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Sources say that China has sold coking coal to Indonesia, a rare trade.
Sources familiar with the situation said that China shipped at least three cargoes worth of coking coal in May to processors on Indonesia's Sulawesi, invading a market dominated by Australia and Indonesia. China, the world's largest importer of coal for steelmaking, isn't a major exporter. It has only exported the fuel to Indonesia three times since 2024 began, according to monthly Chinese customs statistics. Three sources claim that the state-run Shanxi Coking Coal Group exported coking coal from China to Indonesia in last month. Risun operates one of Indonesia's largest coke-processing facilities in the Sulawesi area. Sources said that the state-run group had sold another cargo for export to Indonesia to Hong Kong Jinteng Development Ltd. A second source confirmed this and added that a third shipment was also sold to an Indonesian Dexin Steel Plant. Sources requested anonymity because they weren't authorized to speak about the matter. Shanxi Coking Coal China Risun, and Dexin Steel have not responded to our requests for comment. Hong Kong Jinteng Development Ltd. could not be reached. According to an independent consultant, Lawrence Yan, the move was designed to test economic feasibility of Chinese supplies and show that traditional sellers such as Australia had other options. He added that the high costs and fierce competition from Russia and Mongolia would make it unlikely for this trade to become mainstream. A Chinese trader Winsway stated last week that the slowdown in China's steel industry may allow for a greater supply of coking. This could make it a more regular export, in the long term. In April, China exported the first shipment of coking coal since July last year. The data for May has not yet been released. INDONESIAN Coke Overcapacity Coke processing facilities in Sulawesi are a major source of metallurgical coal, a raw material for steelmakers. This has boosted demand for the coking coal used to produce coke. Kpler data shows that Indonesian met coke exports reached a record in 2024. One source said that the region was now suffering from overcapacity with only 60 to 70 percent of its capacity being used. India, a major buyer of met coke in Indonesia, imposed import restrictions on December.
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EIB supports Spain-France energy link with 1.6 Billion Euros
The European Investment Bank announced on Monday that it would invest 1.6 billion euro ($1.84 billion) in a power interconnector planned between Spain and France. This comes after the governments of Spain and Portugal sought EU assistance to improve their electricity links following an April blackout. The European Investment Bank announced on Monday that it would invest 1.6 billion euros ($1.84 billion) in a planned power interconnector between Spain and France. This comes after the governments of Spain and Portugal sought EU help to improve their power links following a massive blackout in April. The EIB (the European Union's lending body) said that it would support the Bay of Biscay Interconnector through loans to Spain's and France's energy system operators, Red Electrica y RTE. They aim to launch this 400-kilometre project by 2028. Subsea links would allow France and Spain to exchange more power, increasing it from 2.8 gigawatts up to 5 gigawatts. In a press release, EIB Group president Nadia Calvino stated that "EIB's support for the France/Spain interconnection of electricity will be crucial to ensure that the Iberian Peninsula no longer is an energy island." Causes of the Iberian blackout are still under investigation. A letter revealed that, following the blackout, the governments of Spain and Portugal asked the EU to intervene last month in order to move forward with new interconnections projects with France. This year, the work to improve an existing interconnector will be completed. France's RTE also evaluated two additional interconnections between Spain and France over the Pyrenees. However, the beneficiaries of the projects would be located outside France. Thomas Veyrenc said that the Bay of Biscay Project would increase solidarity between France and Spain. Beatriz Corredor is the chairwoman of Red Electrica parent company Redeia. She said that the countries should continue with their planned interconnections across the Pyrenees. Iberia's electricity capacity is only 3% connected to the neighbouring countries. This is far below the EU target of 15% by 2030.
