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USA Rare Earth is considering building a French magnet plant
USA 'Rare Earth' is looking at building a magnet plant? in France, said its CEO?on Thursday? after agreeing to pay a 40 million euro ($47 million) stake in French rare-earth processing firm Carester. The United States, Europe, and other countries are working to secure domestic supplies of rare Earths. These are essential for green energy, electronics, and defence sectors, as well as reducing their dependency on China, the world's largest producer. USA Rare Earth, in its quest to create an integrated rare-earths operation that includes mining, processing and magnet manufacturing, will purchase a 12.5% stake from Carester. Carester is currently building a processing facility in southern France. InfraVia is a fund for critical minerals seeded by France. It will also purchase a 12.5% share in Carester USA Rare Earth?added. Barbara Humpton, CEO of the company, told investors in a conference call that "They" (the French government), are interested in supporting a possible USA Rare Earth Magnet-making Facility in southern France. France, which is aiming to be a European hub in the rare earths industry, also has a Solvay-owned rare earths plant. Carester was founded in 2019 by former Solvay employees. Robert Steele, CFO of USA Rare Earth, declined to provide a timeline for the project or any other details. USA Rare Earth has a magnet production plant in Stillwater (Oklahoma) that is scheduled to open later this year. The company agreed in January to a debt-and equity funding package of $1.6 billion with the U.S. Government. Humpton said in an interview that the Carester investment is partly to gain access to French expertise on rare earths processing. Humpton, a former Siemens employee who was appointed CEO in October, said that the best thing to do when there is limited knowledge and expertise, is to build an ecosystem and share it. Analysts say that Carester's French facility will produce heavy rare earths which are needed for magnets. However, they may be hard to obtain due to expected shortages. USA Rare Earth receives a 15-year supply agreement and an offtake agreement. This will allow it to sell processed heavy rare oxides and send material for processing from its Round Top Mine in Texas. Less Common Metals of USA Rare Earth, a British company that produces rare metals and alloys, signed a deal in May 2013 with Carester to build a factory in France. Carester received?216 millions euros from Japanese sources as well as the French government for its Caremag unit. This unit is expected to produce 1,400 tons of rare earth oxides per year using recycled magnets and mining concentrats.
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Descalzi confirms that Italy has replaced Cingolani at Leonardo with Mariani
The Italian Treasury confirmed an earlier report that Lorenzo Mariani would be the new Chief Executive Officer of Leonardo Defence Group, replacing Roberto Cingolani. Rome, as expected, also proposed the reappointment of Claudio Descalzi at Eni's helm and Flavio Cataneo, Enel's, to their respective energy groups. Cingolani did not win a second term, despite a rise in sales and orders at the state-controlled group since he became its leader in 2023. He also secured a number partnerships with European competitors. Leonardo's shares, which had more than quadrupled in value under Cingolani, dropped this week amid reports of his possible removal, amid rumours he was no longer popular with Prime Minister Giorgia Melons. Meloni did not respond to opposition calls for an explanation of media reports that suggested she was about to remove Cingolani. Leonardo's management changed as it competed for business with the defence and aerospace sectors, where governments around the world are increasing their military spending due to the conflict in Ukraine and the Middle East. Mariani is currently the managing director of MBDA for Italy, which Airbus, BAE Systems, and Leonardo jointly own. In 2023, he was widely considered as a potential leader of Leonardo but lost to Cingolani. HORSE TRADE Often, the process of naming new employees at state-controlled firms involves lengthy and sometimes fraught discussions among political leaders. Rival factions jockey for influence while names are often changed last minute. Descalzi will be able to continue his long-standing leadership role at Eni with the new three-year contract that begins in May of this year. Analysts said that the challenge for the Energy Group and its top management over the next three years will be to support the growth of its new units, and to ensure that the returns promised to investors are delivered. Eni also faces criticism from environmentalist groups for its involvement with fossil fuels, and their contribution to global warming. Treasury announced that Giuseppina di Foggia will become the new chairman of energy major. She is currently the chief executive officer of power grid operator Terna. Igor De Blasio will lead Enav air traffic controller, replacing Paqualino Monti. Two sources have said that Monti would be appointed to the top of Terna at the end of this month. Treasury announced that Paolo Scaroni - a former CEO at both Enel & Eni - has been reappointed as chairman of Enel. (Reporting and editing by Gavin Jones, Elvira Fonte and Angelo Amante)
