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Gold drops on trade deal progress and tariff reprieve extensions
Gold prices fell on Monday as U.S. president Donald Trump announced progress on several trade agreements, and extended tariff exemptions for a number of countries. This dampened demand for this safe-haven precious metal. By 0232 GMT, spot gold had fallen 0.6% to $3314.21 an ounce. U.S. Gold Futures fell 0.6% to $3322. Trump announced on Sunday that the U.S. will be finalising a number of trade agreements within the next few days, and will notify the other countries about higher tariff rates before July 9. The higher rates are scheduled to come into effect in August 1. Trump announced a 10% tariff as a base on the majority of countries in April, with additional duties up to 50%. Later, he delayed the date of implementation for all tariffs except 10% until July 9, 2018. The new date gives most nations affected a three-week reprieve. Kelvin Wong, senior market analyst at OANDA, said: "This short term reprieve by the U.S. is causing the intraday weakness of the gold price in this moment." The top side will come in at $3.360 as a short-term support. Federal Reserve rate cuts are expected to be slower due to concerns about tariff-driven inflation. The rate futures market shows that traders are no longer expecting a Fed cut this month, and they only expect two quarter-point cuts by year's end. Trump signed a massive tax and spending package at the White House last week. According to unbiased analysis, this will add over $3 trillion to the $36.2 trillion national debt. Silver spot fell by 0.8%, to $36.61 per ounce. Platinum dropped 0.8%, to $1380.55, and palladium was down 1%, at $1123.31. (Reporting and editing by Sherry Phillips, Subhranshu Sahu and Anmol Choubey from Bengaluru).
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Iron ore futures fall on China steel production curbs and trade uncertainty
Iron ore futures fell on Monday, as new concerns about demand pressured the market. This was due to output restrictions at China's main steel production hub Tangshan. As of 0219 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was down by 0.68% to 731 yuan (US$101.96) per metric ton. The benchmark iron ore for August on the Singapore Exchange fell 0.1%, to $95.75 per ton. Tangshan Baochun Data, a provider of information in Tangshan City in northern China, posted a message on its WeChat page on Saturday. The note stated that steelmakers were given notices for production controls related to environmental protection. Tangshan Baochun, a local mill, said that some mills had undertaken maintenance work on their sintering machinery. Analysts noted that this move was expected to reduce demand for iron ore. ANZ analysts noted in a recent note that the markets are also on edge, as the deadline for U.S. trade agreements approaches. Donald Trump, the U.S. president, said on Sunday he was close to finalizing a number of trade agreements. He will inform other countries by July 9 that higher tariffs are coming into effect in August. Malaysia announced over the weekend that it had imposed anti-dumping provisional duties of between 3.86% and 57.90%, among other things, on certain imports of iron and steel from China. Iron ore prices have been held back by the strong steel margins and the resilient demand in near-term. Data from Mysteel revealed that despite signs of a slowdown, the average daily hot metal production, which is a measure of iron ore consumption, was still at 2,41 million tons as of July 3. This was higher than it had been a year earlier, and despite signs of a softening. Coking coal and coke, the other steelmaking ingredients, also recorded losses. The benchmarks for steel on the Shanghai Futures Exchange have fallen. Rebar fell 0.45%, Hot-rolled Coil dropped 0.59% and Wire Rod fell 0.81%. Stainless Steel lost 0.51%.
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Sources say that Nissan is considering Foxconn's EV production to save Oppama
Two people with knowledge of the situation said that Japan's Nissan Motor has been in discussions to allow Taiwan Foxconn use one the automaker's domestic plants to build electric cars. This could prevent the closure of the plant. In May, it was reported that Nissan considered closing its Oppama factory in Yokosuka, a port city south of Tokyo. Ivan Espinosa, the CEO of Nissan, announced massive restructuring plans to turn around its struggling automaker. These included closing seven out of Nissan's seventeen factories worldwide and cutting 15% off its workforce. The people, who declined to be named, said that allowing Foxconn to manufacture its own EVs in Oppama would prevent the closure of the plant, and reduce the impact of the restructuring on Oppama's 3,900 workers and suppliers. Nikkei, a Japanese business newspaper published the first report on this discussion late Sunday. Nissan said in a press release that the Nikkei article was not based upon information provided by the automaker. Foxconn did not reply to our request for comment. In May, Nissan’s junior partner Mitsubishi Motors and a Foxconn subordinate signed an agreement for the Taiwanese company to provide it with an electric vehicle model. (Reporting and writing by Maki Shraki, David Dolan, David Goodman, Christopher Cushing).
