euro/MWh. Meanwhile, the British contract dropped 10.75 pence, to 84.50 pence per therm. The benchmark contract on the European carbon markets was up 0.31 euros at 73.58 euro per metric ton. Nora Buli, OSLO, and Nina Chestney edited the story.
-
China's demand for iron ore cushions the fall, despite a firm outlook on Australia's supply.
Iron ore futures ended a three-day rally Tuesday, despite a stronger outlook for supply from Australia's top producer. However, the resilient steel demand in China helped to cushion the fall. The September contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 0.42% lower, at 703 Yuan ($97.97). As of 0725 GMT, the benchmark July Iron Ore traded on Singapore Exchange fell 0.71% to $93 per ton. Rio Tinto, world's biggest iron ore producer enters a joint venture to develop the Hope Downs 2 Project in Western Australia. Rio announced in a press release that the two pits of iron ore will have an annual combined production capacity totaling 31 million metric tonnes. Chinese consultancy Mysteel reported that iron ore exports from Australia and Brazil increased by 8.8% during the week of June 16-22. This is the highest level since June 2024. Mysteel data showed that hot metal production, which is a measure of iron ore consumption, increased 0.24% week-on-week to 2.422 millions tons as of 20th June. Analysts at ANZ said that "volumes have remained around 2.4 millions tons since April. This suggests resilience on the largest steel market in the world." Hexun Futures says that the market has not yet priced in the expected lower seasonal demand. Coking coal and coke, which are used in steel production, fell by 1.94% each and 2.03% respectively. The benchmark steel prices on the Shanghai Futures Exchange have fallen. The price of rebar, hot-rolled coil and wire rod dropped by 0.5%. Stainless steel fell 0.28%. $1 = 7.1757 Chinese yuan (Reporting and editing by Lucas Liew, Michele Pek and Sherry Jab-Phillips).
-
After the Iran-Israel truce, caution is prevailing.
The London Metals Exchange (LME) and Shanghai Futures Exchange (SFE) saw copper prices rise on Tuesday, as caution reigned following the announcement by U.S. president Donald Trump of the ceasefire between Iran and Israel. As of 0703 GMT, LME's three-month copper rose 0.52% to $9,717.5 a metric ton, and SHFE's most-traded Copper gained 0.4% to $78,640. Trump stated in a post to his Truth Social website that a "complete" and "total" ceasefire would be implemented between Israel and Iran with the aim of ending the 12-day conflict. The commodity market has been unpredictable this year, and traders and investors are likely to wait and see how things turn out. As news of a ceasefire eased fears of supply disruptions, the U.S. Dollar fell and oil dropped to its lowest level in over a week. The greenback price of commodities is cheaper for buyers who hold other currencies. LME Aluminium fell 0.6%, to $2573 per ton. On Monday, it had reached a three-month peak on fears that the conflict could push up energy costs and disrupt supply. SHFE aluminium fell 0.51% to 20 315 yuan. LME Nickel rose 0.48%, to $14,875 per ton. Lead grew by 0.37%, to $2.010.5. Zinc climbed 0.07%, to $2.689; tin fell 0.06%, to $32,675. SHFE nickel fell 0.44% to reach 117,450 Yuan. Zinc rose 0.73% to 22090 yuan. Lead increased 0.5% to 16955 yuan. Tin gained 0.3% at 263,800. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0800 Germany Ifo Business climate, current conditions, expectations New Jun 1400 US consumer confidence Jun ($1 = 7,1773 Chinese Yuan) (Reporting and editing by Sumana Niandy, Vijay Kishore, Hongmei Li)
-
More storms are on the horizon
