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HPCL, India plans to increase the capacity of its Vizag oil refining plant by up to 20%
Rajneesh Narang, chairman of Hindustan Petroleum (HPCL), said that the state-run company plans to increase its Vizag oil refining capacity by up to 20% in order to meet local fuel demand. India, the third largest oil consumer and importer in the world, is increasing its crude processing capability. It wants to become a major global refinery hub. At the same time its fuel demand will continue to grow for the next decade. HPCL has recently increased the capacity of its Vizag refinery from 200,000 barrels to 300,000. It is now looking for an additional increase. "We are looking at increasing the (annually) capacity by 2-3 millions (metric) tonnes (40,000-60,000 Bpd). Narang said at the India Energy Week Conference that the board must approve this. He did not provide a cost estimate or time frame. HPCL is soon to start operating at Vizag's secondary units. This includes a 3.5-million-ton per year (tpy), residue-upgradation unit, which will boost distillate yields by 10%. It will also improve the gross refining margin by $3 a barrel. The company will also bring a diesel hydro desulphuriser of 2.6 million tons per year online. India's fuel consumption is set to increase with the growth of its economy. However, drivers are increasingly turning to electric cars and industries are shifting to renewable energy from diesel-generated power to reduce their carbon footprints. HPCL, to future-proof their plants, is building a petrochemical facility at its Barmer refinery that produces 180,000 bpd in the desert of Rajasthan. India's refinery has the highest petrochemical intensities - that is, the amount of crude oil converted into chemicals. Narang stated that the Barmer refinery's crude processing will begin between June and July, while the petrochemical plant will be operational by December. He said that the company would operate the Rajasthan refinery by making spot purchases of crude oil and sign annual crude purchasing deals for the plant after the units stabilize. HPCL operates a Mumbai refinery that produces 190,000 barrels per day in western India. Narang stated that the company imports approximately 21 million tonnes of crude oil annually, and about 8 to 9 million tonnes are procured on the spot market. The refiner, to reduce its crude import costs, set up a crude-trading desk last year, which negotiates better terms with oil sellers instead of floating tenders on spot purchases.
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Trump's new tariffs have pushed gold prices to record highs
The gold price reached a new record on Tuesday as investors sought out the safe haven asset following President Donald Trump's 25% tariffs on imports of steel and aluminum. This fueled fears over inflation and a possible trade war. As of 0229 GMT the spot gold price was up 1.1%, at $2,939.80 an ounce. It had earlier reached a session high of $2.942.70. U.S. Gold Futures also rose 1.1% to $2966.00. Trump raised the tariffs on imports of steel and aluminum on Monday from a flat rate of 25% to a 25 percent rate "without any exceptions or exclusions". This was done to help struggling industries, but it also increased the risk for a multi-fronted trade war. Trump's tariffs, which have fueled global growth uncertainty, trade war fears, and inflationary tension, has led to the eighth highest level of gold so far in 2018. Bullion has traditionally been considered an investment during times of political and economic instability. The risk of a trade war around the world is driving the financial markets to invest in gold, as part of what could be described as an overall de-dollarisation strategy, said Kyle Rodda. Dealers are shipping gold to the U.S. in order to avoid potential tariffs. Gold futures in the United States are trading at a higher price than spot gold, which is currently around $26. Gold prices have soared to $3,000 and new heights as a result of the threats. Investors are awaiting the Consumer Price Index data (CPI) and Producer Price Index data (PPI) for Thursday. Jerome Powell, the Federal Reserve chair, is due to appear before Congress on both Tuesday and Wednesday. Spot silver increased 0.4% to $32.16 an ounce. Lukman Otunuga, senior research analyst at FXTM, said that while tariff fears could support silver prices in the short term, they may be limited by a fall in industrial demand due to Trump's tariffs. Palladium increased 0.4%, to $986.97. Platinum fell 0.4% at $989.50. (Reporting and editing by Sherry Phillips in Bengaluru, Anushree mukherjee from Bengaluru)
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Iron ore prices rise as supply disruptions offset Trump tariff threats
