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EU delays signing climate pledge with China, FT reports
A top climate official said in comments published by the Financial Times on Monday that the European Union will not sign a joint climate pledge with China during a summit to celebrate a half-century diplomatic relationship. EU climate targets are some of the most ambitious in the world, but have always been based on domestic emission reductions. The bloc has a deadline of mid-September to submit to the UN a new climate target for 2035. Officials from the EU said that Brussels refused Beijing's repeated demands for a climate agreement after the summit between the second and third largest economies of the world, unless China promised to do more to reduce greenhouse gas emissions. Wopke H. Hoekstra, Climate Commissioner told the newspaper: "A declaration is only worthwhile if it also contains content and demonstrates ambition." A spokesperson for the foreign ministry responded to these comments by saying that China has actively promoted green and low carbon development. Mao Ning told a regular press briefing that "we will continue to work together with other countries in order to strengthen international co-operation on climate change and to contribute to green transformation and sustainable human development." China is likely to miss its five-year target of a 18% reduction in carbon intensity. The European Commission has not responded to an immediate request for comment. Reporting by Dheeraj K. Kumar in Bengaluru and Liz Lee in Beijing. Editing by Tom Hogue, Clarence Fernandez
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China's tightening grip on its rare earths sector
Smuggling was rampant in China when China, during a diplomatic spat in 2010, restricted rare earth exports from China to Japan. When China imposed new restrictions on April of this year, it caused shortages in the auto industry within two months, leading to some to stop production. Beijing, through quotas and consolidation, has transformed a sector that was once unruly, accounting for 90% of the rare earth processing capacity into a powerful diplomatic tool. Here's a brief summary of the ways in which the number one producer of rare earths has tightened the grip on the industry. CONSOLIDATION China started its crackdown in the mining and processing sector 15 years ago. There were hundreds of miners. In 2013, ten producers controlled nearly all mining. Today, only two giants are state-owned: China Rare Earth Group (CREG) and China Northern Rare Earth Group High-Tech. David Abraham, associate professor at Boise State University in Idaho, said that the consolidation process, which lasted for more than a decade, gave Beijing greater control while also curbing environmental damage caused illegal and reckless mining. In the past, rogue miner's illegal supply chain delivered ore to non-authorised separation facilities. The finished products were then disguised and sent abroad. In 2014, it was estimated that 40,000 metric tonnes of rare earth oxides had been smuggled abroad. This is half the amount exported by official means. Magnet makers have not been consolidated as much as the upstream mining sector. There are dozens of magnet producers and processors in China, such JL Mag Rare-Earth, and Ningbo Yunsheng. China has introduced a tracking system in its rare earth magnet industry since June. Companies are required to provide information, including customer details and volume of transactions. The ultimate goal is to track the entire chain. QUOTAS China's production quota system (introduced in 2006) has been used to control the supply, along with its consolidation. Quotas are set for mining, smelting, and separation. They are usually issued twice a years and widely monitored to gauge global supply. Beijing has gradually reduced the number of groups eligible for quotas. In 2024, there will only be two state-owned companies, as opposed to six before. China's supply growth has been dramatically reduced since 2024, when the total mining production quota increased only 5.9% annually compared to a 21.4% annual increase in 2023. Analysts and traders predict that mining output quotas will either remain flat this year or increase by as much as 5% compared to 2024. Beijing restricts the export of technology as well. Since long, the tools and methods used to separate and extract rare earths are banned. It extended the ban in late 2023 to include technology used to manufacture rare earth magnets. Staff Reporting; Editing by Lewis Jackson, Sonali Paul
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China's export controls on rare earths are bad for business, but good for Beijing
