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Indonesian nickel miners working to launch local metals exchange in 2026
The secretary general of the Indonesian Nickel Miners Association said that they are preparing to launch a domestic metal exchange in 2026 for futures contracts on nickel and other metals. Nickel is produced in Indonesia, which has the largest reserves worldwide. The government has prohibited exports of ore nickel since 2020 to encourage investment in smelting. Recently, the authorities have shown a desire to exert more control over nickel prices. Nickel prices ended 2024 with a four-year low. Secretary general Meidy Kathrin Lengkey told the Shanghai Metals Market Indonesia Critical Minerals Conference & Expo that the government has approved the proposal by the nickel miners' group APNI to establish an Indonesian Metal Exchange. Meidy, late on Tuesday, said that the exchange's initial focus will be nickel pig iron, but it plans to expand its scope to include other nickel products and other metals. The group is currently working on the structure and concept of a new exchange, based on existing exchanges such as the London Metal Exchange or the Shanghai Futures Exchange. She said, "Our ambition is control the world with nickel." Edric Koh, with the LME, said that he was pleased by the plan. He highlighted the potential need for regional pricing discovery based upon local demand and supply dynamics, which could be a complement to a global benchmark price. Daniel McElduff, Abaxx Exchange, said that the plan must be carefully considered in terms of its timing and regulatory context. "Does your product have a commercial purpose?" Will it encourage buyers and sellers to participate in the market on a voluntary and active basis? If the answer is "no", then you are not using your resources well. (Reporting and writing by Gayatri Sroyo, editing by Kim Coghill.
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CORRECTED: Global alarms are raised as China's crucial mineral export restrictions take hold
On Tuesday, global automakers complained about China's stranglehold over critical minerals. They joined their U.S. peers in claiming that China's restrictions on the export of rare earth alloys mixtures and magnets may cause production delays or outages if a solution is not found quickly. German automakers are the latest to express concern that China's export restrictions could shut down production, causing their local economies to be shaken. This follows a similar complaint made by an Indian electric vehicle maker last week. China's decision to suspend the export of magnets and minerals in April has thrown supply chains for automakers, aerospace companies, semiconductor firms, and military contractors all over the world into chaos. China is using the move to leverage its trade war against U.S. president Donald Trump. Trump is trying to redefine trade relations with China, the U.S. top economic rival. He has imposed steep tariffs on millions of dollars worth of imported goods. The goal is to narrow a large trade deficit and bring back lost manufacturing. Trump had imposed tariffs of up to 145% on China, only to reduce them after the stock, bond, and currency markets protested against the broad nature of the measures. China responded with its tariffs, and is using its dominant position in supply chains to convince Trump to back off. Karoline Leavitt, White House spokesperson, told reporters Tuesday that Trump and Chinese president Xi Jinping will be talking this week. The export ban should also be a major topic of discussion. She said: "I can assure that the administration actively monitors China's compliance to the Geneva trade agreement." "Our administration officials are continuing to correspond with their Chinese counterparts." Trump has indicated that China's slow pace in easing its critical export ban on minerals is a violation to the Geneva agreement. The Chinese regulatory system has halted the shipment of magnets that are essential to the assembly of everything from drones and robots to missiles and cars. The suspension of production has caused anxiety among corporate boardrooms, as well as in the capitals of nations from Tokyo to Washington. Officials are scrambling to find alternatives amid fears that new cars and other products could come to a grinding halt before summer ends. Hildegard Müller, the head of Germany's automobile lobby, said on Tuesday that production delays or even production outages cannot be ruled out if the situation does not change quickly. Frank Fannon is a consultant in the minerals industry and former U.S. Assistant Secretary of State for Energy Resources during Trump's initial term. He said that those who pay attention are not surprised by global disruptions. I don't believe anyone should be surprised at how things are playing out. We face a production problem (in the U.S.), and we must leverage our entire government approach in order to secure resources and increase domestic capability as quickly as possible. Fannon said, "The time to do this was yesterday." Sources said that diplomats, automakers, and other executives in India, Japan, and Europe urgently sought meetings with Beijing officials, to press for faster approval of exports of rare earth magnets. Shortages threatened to stop global supply chains. Reports indicate that a business delegation from Japan is scheduled to visit Beijing early in June in order to meet with the Ministry of Commerce regarding curbs. European diplomats who are from countries with large auto industries also requested "emergency meetings" with