After days of rain, multiple rivers in China's flood hit province of Guizhou burst their bank. This is the southwest end of the seasonal rain belt which stretches from Japan to China. Congjiang, and Rongjiang, both riverside cities with populations of more than 300,000 people, told their residents to leave the low-lying and fast-rising areas and along the rivers' banks. Since last week, the East Asia monsoon has been bringing heavy rains to parts of China. This is breaking records for rainfall. Scientists warn that while China has experienced summer flooding before, climate change will bring more rain and heavier rainfall. Government officials warn that massive flooding could lead to "black swan events" with severe consequences, such as dam collapses. Local media reported that a viaduct fell on a highway leading to Rongjiang after a landslide knocked down concrete columns. One section of road was sent crashing into the hillside. Video shared on social networks showed a cargo truck whose driver was perched dangerously over the edge as the section in front of it collapsed. Many highway sections in Guizhou were affected by landslides and cave-ins. Flooded streets in cities like Rongjiang paralysed traffic, and low-lying zones including underground garages and basements of shopping malls were submerged. State meteorologists predict that more rain will fall in the coming days. They warn provinces including Guizhou which have been hit by storms that overlapped to be on guard. On Tuesday, temperatures in provinces to the north of the seasonal rainfall belt, such as Henan and Shandong, as well the capital Beijing were just below 40 degrees Celsius. In a report released on Monday by the World Meteorological Organization, under the United Nations, it was noted that Asia is warming twice as quickly as the average global rate, causing more extreme weather conditions and a heavy burden on the region. (Reporting and editing by Saad sayeed; reporting by Ryan Woo)
-
Wall Street Journal, June 24,
These are the most popular stories from the Wall Street Journal. These stories have not been verified and we cannot vouch their accuracy. C&S Wholesale Grocers has agreed to purchase SpartanNash, for approximately $1.77 billion including debt. The company is looking to expand their supply chain while keeping grocery prices low, as inflation worries are on the rise in America. After the companies agreed not to collaborate on boycotts based on political motivations, the U.S. Federal Trade Commission has allowed Omnicom Group to purchase Interpublic Group. New York plans to build the largest nuclear power plant in the United States, marking its first new major facility for more than 15-years. It is also a test of Donald Trump's promise that he would expedite permits for such projects. U.S. Semiconductor Supplier Wolfspeed signed a restructuring agreement with top creditors in order to reduce debt of approximately $4.6 billion through bankruptcy. Hormel Foods announced that former CEO Jeffrey Ettinger would return to Skippy Peanut Butter as interim CEO for 15 months beginning July 14. The U.S. Supreme Court cleared the way on Monday for the Trump Administration to quickly deport certain migrants back to their home countries.
-
Adani, the Indian billionaire, says that no one in his group has been charged with US FCPA violations
Adani Group chairman Gautam Adani denied on Tuesday any wrongdoing as a response to U.S. accusations of bribery. He told shareholders that no one from the group had been charged under U.S. Foreign Corrupt Practices Act. Adani stated at the annual general meeting of the company that "despite all the noise no one in the Adani Group was charged with violating FCPA or conspiring against justice." He said that the Adani Group had never given up, despite the constant scrutiny and storms. Adani, along with several other executives, were indicted by U.S. authorities on November 28, alleging that they had paid bribes for Indian power contracts, and misled U.S. investor. The Adani Group rejected the allegations and said that it was cooperating in legal proceedings. Since Hindenburg Research 2023, which alleged that the group was using tax havens in an improper manner, the Securities and Exchange Board of India has been investigating Adani Group and 13 of its offshore investors. The group has always denied any wrongdoing. The company is building the largest renewable energy park on earth in Khavda (western India) and aims to have 50 gigawatts of renewable power installed by 2030. Adani Group said it expects a combined total of 100 gigawatts in power generation by 2030 with its thermal, renewable, and pumped-hydro assets. Adani announced an unprecedented capital expenditure plan. The group said it expects to spend between $15 billion and 20 billion dollars annually in the next five-year period. Sethuraman NR in Bengaluru and Hritam Mukerjee, editor Anil D'Silva.