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Venezuelan legislature approves mining laws to open up sector to foreign investors
The National Assembly of Venezuela, controlled by the governing party, approved a law on mining that is expected to?open the sector to private and foreign investment. This follows the easing of restrictions in the U.S. economy to encourage foreign investment. Since the January raid in which President Nicolas Maduro was captured, the administration of U.S. president Donald Trump has supported the efforts of acting President Delcy Rodriguez. Trump has repeatedly praised Rodriguez's?cooperation with the U.S. The law allows domestic, foreign, state owned and private companies to exploit "strategic mineral" and gold. The concessions are for 30 years maximum, but they can be extended up to two 10-year periods. According to the law mineral?deposits are the property of state, and disputes can be settled through arbitration. The law also imposes a tax on companies that carry out primary mining up to 6% and a tax up to 13%. The law that says the central banks will be in charge of gold sales was passed unanimously. The Trump administration is a big fan of the bill, and U.S. Interior Secretary Doug Burgum said during a visit to the United States in March that it would create opportunities for businesses and that Rodriguez had promised to ensure the security of mining companies. Rodriguez has repeatedly stressed the same message. She said last month that 120 energy investors, mostly from 'the United States', had visited 'Venezuela after she assumed her post. Investors will be given legal and security assurances. (Reporting from Vivian Sequera in Caracas and DeisyBuitrago in Houston; additional reporting by MariannaParraga in Houston; writing by Julia Symmes Cobb).
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State news agency reports that attacks have reduced Saudi oil production and East-West pipeline flows.
Saudi state-run news agency SPA reported on Thursday that attacks on Saudi energy plants 'have reduced the kingdom's capacity to produce oil by 600,000 barrels per day, and its East-West pipeline throughput by 700,000 barrels per days, according to an official source at the energy ministry. SPA reported that the attacks, as well as previous strikes against some facilities, disrupted key operations in Riyadh and Yanbu Industrial City. SPA reported that seven Saudi employees, including one Saudi national who was part of the industrial security staff at the Saudi energy company, were injured in the attack. Sources in the ministry did not say who fired the missiles. Saudi Arabia has been 'under attack by hundreds of Iranian missiles, drones, and drones, since the beginning of the U.S. Israel war with Iran. Most of these were intercepted. Tehran has launched attacks on Israel and Gulf Arab countries that host U.S. Military installations. The source from the ministry said that one of the 'pumping stations' on the East-West pipeline in the Kingdom was damaged, which reduced throughput by 700,000 bpd. The source said that the pipeline is currently the main route to supply global markets. Source: The Manifa oilfield, which was also attacked, saw its production capacity reduced by about 300,000 barrels per day. A previous attack at the Khurais facility had already cut production capacity in Saudi Arabia by another 300,000 barrels per day. This brings the total Saudi production reduction to around 600,000 barrels per day, the source said. SPA reported that the attacks affected major refineries, such as SATORP in Jubail, Ras Tanura, SAMREF in Yanbu, and Riyadh, which directly affected exports of refined goods to global markets. Fires also affected processing facilities in Ju'aymah, which impacted exports of natural gas liquids and liquefied petrol gas. As conflict spreads throughout the region, the?strikes against key oilfields and pipeline infrastructure as well as refining hubs highlight the risks to the global energy supply. Saudi Arabia, the top oil exporter in the world, is a major player on global crude markets. A disruption of its production, refinery system, or export routes for a long time could cause a shortage and increase price volatility. According to the ministry source, continued attacks will reduce supply and slow recovery. This would affect energy security in consuming countries. It would also increase volatility on oil markets. SPA reported that the disruption has already depleted a large portion of emergency and operational inventories, limiting their ability to compensate for supply shortages. (Reporting and editing by Enas Alashray and Yomna ehab)
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Lula criticises Petrobras for reimbursing winners of LPG auction.
