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Electric vehicles end China's annual holiday spike in gasoline consumption
Tianyu Jiang drove his electric car from the southwest Sichuan basin in China to Beijing during the national holiday week this month. "I used a petrol vehicle and never took an EV on such a long trip. But driving an EV over a distance doesn't seem like a problem any more," Jiang said. The expansion of the charging infrastructure has helped to reduce the use of gasoline during the "Golden Week" holiday in October. According to Chinese consultancy Sublime China Information, China's gas demand has fallen by 9% on an annual basis in October, to 12.5 millions tons. The average daily consumption is roughly the same as September. The sagging holiday demands are symptomatic for the broader decline of Chinese fuel consumption due to the wider adoption of EVs, which signals the end of China's decades-long role of being the primary driving force behind new global oil demand. The peak in gasoline consumption was reached in 2023 in the world’s largest importer of crude oil. According to the research division of the state oil company Sinopec, the demand is expected to drop by more than 4% in this year compared with 2024. During the nine-month period of this year, EVs accounted for almost half of new car sales. Transport ministry reports that a fifth of the 63.5 millions car trips made during the eight-day break was in hybrid or electric vehicles. The daily use of electricity at charging stations - a proxy for the use of EVs - increased by 45,73% during Golden Week in this year compared to 2024. China's drive to build charging infrastructure has led to a 54.5% increase in the number of charging ports at the end September. Jiang said that both charging and refuelling during peak travel times means waiting. If you need to charge your car, you can find a charging station within 10km (6 miles) of the highway. It's also cheap. (Reporting and editing by Clarence Fernandez in Beijing, Sam Li and Lewis Jackson)
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Brazil's Gerdau saw its adjusted Q3 profit fall due to domestic market.
The Brazilian steelmaker Gerdau reported on Thursday a 23.9% drop in its adjusted quarterly net profit compared to the same period a year ago, as its booming business in North America has been offset by poor results in its home market. In the quarter July-September, Gerdau's net profit adjusted fell to 1,09 billion reais (201.71 millions). The company's adjusted earnings before taxes, depreciation, and amortization (EBITDA), which is a measure of its profit, came in at 2,74 billion reais. This was down 9.2% from the previous year, but in line with what analysts expected in a LSEG survey. The company stated that the results were impacted heavily by steel oversupply, which drove prices down despite constant production. Its second largest market is Brazil, just behind North America. The domestic market's gross profit fell 70.1% from a quarter earlier, to 403 millions reais. This is despite the fact that the steel production was only down 0.4% during the same period. Gerdau's gross profits in North America jumped 48.9% from the previous year to 1.5 billion reais during the third quarter. The total revenue for the quarter was 18 billion reais. This is up 3.5% compared to a year ago and higher than analysts' expectations of 17.6 billion. $1 = 5.4039 Reais (Reporting and editing by Brendan O'Boyle).
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Miner Vale beats net profit for the third quarter
Vale Rio de Janeiro-headquartered Vale posted a $2.69 billion net profit for the July-September period, up 11% year-over-year and above the $2.1 billion expected by analysts polled by LSEG. The adjusted earnings before interest taxes, depreciation, and amortization (EBITDA), which was $4.4 billion, represented a 21% rise, beating the estimates of $4.1billion. Vale published its sales and production data last week. Iron ore production reached the highest level since the fourth quarter 2018 with 94.4 million metric tonnes. The company's net revenue increased by 9% from the same quarter last year to $10.4 billion. Analysts expected a revenue of $10.3 billion. Vale has also reduced its estimate of copper costs per ton this year from $1,500 to $1,000. Previous projections ranged between $1,500 to $2,000 per tonne. The company projected that its nickel costs would range between $13,000 to $14,000 per ton. This is a significant increase from the previous range of $14,500 to $15,500. (Reporting and editing by Brendan O'Boyle; Roberto Samora, Andre Romani)
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Deforestation in Brazil’s Amazon reaches 11-year low before COP30
Data released by the government on Thursday showed that deforestation rates in Brazil's Amazon rainforest dropped 11.08% between January and July of last year, a record low. The data was released days before Brazil hosts the United Nations Climate Summit known as COP30. This is a victory for President Luiz inacio Lula Da Silva who wants to highlight his government's achievements on the environment at the conference. Lula has committed to ending all deforestation within the country by 2030. Amazon destruction has decreased by half since the start of his tenure in 2023. Inpe, the Brazilian space agency, released a report that showed the Amazon had been destroyed by approximately 5,796 square kilometers in the past year, the lowest number since 2014. Even in my best laid plans, I never would have imagined we would be at this point where there is a 50% decrease in deforestation," said Environment Minister Marina Silva during a press briefing. Deforestation in Brazil's Cerrado Savanna fell by 11.49% to 7,235 sq km, the lowest in six years and the second consecutive decline following four years of increasing deforestation, including Lula's inaugural year in office. Environmentalists have criticized the government for its support of Petrobras plans to drill near Amazon River's mouth. (Reporting and writing by Lisandra Pagaguassu, Brasilia. Editing and editing by Leslie Adler & Matthew Lewis.)