-
How Trump's metals tariffs affect the packaging on shelves
Andy Russick sells cans of fruit and tomatoes to major U.S. supermarkets, such as Kroger, and hospitals and schools. He shares the stated goal behind U.S. president Donald Trump's war on trade - combating cheap Chinese imports. When U.S. tariffs were doubled on steel and aluminum imports to 50%, on June 4, Andy Russick's company, Pacific Coast Producers, was collateral damage. Since 2017, Chinese fruit cocktail, vegetables, and other canned food imports from Southeast Asia and Europe are flooding U.S. grocery shelves, undercutting comparable products made in the United States. Russick stated that this trend will accelerate due to the recent round of tariffs imposed on the metal. The cost of specialty steel, which is used to preserve foods, has risen by about 6% at Pacific Coast in Lodi, California, as a result of these tariffs. "We are getting caught in this brush fire," Russick said, Vice President of Sales and Marketing at Pacific Coast. Pacific Coast is a major supplier of long-life white label products in the U.S. Steel and aluminum, metals that are used to package food, beverages, and personal care products such as shaving cream, are now more expensive, and forcing companies to consider alternatives, like fiber-based, glass, or plastic containers. The manufacturers of alternative packaging also see an opportunity to increase their business. Russick plans to switch some packaging in the coming years to aseptic cartons like those made by Swedish-Swiss Tetra Pak or Swiss-listed SIG Group. They also plan to sell more sauces to restaurants in foil pouches that are cheaper to reduce costs. Coca-Cola's CEO James Quincey said to investors in February that if the price of cans increased, they could focus more on plastic. "The trade conflict is fueling the discussion that we need aluminum out of beverage packages," SIG Group CEO Samuel Sigrist said, whose firm offers aluminum-free Aseptic cartons. Campbell Co, whose soup cans have become famous works of art, said that it is working to reduce the cost increase from tariffs. It will also continue to use steel cans as packaging. Scott DeFife is the head of the U.S. Glass Packaging Institute which represents these manufacturers. Zak Stambor is an analyst at eMarketer. "In the long term, companies might have to rethink packaging strategies." Pacific Coast's Russick plans to pass on to its customers $8 to $10 million of new costs resulting from tariffs imposed on specialty steel used in cans. The company expects this figure to rise to $40 million by next year. Russick stated that the price of cans for the Pacific Coast harvest could increase by as much as 24% due to tariffs. HUDLES These possible transitions from steel and aluminum to aseptic boxes or glass are not without their logistical and financial challenges. Glass bottles still tend to be more expensive than aluminum bottles, mainly because they are heavier. Aluminum cans are also a popular choice for some beverages in the United States: according to The Beer Institute, 64% of beer will be sold in aluminum cans by 2023. These cans are common in other fast-growing categories of beverages: energy drinks such as Molson Coors Zoa, still water brands like the wildly popular Liquid Death and pre-mixed cocktail. Jack Buffington is the director of supply-chain and sustainability for First Key Consulting, which provides advice to the brewing, beverage and beverage industries. According to the Aluminum Association, the average beverage can in America contains 71% recycled material. This figure could rise if U.S. citizens practiced more diligent recycling. Fernando Tennenbaum was Anheuser-Busch InBev’s chief financial officer in May. Before aluminum tariffs were doubled, he said that the impact on the company's finances of the levies applied to cans "was not relevant". He said that AB InBev does not plan to change its packaging. The vast majority of cans are sourced in the U.S. The company declined comment for this article. Coke, for example, may be able to respond more easily to the aluminum tariffs because they already use different packaging. Buffington explained that brewers who have closed bottling lines in order to concentrate on cans will have to invest heavily to retool. According to Coca-Cola’s environmental report for 2023, plastic packaging already accounts for nearly half of the global packaging, compared with 26% aluminum and steel. According to the company, only 8% of PepsiCo products in 2023 were packaged with aluminum. Coca-Cola & PepsiCo have not responded to our requests for comment. Krones, a leading packaging technology company in Germany, which produces glass bottling systems, has said that it hasn't seen any major shifts towards glass. DeFife, of the U.S. Glass Packaging Institute, said that a rapid, widespread shift to other packaging forms is unlikely in an uncertain environment, as companies are reluctant to make major financial or strategic choices based on policies which they believe could change. He said: "I think that some people are waiting to see if anything sticks or not." "A 30-day period is not going to threaten your supply chain right away."