China's export restriction on rare earths has brought the global auto supply to a standstill and the U.S. president Donald Trump to the negotiation table. They're a major headache for businesses in the United States, who are already suffering from a slowing economy. Beijing cut rare earth and magnetic exports in April as a retaliation to U.S. Tariffs. This has led to a drop in magnet makers' overseas sales, at a time when they are also facing pressure from an economy that is weak and EVs, one of their main markets. Even after the U.S. announced on June 27, a deal with China to restart rare earths production, it is unlikely that magnet makers will see any relief anytime soon. In a WeChat post 12 hours after the announcement, Baotou Rare Earth Products Exchange (a state-backed trading site) noted that stock was piling up at warehouses. Export curbs caused a 75% decline in magnet exports within two months of the restrictions being imposed, and several automakers were forced to temporarily halt production. In May, Baotou Exchange, located in Inner Mongolia and one of China's rare-earth hubs, stated that the restrictions had caused a crisis for local magnet manufacturers. Public filings reveal that while China consumes 90% of rare earth magnets worldwide, exports will range from 18% to 50 % of revenue by 2024 for the 11 largest publicly traded magnet producers based on capacity. Ellie Saklatvala is the head of metal prices at commodities information provider Argus. They have temporarily lost a large part of their clientele, and there is no guarantee that they will ever regain this customer base. Few major listed companies that deal with rare earths have directly commented on how the controls may affect their business. Two rare earth magnet manufacturers, who spoke on the condition of anonymity due to the sensitive nature of this issue, said that revenue was expected to drop in 2018. It's difficult to say how much we will lose for the moment, but it will be a big impact on our export business," said one rare earth magnet producer, who requested anonymity because of the sensitive nature of the issue. According to a second source who declined to give their name, small and medium sized producers reduced production by 15% between April and May. EXPORT CURBS IMPACT UNDERESTIMATED China's rare-earth magnet manufacturers are also victims of their own success, much like the U.S. chipmaker Nvidia. In April, after the announcement of export restrictions, the share prices of listed magnet manufacturers plummeted. They were caught in the geopolitical crossfire between Washington's tariffs on imports and China's response. They have recovered from their lows in the last three months. Cory Combs is the head of Trivium China's critical mineral research. He said that there was no reasonable forecast for the future of this industry. He said: "I can see different market outlooks that are more or less positive depending on assumptions. But none of them result in a sustained rise in the share price as we are seeing." He said that many magnet manufacturers are also privately owned, and therefore share prices can only give a limited picture. Many producers were already facing weaker conditions in their home countries, such as a price battle among electric vehicle manufacturers, a key segment of customers, which has seen manufacturers demanding discounts from suppliers. Four sources, who spoke anonymously, said that the highly customized nature of magnet products made it difficult to resell them domestically. This forced magnet makers to keep the cargos in storage while they waited for licenses. CONSOLIDATION MAY BE IMPACTED BY DIFFICULTIES In its annual report, released late April, Baotou Tianhe Magnetics Technology Co reported the export restrictions and warned that export revenues could fall if the global situation worsened. Yantai Zhenghai Magnetics announced last week that it had obtained export licenses, and that production was as usual. Investors are referred to the upcoming financial filings of Yantai Zhenghai Magnetics for more specific results. According to Argus, Saklatvala, a return to the old status quo will be unlikely if rare earth controls are implemented similarly to those for other critical minerals such as germanium and Antimony. China implemented export controls on antimony and germanium in 2023 and 2024. Customs data show that despite the fact that most of these materials are used by civil industries which should have no problem obtaining licenses in theory, exports still haven't recovered. Europe receives only a fraction of the antimony that it imported from China prior to export controls being imposed in September last year. These shortages have already caused major problems for the lead-acid batteries commonly used in gasoline engines. Saklatvala said that, "looking at China's recent controls on exports of other critical minerals such as antimony", it was clear that exports can take longer to normalise and resume than anticipated. David Abraham, an affiliate professor at Boise State University in Idaho, says that the large amount of information requested by authorities is a permanent change to the industry, which will cause delays and increase costs for producers. He said that "in a sense, it's impossible to go back." He said that in an industry with hundreds of manufacturers the pressures may lead to a consolidation. "I don't know if Beijing views that as a negative thing because more consolidation is helpful to control and understand where materials go."