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Markets on hold in Europe as they wait and see what happens with the Middle East
Wayne Cole gives us a look at what the future holds for European and global markets. While Israel and Iran continue their missile exchange, the markets have been resilient on Monday so far with most Asian indices in the green. Chinese retail sales exceeded forecasts but there was no reaction. Oil initially jumped by 4%, but then settled down to a gain of around 1%. The Middle East's war is not unexpected, and so far it does not appear to be spreading. Investors seem to assume that Iran won't threaten to close down the Strait of Hormuz, as this could potentially drag the United States into a conflict. Saudi Arabia, and the rest OPEC can also increase supply if necessary to keep prices down. The G7 meeting, taking place in Canada this year, will be a headache to the host country. They already have enough problems with President Trump's tariffs against allies. The progress made on trade agreements has been slow, and the U.S. China tariff truce last week may not have resolved the most important restrictions on minerals that are closely linked to national security. The rise in oil prices will complicate the Federal Reserve's meeting this week. However, it must be a sustained increase in price to pose a real inflationary threat. The Fed's dots plots are the key to determining whether they will keep the two rate cuts this year or reduce them to one, as some believe. The central banks are busy this week. Bank of Japan is expected to remain steadfast on Tuesday, but may signal a slowdown of its bond-tapering for next year. Bank of England, Norges Bank and Riksbank are all expected to hold steady. The markets are fully priced in for the Swiss National Bank to ease by a quarter-point, going down to zero. Market developments on Monday that may have a significant impact - Appearances of ECB members Joachim Nagel, and Piero Cipollone. (Reporting Wayne Cole; Editing Jacqueline Wong.
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IMF: Sri Lanka's economic reforms have 'no room' for mistakes, according to the IMF
Sri Lanka's economic reform program, which is supported by the IMF, has seen significant progress, but there's still more to be done in order to reduce poverty, corruption, and domestic debt. The IMF's No. 2 official stated Monday. Gita Gopiath, the first deputy managing director at the International Monetary Fund (IMF), said that Sri Lankan reforms tested the social fabric of the country, but they also helped to pave the way for an even more resilient future. Sri Lanka has made a strong recovery since March 2023, when it secured a four-year loan from the global lender. In April, the country reached an agreement at the staff level with the IMF regarding a fourth review on the bailout package. This will allow it to access about $344 millions in financing once the board approves. Gopinath stated that "substantial progress has been made in restoring macroeconomic stability and reducing hardships experienced by the people." He cited renewed availability of cooking gas, fuel and medicines, an economic growth of 5% by 2024, and a sharp rise in tax revenue. "We now must shift our focus from crisis management to sustainable recovery. She said that there is much more to be done, and she urged the Sri Lankan authorities not to give up on their efforts in implementing governance reforms as well as reducing poverty and credit. Gopinath, a Sri Lankan economist, said that the small economies of Sri Lanka, as well as other countries with open economies, face major risks due to tariffs, conflict geopolitical and economic fragmentation. She said that policy mistakes are not tolerated, pointing out that half of Sri Lanka’s 16 previous IMF programs ended prematurely due to reform fatigue and the reversal of hard-won achievements. She said, "The country can't afford to repeat this cycle." This time, it must be different. Let's make sure this is the last IMF programme Sri Lanka needs. Gopinath stated that the IMF was in agreement with Sri Lanka's position, provided it stayed on course, pursued inclusive reforms and increased transparency, and made sure its policies were responsive, responsible and accountable. She said that Sri Lanka's debt restructure had led to improved methods for evaluating state contingent features in debt contracts, which link payments to the country's ability to pay. It also sparked certain IMF reforms. She said that the challenges included facilitating cooperation among a variety of official creditors including France, Japan India and China and including domestic debt into restructuring plans. However, this was done by focusing more on lower interest rates, longer maturities and less on nominal debt reductions. Reporting by Andrea Shalal, Editing by Jamie Freed