-
REN21: Record renewables capacity is short of global target
The Paris-based think tank REN21 released a report on Tuesday that showed a record 740 gigawatts in renewable energy capacity added globally last year. However, this is still not enough to reach the global goal of triple renewable capacity by 2030. Why it's important At the COP28 U.N. Climate Conference in 2023, a target was set to triple the amount renewables like wind and solar so that a limit of 1.5 degrees Celsius (2.7 Fahrenheit), warming this century can be achieved. Analysts who track progress say that the world isn't on track to triple its capacity. They also say that the 1.5C limit is out of reach. By the Numbers The REN21 report revealed that the trajectory shows a shortfall in the target of 6.2 terawatts, which is greater than the total amount of renewables installed to date. Solar photovoltaics accounted for 81% new renewable energy capacity in the last year, as rooftop solar in developing countries increased and technology costs continued their decline. Solar PV is currently the only renewables technology that will be able to contribute to the global tripled capacity target. CONTEXT Many countries have rolled back climate change measures in the past year or will do so by 2025. The U.S. has withdrawn from the Paris Agreement and New Zealand reversed the ban on offshore oil exploration. Banks and oil and gas companies have also reduced their investments in energy transition. Even before President Donald Trump's tariff actions this year, trade measures also limited renewable development by 2024, as the West sought to protect its industries from cheap Chinese competition. KEY QUOTE "We are deploying solar and wind in record numbers but we have not built the systems required to transition to a renewables based economy," Rana Adib said, executive director of REN21. She added that "without coherent policies, coordinated plans, and resilient infrastructure, including grids, storage, and other components, even record deployments cannot deliver rapid and effective transformation." (Reporting and editing by Barbara Lewis; Nina Chestney)
As wildfires erase forests, Greeks argument: to replant, or not?
When a wildfire tore down a. hillside towards Athens last month, its southernmost flank. stopped in a treeless area burned by fire two years in the past. A few. miles west, nevertheless, the blaze found fresh fuel: woods and scrub. that provided a course towards the city's residential areas.
In its way stood the leafy village of Penteli, where Marlena. Kaloudi has lived considering that the 1970s. The fire swept through her. house. However what harmed most when she returned was the sight of her. pine trees, some over 100 years of ages, charred to an autumnal. brown.
The most significant catastrophe ... is not our house - this can be. brought back, stated Kaloudi, sitting by her gutted back deck. It's. those trees that were here before us and we hoped and prayed. would be here after us.
The devastation is a familiar sight in Greece and throughout the. Mediterranean region where fires have ended up being more regular and. strong, driven by greater temperatures and drier conditions that. researchers connect to environment change.
In the Attica region surrounding Athens, blazes have. destroyed 37% of its forests and meadows considering that 2017,. according to information launched in August by the National Observatory. of Athens, a government-funded research study centre. More than 60% of. broad-leafed forest and 41% of coniferous forest has actually been burned. and has not completely regrown.
The loss raises the risk of flash floods from rains on. denuded grounds no longer safeguarded by tree canopies and root. systems, in addition to greater air temperatures brought on by the. heating of unshaded ground, desertification and poorer air. quality, four experts stated.
It has actually likewise ignited an argument about what the government. reaction ought to be: continue with a program of replanting trees. that might offer fuel for future fires, or, as some scientists. desire, search for brand-new methods to adjust.
For Kaloudi, it's an apparent choice. After the last fire,. which went on to smother the city's northern residential areas, her. neighbours asked her to cut down the staying trees in her. garden. She refused.