Petrobras, the state-run oil company in Brazil, announced?on Thursday that it would reimburse fuel distributors who had won an auction for liquefied petrol gas (LPG) in March. It will pay them the difference between what they bid and what import prices were at the time. Last week, Brazilian President Luiz Inacio Lula da Silva said that the government would seek an annulment of the 'auction in order to protect the consumers. He claimed that Petrobras sold liquefied petrol gas at prices which he described as 'too high due to the war with Iran. Petrobras stated that the reimbursement was to compensate for the effects of the auction on prices. The company also noted the "exceptional" nature of the market due to the Middle East war and regulatory body comments. Last week, the oil?regulator ANP conducted an 'inspection' of Petrobras' auctions of liquefied gas. The suspicion was that there had been price gouging. Petrobras announced that the reimbursement will be calculated based on the difference between the winning bids at the auction on March 31 and the import prices set by the ANP based on the period of March 23 to March 27. (Reporting and editing by Brendan O'Boyle, Daina Beth Solon, and Andre Romani)
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The Iran War increases demand for US fuel and boosts Gulf Coast refinery margins
Analysts and experts say that U.S. Gulf Coast refiners have the highest margins they've ever had as Middle Eastern oil flow disruptions resulting from the Iran War increase demand for U.S. exports of fuel. Refiners in Asia and Europe have been impacted by the?slump of Middle Eastern crude exports as a result of Iran's blockade of Strait of Hormuz. This has forced some to reduce production. The U.S. president Donald Trump announced on Tuesday that he has agreed to a ceasefire of two weeks with Iran. This agreement is conditional upon the reopening of the Strait of Hormuz. However, tanker traffic continues to be limited, and there are still doubts about whether this fragile truce can last. U.S. refiners are less dependent on Middle Eastern crude and can benefit from the global fuel shortages by maximising international sales through their U.S. Gulf Coast hub. Refining capacity in the U.S. is about 18 million barrels a day (bpd), with most of it located on the Gulf Coast, which is the largest export hub. Analysts said that independent refiners such as Marathon Petroleum, Phillips 66 and Valero Energy, which are located at the 'origin point' of the Colonial pipeline and have direct access marine export terminals are the winners in the market. Jeff Krimmel is the founder of Krimmel Strategy. He said that U.S. refiners can sell into markets with scarcity without having to suffer any disruption in their own feedstock supplies. According to U.S. Energy Information Administration, refinery utilization in the United States reached nearly 92% during last month. Gulf Coast usage averaged above 95% compared to around 90% a year ago. This compares to a seasonal average for the Gulf Coast of 82% over the past five years. Rystad Energy, a consultancy, said that Asian refinery utilization has fallen to a low-to-mid-?80% range following slashings in March and April. EXPORT MARGIN BOOST Ship-tracking data revealed that U.S. refined product exports reached a new record in March. Exports have surged, boosting refining margins following recent quarters of global oversupply. As refiners are receiving better prices overseas, domestic fuel prices will rise. This is despite the fact that U.S. gasoline prices and diesel prices have been trending towards record highs. This phenomenon is most evident in the diesel and jet fuel market, which has been most affected by the Iran?war. The Middle East is the main supplier of fuels and high yield crude grades. U.S. ultra low sulfur diesel futures traded at a premium of over $72 per barril to U.S. West Texas intermediate crude futures. This was compared to a premium of about $40 prior to the Iran War. U.S. gasoline futures, on the other hand, were near $26 above crude oil, up from $18 before the war. Alex Hodes of StoneX, the director of energy markets strategy, said that "Strength on global diesel markets will?expectedly pull barrels out of the U.S. Gulf Coast." INSULATION LIMITS The U.S. refineries are still not immune from rising crude prices as a stronger global demand raises the price of feedstock. The spot premiums on West Texas Intermediate crude oil have reached new highs. The price of WTI Midland crude oil for North Asia was $30-40 per barrel more than benchmarks in late March. In Europe, the bids have reached a record high near $15 per barrel. Market participants reported that Asian refiners also compete for South American crude barrels, which?had historically flown to the U.S. Phillips 66 announced on Monday that the rising price of commodities led to a loss of $900 million before tax in the first quarter. Phillips 66's hedges are less valuable because oil prices have risen. They'll make a profit as they sell more refined products in a market where product prices are high," Krimmel said.