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Nippon Steel shares rise after Trump approves $14.9 billion US Steel bid
Nippon Steel's shares rose Monday after U.S. president Donald Trump approved the $14.9 billion offer for U.S. Steel. This cleared a major hurdle in their 18-month pursuit, and secured access to a crucial market for their growth strategy. The approval culminated a turbulent process that was marked by two reviews of national security and union opposition. Nippon shares, the fourth largest steelmaker in the world, rose 3% by midday to 2,915yen after they were untraded earlier due to a surplus of buy orders. The shares outperformed the benchmark Nikkei 225 Index in Tokyo, which rose about 1%. Trump signed an order on Friday allowing the tie up to proceed, subject to an agreement with Treasury Department regarding national security concerns. The companies announced that they had signed an agreement, clearing the deal. The agreement also includes commitments to governance, production, and trade. Nippon Steel has also confirmed its plans to purchase 100% of U.S. Steel ordinary shares. Shinichiro Ozaki, senior analyst of Daiwa Securities said that investors have been pleased with the end to the uncertainty surrounding this deal. He said that the overall agreement appeared reasonable, both in terms of investment size and timeline. The acquisition was central to Nippon Steel’s medium-to-long-term growth strategy. The agreement would increase Nippon Steel’s annual production capacity from 63 to 86 millions metric tons. Masayuki KUBOTA, Rakuten Securities' chief strategist, said that shares rose due to long-term growth prospects, driven by the preferential access to U.S. markets, where steel consumption is expected to rise. Some investors are still concerned about the financial strain that will be placed on them in the near future by these large investments. The U.S. Government's ownership of the combined company (known as the "golden shares") has also raised questions about the level of control that it can exercise. Ozaki stated that "while the risk of capital increases hasn't entirely receded," it may be less serious than expected, referring back to Trump's comment earlier this year, in which he said the steelmaker planned to invest $14 billion over the next 14-month period. Ozaki minimized the management risk associated with the golden share by saying that "Nippon Steel anticipates a growth in the U.S. for high-end product, making production reductions and job cuts unlikely."
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Costa: It's not the right time to mess up with EU-US Trade
John Irish KANANASKIS (Alberta), June 15, 2015 - Instead of creating economic insecurity through trade tensions between the United States and Europe, the European Union's President Antonio Costa stated on Sunday. Costa, speaking to reporters alongside European Commission President Ursula von der Leyen before a G7 gathering in the Canadian Rockies was a chance to discuss "some problems" among allies and friends. Costa, in response to Washington's shift of its foreign policy away from China, said that the main issue between Europe, and the United States, is European defence. We should concentrate on this. "Since this is the primary issue, we should avoid introducing any other issues that would undermine our ability to take greater responsibility for our own defense." U.S. president Donald Trump has backed down from his threat of imposing 50% tariffs on imported goods from the European Union (EU) next month. He restored a deadline of July 9 to allow talks between Washington, and the 27-nation group to produce an agreement. Trump's haphazard levying of tariffs around the world has caused uncertainty among U.S. key allies and increased pressure on the global economic system. Von der Leyen, who spoke alongside Costa, said that the trade negotiations with Washington are now focusing on the details but there is no guarantee of a successful deal. "This is why it's not the right time to create economic uncertainty." Costa stated that it is not the time to cause problems in trade because we must strengthen our economic base. "We're talking about some of the most important trade relations in the entire world. We need to protect them and concentrate on the most crucial thing, which is a good agreement on burden sharing between the EU and United States on defense." Von der Leyen echoed Costa's remarks, saying that the G7 must avoid protectionism. This is a very important message. She said that the G7 could send a message to the markets, and the rest of the world. (Reporting and editing by Shri Navaratnam).
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Tariffs cap the rise in iron ore prices as China's demand grows.