Chinese officials over the past few weeks. In the next two or three weeks, Bajaj Auto, which warned that further delays in the supply of rare-earth magnets from China would "seriously affect" the production of electric vehicles, will organize a trip to India for its auto executives. In May, in a letter addressed to the Trump Administration, the head the trade group that represents General Motors and Toyota, Volkswagen, Hyundai, and other major automakers expressed similar concerns. The Alliance for Automotive Innovation stated in a letter that "Without reliable, consistent access to these magnets and elements, automotive suppliers would not be able to produce critical automotive parts, such as automatic transmissions and throttle bodies. They also could not manufacture sensors, seatbelts, speakers and lights. (Reporting by Jarrett Renshaw, with additional reporting from Ernest Scheyder at Washington; editing by Chris Sanders, Marguerita Choy and Chris Sanders)
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Gold prices rise amid US-China trade tensions and a weaker dollar
Gold prices rose Wednesday, as concerns about global economic conditions and uncertainty regarding U.S. China trade relations boosted demand for safe-haven assets. A weaker dollar also helped. As of 0209 GMT, spot gold was up 0.6% to $3370.67 per ounce. U.S. Gold Futures rose 0.5% to $3394.90. Kelvin Wong is a senior analyst at OANDA, Asia Pacific. He said, "We could see dip-buyers returning to the market." The trade relationship between China, the U.S.A. and even EU and U.S.A. is still uncertain. Gold is viewed as a safe haven during times of economic uncertainty. China's foreign minister Wang Yi said that the U.S. must create conditions to help bilateral relations get back on "the right track", according to the U.S. Ambassador to Beijing. The White House has hinted that Donald Trump and Xi Jinping, the Chinese president, may engage in discussions later this week regarding trade disputes. The U.S. also announced that it would not double the steel and aluminum tariffs imposed on Britain. Bullion priced in greenbacks is now cheaper for foreign buyers. Global economic concerns deepened after the Organisation for Economic Cooperation and Development (OECD) warned on Tuesday of sharper-than-expected economic slowdown, as the Trump administration's trade policies weigh heavily on the U.S. economy. Wong stated that "the OECD report will definitely be another factor supporting the safe demand to be heated up from a mid-term perspective." The U.S. labor market is showing signs of softening. Federal Reserve officials reiterated on Tuesday their cautious policy position, citing the risks of trade tensions and uncertainty in the economy. The price of spot silver increased by 0.3%, to $34.59 per ounce. Platinum rose 0.5%, to $1,079.62, and palladium remained at $1,009.94. (Reporting and editing by SumanaNandy, Janane Venkatraman and Anmol Choubey from Bengaluru)
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As trade uncertainty increases, Asian stocks are up and the dollar is softening.
The dollar dipped to six-week lows on Wednesday as traders prepared for the impending increase in U.S. tariffs on steel and aluminum. This is the latest chapter of the trade war that has roiled the markets throughout the year. South Korea's stock market and currency rose as the liberal presidential candidate Lee Jae Myung won his election. This raised hopes for a rapid economic stimulus, reforms of the markets and an end to policy uncertainty. The benchmark KOSPI rose more than 2%, reaching its highest level since August 2024. The MSCI broadest Asia-Pacific share index outside Japan was 0.6% higher. The Nikkei soared 0.8% in Japan, while Taiwanese stocks rose 1.6% overnight after Nvidia, the artificial intelligence giant that boosted U.S. stock prices overnight. The data released on Wednesday shows that U.S. jobs opened in April but layoffs increased, which indicates a slower labour market due to tariffs affecting the economy outlook. Investors have been watching a potential phone call between U.S. president Donald Trump and Chinese leader Xi Jinping this week, as tensions simmer between the two world's largest economies. Trump accused China on Friday of violating the Geneva Agreement to reduce tariffs and trade barriers. Beijing has said that it will protect its interests, and that this accusation is unfounded. Early trading in China saw little change, with the blue-chip index only up 0.09%. Hong Kong's Hang Seng Index rose by 0.27%. The Trump-Xi negotiations remain the focus of attention, even though markets may have become numb to headlines about trade. "A grand deal seems unlikely, but any escalation may still cause a bout risk aversion," Charu Chanana said, chief investment strategy at Saxo, Singapore. The pace and lack of progress in trade negotiations has also been a focus. The deadline for U.S. trade partners to submit proposals for deals in order to avoid Trump's "Liberation Day", hefty tariffs, is Wednesday. Trump has signed an executive order that will take effect at 0401 GMT, Wednesday. This follows his announcement last week to increase the 25% tariff on imports of steel and aluminum from March to 50%. Thierry Wizman is a global FX & Rates Strategist at Macquarie. He said: "We think that the steel & aluminum tariffs are a good example of other strategic tariffs which are likely to'stick.'" "There's little incentive for a U.S. Dollar rally to take root." DOLLAR WEAKNESS Investors have fled U.S. assets in search of safe havens this year, including gold, as