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Judge rules that despite a $250 million settlement with Berkshire, the unit still faces a lawsuit for brokerage commissions.
Federal Judge ruled Thursday that Berkshire Hathaway must face a proposed antitrust lawsuit claiming that it conspired with real estate agents to increase commissions paid by home sellers, despite the fact that its HomeServices of America agency settled similar claims for $250,000,000 in 2024. U.S. district judge Stephen Bough rejected Berkshire Hathaway Energy’s argument that its dealings with HomeServices were a single enterprise for antitrust purposes. This meant it would not owe any additional damages to the home sellers after HomeServices settled. Bough said that HomeServices settlement also reflected the parties' intention that Berkshire entities with deeper pockets not be excused. He cited an November 2024 filing in which HomeServices asked for the court to determine the fairness of the $250 million agreement against its own resources. Berkshire Hathaway Energy, as well as its attorneys, did not immediately reply to comments. Michael Ketchmark is a home seller's lawyer. He said that he was looking forward to the jury trial to show Berkshire Hathaway Energy’s role in "propping this conspiracy" to steal from homeowners. The Omaha-based conglomerate Berkshire Hathaway, led by CEO Greg Abel, and Chairman Warren Buffett ended 2025 with a total of $373.3 billion in cash and 'equivalents. The National Association of Realtors changed their real estate commission rules after a Missouri jury ordered them to pay $1.8 Billion to home sellers who claimed that they had been overcharged. The 8th U.S. Circuit Court of Appeals ruled that the?settlement was inadequate and voidable. The Appeals Court of the Circuit ruled that the?settlement was inadequate. In January, oral arguments were held. Attorneys for plaintiffs claim that settlements in commission suits, including those against companies who did not go to court, exceeded $1 billion. Reporting by Jonathan Stempel, New York Editing Rod Nickel
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Gold gains more than 1%; spotlight on US-Iran truce and CPI data
Gold prices rose?over 1% Thursday, as a weakened U.S. Dollar lent?support. Investors assessed the durability and strength of a fragile truce between Washington and Tehran. They also awaited U.S. Consumer Price Index results. At 1:30 pm, spot gold was up by 1.6% to $4,789.67 an ounce. ET (1730 GMT), following a session in which gold reached a high of nearly three weeks. U.S. Gold Futures closed 0.9% higher, at $4.818.00. The U.S. dollar index fell. The dollar is weaker, making bullion more accessible to buyers of other currencies. Bob Haberkorn is a senior market strategist with RJO Futures. He said that the weaker dollar has helped gold to regain its footing. However, there are still some participants who are unsure of what the ceasefire actually means. He added that "the ceasefire headlines for gold were very bullish, but prices have pulledback from recent highs because cracks are showing." Israel has bombed additional targets in?Lebanon that Tehran insists must be included in a ceasefire. However, there is no indication Iran has lifted its blockade of Strait of Hormuz. The Federal Reserve could be forced to raise rates for longer if negotiations break down and the war flares up again. Gold, which is traditionally a hedge against inflation but does not yield any interest, could become less attractive. Morgan Stanley believes that gold will remain stable through the second quarter of this year before rebounding during the second half. It added that "if Fed hikes are avoided, gold could rebound. A resolution of the conflict would be also supportive, likely bringing focus back to?on debasement of fiat currencies." The markets are also awaiting the release of the Consumer Price Index data for March. Consumer Price Index for March is due on Friday. According to estimates, the Personal Consumption Expenditures Index - which is the Fed's preferred?"inflation gauge – grew 2.8% over a 12-month period ending in February. It will likely rise further in March. Silver spot gained 2.9%, to $76.24 an ounce. Platinum rose 3.8%, to $2,106.01, and palladium climbed 0.3%, to $1,558.75. (Reporting and editing by Kirby Donovan, Niall Williams and Ashitha Anil in Bengaluru)
Cocoa tops global products rally for second year, steel components battle on China need
Cocoa and coffee are poised to close 2024 as the biggest gainers among commodities for a 2nd year on an international supply deficit, while steelmaking coal will end as the worst performer, hit by slow growth in China.