Iron ore prices rose on Monday, as rising crude production in China's top steel-consuming country boosted sentiment. However, U.S. tariff concerns limited gains. As of 0253 GMT, the most-traded contract for September iron ore on China's Dalian Commodity Exchange was trading 0.28% higher. It was 705 yuan (US$98.13) per metric ton. The benchmark July Iron Ore at the Singapore Exchange increased by 0.25%, to $94.4 per ton. China's crude output of steel in May increased by 0.6% compared to April, as mills increased their operating rates and took advantage of the healthy profit margins generated by exports. Mysteel, a consultancy firm, reported that 60% of China's blast furnace steel mills had positive margins by June 12. According to Mysteel, the average daily hot metal production, which is typically used to gauge iron ore consumption, fell by around 0.1% on a week-on-week basis to 2.416 millions tons at June 13. Trump's steel tariffs of 50% will apply to a wide range of household appliances imported from June 23, including dishwashers, washers, refrigerators, and others. Official data released on Monday showed that China's new house prices fell 0.2% from the previous months. This is a sign of the stagnation in the property market despite several rounds policy support measures. A stronger U.S. Dollar, driven by the demand for safe havens amid increasing geopolitical tensions across the Middle East, also pushed prices down. Dollar-denominated investments are less affordable for holders of currencies other than the dollar. Coking coal and coke, which are used to make steel, have gained ground on the DCE. They rose by 1.81% each and 1.04% respectively. The benchmark steel prices on the Shanghai Futures Exchange have strengthened. Rebar was up by 0.81%; hot-rolled coils were up 0.88%; wire rod was up 0.3% and stainless steel was up 0.04%. ($1 = 7.1843 Chinese Yuan) (Reporting and editing by Rashmi aich; Michele Pek)
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Shanghai metals fall as Israel-Iran tensions and mixed China data weigh
The Shanghai Futures Exchange saw most metals trade lower on Monday as mixed Chinese economic data reinforced investor caution. Escalating tensions between Israel, Iran and other countries also weighed on investor sentiment. As of 0224 GMT the SHFE's most-traded contract for copper was unchanged at 78.390 yuan per metric ton ($10,910.69), while zinc dropped 0.8% to 21.780 yuan. Aluminum fell 0.2% to 20,375 yuan and nickel was down 0.6% at 119,370. Lead also declined 0.3%. Tin edged up 0.2% to 264,820. Metals analysts at a Beijing futures company said that the conflict has created a new level of uncertainty in global geopolitics. This has led to concern about metals consumption. China's May industrial production missed forecasts, despite retail sales exceeding expectations. New home prices continued to fall in May, despite the continuing weakness of the property market. In early Asian trading, the dollar rose by 0.25 percent. Its gains were extended with an additional 0.2% increase. The greenback price of commodities increases when purchased in other currencies. The London Metal Exchange's three-month copper price rose 0.1% per metric tonne to $9,655.5 by 0224 GMT. Aluminium fell by the most, 0.6%, to $2488, while lead fell by 0.1%, to $1,989; zinc dropped by 0.1%, to $2620; and nickel fell by 0.1%, to $15,110. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0630 India WPI inflation YY may 1100 EU Reserve Assets total May
China's BYD to finish $1 billion Indonesia plant by year-end, executive states
China's leading electric vehicle maker BYD intends to finish its $1 billion plant in Indonesia at the end of 2025, the head of its local unit said on Monday, highlighting the firm's ambition to dominate in the market where Japanese car manufacturers are popular.
The long-lasting plan for the plant is for the export market, stated Eagle Zhao, BYD's president director in Indonesia.
Every development of our regional production is rather smooth and likewise on the track. We will keep our commitment, which is by end-2025, we will complete the construction works, Zhao stated in a joint interview with Reuters and CNBC Indonesia.
The plant, which is being built at a commercial complex in Subang, West Java, will have a production capacity of 150,000 EV systems each year.
With the investment, BYD will be permitted to momentarily ship its vehicles into Indonesia without import
responsibilities
, a policy intended to stimulate need for EVs while drawing in investment by automakers. The federal government goes for 600,000 EVs to be locally produced by 2030.
In 2024, its first year of sales in Indonesia, BYD offered 15,429 units, car association information revealed. According to January to November figures, BYD was the leader in regards to battery-based EV sales with about 36% of the market share.
Zhao stated he expected the brand-new plant to produce its first cars and trucks not long after the conclusion of building.
BYD has actually up until now presented 4 designs in Indonesia, namely the Seal sedan, the Atto 3 SUV, the Dolphin hatchback and the M6 seven-seater MPV, which was its most sold design out of the four last year.
Zhao added that the company prepared to introduce more models this year, without defining how many, in order to book is quick growth in sales in 2025. BYD is to likewise launch its premium Denza brand in Indonesia next week.
BYD, which overshot its international sales target to more than 4 million unit offered last year, has actually been
stepping
up its presence in Southeast Asia, challenging the vehicle market controlled by Japanese and Korean firms.
In 2015, BYD
opened
its first EV plant in the area, in Thailand, worth $490. million and which has a production capacity of 150,000 systems per. year, including plug-in hybrids.
In Singapore, BYD
expanded
its sales lead over Tesla in the first half of. 2024.
(source: Reuters)