The loss of this forest frightens me, she stated. What. scares me is the fact that there are individuals who want to cut the. trees that are left.
PLANT MORE TREES?
Wildfires have drastically modified Attica's landscape,. satellite images show. Hillsides, forested a few years earlier, have. become bald and rocky. Locations where forests do resprout are often. reburned. Bird song has actually vanished with the trees.
Data from Global Forest Watch, an effort that utilizes. satellites to track deforestation, shows that of all the. fire-related forest loss in Attica given that 2000, 74% has actually taken place. since 2017.
Greece is not alone. The U.N.'s Intergovernmental Panel on. Environment Modification (IPCC) has actually highlighted the Mediterranean region. as a 'international environment hotspot', with an increase in surface. temperature levels of 1.5 C from pre-industrial levels already driving. an increased threat of wildfires and drought.
Wildfires are also a growing danger in the United States,. Canada, Australia, and even the rainy United Kingdom. With that. threat has actually come an argument about what to do with a forest once it. has actually burned.
Some wish to replant trees to bring back root systems and to. recover lost carbon sinks. Others state forests and fire zones do. not mix.
Up until now, there is no clear evidence of which side is appropriate,. and regional elements identify what is best, the 4 specialists said. Still, some say a rethink is needed, specifically in areas where. the same locations are being repeatedly burned.
There is no terrific consensus on what to do, stated Camille. Stevens-Rumann, associate professor of fire ecology at Colorado. State University. Individuals typically want places to look like how. they did before, but that may not be suitable in a new fire. program.
Greece desires its forests back. With the aid of 450 million. euros from the EU, the federal government has embraced a nationwide fire. prevention plan that likewise consists of planting 1 million trees in. Attica.
The increase of greenery and its conservation is not only a. objective of the government but of the entire European Union, said. Efstathios Stathopoulos, Greece's General Secretary of Forestry.
The EU has a strategy to replant 3 billion trees throughout the bloc. by 2030, although the plan is not concentrated on replanting after. fires.
Not everyone believes resowing forests after fires works.
Theodore Giannaros, a fire meteorologist at the National. Observatory of Athens, surveilled a hillside outside Athens. blackened by last month's fire.
Next year, he said, the ground there, currently baking in. summer, will be even hotter for the absence of shade. The loss of. tree root systems will make the soil looser, increasing the danger. of floods or landslides, he said. There will be more dust.
Less flammable vegetation like some kinds of turfs or. agricultural land is the response, not trees, he said.
We have to seriously concentrate on how to bring back the landscape,. not just planting trees and forests, however in a way that will. be ... more durable versus natural catastrophes.
Fernando Pulido, teacher of forestry science at the. University of Extremadura in Spain, advised planting crops. or creating other barriers between dense forests in the. Mediterranean region.
This involves a modification in mentality ... however it's the only. method to guarantee that there won't be another fire at the very same. place after eight or 10 years, he stated.
THE FALLOUT
Meanwhile, areas previously untouched by fires are being. hit.
Thodoris Arvanitis has actually been a natural farmer on a 100-acre. plot in a woody location north of Athens for 35 years. He had actually a. school for aiming farmers, living quarters for employees, and. rows of polytunnels for his fruit and vegetables.
Last month, most of what he developed - up to 1 million euros of. devices and crops - was burned by the fire. Now, the sheet. metal of a gutted farmhouse clatters in the wind. A line of. newly planted fig trees is wiped out; stacks of charred. potatoes have actually been delegated rot.
Not all the crops were lost, and Arvanitis plans to reconstruct. On a current afternoon, personnel bagged up aubergines, french beans. and melons for delivery to consumers.
But he had a hard time to include his feelings when he talked. about the blaze, which was brought towards his home on the. surrounding trees. Without any assistance from the fire brigade, he. depended on other residents to help that day.
We were putting out fires occasionally. However new ones kept. breaking out. At some point we could not do anything more. The. fire was right outside our farm..
(source: Reuters)