Iron ore futures prices extended gains for the second consecutive session on Tuesday as fears over weather-related disruptions to supply in Australia, a major supplier, outweighed discontent with new tariffs announced by U.S. president Donald Trump. As of 0214 GMT, the most-traded contract for May iron ore on China's Dalian Commodity Exchange was trading 0.79% higher. It was 827.5 Yuan ($113.24), per metric ton. Earlier in the session, the contract reached its highest level since 10 December at 830.5 Yuan per ton. As of 0211 GMT the benchmark March iron ore traded on the Singapore Exchange had risen by 0.35% to $107.55 per ton. This was the highest price since October 10, 2024. After a Bureau of Meteorology weather warning, the operator of Australia's port of iron ore export Port Hedland which is used by BHP Group and Fortescue as well as billionaire Gina Rinehart’s Hancock Prospecting started clearing ships from the Port. This came after the top supplier Rio Tinto cleared two ports in Western Australia last week. This had led to a sharp drop in shipments over this period, according to traders. The unrest caused by Trump's new tariff threats has tempered gains. Trump raised the tariffs on imports of steel and aluminum on Monday from a flat rate of 25% to a 25 percent rate "without any exceptions or exclusions". This was done to help struggling industries, but it also increased the risk for a multi-fronted trade war. Tariffs will be applied to millions of tonnes of steel and aluminium imports from Canada and Brazil. They also apply to South Korea, Mexico and other countries. ANZ analysts wrote in a report that the tariffs may weaken demand for ore if China's steel export markets are affected. Coking coal and coke, which are used to make steel, also fell, by 0.44% each and 1.06% respectively. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. Rebar fell 0.66%, while hot-rolled coils dropped 0.41%. Wire rod also declined 0.72%, and stainless steel slipped 0.71%.
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Investors weigh Trump's latest tariff threats as they assess the gold price and stock market.
The dollar was stable and Hong Kong stocks advanced to a 4-month high on Tuesday, as investors navigated changes in U.S. Trade Policy and waited for Federal Reserve Chair Jerome Powell to speak on tariffs and inflation. Oil prices held on to an overnight surge. Hong Kong's Hang Seng index has risen more than 12% over the past month, as Donald Trump's government threatened and then suspended blanket tariffs against Canada and Mexico. This seems to confirm investor assumptions that all is negotiable. Trump raised tariffs on imports of steel and aluminum to 25% on Monday, which pushed up the share prices of U.S. Steelmakers. The tariff on Chinese imports was 10% earlier this month. Chinese retaliatory duties on U.S. goods and energy were imposed on Monday. Although there has been little progress in a trade agreement between Beijing and Washington so far, expectations remain high. Prashant Bhayani is the chief investment officer for Asia at BNPParibas Wealth Management. He said that because he's a natural businessman, there will be deals made at some point. "So, that's why we've measured the market." The Chinese Yuan, in currency trading, has fallen below the level of 7.3 dollars and was trading at 7.3071 Tuesday morning. The Australian dollar was unchanged at $0.6273. Trump said he would "greatly consider" Australia's request to be exempted from steel tariffs. Gold reached a record high just above $2.935 an ounce. Marc Chandler, Bannockburn Global Forex's chief market strategist in New York said: "This is very early days." The market is just chopping about rather than being really directional at the moment. The dollar was stable against the Japanese yen at 152.01 and was $1.03 to the euro. Both the Canadian dollar and the Mexican peso were down as these countries are bearing the brunt from Trump's tariffs on metals. Wall Street closed with gains, led primarily by the tech and energy sectors. The S&P 500 Materials index increased 0.5%. Steel companies like Nucor and Steel Dynamics gained 4.9%. After McDonald's reported its quarterly results, shares of the fast food restaurant rose 4.8%. Investors are saying: 'Hey let's get back to the areas that have worked.' Sam Stovall is the chief investment strategist of CFRA Research. He believes that earnings are one reason why investors remain optimistic. The STOXX 600 Index for Europe rose by 0.58% on Monday to a new record high of 544.92, led by the 1.5% increase in oil and gas prices. Dutch and British wholesale prices of gas rose on Monday to two-year highs as the colder weather increased gas demand and storage withdrawals increased. The Fed Chair Powell will be speaking Tuesday at the semi-annual testimony on monetary policy before the Senate Banking, Housing and Urban Affairs Committee. It is likely that his comments on inflation and tariffs will be closely watched. According to CME's FedWatch Tool, the markets expect the Fed to keep rates unchanged at its meeting in March. Expectations for a rate cut of at least 25% basis points will not rise above 50% until June. The benchmark 10-year Treasury yields were closed at 4,495%. There was no trading in Asia due to a holiday in Japan.
