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Iron ore prices fall on uncertain demand, but still head for a weekly gain
The price of iron ore futures fell on Friday, despite a trade truce that was reached between the US and China. This is due to signs of a softer near-term market demand as well as growing concern over the outcome of the Sino-U.S. Tariff War. The September contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 0.95% lower, at 728 Yuan ($101.11), a metric tonne. This marked a 4.5% weekly increase. As of 0703 GMT the benchmark June iron ore traded on the Singapore Exchange fell 0.83% to $100.35 per ton. This represents a 3.5% gain for this week. Both benchmarks are up around 3% in May. A survey by consultancy Mysteel revealed that the average daily hot metal production, which is a measure of iron ore consumption, fell 0.4% compared to the previous week, reaching around 2,45 million tons on May 15. This weighed down sentiment and prices. Analysts and traders expect hot metal production to remain stable in May and June, as mills are encouraged by profit margins to keep up high operating rates. The easing of trade tensions is likely also to spur another round of early shipments of steel. Benchmark Mineral Intelligence analysts forecast a $100 average annual ore price, reflecting a subdued outlook for demand, possible China steel production limits, and renewed optimism about easing trade tensions. Coking coal fell by 3.84%, to its lowest level in over eight years. Meanwhile, coke dropped by 1.93%. The benchmarks for steel on the Shanghai Futures Exchange have also fallen. Rebar fell 1.15%; hot-rolled coil dropped 0.95%; wire rod sank 1.25%; and stainless steel declined 0.65%. ($1 = 7,2002 Chinese Yuan) (Reporting and editing by Mrigank Dahniwala and Eileen Soreng; Amy Lv, Lewis Jackson)
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Lotte Chemical will start operating Indonesia cracker by H2 2025
An executive from Lotte Chemical's Malaysian affiliate told reporters on Friday that Lotte Chemical intends to begin operations at its new cracker plant in Indonesia by the second half 2025. The cracker, which can produce 1,000,000 metric tons of ethylene per year, is part of the $3.95 billion Cilegon project in Indonesia's Banten Province. The facility will be operational at a moment when global petrochemical firms are experiencing lower margins due to an oversupply of ethylene from China. Philip Kong, Executive Vice President, Corporate Planning at Lotte Chemical titan (LCT), said that Lotte Chemical had reduced its stake from 49% to 24% in order to manage its finances. The equity was sold to a group of five Korean finance companies. LCT is 51% owner of Lotte Chemical Indonesia. He said that the company was looking for Middle East naphtha as a feedstock for crackers, on the sidelines the Asia Petrochemical Conference. He added that Lotte could also switch 50% of its feedstock to natural gas liquids, such as liquefied petrol gas (LPG) or ethane. Kong, vice president of the Malaysian Petrochemicals Association and LCT's Malaysian representative, stated that the company has been operating at only 45%-50% capacity since the middle of December. Local media reported the company's intention to sell assets. Kong stated that the petrochemical sector is currently experiencing a trend of mergers and purchases, so they are looking at all possible angles to maximize shareholder value.