they anticipate trade uncertainty to have a negative impact on the global economy. The Organisation for Economic Cooperation and Development (OECD) has revised its March estimates, due mainly to the impact of the Trump administration’s trade war. On Wednesday, the dollar was in a downward trend. It fell 0.17% to 143.72 yen and 0.1% to 0.8227 Swiss Franc. The euro increased by 0.15%, to $1.1388. The dollar index (which measures the U.S. currency against six major currencies) was 99.11 on Monday, not too far away from the six-weeks low of 98.58 that was reached the previous day. The index has fallen 8.5% in the past year. Oil prices fell in commodities due to a loosening of the supply-demand equilibrium following an increase in OPEC+ production and lingering worries about global economic prospects because of tariff tensions. Brent crude futures fell 0.06%, to $65.59 per barrel. U.S. West Texas Intermediate crude crude dropped 0.09%, to $63.35 a barrel. The gold price rose by 0.5%, to $3,369.59 an ounce. This brings its year-to-date gains to a staggering 28%, thanks to safe-haven flows. (Reporting and editing by Jamie Freed in Singapore, Ankur Banerjee)
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London copper prices decline; US tariff concerns remain
The price of London copper fell on Wednesday, as the uncertainty surrounding U.S. tariffs kept prices in check. The three-month copper contract on the London Metal Exchange fell 0.2%, to $9.615.5 per ton at 0102 GMT. The Shanghai Futures Exchange's most traded copper contract rose 0.5% to $10,979.24 per ton. The U.S. doubled the tariffs on imports of steel and aluminum to 50% starting Wednesday for all trading partners, except Britain. Britain's steel and aluminum exports are taxed at a 25% rate until July 9. Copper found some support amid concerns that the metal could also be subjected to U.S. Tariffs. The Trump administration is reviewing the impact U.S. imports of copper on the local economy," ANZ reported. Dollar fell as traders awaited the U.S. Employment Data for May to provide immediate trading signals, and also waited for developments in President Donald Trump’s tariff negotiations with important trading partners including China. After the delivery of 4,600 tonnes, inventories dropped to 143.850 tons. This is the lowest level in nearly a year. Other LME metals saw aluminium rise 0.4% to $2472, tin fall 0.3% to $11,275, and zinc drop 0.2% to 2,702.50. SHFE aluminium rose by 0.4%, to 20,010 Yuan per ton. Lead increased 0.5%, to 16,660 Yuan. Zinc grew 0.6%, to 22,370 Yuan. Tin advanced 1.4%, to 253,600 Yan, and nickel was up by 0.3%, to 121950 Yuan. Click or to see the latest news in metals, and other related stories. DATA/EVENTS: (GMT) 0750 France HCOB Services Composite PMI, May 0755 Germany HCOB Services Composite Final Final PMI, May 0800 EU HCOB Services Composite Final Final PMI, May 0830 UK S&P GLOBALPMI: COMPOSITE OUTPUT, May 0830 UK Reserve Assets total, May 0830 UK May 1345 US S&P GLOBAL Comp, Svcs Final PMI, May 1400 US N-M
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The outlook for oil prices is bleak as rising OPEC+ production and tariffs weigh on the outlook
Early Asian trade on Tuesday saw oil prices fall, weighed by a loosening of the supply-demand equilibrium following an increase in OPEC+ production and lingering worries about global economic prospects due to tensions over tariffs. Brent crude futures fell 5 cents or 0.1% to $65.58 a barge by 0040 GMT, while U.S. West Texas intermediate crude was $63.32 a barge, down 9 cents or 0.1%. The benchmarks rose about 2% to their highest level in two weeks on Tuesday, boosted by concerns over disruptions to supply from wildfires in Canada and the expectation that Iran would reject a U.S. proposal for a nuclear deal that is crucial to easing sanctions against the major oil producer. Tsuyoshi Ueno is a senior economist with the NLI Research Institute. He said that despite fears about Canadian supply, and the stalled Iran/U.S. nuclear talks, oil markets struggle to extend their gains. Ueno said that hopes of progress in U.S. - China trade talks had been overshadowed due to profit-taking as investors remained cautious about the broader economic impact from tariffs. White House Press Secretary Karoline leavitt announced on Monday that U.S. president Donald Trump and Chinese President Xi Jinping would likely meet this week. This comes after Trump had accused China of breaking an agreement to reduce tariffs and trade barriers. The protracted negotiations, and the shifting deadlines have caused economists to lower their growth predictions. The Organisation for Economic Co-operation and Development cut its global forecast for growth on Tuesday as the impact of Trump's trade conflict has a greater effect on the U.S. Scores of wildfires swept through Canada at the beginning of May, forcing thousands to evacuate and disrupting crude production. Market sources cited American Petroleum Institute data on Tuesday to report that U.S. crude stock levels fell by 3.3 millions barrels during the week ending May 30. Gasoline stocks increased by 4.7 millions barrels, and distillate stock rose by approximately 760,000 barrels. Nine analysts polled estimated that crude stockpiles would be reduced by an average of 1 million barrels. The U.S. Energy Information Administration is expected to release official inventory data on Wednesday. (Reporting and editing by Jamie Freed; Yuka Obayashi)
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Andy Home: Rio Tinto is betting lithium will remain the battery metal of choice.