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Copper prices drop amid uncertainty about US trade talks
The Shanghai Futures Exchange (SFE) and London Metal Exchange (LME) saw copper prices fall on Monday due to concerns about U.S.-China trade negotiations, and the uncertainty around potential tariffs before President Trump's deadline of July 9. As of 0707 GMT the three-month contract for copper on the LME dropped 0.68%, to $9,797 a metric ton. The most traded contract on SHFE fell 1.12%, to 79270 yuan (11,051.78) per ton. Trump announced on Sunday that the U.S. was close to finalising a number of trade agreements. He will inform about a dozen nations starting on Monday of increased tariff rates. The higher rates are scheduled to go into effect on August 1. "Markets worry that Trump's policy could trigger a slowdown in the global economy and harm demand for industrial commodities," ANZ stated. A Shanghai-based metals analyst from a futures firm said that "Copper prices are expected to soften due to the recent rise in copper stocks on LME and SHFE and the dampened consumer enthusiasm over higher prices." Copper inventories By July 4, SHFE-monitored storages had gained for the third week in a row, rising by 3.7% to reach 84,589 tonnes. This was 73.7% less than the previous year. Total Copper Stocks The LME registered warehouses saw a rise of 5% in four days, up to Friday. SHFE tin fell 2.03% to 263,520 Yuan per ton. Nickel dropped 1.6% to 125,540 Yuan. Zinc declined 1.16% at 22,090 Yuan. Aluminium lost 1.11% at 20,410 Yuan. Lead shed 0.35% at 17,210 Yan. LME tin fell by 1.36%, to $33,245, Nickel dropped by 1.3%, to $15,090. Aluminium went down 1.14%, to $2.560.5. Zinc was down 0.95%, to $2.698, and Lead was down 0.78%, to $2.042.5. Click or to see the latest news in metals, and other related stories.
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Typhoon Danas hits southern Taiwan with winds records, injuring dozens
Early on Monday morning, Typhoon Danas slammed southern Taiwan with strong winds and heavy rain. Two people were killed and more than 500 injured in the rare attack to the densely-populated west coast of Taiwan. Taiwan is frequently hit by typhoons, but they usually land on the sparsely-populated and mountainous east coast that faces the Pacific. The storm, which reached winds of up to 220 km/hr as it ripped through Yunlin in the southwest county after landing on Taiwan's southern shores late Sunday night, forced businesses and schools to close along the west coast. Government data revealed that over 700 trees had been felled in western cities and towns, and road signs had been ripped and scattered across the streets. Local television footage showed that in the southern city Tainan, concrete poles snapped at their base, while a wooden temple gate collapsed. Taiwan's weather authority had listed Typhoon Danas as the second strongest storm at one time. Since then, it has weakened and is expected to hit eastern China this week. In a Facebook post, President Lai Ching Te urged citizens to prepare for the typhoon. Government data revealed that power was cut to over 700,000 homes and more than 300 domestic and foreign flights were cancelled. North-South high-speed rail service was reduced. According to the National Fire Agency, one person died when a tree fell on them while they were driving. Another person died after a respirator malfunctioned because of a power outage. No major damage was reported in the Tainan Science Park, which houses tech giants like TSMC. According to CCTV, maritime officials in Zhejiang Province, eastern China, raised their emergency response level to the second highest level on Monday. CCTV reported that as of 10 am (0200 GMT), 64 ferry routes and 121 passenger vessels had been suspended in the province. As a precaution, authorities also suspended 181 construction projects including wind farms. According to the China Meteorological Administration, Danas will gradually approach coastal areas between Zhejiang’s Taizhou city and Fuzhou in the neighbouring Fujian Province. (Reporting by Yimou Lee; Additional reporting by Ethan Wang and Ryan Woo in Beijing; Editing by Saad Sayeed) (Reporting by Yimou Le; Additional reporting in Beijing by Ethan Wang, Ryan Woo; Editing by Saad sayeed)
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EU delays signing climate pledge with China, FT reports
A top climate official said in comments published by the Financial Times on Monday that the European Union will not sign a joint climate pledge with China during a summit to celebrate a half-century diplomatic relationship. EU climate targets are some of the most ambitious in the world, but have always been based on domestic emission reductions. It faces a deadline of mid-September to submit to the United Nations a new climate target for 2035. Officials from the EU said that Brussels refused Beijing's repeated demands for a climate agreement after the summit between the second and third largest economies of the world, unless China promised to do more to reduce greenhouse gas emissions. Wopke H. Hoekstra, Climate Commissioner at the Dutch newspaper De Tijd, said: "There's only merit to having a statement from our perspective when there are also nuts to crack and ambition to display." China is likely to miss its five-year target of a 18% reduction in carbon intensity. The European Commission has not responded to an immediate request for comment. Reporting by Dheeraj K. in Bengaluru, Editing by Tom Hogue & Clarence Fernandez