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MORNING Bid EUROPE: Trade-driven rally concludes the week on a low note
Stella Qiu gives us a look at what the future holds for European and global markets. The week began with a bang, but by Friday traders were beginning to worry that the recovery had been overshot. They also feared that there would be more twists and turn in the trade saga. Wall Street and European futures are virtually unchanged, while Asian shares are in a mixed state. Hong Kong's Hang Seng fell by 0.8%. Alibaba's more-than-5% fall was a major factor. Investors were not impressed with its earnings. Australian shares performed better, rising by 0.7%. Now, it seems that the stock market is acting as if there was never a tariff war. MSCI's broadest Asia-Pacific share index outside Japan hovers just below its seven-month high. Even blue-chip stocks in China have recovered their losses since President Donald Trump's April 2 announcement of "reciprocal tariffs" on the rest the world - which has since been put on hold. Investors who had been beaten down by the bond market cheered a surprise drop in U.S. Producer Prices and a soft core Retail Sales print. They increased their forecast for rate cuts from 49 basis points to 56 basis points for this year. The benchmark 10-year Treasury yield fell by 3 basis points on Friday to 4.424%, continuing a 7-bps drop overnight. Trump has been very busy over the last few days promoting deals in the Middle East. This includes a possible nuclear deal with Iran. Trump's remarks that a deal is near sent oil price tumbling by 2% on Friday. Markets are eager to hear about progress in the trade negotiations with China, and any other trade agreements that may be signed after an agreement reached with Britain. Remember that tariffs have been higher since the 1930s, even before Trump started his crusade against trade. Walmart, the largest retailer in the world, announced that it will have to raise prices this month because of the high tariffs. This means more pain for American consumers. The latest U.S. prices data may have looked benign but it could only be a matter time before the tariff impact starts to show in the hard numbers the Federal Reserve needs to see to decide its response to the trade-related uncertainty. Economic calendars for Europe and the U.S. could be a little thin. U.S. releases include the University of Michigan Consumer Sentiment Survey and import prices for April. These could be helpful for gauging Trump's tariff maneuvering. The following are key developments that may influence the markets on Friday. University of Michigan Consumer Sentiment Survey U.S. Import Prices for April
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Topside for Hollandse Kust (west Beta) Substation Set to Sail to Final Location
Two weeks after the successful load out, the steel topside for the Hollandse Kust (west Beta) substation platform is ready to leave the port of Hoboken near Antwerp in the Netherlands for its final North Sea destination.The topside is schedule to leave the Dutch port on May 17, on a floating pontoon via the Scheldt and the Western Scheldt towards the North Sea.As soon as Heerema Marine Contractors’ installation vessel Sleipnir has completed its current job in British waters, it will sail to the coast of North Holland to start the installation operation.The superstructure of the transformer platform, weighing over 3,500 tonnes, will be installed 50 kilometers off the coast of Egmond aan Zee.As part of the job, Sleipnir will lift the 45-metre long, 20-metre wide and 25-metre-high structure from the floating pontoon and place it on the jacket, which has been firmly anchored to the seabed since May 2024.(Credit: TenneT)The topside and jacket will then be welded together and connected to the electricity grid in the coming months.Through this connection, the electricity from the 700 MW project, operated by RWE/OranjeWind, will be fed to the high-voltage grid via the transformer station in Wijk aan Zee.The Hollandse Kust West Beta offshore wind farm is expected to enter service in 2025.
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Copper prices rise on optimism about US-China trade
Copper prices rose on Friday, and are on track to finish the week on a positive note, thanks to a truce in the Sino-American tariff war. However, concerns about the long-term demand of the metal have capped any further gains. Asian stocks are set for a strong, but tempered week as the euphoria surrounding the U.S. China trade talks has faded. Meanwhile, renewed bets on policy easing by the United States have sparked a rally among the beaten down bond markets. As of 0238 GMT the benchmark copper price on the London Metal Exchange was up by 0.1% to $9,585 per metric ton. The most traded copper contract on Shanghai Futures Exchange rose 0.1% to 78,430 Yuan ($10,889.43). Metals from Shanghai said that "Chinese traders were happy with the 90-day break, but the market was still uncertain as to what would happen after 90 days." She added that the fact that China exporters are rushing to ship cargoes is a telling sign. LME copper prices are up around 1.5% this week, while Shanghai copper prices have increased by about 1%. The initial optimism about the 90-day suspension of most retaliatory duties agreed between Beijing and Washington has faded. The market has also been focusing on potential new tariffs imposed by the U.S. on copper imports since February. Other London metals saw aluminium rise 0.1% per ton to $2492, zinc fell 0.1% at $2723 and lead dropped 0.4% to $1996.5. Tin rose by 0.1% to $33,000. Analysts expect the price to be between 78,000-79,000 Yuan per tonne in the near future, reflecting a mixed market sentiment. SHFE aluminium dropped by 0.3%, to 20,185 Yuan per ton. Zinc fell by 0.6%, to 22,595 Yuan. Lead also declined 0.5% to 16920 Yuan. Click or to see the latest news in metals, and other related stories.