The lithium market is a difficult one to be in as the metal has been weighed down by an excess of supply. The price of lithium hydroxide has fallen by 90% since its peak in 2022 and shows no signs of recovering. According to Wood Mackenzie, multiple producers now operate at negative or zero margins. Albemarle is the world's biggest producer of battery metal. They have cut costs and delayed new projects in order to survive the supply crisis. Rio Tinto is not deterred. Rio Tinto, the global mining company, remains "consistent" in its belief that lithium will have a long-term future. The company has put its money where it speaks, acquiring U.S. producer Arcadium at a cost of $6.7 billion. It also partnered with Chilean state entities for two projects. Rio believes that despite the current market dejection, demand will be sufficient to absorb current excesses and bring the market back into deficit by the end of the decade. In a rapidly changing landscape, it's a good bet to say that lithium will continue to dominate the battery metal market. Low Price, High Demand Lithium prices are weak because of the oversupply on the market. According to the International Energy Agency, global lithium production will grow by more than 35% per year in 2024. Chinese companies are not interested in cutting production and new mines continue to ramp up. However, the supply tsunami masks the strength in lithium demand. According to the IEA, global consumption grew 30% last year. This is equivalent to the global market size in 2018. Electric vehicles (EVs) are in good health. They are the largest users of lithium-ion battery technology. According to Rho Motion, the sales of new energy vehicles increased by 25 percent last year and by 29 percent in the first three months of this year. The use of lithium in energy storage systems has increased even more as the global power system pivots towards cleaner, but intermittent energy sources like solar and wind. Rio Tinto expects the demand to increase at a rate of 10% or more annually through 2040. DOMINANT METAL This scenario is primarily threatened by a change in battery chemistry, as manufacturers strive to make batteries that are cheaper and more efficient. The use of more expensive metals in batteries, such as nickel and cobalt, has declined dramatically. However, lithium remains the most dominant element. Adamas Intelligence reports that the amount of nickel and copper deployed in new energy cars in March was only up by 12% and 2% respectively year-on-year. The deployment of lithium was up 30%, which is the same as overall EV growth. But the battle for battery materials is not over. The Chinese company CATL is leading the way in developing sodium-ion battery technology. The latest iteration, Naxtra, will almost match in efficiency the lithium iron phosphate (LFP) batteries that are displacing nickel-manganese-cobalt (NCM) chemistries. Robin Zeng, the billionaire founder of CATL, believes that sodium-ion battery could replace up to 50% of the LFP market. The IEA, however, is less certain, stating that the sodium-ion battery is most competitive when lithium prices are high, which is not what we have at present. Lithium’s low cost may be the best way to fight off competition from other materials. The battery price is also falling, resulting in new energy vehicles being cheaper. MARKET ACCELERATOR According to the IEA, battery pack prices have fallen by 20 percent to a new record low of $115 kilowatt hours in 2024. This is the biggest annual decline since 2017. Prices across the spectrum of battery metals have soared to record levels, resulting in a drop in the share of cathode materials in battery pack prices from 20% in 2023 to just 10% in 2024. LFP batteries are 30% cheaper in China than NCM batteries, which are popular on Western markets. European automakers have taken notice. Volkswagen has adopted LFP technology to create a 20,000 euro entry-level electric vehicle for the European market. The price of electric vehicles has been a major barrier to consumers switching, but that gap is closing. Market forces can be a powerful counterbalance to tariffs, and the fact that President Donald Trump has scrapped his predecessor's green agenda. SAFE BET The metal crown of lithium's battery looks secure for the time being. The impact of the global EV Revolution and the growing demand for grid-storage solutions will mitigate the impact of sodium-ion battery market share. The IEA also points out that despite interest in new chemistries the main driver for battery innovation is still the conventional chemistries based upon lithium. Both NCM and LFP technology are constantly improving. The demand for lithium is growing at a phenomenal rate and all indications are that it will continue in the coming years. How long it takes for the current surge in supply to translate into a deficit on the market and higher prices depends on how long this current surge continues. Do not hold your breath. It may take some time. These are the opinions of the columnist, an author for.
