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Commodity exchange Abaxx will launch a lithium carbonate contract March 7
Abaxx, a Singapore-based commodities exchange, plans to launch on 7 March a contract for lithium carbonate that can be delivered physically at three different locations. The company announced this on Thursday. Abaxx Technologies Inc., a Canadian-listed company, began trading the nickel sulfate contract, its first battery product, on January 10. A statement stated that the contract will be delivered in Singapore, Rotterdam, and Baltimore. The price is in U.S. Dollars and represents 1 metric ton lithium carbonate. There are no physical deliverable futures contracts for lithium carbonate outside China. Since its launch in July 20,23, the Guangzhou Futures Exchange in China has seen a strong increase in its Lithium Carbonate Futures. However, foreigners are not allowed to participate. The U.S. CME Group has contracts with cash settlements in both lithium carbonate and hydroxide, the first of which is a very popular contract. The London Metal Exchange also offers cash-settled contracts for lithium hydroxide. However, its contract failed to trade in this year. Both lithium carbonate and lithium hydroxide are processed forms of this mineral that is used in the batteries of electric vehicles. However, hydroxide cannot be physically delivered because it can't be stored. Abaxx had previously stated that it worked with a major manufacturer of lithium carbonate in order to support the contract. However, the statement didn't specify which brands or producers would be approved for this contract. The nickel contract on the exchange is the first ever futures contract in nickel sulphate. Abaxx has also contracts for LNG and carbon. (Reporting and editing by Christina Fincher, Eric Onstad)
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AEP's fourth-quarter profits rise as demand for electricity increases due to data centers
American Electric Power, a U.S. utility, posted an increase in its fourth-quarter profits on Thursday as the demand for electricity from commercial customers was boosted by data centers. Big Tech is investing billions of dollars in artificial intelligence and the infrastructure required to develop it. As a result, power utilities are experiencing a massive surge in demand. Bill Fehrman, CEO, said: "In 2024 we saw significant growth in commercial loads, due largely to the economic development of Indiana, Ohio, and Texas." The utility said that it expects retail loads to grow by up to 9% per year over the next three. It also stated that the company could handle more than 20 gigawatts in new growth. AEP also said that it was evaluating a $10 billion potential investment in its five-year plan for capital expenditures, which is currently $54 billion. Energy Information Administration (EIA) predicts that power consumption will reach new records this year and next due to the growing demand for data centers devoted to AI and cryptocurrency and because homes and businesses are using more electricity to heat and transport. AEP has approximately 5.6 million customers across 11 states, and the largest transmission system of electric power in the United States. The Columbus, Ohio, based company earned $664.11 million or $1.25 a share in the three-month period ended December 31 compared to $336.2 million or 64 cents a share last year. (Reporting and editing by Maju Sam in Bengaluru, Vallari Srivastava from Bengaluru)
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Tata Motors India plans to double the number of EV charging stations
Tata Motors (India's EV leader) announced on Thursday that it would more than double the number of charging points in India to 400,000 within two years. This will address concerns about range and charging infrastructure, which have plagued EV sales. In the next two-year period, the company, along with its electric vehicle charger operators Tata Power, Statiq and others, will install 30,000 new public charge points and a verified "Mega Charger" network at 500 locations. Other EV manufacturers will be able to use the 'Mega Chargers' network. The company has said that it would include 120-kilowatt charging guns. The government is aiming to increase this figure to 30% by 2030. The government will give incentives of 20 billion rupees (230 million dollars) for the establishment of public fast-charging station in a market in which most EV owners charge their cars at home.