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Indian oil companies are in talks with U.S. LNG suppliers to purchase their supplies
Pankaj Jain, the Oil Secretary of India, said that Indian oil companies were looking to purchase U.S. LNG. This was a result of Trump's administration lifting its ban on new export permits. India, the world's fourth-largest LNG importer, aims to increase its gas share in its energy mix from 6.2% to 15% by 2030. Jain stated that Indian oil companies were in talks with U.S. firms to source additional LNG. Among these companies, he said, were GAIL (India) Ltd., Indian Oil Corp. and Bharat Petrol Corp. Jain, a reporter, said that Indian companies will discuss gas supply with U.S. LNG suppliers on the sidelines the India Energy Week four-day conference starting Monday. He added that Indian companies might consider purchasing stakes in U.S. LNG Projects if the deals are attractive. Sandeep Kumar Gupta said that GAIL would revive plans to purchase a stake in an American LNG plant or secure long-term US gas deals. GAIL imports 5,8 million tons of U.S. Liquefied Natural Gas (LNG) annually, under long-term agreements. The LNG is split between Berkshire Hathaway Energy’s Cove Point facility and Cheniere Energy’s Sabine Pass plant in Louisiana. Qatar supplies the bulk of India's LNG under long-term deals, and prices are linked to crude oil. Jain suggested that India's gas sourcing should be a mixture of U.S. Henry hub and crude oil-linked prices. Indian companies are especially keen to purchase LNG from the U.S., as crude oil can be bought from multiple sources. Hardeep Singh Puri, the Indian Oil Minister, said that energy imports will be discussed this week when Prime Minister Narendra Modi and President Donald Trump meet. At least six Asian nations, including Japan, Taiwan and South Korea, have expressed an interest in purchasing U.S. LNG. Some are looking to reduce their trade deficits due to Trump's tariff threats while others want to diversify and expand supplies. Clarence Fernandez edited this article.
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Australian shares rise on the back of gold stocks
Australian shares rose Tuesday as gold miners reached a record high following the bullion’s record rally. Other sectors also gained from broad-based purchasing and investors were focused on earnings reports of several heavyweight corporations. S&P/ASX 200 Index rose 0.2%, to 8,502.9 at 0008 GMT. The benchmark index fell 0.3% Monday. Gold miners on the broad market gained up to 2.6%, reaching a new record high. The safe-haven market drove gold prices to a record high and they broke the $2,900 barrier for the first. Northern Star Resources increased by 3.1% while Evolution Mining grew by 2.5%. Financials increased by 0.1%, with Westpac up 0.5%. Macquarie, the country's biggest asset manager, rose by 1.7% following a profit that was largely flat for nine months. Investors are now awaiting the earnings of Commonwealth Bank of Australia due on Wednesday. Oil prices soared nearly 2% Monday, after a third consecutive week of declines. Brent crude futures settled $1.21 or 1.6% at $75.87 per barrel while U.S. West Texas intermediate crude rose $1.32 or 1.9% to $72.32 per barrel. The healthcare sector rose 0.4%. This was mainly due to biotech giant CSL which grew 1.7% following a growth in its half-year profits. The Dow Jones Industrial Average in the United States rose 167.01 or 0.38% overnight, to 44,470.41 on Monday. The S&P500 gained 40.45, or 0.67, and Nasdaq gained 190.98, or 0.98%. Diversified investor SGH, among individual stocks rose as high as 9.4% after its first-half earnings easily exceeded analysts' expectations. The benchmark S&P/NZX50 index in New Zealand rose by 0.2% to 12,898.8.
