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Cobalt Holdings to raise $230 Million in London Listing
Cobalt Holdings announced on Monday that it intends to raise $230,000,000 through a global offering and possibly list its shares at the London Stock Exchange. The company wants to give investors pure-play exposure in cobalt prices. The company has a contract to purchase cobalt worth $200 million from Glencore, the world's largest miner. It plans to use proceeds from its equity raising to complete the purchase of this metal, which is a key component of electric vehicle batteries. Glencore and Anchorage Structured Commodities Advisor, an investment firm, have agreed to invest approximately 20.5% in the shares being offered. A six-year contract between the company and Glencore guarantees a cobalt supply worth up to $1billion. The company also has a contract with Anchorage to purchase up to 1,500 metric tons of cobalt in 2031. "We think now is the time to build up a strategic cobalt stockpile." In the past, cobalt prices have been higher than current spot prices. This is what CEO Jake Greenberg stated in an anticipated intention to float filing. The company has stated that its shares will be admitted to the stock market in June.
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Andy Home: A gallium-lens on China's mineral dominance, and how to end it
Since China began restricting the exports of exotic metals in August 2023, the price of gallium is on an upward trend. It is not surprising that China holds a near-monopoly in the global production of gallium, as well as across a wide range of critical materials. What should we do about the fact that the price for something few people know is at a 14-year high? According to the United States Geological Survey, global production was only 760 metric tonnes last year. The world market is worth only $550 million, even at the current high prices. Metal is used in so small quantities that it has no impact on the price of a cell phone or electric vehicle. If you are in the semiconductor industry, it is important. It's even more important to U.S. defense planners. That's why China selected element 31 as a metal pressure point. The Multiplier Effect The economic impact of China's export bans is multiplied by the fact that gallium is used to make so many gadgets. USGS estimates a suspension of Chinese exports for a year would result in a hit to the U.S. economic system of $3.1 billion. The semiconductor industry would account for about half of this decrease, while the remaining half will come from downstream industries like computers, printed circuit assemblies and electric vehicles. China hasn't completely suspended exports but has banned direct sales into the United States. Outbound flows are down since 2023, when dual-use regulations came into effect. The USGS projections also assumed that gallium prices would increase by more than 2,5 in the event of an export stop. Gallium prices have more than doubled since July 2023, when they were $350 per kilogram. They are now $725 per kilogram and still increasing. As more gallium is kept on the Chinese market, the Chinese price falls. Other times, physical arbitrage could close the price gap. But not when China's Ministry of Commerce is guarding the gate. THE MILITARY ANGLE Gallium is of even greater importance to U.S. military planners. The U.S. Defense Advanced Research Projects Agency, or DARPA, was responsible for the development of a compound known as gallium arsenide. This compound is used in precision-guided and radar weapons. More recently, DARPA has been involved with the next-generation semiconductor chip, gallium nitride. According to The Center for Strategic and International Studies (a non-profit research organization), the latter "revolutionizes modern radar by allowing new modules to track smaller and faster threats, and to be more numerous from a distance nearly doubled." The U.S. Army is deploying gallium nitride-enhanced Radars in its Lower-Tier Air and Missile Defense Sensors (LTAMDS), which are an integral part Patriot missile defence units, and F-35 Joint Strike Fighter. There's likely a lot more we don't even know. Gallium, like many other critical metals, has a small market but a wide range of applications. Many of these are at the forefront of semiconductor design. It's not a coincidence that China announced their export controls as a direct response to U.S. sanctions on next-generation chip imports to China. THE CHINA CHALLENGE Can the West break China’s grip on gallium? The solution to the problem is right in front of us, or better yet, in the tailings pool. Gallium isn't particularly rare on the surface of the Earth, but it only occurs at concentrations high enough to be extracted as a byproduct from other minerals. China's gallium dominance has increased along with its massive expansion of aluminum capacity. China accounts for 60% global aluminium production and all of that metal requires alumina which is produced from bauxite. Gallium can be produced by other refineries than China's. Western companies have stopped producing gallium after China took over the market in the first decade of this century. That's changing. Rio Tinto and Indium Corporation just announced that they had successfully extracted pure gallium out of a waste stream from Rio's Vaudreuil Alumina Refinery in Quebec. The next step will be to build a pilot plant that can produce 3.5 tons of gallium per year. METLEN, a Greek aluminium manufacturer, plans to increase its bauxite-and-alumina processing capability to 50 tons annually by 2028. This is one of 47 strategic mineral projects in the European Union. Two key lessons can be learned from this article for other mineral markets that are being affected by Chinese export restrictions. First, it is likely that the West already produces many of these materials but has not appreciated their value until now. Rio Tinto has begun extracting tellurium and scandium at its Kennecott Copper Smelter, Utah, as well as titanium from its operations in Quebec. The two plants had been in operation for several years before anyone thought it necessary to separate the metals from the waste stream. Second, it's clear that Western operators have to learn or, in the case gallium, re-learn the processing technologies needed to separate them and refine them. It will take some time, especially since China restricts the export of this technology in many cases. The higher prices that result from China's export restrictions are encouraging more and more Western companies back to metallurgy. The author is a columnist at