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Asia replaces Russian crude oil quickly: Russell
Asia's crude markets are quickly adjusting to the new sanctions against Russia, grabbing cargoes as they come and looking for alternatives to deliver in the coming months. According to LSEG Oil Research, the top oil-importing continent Asia is expected to receive approximately 3.23 million barrels of Russian crude per day in February. India and China both bought less, but this is a decrease of 7.4% compared to January's 3,49 million bpd. In Asia, there are only two major buyers of Russian crude oil by sea, namely India and China. Myanmar does also take a small amount. LSEG expects India's imports to Russian oil to reach a record high in three months, at least 1,71 million bpd. This figure may increase by the end February as more cargoes will be assessed. After Western sanctions shut down customers in Europe, the South Asian nation has become the largest buyer of Russian crude. India was allowed to purchase Russian oil at discounted prices as the United States, and other Western countries, tried to keep Russian oil on the global market. However sanctions were imposed after the February 2022 invasion by Ukraine to cut off the revenue flowing to Moscow. Last month, former president Joe Biden imposed restrictions on Russia's shadow tanker fleet in order to prevent the vessels from delivering crude oil. The Indian refiners were scrambling to purchase as much Russian crude before the new measures took effect, resulting in an increase in arrivals in February before a possible decline in March. Chinese refiners have cut back more quickly on Russian crude. Imports of seaborne crude in February are expected to be around 500,000 barrels per day, down from an average of 1.05 million barrels per day over the previous three months. According to LSEG's estimates, China's crude imports are expected to total 10.35 million bpd for February, which is roughly the same as January's 10,10 million bpd but lower than 11.16 million bpd from February 2024. China has replaced Russian crude oil with cargoes from suppliers other than Russia. So far, it appears to have mostly turned to Angola or Brazil. Switching suppliers is a good way to save money. The imports of Angolan crude oil in Asia are expected to jump to 1.13m bpd by February, up from 670,000bpd. Those from Brazil will also increase to 1.05m bpd. China's decision, as part of its response to the new president Donald Trump's 10% tariff on all Chinese imports, to levy 10% tariffs on crude oil imports has made the situation even more complicated. It will take several more months before the tariffs on U.S. crude oil are applied to actual imports. This is because there are several months between when the cargoes are organized and when they arrive. Kpler, a commodity analyst firm, estimates that China's imports from the U.S. of crude oil will increase significantly in March and April. Arrivals for March are currently estimated at 339,000 barrels per day and those for April to be 461,000. These cargoes have already been placed on the water, or arranged. China's imports of crude oil from the United States are likely to fall in May, but India could pick up the slack. These are the views of the columnist, an author for.
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Business Minister says UK is hopeful about U.S. steel duty exemption
The British business minister stated on Thursday that Britain would try to convince the U.S. Government to avoid tariffs for its steel and aluminum products due to their sensitive role in the U.S. manufacturing supply chain and defence industry. Donald Trump, President of the United States, said Sunday As part of his new trade policy, he will impose 25% tariffs on steel and aluminum imports to the U.S. on top of existing metals duty. Jonathan Reynolds, Britain's Business Minister, agreed with the U.S. on the issue of overcapacity around the globe, but added: "There's a strong argument that the UK isn't the problem". Reynolds told an audience in London that the British steel and aluminum exports to the U.S. were "sensitive defence" parts and products that are part of the U.S. supply chain. He would negotiate on this basis. He said: "I will be trying to engage...I believe there is a basis for a discussion." He also emphasized that Trump's policy on trade was designed to reduce the U.S. goods trade deficit with the European Union And with China, and not Britain. Trump says Early February When talking about tariffs, he said that he believed something could be "worked-out" with Britain. The United States and Britain trade goods and services worth hundreds of billions dollars each year, but London Hopes The data's ambiguity will be used to exclude the product from Trump tariffs. UK Steel, the industry body for UK Steel, warned that tariffs could have a "devastating effect" because the U.S. represents the UK's second-largest export market worth more than 400 million pounds per year. (Reporting and writing by Paul Sandle, Catarina demony and Sarah Young; editing by William James and Kate Holton.
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Apptronik raises 350 million dollars to scale up production of humanoid robotics
Apptronik announced on Thursday that it had raised $350m in a funding session led by B Capital, Capital Factory and Alphabet's Google, for the production of AI powered humanoid robotics. Austin-based company, Apollo Robotics, is developing a humanoid or human-like robot that will be able to perform tasks in manufacturing plants and warehouses, such as moving packages. Apptronik is joining the ranks of competitors like Tesla and Nvidia's Figure AI, in the race to create human-like robots. Artificial intelligence advances have led to major breakthroughs in robotics. Tesla CEO Elon Musk stated in October of last year that "a great deal of progress" had been made with the humanoid robot, "Optimus", that could perform daily tasks. This is a turning point in the industry. In my mind, robotics and artificial intelligence are very similar to the large language models of 2023. In an interview, Jeff Cardenas, CEO and cofounder of Apptronik said that 2025 will be a big year for robotics. The investment will be used to expand Apollo's capabilities in other industries, including eldercare and healthcare. Apptronik announced a partnership between Google DeepMind and its robotics team. It also said that it had commercial agreements for its humanoid bots with Mercedes-Benz, GXO Logistics and GXO Logistics. (Reporting from Anna Tong in San Francisco, and Harshita Varghese at Bengaluru. Editing by Tasim Zaid)