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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. The LME's three-month contract for copper fell by 0.31% at $9,834 a metric ton as of 0103 GMT, and the SHFE's most traded contract lost 0.91%, to 79440 yuan (about $11,088.00). Donald Trump, the President of the United States, said that the U.S. was close to finalising a number of trade agreements. He will inform about a dozen other countries on Monday that they can expect higher tariffs to be implemented on August 1. ANZ reported that "Markets are worried about Trump's policies, which could cause a global slowdown and harm demand for industrial commodities." 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 diminished consumption enthusiasm as a result of 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 is 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 nickel dropped 1.05%, to 121.190 yuan per ton. Zinc fell 0.83%, to 22.165 yuan. Tin fell 0.82%, to 266,770. Yuan. Aluminium fell 0.68%, to 20,500. Yuan. Lead fell 0.29%, to 17.220. LME nickel fell 0.36% to $16,235 per ton. Zinc eased 0.24% at $2,717.5. Lead slid 0.17% at $2,055, and tin rose 0.07% at $33,725. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0600 Germany Industrial Production MM, Production Year-on-Year SA May 0600 Halifax House Prices UK MM,YY June 0645 France Total Reserve Assets June ($1 = 7,1645 Chinese Yuan) (Reporting and Editing by Sumana Niandy; Reporting by Hongmei LI)
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OPEC+ pumps more oil but is it necessary and at what cost? Russell
After OPEC+'s decision to increase crude oil production, two questions arise: Who will buy the extra crude and will they export the barrels that they claim to be producing? OPEC+ decided at a weekend gathering to increase production by 548,000 barrels a day (bpd). This is up from the 411,000 bpd that the group approved for May June and July and 138,000 bpd in April. Eight members of the group will boost production - Saudi Arabia (as well as Russia, Kuwait, Oman and Iraq), the United Arab Emirates (UAE), Kazakhstan, Algeria, Kuwait, Oman and Russia. The eight countries will have unwound the voluntary 2.2m bpd that they had imposed in an effort to support crude oil prices last year. OPEC+ cited "steady global economy outlook and current healthy fundamentals of the market" in its statement announcing increased August production, continuing a theme that it has been promoting in recent communiques: the oil market was in good shape. The reality is not as rosy, however, as OPEC+ portrays it, as the demand for oil in the major consumer countries like China, which is the top importer of the world, has been tepid. China's crude oil imports rose by just 0.3% or 28,500 barrels per day in the first five month of this year. The official data shows that the total was 11.1 million barrels per day. The growth rate is expected to increase when the June data are released next week. LSEG Oil Research expects imports to be 11,96 million bpd, up from customs numbers of 11,30 million bpd in June 2024. China's imports were likely strong in June. However, the reasons for this are not so positive. The reason why refiners bought more crude than intended is because the prices were lower when June's cargoes arrived. Brent futures, a global benchmark, hit a four year low of $58.50 per barrel on 5 May. They had been trending downwards since early April when cargoes due to arrive in June would have been purchased. In June, oil imports from Asia, which accounts for 60% of all seaborne crudes, increased. LSEG estimates arrivals at 28,65 million bpd - the highest since January 2023. The increased imports in June boosted Asia's arrivals to 27,36 million bpd during the first half 2025, an increase of 620,000 bpd compared with the same period the previous year. In a coincidence, this forecast is in line with the Organization of the Petroleum Exporting Countries' (OPEC) June monthly report which forecasts a demand growth of 630,000 bpd in Asia outside the OECD by 2025. Prices are key The question is if imports will increase in Asia in the second half or if momentum from June will fade. History shows that importers like China and India will tend to reduce imports when prices increase and use up their stockpiles. China's imports will likely be reduced in August or September due to the brief price spike in mid-June, triggered by Israel's attack on Iran. The United States joined Israel in this action. Lower oil prices will encourage buyers to buy and build up inventory to increase imports in the fourth quarter. The ball in this case is largely on OPEC+. Prices will likely continue to fall if the group produces what its quotas permit and exports it. According to a July 4 survey, the actual production has so far lagged behind the higher quotas. The five OPEC members in OPEC+ increased output by 267,000 bpd, which was short of the allowed 313,000 bpd. Saudi Arabia's actions will be crucial, as it is OPEC+’s largest exporter and has the capacity to increase output. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist, who is also an author.