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Prices of oil rise after US-China trade talks calm market fears
The oil prices increased on Monday, after both sides of the U.S. and China trade talks announced their progress over the weekend. This lifted the market's sentiment that they may be moving towards a resolution to their trade dispute. Brent crude futures rose 43 cents or 0.67% to $64.34 per barrel at 0500 GMT. U.S. West Texas Intermediate crude futures traded at $61.50 per barrel, up 48c or 0.79% from Friday's closing price. The benchmarks gained more than $1 last Friday, and over 4% in the past week. This was their first weekly gain since mid-April. A U.S. deal with Britain has boosted investors' confidence that U.S. tariffs against trading partners will not cause economic disruption. The United States. The United States and China concluded their trade talks in a positive way on Sunday. U.S. officials hailed a "deal", which would reduce the U.S. deficit. Chinese officials claimed that both sides had reached an "important consensus". However, neither party released any details about the discussions with Chinese Vice Premier He Lifeng. They said a joint announcement would be made on Monday. Positive talks could boost crude demand, as the trade between these two countries is restored after being disrupted for years by huge tariffs imposed by both. Toshitaka Takawa, an analyst with Fujitomi Securities, said: "Optimism about constructive U.S. China talks supported sentiment. However, limited details and OPEC’s plan to increase output capped gains." Tazawa was referring plans by the Organization of the Petroleum Exporting Countries (OPEC+) and its allies to increase output in May and Juni, which will add crude oil to the market. A survey revealed that OPEC's oil production was slightly lower in April. Officials said that talks between Iranian and U.S. negotiators on Sunday to resolve disputes about Tehran's nuclear program ended in Oman, with future negotiations planned. Tehran, however, publicly insisted on its uranium-enrichment programme. The U.S. and Iran nuclear deal may alleviate fears about a lower global oil supply that could also affect oil prices. Baker Hughes, an energy services company, said that the U.S. oil and gas companies cut their number of operating oil and natural-gas rigs to its lowest level since January last week. Yuka Obayashi reported from Tokyo, Colleen in Beijing and Clarence Fernandez edited.
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The devil is in the details.
Wayne Cole gives us a look at what the future holds for European and global markets. Choose from "substantial", "constructive", a "first step", a "reached an important consensus", or "good news for world". The best is "as we say in China, as long as the food is delicious, timing does not matter". These were the words of negotiators at the U.S. - China trade talks that took place over the weekend in Geneva. They sound more positive than the jingoistic rhetoric of the initial announcement by President Trump of his 145% tariffs. It was not clear what the actual tariffs were. Later on Monday, a joint statement may provide more details, but markets do not believe the White House's claim that there is a "deal". Investors trusting the word of an uni-party communist state more than the United States is a strange world. Markets are relieved there were no weapons drawn during the discussions and Nasdaq and S&P futures have gained almost 2% and 1.4% respectively. European stock futures are up about 0.8%. Treasuries are being sold in a knee-jerk reaction as the market continues to reduce its expectations about the future pace of Fed rate reductions. Now, the odds of a June easing have been priced at 17% and July at 59%. Futures suggest 63 basis point cuts for this year compared to 110 bps at mid-April. The fragile ceasefire between India and Pakistan helped to lift the mood, while Ukrainian president Volodymyr Zelenskiy announced that he would be ready to meet Vladimir Putin for talks in Turkey on Friday. Analysts believe that the first impact of tariffs on the economy will be seen in the report for May. Retail sales for April are expected to remain flat, but the risks to the downside will be high due to the impact of the import levies on consumer sentiment. Tariffs are not expected to be applied to the 747 Trump intends to accept from Qatar's royal family, which is decked out in gold. It seems that membership comes with its own privileges. Market developments on Monday that may have a significant impact ECB members Buch and Cipollone are present at the Eurogroup. Also, BoE Deputy Governor Lombardelli is in attendance as well as policymakers Greene Mann Taylor and Greene. Kugler, Fed Board Governor, speaks about the economy
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Metals prices rise after 'constructive US-China trade discussions