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Metals tariffs increase as the deadline for 'best offers' approaches
On Wednesday, the U.S. tariff rates on steel and aluminum imports will double as President Donald Trump intensifies a global war of trade. He also expects his trading partners to make their "best offers" to avoid harsh import tax rates for other goods taking effect early in July. Trump signed an executive order late Tuesday that will take effect on Wednesday. Last week, Trump surprised the world by announcing that he would increase tariffs from 25% to 50% on imports of steel and aluminum. "We began with 25 and after studying more data, we realized that this was a great help but more assistance is needed." Kevin Hassett, White House economist, explained the decision at a conference on the steel industry in Washington. The increase will take effect at 12.00 am (0401 GMT). The tariff increase is applicable to all trading partners, except for Britain. This country has been the only one that has reached a preliminary agreement with the U.S. in the 90-day period of a pause from Trump's other tariffs. The tariff rate on steel and aluminum imported from the UK, which is not among the top exporters to the U.S. of either metal, will remain at 25% at least until July 9. Census Bureau data show that the levies are likely to hit U.S. trading partner Canada and Mexico the hardest. The two countries are ranked No. They rank No. Canada, as the largest exporter of aluminum to the U.S., is more vulnerable to the aluminum levies than any other country. It exports roughly twice as much aluminium to the U.S. About half of the aluminum in the United States comes from overseas sources. This week's unexpected rise in levies has shaken the markets for both metals, but especially aluminum. Aluminum prices have more than doubled this year. Import volumes will likely not be affected by the current price hikes if there is no capacity to increase production at home. Date for 'BEST OFFER ' The White House also wants trading partners to submit proposals on Wednesday that could help them avoid Trump’s "Liberation Day", hefty tariffs, from going into effect in just five weeks. Since Trump announced the pause in tariffs on April 9th, administration officials have been actively engaged in talks with several countries. However, only one deal has materialized. Even the agreement that provided the basis for the exemption from metals tariffs is more of an initial framework for further talks. The Trump team wants to close more deals in the remaining weeks. Reports on Monday stated that the U.S. trade representative was asking countries to submit their best proposals for a variety of areas including tariff and quota plans for purchases of U.S. agricultural and industrial products, and plans to remove any non-tariff obstacles. The letter also promises to provide answers "within a few days", and a "landing area" that includes the tariff rates expected for countries after the 90-day suspension of tariffs ends on July 8th. Most trading partners are concerned about whether or not they will continue to apply the 10% baseline tariff on all exports to the U.S. following that date. Karoline Leavitt, White House spokesperson confirmed the report Tuesday. She said: "USTR sent the letter to all our trading partners to remind them that the deadline was approaching." According to the letter, the Trump administration also requested any commitments regarding digital trade, economic security and country-specific commitments. (Additional reporting from Alexandra Alper, Washington; Writing and editing by Dan Burns.
CERAWEEK - Energy minister: Kazakhstan in talks with oil companies to reduce output.
Almasadam Satkaliyev, Kazakhstan's energy minister, said that the country is in talks with oil companies to reduce production to bring the nation's supply in line with the targets set by the Organization of the Petroleum Exporting Countries (OPEC+).
Satkaliyev stated that "we are in phases of discussion with the majors. We are having an open dialog" on the sidelines the CERAWeek Conference in Houston.
OPEC+ Member Kazakhstan increased its crude and condensate gas output in February, reaching a new record of 2,12 million barrels per daily (bpd).
Officials from Kazakhstan, who have often exceeded OPEC+ production quotas in the past, spoke at an online briefing on last week and pledged to reduce output in March April and May in order to compensate for pumping over targets in previous month.
Alexander Novak, the Russian Deputy Premier, suggested last week that OPEC+ might reverse its output increase in April if market imbalances exist.
Satkaliyev stated that "there is no final decision on this issue and it depends upon the current market situation."
Calculations show that the OPEC+ April increase will result in a 138,000 bpd increase in output.
Satkaliyev stated that "all the figures are dependent on how much we cut for Kazakhstan". (Reporting and editing by David Gregorio in Houston, with Georgina McCartney from Houston)
(source: Reuters)