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Trump's latest trade war salvo includes tariffs on steel and aluminum imports
On Monday, President Donald Trump raised the tariffs on imports of steel and aluminum to a flat rate of 25% "without any exceptions or exclusions". This was done to help struggling industries. However, it increased the risk that a multi-fronted trade war would occur. Trump signed proclamations increasing the U.S. aluminum tariff rate to 25%, from 10%. He also eliminated country exceptions, quota agreements and hundreds of thousands product-specific exclusions. An official at the White House confirmed that these measures would go into effect on March 4th. Tariffs will be raised to 25% for millions of tons imported steel and aluminum from Canada, Brazil Mexico, South Korea, and other countries, which had previously entered the U.S. without duty. Trump told reporters that the move would simplify tariffs for metals, "so everyone can understand what it means." "It is 25%, without exemptions or exceptions." All countries are included, regardless of where they come from. Trump said that he would "consider" Australia's request to be exempted from the steel tariffs. These proclamations are extensions of Trump’s Section 232 Tariffs from 2018. They were made to protect domestic aluminum and steel producers on the basis of national security. An official at the White House said that the exemptions have weakened the effectiveness of the measures. Trump will also impose a North American standard that requires steel imports be "melted, poured", and aluminum imports be "smelted, cast" in the region. This is to reduce U.S. metal imports from China and Russia. A White House official confirmed that the order extends tariffs on downstream products using foreign-made steel. This includes fabricated structural steels, aluminum extrusions, and steel strands for pre-stressed cement. Trump signed the order in the White House and announced that he would announce reciprocal tariffs for all countries who impose duties on U.S. products over the next two business days. He also said he had his eye on tariffs for cars, semiconductors and pharmaceuticals. When asked about the threats of retaliation from other countries in response to his new tariffs Trump replied: "I'm not bothered." Peter Navarro, Trump's adviser on trade and commerce, said that the new measures will help U.S. producers of steel and aluminum and strengthen America's economy and national security. He told reporters that the steel and aluminium tariffs 2.0 would put an end foreign dumping and boost domestic production, as well as secure America's steel and Aluminum industries. This isn't about just trade. It's to ensure that America will never have to depend on foreign countries for critical industries such as steel and aluminum." In 2018, Trump began imposing tariffs on steel and aluminum under an anti-Cold War national security law. Later, he granted exemptions to several countries, including Canada and Australia. He also struck duty-free deals with Brazil, South Korea, and Argentina, based on their pre-tariff volume. Joe Biden, the former president of the United States, who succeeded Trump, negotiated a similar duty-free tariff for Britain, Japan, and EU. "We applaud President Obama for instituting the 25% tariffs on imports of steel and eliminating exclusions, carving outs, and quotas based on outdated data," said Philip Bell of the Steel Manufacturers Association. Bell explained that these figures were based upon import levels from 2015-2017, which no longer reflect the current dynamics of the market. Shares of U.S. and European steel and aluminum producers soared before the announcement, while those of European and Asian steelmakers declined. According to data from government and industry, the top three sources of U.S. imports of steel are Canada, Brazil, and Mexico. South Korea, and Vietnam follow. In the first eleven months of 2024, Canada's extensive hydropower resources, which aid its metal production and manufacturing, accounted 79% of U.S. imports of primary aluminum. U.S. Trade Partners warned that the new barriers will hurt U.S. Automakers, Shipbuilders and Other Industries. Don Farrell, Australian Trade Minister, said that Australian steel and aluminium create thousands of American jobs and are vital to our common defense interests. The U.S. Distillers warned the EU that steel tariffs may prompt them to increase duties on American whiskey. Chris Swonger is the CEO of the Distilled Spirits Council of the United States. He said that a 50% tariff on America’s native spirit would have catastrophic consequences for the 3,000 distilleries in the United States. The European Commission stated that it did not see any justification for these tariffs. President Ursula von der Leyen will meet U.S. vice president JD Vance on Tuesday in Paris during an AI Summit. The South Korean Industry Ministry invited steelmakers to South Korea to discuss ways to minimize tariffs' impact. RECIPROCAL TARIFFS Trump has also promised to provide detailed information about his reciprocal tariff plan on Tuesday or on Wednesday. He has complained for years about the EU's tariff of 10% on auto imports. This is much higher than the 2.5% U.S. rate. The U.S., however, applies a tariff of 25% on pickup trucks. This is a major source of profit to Detroit automakers such as General Motors. According to World Trade Organization statistics, the average U.S. tariff rate, weighted by trade, is 2.2%. This compares to 12.0% for India, 6.7% in Brazil, 5.1% in Vietnam, and 2.7% within the EU. Indian officials claim that Indian Prime Minister Narendra Modi has been preparing tariff reductions ahead of his meeting with Trump on Wednesday. These could increase American exports. Trump called India "a very big abuser" of trade in the past, and his top economist Kevin Hassett referred to India as having "enormously" high tariffs during a CNBC interview. Trump had threatened to impose 25% tariffs on all imports coming from America's largest trading partners Canada and Mexico. He said they needed to do more to stop the flow of migrants and drugs across the U.S. Border. Trump suspended the tariffs on March 1 after making some concessions in border security. Data from the United States showed that last year, demand for aluminum far exceeded production in the country. This left it largely dependent on imports.