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Vietnam imposes antidumping tariffs on hot-rolled Steel from China
Vietnam has implemented an anti-dumping tax of up to 27,83% on certain hot-rolled coils steel products that originate from China, after a similar tariff had expired. The ministry stated in a press release that the tariff will remain in effect for five years. In March, the Ministry imposed a temporary anti-dumping levie that lasted 120 days. Baoshan Iron & Steel, Maanshan Iron & Steel are among the companies that will be hit with the 27.83% duty. Guangxi Liuzhou Iron and Steel Group also faces duties of 23,1%, which is higher than the 19,38% rate imposed by March, according the statement. It said that "Domestic Production suffered significant damage." There is a direct correlation between damage to the domestic industry and the dumping of imports from China. Vietnam launched an investigation into anti-dumping in July last year following complaints by Vietnamese producers. Vietnam's government reported that between January and September of last year, the country imported 8.8 million tonnes of hot-rolled metal, of which 72% came from China. Reporting by Phuong nghuyen, Editing by David Stanway
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Amman's copper concentrate export is being questioned by Indonesian Minister
Indonesia's Interior Affairs Minister Tito Karnavian said on Monday that he had asked the country’s mining ministry to lift a ban on Amman Mineral International's export of copper concentrate, citing the effect it has on the local economies. Tito Karnavian said that the Nusatenggara Barat Province, where Amman Mineral International operates, saw its economy contract by 1.47 percent annually in the first three months of the year. This was due to the inability of the company to export concentrates while their smelters are being upgraded. Indonesia has banned the export of copper concentrates, as well as other raw minerals. This is to encourage metal-processing at home. Amman, however, was allowed to continue exporting until December 2024 when the new smelter was expected to be operational. Amman's newest smelter made its first copper cathode in March. This material is used to make wires, cable and electronic products. However, the company stated that it would take time for "optimal, sustained operations" to be achieved. Tito said at a government meeting that he had asked the minister of energy and minerals if there was a way to export while the smelter is being built. He did not reveal the answer. A spokesperson in Amman and officials at the ministry of mining did not respond immediately to requests for comment. Amman stated in February that it had asked the government for flexibility to allow the company to export copper concentrator. Amman's copper-smelter can produce up to 220,000 metric tonnes of copper cathode annually. Reporting by Bernadette Cristina Munthe and Fransiska Nangoy, Editing by Harikrishnan Nair
British Organization - April 10
The following are the leading stories on business pages of British newspapers. has not confirmed these stories and does not vouch for their accuracy.
The Times
- HSBC is offering its service in Argentina and reserving a $1 billion loss on the deal, the bank said on Tuesday, as it continues to diminish its when globe-spanning empire to concentrate on Asia.
- British clothing retailer Next and style group Frasers have revealed an interest in buying fashion group Ted Baker's European retail department.
The Guardian
- The Sun lost 66 million pounds($ 83.64 million) last year and its online audience come by 4 million readers as the paper continued to come to grips with the fallout from the phone-hacking scandal.
The Telegraph
- The EU will investigate aids gotten by Chinese providers of wind turbines predestined for Europe, in the bloc's. most current transfer to protect domestic firms from low-cost clean tech. products.
- Lionel Desclée, the president of Really Group, has. stop after less than two years in the job, as lenders circle the. Barclay family's retail empire.
Sky News
- CVC Capital Partners is considering revealing prepare for. its 3rd effort to go public in the Netherlands within the. next fortnight, even as fresh signs of market volatility cast. doubt on the prospective timetable.
The Independent
- Ola said on Tuesday it was leaving its ride-hailing. organizations in the UK, Australia and New Zealand as the startup. focuses on its home market India, where it is locked in a battle. for market show Uber.
(source: Reuters)