The price of base metals increased on Monday, as progress in U.S. China trade talks reduced global recession concerns. However, details of any possible deals are still unclear. As of 0402 GMT, the benchmark copper price on London Metal Exchange (LME), rose by 0.7% to $9.507 per metric ton. U.S. Treasury secretary Scott Bessent described a "substantial" progress in trade negotiations, while Chinese officials stated that the sides reached an "important consensus" on their discussions and agreed to create a new economic dialogue forum. He Lifeng, vice premier of China, described the discussions as "in-depth, candid and constructive". The two sides are expected to release a joint statement later Monday. A trader commented, "It is encouraging that both sides have expressed optimism regarding the outcome." The specifics of the trade talks are unclear at this time and it is possible that there will be several rounds. Other London metals include aluminium, which rose 0.6%, to $2433, zinc, 0.9%, to $2676, and lead, 0.9%, to $1999. Nickel remained at $15,800. Tin rose 0.5% to $22,045. The Shanghai Futures Exchange's (SHFE) most-traded contract for copper gained 0.5%, reaching 78,060 Yuan ($10,801.9), per ton. The nickel price on the SHFE has outperformed. It is up 1.8% at 125,930 Yuan. This was due to speculations that the Philippines will implement a ban on nickel ore exports from next month. The Shanghai Metals Market did note that the Philippines' policy proposal was still being reviewed and will be further discussed when Congress reconvenes June. It said that the news would have a limited impact on the nickel industry in the short-term. SHFE aluminium rose 1%, to 19,785 Chinese yuan per ton. Zinc increased 0.1%, to 22,275 yuan. Lead rose 1.2%, to 16,990 yuan. Tin advanced 0.5%, to 262,130. $1 = 7.2265 Chinese Yuan Renminbi (Reporting and editing by Violet Li, Lewis Jackson and Mrigank Dahniwala).
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Gold drops as US-China positive talks erode safe haven appeal
Gold fell on Monday, as investors shifted away from safe-haven assets to riskier investments due to the positive signals generated by U.S. China trade talks. As of 0233 GMT, spot gold dropped 1.4% to $3277.68 per ounce. U.S. Gold Futures fell 1.9% to $3281.40. The dollar index rose as Trump's administration touted its progress in trade talks with China, following the negotiations that took place over the weekend in Switzerland, which weighed down on gold prices, said Jigar Trivedi. Senior commodity analyst at Reliance Securities. On Sunday, the U.S.-China high-stakes talks ended on a positive, as U.S. officials hailed a "deal" for reducing the U.S. deficit in trade, while Chinese officials claimed they had reached an "important consensus". He Lifeng, the Chinese Vice-Premier, said that a joint declaration would be released at Geneva on Monday. Last month, the U.S. imposed tariffs of equal value on China. This triggered a trade conflict that fueled fears of global recession. A majority of current and former Trump advisors said that the United States will have higher tariffs after the dust settles on the trade negotiations between Donald Trump and the U.S. In an environment of low interest rates, gold, which is traditionally seen as a hedge to economic and political uncertainty, thrives. The Cleveland Federal Reserve president Beth Hammack stated on Friday that the Fed will need more time to assess how the economy reacts to Trump's policies and tariffs before determining the best response. Traders will also be watching the release of U.S. Consumer Price Index for new signals about the Fed's monetary policies. Trivedi said that gold could continue to fall in the short term as the dollar may appreciate. Also, with the reduction of geopolitical risks, haven demand may also drop. (Reporting by Anushree Mukherjee in Bengaluru; Editing by Sumana Nandy and Rashmi Aich) Spot silver remained at $32.70 per ounce. Platinum rose 0.3% to $999.04, while palladium climbed 0.4% to $979.73. (Reporting and editing by Sumana Nady and Rashmi aich in Bengaluru)
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Progress in Sino-US Trade Talks Lifts Sentiment
Investor sentiment was lifted by "substantial progress," in the trade talks between China and the United States, the two world's largest economies. On Sunday, the U.S.-China high-stakes talks ended on a positive, as U.S. officials touted a "deal" that would reduce the U.S. deficit in trade, while Chinese officials claimed the two sides reached an "important consensus", and had agreed to create a new economic dialogue forum. As of 0215 GMT, the most-traded contract for September iron ore on China's Dalian Commodity Exchange was trading 1.51% higher. It was 707 yuan (US$97.9) per metric ton. The benchmark June Iron Ore at the Singapore Exchange rose 1.41%, to $98.3 per ton. Ore prices were supported by a relatively stable demand and mills' desire to continue operations, fueled by profit. A survey by Mysteel revealed that the average daily hot metal production - which is typically used to gauge demand for iron ore - increased 0.1% to 2,46 million tons on May 8. This was the highest level since October 2023. The price of crude steel has been fluctuating with the rise and fall in concerns over U.S. Tariff hikes, and discussions on China's crude output being cut to reduce demand for this key ingredient. Prices for seaborne ore Steelhome's data shows that prices have dropped by 11% since the peak of $107 per ton for the entire year in February. The benchmark steel prices on the Shanghai Futures Exchange have gained. Rebar gained 0.26%; hot-rolled coil 0.38%; wire rod 0.06%; and stainless steel 1.18%. Coking coal and coke, which are both steelmaking ingredients, also continued to decline as the weak fundamentals overshadowed trade optimism. They fell by 1.02% and 0.27 percent, respectively.