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Trump announces reciprocal tariffs in the next two days
Donald Trump, the U.S. president, said on Monday that he will announce plans to impose tariffs against other countries in the next two weeks. This is a confirmation of comments he made Sunday. In the Oval Office, the Republican President spoke with reporters as he signed proclamations that ended all exemptions from steel and aluminum tariffs imposed in his first term. He also raised duties on both metals by 25%. Trump also said that he would be looking into tariffs on automobiles, semiconductor chips, and pharmaceuticals. An official in the United States said that under former president Joe Biden, the exclusion process started under Trump had become out of control. This resulted in hundreds of thousands specific product exclusions being approved. When asked about the possibility that other countries could retaliate against U.S. Tariffs, Trump replied: "I don’t mind." In an interview given to Fox News, Trump claimed that other countries have been imposing duties on US imports for years. He said, "It is not fair that we have been exploited by other countries for so long, and suddenly, we are not allowed to charge tariffs." Trump said in an interview with Fox News that he will announce a "very complex plan" to deal with the reciprocal tariffs on Monday or Tuesday. Steve Holland, Andrea Shalal and Leslie Adler edited the story.
Ecuador's bonds tumble after election stalemate
Ecuador's government bond prices plunged Monday, after a tight result in the presidential election surpassed market expectations of a victory for Daniel Noboa.
The center-right Noboa, and his main opponent, the leftist Luisa González, both secured 44% of the vote on Sunday, which means the race will now go to a second round on April 13.
Analysts warned of the uncertainty in Quito. The main bonds for 2030, 2035, and 2040 fell between 5.0 to 10.6 cents per dollar or 8% to 16%.
JPMorgan stated in a report that "we hold our excess in Ecuador, but we acknowledge the market may initially correct itself due to the perception of a greater binary risk."
The performance of Ecuadorean bonds was among the best across all sovereigns. This is partly due to a more stable and effective government that Noboa established in November 2023 following a snap general election. The bonds rose 17% through Friday, after gaining nearly 70% at the index-level in 2024. Some polls had Noboa winning the first round.
Noboa is the market's favourite candidate because of his efforts to combat violent drug gangs in Ecuador and long-standing debt problems, said Graham Stock. He's a senior emerging markets strategist at RBC BlueBay.
Stock stated that "it is a very disappointing result for market" and added that Noboa's and Gonzalez's near 90% vote share meant the second round would be a "scramble".
Leonidas Iza was the third-place candidate, an indigenous leader from the Pachakutik Party who received 4.8% of the first round votes on Sunday and had been critical of government environmental records.
Tellimer Research analysts gave Gonzalez a slight edge in the run-off because they downgraded Gonzalez's debt to "sell", arguing that Gonzalez's coalition was more fragmented.
Since the early 2000s, the country has not been able to access international capital markets. However, it recently completed its second high-profile swap of debt for nature with the support of the Inter-American Development Bank (IDB) and the U.S. Government's International Development Finance Corporation. Reporting by Marc Jones, Rodrigo Campos and Toby Chopra; Editing by Hugh Lawson, Toby Chopra and Sharon Singleton
(source: Reuters)