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Iron ore prices fall on the back of falling demand in the near term, but still head for a weekly gain
The price of iron ore futures fell on Friday, despite a trade truce that was reached between the US and China. This is due to signs of a softer near-term market demand as well as growing concern over the outcome of the Sino-US tariff war. As of 0228 GMT on China's Dalian Commodity Exchange, the most traded September iron ore contract was trading 0.75% lower, at 729.5 Yuan ($101.3) per metric ton. This represents a 4.7% increase so far this week. As of 0220 GMT the benchmark June iron ore traded on the Singapore Exchange had fallen by 0.68% to $100.5 per ton. This represents a 3.7% gain this week. A survey by consultancy Mysteel revealed that the average daily hot metal production, which is a measure of iron ore consumption, fell 0.4% from the previous week to approximately 2.45 million tonnes as of May 15. This weighed on sentiment and prices. Analysts and traders expect hot metal production to remain stable in May and June, as mills are encouraged by profit margins to keep up their high operating rates. The easing of trade tensions is likely going spur another wave of first-run shipments. Benchmark Mineral Intelligence analysts forecast an average annual ore price of $100, despite the subdued outlook for demand amid possible China steel production cuts and renewed optimism about easing trade tensions. Coking coal and coke, which are used to make steel, also fell on the DCE. The declines were 2.88% and 1.49 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange have also fallen. Rebar fell 0.51%, while hot-rolled coils dropped 0.55%. Wire rod slumped 0.38%, and stainless steel declined 0.42%. ($1 = 7,2033 Chinese Yuan) (Reporting and editing by Mrigank Dahniwala; Amy Lv, Lewis Jackson)
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Gold has its worst week for six months due to trade calm
Gold prices fell on Friday, and were set to experience their biggest weekly drop in six months as a stronger US dollar and diminishing trade war fears dampened its appeal. As of 0222 GMT, spot gold was down 0.5% at $3,223.06 per ounce. Bullion is down about 3% this week, and it's on track to have its worst performance weekly since November 2024. U.S. Gold Futures fell 0.1% to $3.224.90. Gold priced in greenbacks is now more expensive to overseas buyers due to the dollar's 0.3% gain for the past week. Ilya Spirak, global macro head at Tastylive, said that "gold prices were under heavy pressure this week due to the markets' cheering of a de-escalation of the U.S. China trade war." The U.S. announced earlier this week that it and China had agreed to temporarily reduce the high tariffs, which were imposed on April. Retail sales growth in the U.S. slowed down as well. A report revealed that consumer prices in April rose less than anticipated. Federal Reserve Governor Michael Barr stated on Thursday that the U.S. is in a good position, with inflation headed to the central banks' 2% target. However, trade policies have clouded this outlook. The markets are pricing 57 basis point rate cuts for this year. It is expected that the easing will begin in September. In a low rate environment, gold, which is traditionally viewed as a hedge to economic and political uncertainty, thrives. Gold price drops continue to attract buyers, which shows the precious metal is still a preferred asset. Global growth and inflation forecasts are still murky, said KCM Trade's Chief Market Analyst Tim Waterer. Silver spot fell 0.6%, to $32.49 per ounce. Platinum dropped 0.3%, to $986.58. Palladium was down 1.1% at $957.42. (Reporting and editing by Sumana Jacob-Phillips and Sherry Mukherjee, Bengaluru)
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Indonesian military: 18 separatists were killed in Papua, according to the country's military
An official confirmed that Indonesian military killed 18 Papuan Separatists in an operation conducted in the easternmost region Papua on Thursday. Three civilians were also killed. In a statement, Kristomei Santuri, the military spokesperson, said that during Wednesday's raid, the military seized dozens munitions including an assault weapon, bows andarrows, and an unspecified home-made weapon. The Indonesian military suffered no casualties. Sebby Samboom, a spokesperson for the Papua Separatists, said that three of its members were dead. A prominent church group in Papua, citing reports from local churches, said that three civilians died during the shootout. Nearly 1,000 people were evacuated. Ronald Rischard is the head of the Papua branch. He told reporters that the attack happened while villagers were sleeping. Ronald Rischard urged the country's rights agency to conduct an independent investigation into the incident. He said that the cycle of violence has continued, and a child’s ear had been razed to ashes by a bullet. However, he did not know who had fired the shots. Since 1969, when the area was controversially handed over to Indonesian rule following Dutch rule by a vote overseen and supervised by the United Nations, rebels have waged a low-level independence campaign in the richly resourced Papua bordering Papua New Guinea. Rebels have held foreigners as hostages, including 26 wildlife researchers from 1996 and a New Zealander pilot who was freed last year after 19 months of imprisonment. The rebels claimed to have killed 17 people in the last month. They said that they were disguised gold miners. The statement stated that the Indonesian military had deployed personnel to the area of the operation on Wednesday in order to anticipate the movements of the remaining rebels. (Reporting and editing by Martin Petty, Ed Osmond and Ananda Teresia)
Bangladeshi migrants are at risk of abuse after being exiled from the Gulf due to climate change
Climate change forces families abroad to send relatives
Migrants are at risk of sexual abuse, wage denial, and other forms of abuse.