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Sloviansk's Zelenskiy, Ukraine: two dead in Russian attack against power station
Volodymyr Zelenskiy, the president of Ukraine, said that a Russian bomb attack on a Ukrainian power plant in Sloviansk killed two people on Thursday and injured several others. In his video nightly address, Zelenskiy described the attack on the Donetsk Region near the frontline as "strictly terrorism". He claimed that energy sites are the primary targets of Russian drones and missiles. Could not independently verify this account. According to prosecutors in Donetsk Region, Russians attacked private homes in the city Kramatorsk and killed one person. They also injured three others. Sloviansk, Kramatorsk, and other Russian targets will be the main Russian targets as Russian troops slowly advance through Donetsk. (Reporting and editing by Cynthia Osterman, Ron Popeski, and Bogdan Kochubey)
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Sugar prices hit five-year lows as surplus forecasts swirl
Investors weighed the news of an U.S. China trade truce as they analyzed the world sugar price's fifth-year-low for a forth consecutive day. The raw sugar futures traded on the ICE, which are used to price physical sugar all over the world, settled down by 0.14 cents, or 1%. They had previously hit their lowest level since October 2020, 14.07 cents per lb. After touching their lowest level since December 2020, white sugar futures dropped 0.9% to $414.00 per metric ton. Michael McDougall, an independent sugar analyst, noted that the weather forecasts for key sugar-producing areas are still benign and boosting crop prospects. Meanwhile, oil prices continue to be under pressure due to a lack details in the U.S. China trade agreement. The sugar price in Brazil is still two to three cents lower than the parity for ethanol, so the message to Brazil's cane mills should be to produce more ethanol and less sugar. McDougall stated that "the trend is lower, and some are talking about 10-13cents. But when too many people look further down, it is a preliminarily signal that we will not see that." Sugar production in Brazil, the world's largest producer, grew faster than expected during the first half October. It increased by 1.25%, versus a 0.6% expected increase. Mills have reduced the cane they allocate to sugar production, and increased ethanol production. Datagro, a Brazilian consultancy, had forecast last week that the global sugar deficit would turn into a surplus in 2025/26 of 1,98 million tons from a 5,000,000-ton surplus. To limit sugar losses, the state of Uttar Pradesh in India has increased the price mills have to pay for their new crop. This should make sugar exports more difficult. Other soft commodities also rose, with arabica coffee up 0.3% or 1.3 cents per lb to $3.92, and robusta coffee rising 0.7% to $4.641 per ton. London cocoa increased 0.4%, reaching 4,374 pounds a ton. New York cocoa also rose 0.2% to $6,058 per ton. (Reporting and editing by Ed Osmond, Alan Barona and May Angel)
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Investors assess U.S. China trade deal as Fed lowers rates and gold gains
Gold prices rose by 2% on Friday, boosted by the Federal Reserve's interest rate reduction and the uncertainty surrounding the outcome of the trade agreement between China and the U.S. As of 01:39 pm, spot gold had risen 1.9% to $4,003.62 an ounce. ET (1739 GMT). U.S. Gold Futures for December Delivery settled 0.4% higher, at $4015.9 an ounce. U.S. president Donald Trump announced on Thursday that he would lower tariffs against China from 57% to 47% in exchange for Beijing returning U.S. purchases of soybeans and rare earths and cracking down the illicit fentanyl traffic. The markets have backed off any optimism about the end of the trade wars as details of the U.S. China deal were revealed. Fears that the truce could be temporary led to a fall in equity markets. The U.S. Federal Reserve cut interest rates in line with expectations on Wednesday. However, it indicated that this may be the last reduction of the year, as the government shutdown is threatening the availability key economic data. In a low interest rate environment, safe-haven assets like gold become more appealing as they are non-yielding. Gold tends to do well during times of geopolitical or economic uncertainty. Wells Fargo Investment Institute has raised its gold target for 2026 to $4,500-$4,700/oz from $3,900-4,100/oz previously, citing uncertainty in geopolitical policy and trade. Analysts said that they expect the question marks to continue to drive private and public demand, and higher prices. Silver spot rose 2.7%, to $48,81 an ounce. Platinum gained 1.2%, to $1604,38, and palladium increased 3.4%, to $1447.08. (Reporting from Noel John in Bengaluru and Pablo Sinha; editing by Shalesh Kuber).