Looking ahead, global trade stress are most likely to control the commodities landscape in 2025 as Donald Trump goes back to the White Home threatening substantial tariffs, experts said.
A strong dollar and gold's appeal as a safe haven for financiers are likely to support rare-earth elements rates, while adequate supply could depress oil for a 3rd year, they included.
In bad news for chocolate enthusiasts, cocoa almost tripled in cost over 2024, far outmatching gains in other commodities. It hit a record high of $12,931 a metric lot in New York previously this month on forecasts of lower supply for a fourth succeeding season in West Africa following dry weather condition.
The softs sector, led by cocoa and coffee, has been the main winner amid adverse weather in crucial growing areas, highlighting the threat to prices when products like these are produced and sourced from reasonably little geographical areas, said Ole Hansen, head of product strategy at Saxo Bank in Copenhagen.
Leading cocoa manufacturers Ivory Coast and Ghana have actually suffered crop losses due to adverse weather, bean disease, smuggling and lowered plantations in favour of prohibited gold mining.
Dryness has actually strained coffee supplies as well. ICE Arabica coffee costs skyrocketed to their highest in more than 40 years in the middle of worries that serious drought earlier this year harmed the upcoming crop in leading producer Brazil.
CHINA GROWTH CONCERNS HIT OIL, IRON ORE
Petroleum and bulk metals dealt with headwinds in 2024 as China, the world's second-biggest economy and leading commodities buyer, had a hard time generally due to a property crisis.
Brent and West Texas Intermediate crude could post a 3rd consecutive yearly decline in 2025 as supply outstrips a rebound in need growth, analysts stated, although Trump's policies on significant manufacturers Russia and Iran might suppress supply.
Spare capability in the Organization of the Petroleum Exporting Countries (OPEC) reached an extraordinary 5 million barrels daily (bpd), analysts approximated, with the group having extended production cuts to March.
The bleak inventory path next year recommends that OPEC+ will be challenged to revive barrels into the marketplace, Harry Tchilinguirian, head of research at Onyx Capital Group, stated in a note.
Iron ore prices in China recouped some losses in recent months however are still headed for a 15% decline in 2024. Prices could fall again next year as iron ore supply grows and Chinese steel need falls, experts said, in spite of Beijing's. stimulus procedures.
We anticipate the increase in iron ore supply from major miners. will be higher than that in 2024, however steel output in China will. likely slide, Pei Hao, senior analyst at brokerage Freight. Financier Services, said, forecasting a typical price of $100 a. lot in 2025, below an average of $110 in 2024.
Gold and silver increased more than 25% in 2024 and. might climb further in the year ahead depending upon the U.S. Federal Reserve's rates of interest cuts and Trump's tariff, tax and. diplomacies, analysts said.
Gold is the standout for us in 2025, ING's head of. commodity research Warren Patterson stated, including that strong. gold purchases by reserve banks will support need.
Copper and aluminium prices are set to end. 2024 higher, driven by tight materials, the energy shift and. hopes that China's stimulus steps will enhance demand.
PALM OIL, RUBBER AND GRAINS
For farming products, Malaysian palm oil futures. jumped around 20% in 2024, snapping two successive. years of losses, lifted by Indonesia's biodiesel mandate and. adverse weather condition in Indonesia and Malaysia.
Crop-threatening weather condition also drove a 42% gain in Tokyo. rubber futures.
In contrast, soybeans, corn and wheat were. in numerous supply, all on track for losses in 2024. Nevertheless,. wheat costs could discover some support in 2025 as warmer weather condition. in Russia, the most significant exporter, threatens to lower output.
Leading soybean exporter Brazil is poised to provide record. supplies in 2025, positioning it to satisfy a rise in Chinese. demand if a Washington-Beijing trade war appears.
(source: Reuters)