Experts call for better protection in host cities
Tahmid Zami Tahmid Zami
"Vulnerable individuals who are pushed to their limits by climate shocks make a big gamble in order to pay for migration but end up facing abuse," Ritu Bharadwaj said, one of the authors.
The study of Bangladeshi migrants from climate-vulnerable regions who worked in the Gulf revealed that almost all of them had experienced at least one form exploitation, whether it was employer abuse, sexual assault or wage denial.
The International Institute for Environment and Development says that migrants, who are mostly from Saudi Arabia, United Arab Emirates and Oman, become trapped in a "modern form of slavery" when they take out loans or sell land to cover the $4,021 required to find work abroad.
The think tank in London spoke with 648 households about the impact of climate change on those living at the frontline.
On the Move
As the world has become warmer, migration has increased in the last two decades, depriving people of a stable life, future, or reliable income.
In the study, it was found that households in disaster-prone areas were twice as likely to relocate within Bangladesh and 1.6 times more likely than those in less dangerous places to do so. In the last decade, 88% of families sent someone overseas. This is up from just 9% in 2001-2010 or 4% in 1990s.
Bangladesh is the seventh most vulnerable nation to climate change. Disasters such as floods and cyclones are increasing in frequency.
Climate-related disasters cost the economy four times more than they did in 1960-1990. They now amount to $558 millions annually.
The study found that this cost each family living in the disaster-prone coastal region more than $870 per year. This leaves families with less money for necessities of life like food, health, and education.
Farmers, fishermen and small business owners were among those most affected. Their livelihoods were often severely impacted, forcing them into seeking out new opportunities.
Take Pirojpur, a district on the southern coast in Bangladesh that has been hit by cyclones and floods.
Abu Musa, a teacher in Dhaka, said that he sent his brother there to work as a guard because the monsoon last year destroyed his family's crops and fishing.
Many people who moved to other cities faced new problems and risks in their new homes, especially those who had relocated abroad.
According to the study, migrants working in the garment and construction industries in large cities are denied compensation for workplace accidents while domestic workers face beatings or inadequate bedding and food.
Bharadwaj said that migrants who move abroad face greater risks because they are forced to recover their high start-up costs.
The study found that employers often confiscate workers' passports, barring them from leaving their workplace, denying the chance for them to contact family or the embassy.
The survey revealed that women suffer the most. More than 80% of respondents reported abuse such as beatings or sexual harassment by their hosts.
Where to turn?
International Labour Organization (ILO) says that as the number of Bangladeshi migrants to Gulf countries reaches millions, embassies struggle to monitor the conditions or to mount rescues.
The sad thing is that when workers are abused, they don't know who to turn to, said Mohammad Rashed Alam Bhuiyan. He is an assistant professor at Dhaka University, studying climate migrants from Bangladesh.
He said that the government could outsource services such as shelter or health care to private organizations.
Md Shamsuddoha of the Center for Participatory Research and Development in Dhaka, Bangladesh, stated that helping communities reduce climate-related losses could also help to reduce the risk of abuse overseas.
He said that if families received early warnings about disasters and cash assistance, they might be better informed, and more likely to remain.
Experts have also pointed out the complex web of brokers who help migrants find work from the Middle East up to Malaysia.
Bharadwaj, from IIED, says that these middlemen are frequently accused of fraud and deceit. This highlights the need to track migrants better.
(source: Reuters)