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PG&E increases its core earnings forecast for 2025 on the basis of higher electricity rates
PG&E Corp. raised its core earnings forecast on Thursday, benefiting from lower operating costs and higher electricity prices. California Public Utilities Commission has approved an additional request for the company to increase electricity prices. This follows a similar approval last year. The utility reported a 10.5% rate base increase in 2024. U.S. Electric utilities are pushing to increase rates, due to the increasing demand for grids from industries like transportation, data centers, and manufacturers. The company reported that it would add nearly 14,000 additional customers to its electric grid in 2024. Patti Poppe, CEO of PG&E Corporation, said that "in 2024 we will connect more new customers to the grid than in previous decades." In February, the company's data center pipeline had increased by two gigawatts (GW) since July of last year. PG&E, the parent company of Pacific Gas and Electric Company (PG&E), is an energy company serving 16 million Californians in a 70,000 square mile service area. Oakland, California based company increased its forecast for full-year adjusted core earnings per share to between $1.48 to $1.52, up from previously $1.47 to $1.51. According to data compiled from LSEG, analysts expect earnings per share of $1.49. In 2024 the company's operating costs will be down 8.3%, to $19.96 Billion, compared to last. PG&E's adjusted core profit for the fourth quarter was 31 cents per common share. This is in line with analyst estimates. The company's shares rose by 1% during premarket trading. (Reporting by Pooja Menon in Bengaluru; Editing by Shinjini Ganguli)
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Duke Energy increases five-year capital expenditure plan to meet increased industrial and data center demand
Duke Energy raised its five-year plan for capital expenditures to $83 billion on Thursday, an increase of 13.7%. The utility is looking to improve its grid in order to capitalize on the increasing demand from data centres and increased electrification. According to the U.S. Energy Information Administration, U.S. electricity demand will reach record levels in 2025 and 2026, due to demand from data centres dedicated to artificial intelligence, cryptocurrency and homes and businesses to heat and transport. Duke plans to raise $6.5 billion in equity during its 2025-2029 capital plan, including $1billion this year. It plans to finance approximately 40% of its increase in capital plan through equity. By 2029, the company expects to have nearly 5 GW of natural gas-powered power installed. The capex plan for the company from 2024 to 2028 was $73 billion. Duke's electric segments and its gas segments reported a 5% increase in income for the fourth quarter ending December 31. This is compared to the same period last year. According to LSEG, despite interest costs, a high tax rate, and storm-related costs, the electricity provider reported a profit per share of $1.66 on an adjusted basis, which was in line with analyst estimates. Duke, North and South Carolina's largest utility, was hit by Hurricanes Debby and Milton, which destroyed miles of transmission and power lines, leaving thousands of Duke customers without electricity. Interest rates that are higher for longer can be a burden on utilities. This is because it increases the cost of investing in critical infrastructure, such as electrical grids. The utility based in Charlotte, North Carolina, reported revenues of $7.36 billion. This was higher than the analysts' average estimate, which was $7.33 billion. This is largely because of higher residential sales, and higher rates. Duke's 2025 forecast has earnings in the range of $6.17 to $6.42 a share. The midpoint is slightly lower than the estimate of $6.33 a share. Reporting by Seher dareen from Bengaluru, editing by Shash Kuber
IEA: Russian oil production unaffected so far by US sanctions
The International Energy Agency (IEA), in its latest report on the oil market, said that Russian oil exports may be maintained if workarounds are found to the new U.S. sanction package, following a slight increase in Russian crude production last month.
The IEA reported that Russian crude oil production increased by 100,000 barrels per month (bpd), to 9,2 million bpd last month, despite the fact that its energy sector had been hit with extensive sanctions on January 10th.
The IEA stated that oil markets had shown resilience and adaptability to major challenges in the past, and it is not likely to change this time.
The Paris-based agency said in its previous monthly report that Washington's new sanctions package could disrupt Russian oil supply chain, but held off on changing its forecasts until it was clear what impact they would have.
The IEA said that the sanctions announcement pushed oil prices up $8 to five-month-highs by mid-January. However, those gains were almost reversed at the end of January due to growing concerns about the global economy, and the possible impact of emerging trade wars.
The IEA continues to forecast that non-OPEC+ supply will grow faster than global demand. The IEA predicts that non-OPEC+ oil production will increase by 1.4m bpd in this year. This is compared to a forecast for demand growth of 1.1m bpd, which was slightly higher than the previous forecast.
The IEA stated that China is still the main driver of global oil demand. Its petrochemical industry will be affected by the slowdown in China's demand for conventional transportation fuels.
In a sign that structural changes are reshaping Chinese demand for oil, the use of three of the most important fuels, gasoline, jet/kerosene, and gasoil, has declined slightly in 2024. Reporting by Robert Harvey in London and Alex Lawler Editing by David Goodman & Aidan Lewis
(source: Reuters)