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Brickworks and Soul Pattinson of Australia secure funding for the $9.15 billion Topco Merger
Washington H. Soul Pattinson, an Australian investment company, and Brickworks, a building materials group from Australia said they had secured funding to merge their companies into a $9.15-billion ASX listed entity named Topco. The company has secured additional funding of A$220,000,000 ($143.81 millions) at the same price as Soul Pattinson’s last closing price, A$42.61. The proceeds from the sale will be used to pay off Brickworks' outstanding debts and other liabilities. Topco's debut is expected to be marked by a market cap of approximately A$14 billion (9.15 billion), supported by A$13.1 in diverse assets, including private equity, property and credit holdings. Brickworks shareholders will receive 0.82 Topco shares at a value implied of A$30.28 per share, which values the building products manufacturer at A$4.62billion. Mark Ellenor, CEO of Brickworks, said: "With equity in place, the combined company is ready to reap the benefits from the merger. We have a streamlined balance sheet, and a clear growth agenda." Topco, in conjunction with the capital raising announced in June and in July, has received commitments to buy 34 million shares. This will generate approximately A$1.4 billion. In a statement released on Monday, Topco and the other companies confirmed that the merger was now fully funded. No further shares were required. Corporate governance experts in Australia have long criticised the complex ownership structure of both companies, which has existed for more than 60 years. Brickworks' outstanding loan debt was A$721m at the end of the half-year period ending January 31. As of 0108 GMT shares in Soul Pattinson rose 0.6% while Brickworks remained largely flat. The benchmark index fell by a small 0.1%.
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South32, Australia's South32, will pay $130 million for the sale of Colombian nickel assets
South32, an Australian diversified mining company, announced on Monday that it would incur a $130 million impairment charge related to the sale to CoreX Holding B.V. of its Cerro Matoso Ferronickel operations located in northern Colombia. South32 anticipates receiving up to $100,000,000 in cash from CoreX. CoreX is a diversified industrial company with operations spanning the metals and mining sector, green energy and other sectors. In January 2024 the miner began a strategic review at Cerro Matoso, citing an important decline in nickel prices. Nickel producers are struggling with a price collapse fueled by a surge in production from Indonesia. This has forced some operators to cut spending, write off investments, and stop their mining operations. South32's Nickel production decreased by 6 percent in the nine months ended March 2025, due to lower nickel grades. They also cited structural changes on the nickel market as continuing to put pressure on nickel prices. BHP Group, world's biggest listed miner, announced in July 2024 it would cease its Western Australia nickel operations in October. It cited a drop in prices and an oversupply of metal in the global market.
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Oil falls as OPEC+ increases August output more than anticipated
The oil price dropped more than 1% Monday, after OPEC+ surprised the markets by increasing output more than anticipated in August. This raised concerns about an oversupply. Brent crude futures dropped 80 cents or 1.2% to $67.50 per barrel at 0010 GMT. U.S. West Texas Intermediate Crude was $65.68, which is down $1.32 or 2%. The Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreed to increase production in August by 548,000 barrels a day. Tim Evans, of Evans Energy, said in a report that "the increased production clearly represents an aggressive competition for market shares and some tolerance for a resulting decrease in price and revenue." The August increase is a big jump from the monthly increases that OPEC+ approved in May, June, and July. And 138,000 bpd for April. OPEC+ cited a stable global economic outlook, healthy market fundamentals and low oil inventories as reasons to release more oil. In a note, RBC Capital's analysts led by Helima Crockt stated that the decision would bring back nearly 80% (2.2 million bpd) of the voluntary cuts made by eight OPEC producers. The actual increase in production has been less than expected so far, and the majority of the supply comes from Saudi Arabia. Saudi Arabia raised its August price of its flagship Arab Light crude on Sunday to a record high for Asia. Goldman analysts anticipate OPEC+ will announce a final increase of 550,000 bpd for September during the next meeting, on August 3. Separately Donald Trump, President of the United States, said that the United States was close to concluding several trade agreements and would notify other countries by July 9 about higher tariff rates. The higher rates are scheduled to go into effect on August 1, 2018. Florence Tan, Lisa Shumaker, and Christopher Cushing edited the report.