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Mercuria and ERG sign $100 million copper deal
Mercuria Energy Trading and Eurasian Resources Group have agreed to prepay up to $100,000,000 to Eurasian Resources Group as part of a three-year copper supply agreement, they announced on Thursday. Prepayments is an advance paid by buyers to producers. It's often used to ensure future supplies or to provide working capital in the commodity trade. Mercuria will receive copper from ERG, a Luxembourg-based company that produces copper in the Democratic Republic of the Congo. Shukhrat Ibragimov, Chief Executive Officer of ERG, said: "The agreement marks an important step towards deepening our partnership with global partners in our efforts to realize the full potential our core operations in DRC." ERG and Mercuria have not disclosed how much copper will be delivered to the Swiss commodity trader annually. The facility will help ERG develop its assets in the Democratic Republic of the Congo, a region of increasing strategic importance to Mercuria Energy Trading SA. Kostas bintas is the Global Head of Metals & Minerals. (Reporting and editing by Kirsten Doovan; reporting by Pratima Dasai)
Sugar prices hit five-year lows as surplus forecasts swirl
Investors reacted to news of an U.S.-China truce in trade, and worries about a growing surplus pushed oil prices lower.
The falling energy prices can cause Brazilian cane mills, which produce cane-based ethanol and sugar, to produce less of it.
Michael McDougall, an independent sugar analyst, noted that the weather forecasts for key sugar-producing areas are still benign and boosting crop prospects. Meanwhile, oil prices continue to be under pressure due to a lack details in the U.S. China trade agreement.
The sugar price in Brazil is still two to three cents lower than the parity for ethanol, so the message to Brazil's cane mills should be to produce more ethanol and less sugar.
McDougall stated that "the trend is lower, and some are talking about 10-13cents. But when too many people look further down, it is a preliminarily signal that we will not see that."
Raw sugar futures, traded on the ICE, which is used to price physical sugar in the world, dropped 0.6% at 1600 GMT to 14.34 cents a pound, after hitting their lowest level since October 2020, 14.07.
After touching their lowest level since December 2020, white sugar futures fell 0.9% to $414.10 per kilogram.
Data from the first half October confirmed that sugar production in Brazil, the world's largest producer, grew faster than expected.
Rising 1.25%
Expected versus Actual
Increase of 0.6%
Brazil-based consultant
Datagro
Last week, it was predicted that the global sugar market will turn into a surplus in 2025/26 of 1,98 million tons from a deficit of 5 million tons.
To limit sugar losses, the state of Uttar Pradesh in India has increased the price mills have to pay for their new crop. This should make sugar exports more difficult.
Other soft commodities also traded saw arabica coffee drop 0.4% per lb to $3.8925, and robusta coffee fall 0.2% to $4.617 per ton.
London cocoa dropped 0.4% per ton to 4,346 lbs, while New York cocoa declined 0.9%, to $5,991 per ton.
(source: Reuters)