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Metals prices rise after 'constructive US-China trade discussions
The price of base metals rose on Monday, as progress in U.S. China trade talks helped ease global recession concerns. However, details of any possible deals are still unclear. As of 0113 GMT, the benchmark copper price on London Metal Exchange (LME), rose by 0.6% to $9497.5 per metric ton. U.S. Treasury secretary Scott Bessent referred to "substantial progress in trade discussions", while Chinese officials stated that the two sides had reached an "important consensus" on their respective side and agreed to create a new economic dialogue forum. He Lifeng, vice premier of China, described the discussions as "in-depth, candid and constructive". The two sides are expected to release a joint statement later Monday. A trader commented, "It is encouraging that both sides have expressed optimism regarding the outcome." The specifics of the trade talks are unclear at this time and it is possible that there will be several rounds. Other London metals include aluminium, which rose by 0.5%, to $2430 per ton. Zinc gained 0.6%, to $2668, while lead gained 0.5%, to $1991, and nickel grew 0.2%, to $15,845. Tin rose 0.5% to $22,035. The Shanghai Futures Exchange's (SHFE) most traded copper contract gained 0.6%, to 78.090 yuan per ton ($10,791.28). The nickel price on the SHFE has outperformed. It is up 2.1% at 126,280 Yuan. This was due to speculations that the Philippines will implement a ban on nickel ore exports from next month. The Shanghai Metals Market did note that the Philippines' policy proposal was still being reviewed and will be further discussed when Congress reconvenes June. It added that the news was unlikely to have a significant impact on the nickel industry in the short-term. SHFE aluminium rose 1% to 19800 yuan per ton. Zinc grew 0.6% to 22380 yuan. Lead climbed 0.9% to 16945 yuan. Nickel jumped 2.1% to 126,280 yuan. Tin grew 0.6% at 262,500 yuan. $1 = 7.2364 Yuan (Reporting and editing by Sumana Niandy; Violet Li, Lewis Jackson)
Farmers in Northern Mexico fight drought after water dispute with US
This cattle ranching community in northern Mexico has a lot of dead animals scattered around the town. The drought, which has been going on for years, is forcing local farmers to think about moving to another area to find water and land.
According to data from the government, more than 64% Mexico's land is suffering from some form of drought. The northern states, especially Chihuahua with its most severe levels of drought, are hardest hit.
Mexico and the U.S. have been in heated negotiations about Mexican delays in delivering water quantities laid out in 1944's treaty.
Donald Trump threatened to impose tariffs and sanctions if Mexico did not increase its water deliveries, which U.S. officials claim have devastated Texan Farmers. Mexico's government claims that drought has affected its ability to comply.
Farmers in the Chihuahua town of Julimes are worried about their future.
"I don’t think we'll hold out for much longer," said Leopoldo Ochoa 62 as he rode his granddaughter behind his herd on horseback.
A lack of grass and water has forced farmers in northern Chihuahua to relocate their herds from the mountains where they usually graze. Ochoa is a resident of Valle de Zaragoza which depends on the La Boquilla Dam.
If there isn't any more water, then we will need to look for another ranch. Imagine leaving this ranch at 60 years old, where you have lived your entire life, said Manuel Araiza.
He added, "It's sad but the truth is that this will all come to an end."
While diplomats in Mexico negotiate water deliveries to the U.S.A., Chihuahua farmers consider their future.
Estreberto Monje, 57, said: "My children told me that this was no longer profitable. I should sell my animals." "The truth is that we've never experienced anything like this." (Reporting by Jose Luis Gonzalez, writing by Cassandra Garrison, editing by Sandra Maler)
(source: Reuters)