Biden's tariff cautions signal sharp anti-China election battle
The Biden administration's threat to impose more tariffs on China is the current electionyear signal that frostier relations with China are most likely to follow despite who wins the U.S. presidency.
U.S. President Joe Biden traveled to the battlefield state of Pennsylvania on Wednesday to require greater tariffs on Chinese steel and aluminum products, and top administration authorities have actually indicated those are not likely to be his last salvo versus China this election season.
The same day, Treasury Secretary Janet Yellen signified that tariffs on Chinese electrical lorries might be essential to protect American employees from Beijing's glut of overproduction.
Today, the administration also launched an examination into what it stated were China's attempts to control the maritime, logistics and shipbuilding industries. Lots of professionals now believe the result of that probe and an ongoing multi-year review of Trump-era trade policies will be much more new tariffs on imports from China.
Liu Pengyu, spokesperson at the Chinese embassy in Washington, said U.S. tariffs embody unilateralism and protectionism.
Many trading partners of the United States, including China, are highly disappointed with the United States' frequent usage of national security, non-market behavior, overcapacity and other reasons to enforce limitations and politicize trade issues, Pengyu stated in a declaration on Wednesday in reaction to the proposed steel tariffs.
The Biden administration's choice to increase tariffs this week suggests a hawkish trade environment heading into the 2024 election as Biden and his Republican rival, Donald Trump, see a. tough-on-China position as a part of the road to triumph,. especially in rust-belt states like Michigan and Pennsylvania.
Trump has proposed 10% across-the-board import tariffs. if he were to go back to the White House.
He also proposes phasing out Chinese imports of items such. as electronic devices, steel and pharmaceuticals over four years and. wants to prohibit Chinese companies from owning U.S. infrastructure in the energy and tech sectors.
Forty-one percent of Americans called China as the greatest. U.S. opponent in a Gallup poll launched in March, making it the top. viewed U.S. enemy for the fourth straight year, the. polling group said.
China is undoubtedly getting drawn into what's most likely to be. a bit of a disorderly cycle. And I believe truly, today,. we're simply seeing the starts of that, said Allen Carlson, a. Cornell University teacher and expert on U.S.-China relations.
White Home officials dismiss the concept that politics is at. play, even as Biden trumpeted the proposed steel tariffs in an. emotional anti-Trump speech at the United Steelworkers union. headquarters in Pennsylvania.
Instead, administration officials say they fear a flood of. low-priced exports from China is threatening billions of dollars. in tax incentives secured by Biden to anchor markets like. solar, wind and electrical vehicles in the United States.
China's slow-growing economy is requiring producers to. double down on exports to offset weak domestic need development,. causing China's production trade surplus to surge to record. levels, administration officials state.
Double sided-solar panels, known as bifacials, offer an. example of the administration's concerns. The administration. given an tariff exemption to China up until 2026 to assist promote. solar power in the U.S., but now officials are expected to raise. the restriction and impose tariffs after cheap cells flooded the U.S. market, reported on Wednesday.
South Korea's Hanwha Qcells asked the administration to lift. the ban to protect a vowed $2.5 billion expansion of its U.S. solar manufacturing existence against competitors from less expensive. Asian-made items.
Biden aides said their administration's policies varied. from Trump's in essential respects, consisting of being directly targeted. to specific industries and products - which could reduce the chances. of strong retaliation by China and other foreign governments.
The steel and aluminum proposal, for instance, would only. target $1 billion in items versus the hundreds of billions. implicated by Trump's more comprehensive tariffs, a senior administration. official said.
Strong U.S. policy against China is among the uncommon issues. that has strong bipartisan assistance throughout the nation.
Everybody's anti-China these days and it's reflected in. public opinion, said Bill Reinsch, a senior adviser at the. Center for Strategic and International Researches.
(source: Reuters)