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Copper prices near 3-week high in hopes of tariff relief
The copper price hovered at a three-week high on Friday, and was headed for a gain of about 5% on the week on signs that tensions between China and the United States may be easing. This is despite President Donald Trump’s comments creating confusion and volatility on global markets. By 0422 GMT, the benchmark copper price on London Metal Exchange (LME), was up 0.6% to $9,445 per metric tonne. The metal reached a high of $9,481.50 in the first half of this week, its highest level since April 3. The Shanghai Futures Exchange's (SHFE) most-traded contract for copper rose by 0.4%, to $10,682.66 per metric tonne. LME copper prices have risen by about 10% after hitting a low of $8.105, a level not seen in 17 months. "Signals coming from the U.S. Administration suggesting a substantial decrease in tariffs on Chinese products have fueled hope of a de-escalation of trade friction between the U.S. Beijing claimed on Thursday it had not held direct trade negotiations with Washington. However, Trump confirmed later that day that such talks were in progress. The concurrent decline in dollar index provides an additional tailwind, Sachdeva added. He also noted that the copper price has a technical hurdle at $9,500 a metric ton and a break above this level is essential to maintain the current upward trend. This week the dollar has fluctuated dramatically. It started with a 1% drop against major peers, but then surged 1.5% on Tuesday after Trump's remarks. The dollar index will rise 0.27% for the entire week after a four-week losing streak. The dollar price of commodities increases when purchased in other currencies. Other metals saw an increase of 0.7% in aluminium to $2466 per ton. Zinc rose by 0.3% to 2,695, while lead increased 0.2% to 1,962.5. Tin gained 0.3%, reaching $31,850, and nickel grew 0.3%, to $15,875 per ton. SHFE aluminium rose 0.5% to 20 0005 yuan per ton. Zinc was up 1.3% at 22,830, lead 0.7% at 17,045, nickel 0.2%, 126,030, and tin 1.2%, 262,940. ($1 = 7.2950 Chinese yuan Renminbi). (Reporting and editing by Eileen Soreng, Mrigank Dhaniwala.)
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Blue chip-backed Biomas launches first Brazil reforestation project
Biomas, an initiative for reforestation in Brazil backed by several major corporations, unveiled on Friday its first project. It aims to restore 1,200 ha (2,965 acres), of Brazil's Atlantic coast rainforest, with more than 70 native tree varieties. The project represents a major milestone for the company formed in 2022 by Vale Mines, Marfrig Meatpackers, Suzano Pulpmakers, Santander Brasil, Itau, and Rabobank. The initiative comes at a time when Brazil's carbon removal industry is growing, and major reforestation initiatives are already underway. Startups Mombak and Re.green offer credits to companies who want to offset their greenhouse gas emission. These two developers purchased land from farmers or ranchers, or partnered with these individuals to reforest areas of the Amazon. Biomas has started with a stretch in the Atlantic rainforest of the state of Bahia, and is evaluating future Amazon projects. Mucununga is the name of a project that will see Veracel Celulose, a producer of eucalyptus paper, invest around 55 million reais (9.7 million dollars) in reforestation land. In an interview with Biomas CEO Fabio Sakamoto, he said that the Atlantic rainforest was a biodiversity hotspot. He also noted the local infrastructure and the confidence in land titles were factors in the decision to begin work in the coastal biome. More than two-thirds of Brazil's inhabitants live in the corridor that was once covered with the Atlantic rainforest. This includes the states of Sao Paulo, Rio de Janeiro and other Brazilian states. Scientists estimate only 12% original forest remains. "Our focus is both on the Atlantic rainforest as well as the Amazon." Sakamoto said, "We have been mapping the opportunities in both biomes over the last couple of years." Biomas plans to plant around 2 million trees as part of the Mucununga Project to generate approximately 500,000 carbon credit over 40 years. Each credit is intended to compensate for one ton carbon dioxide emissions. The company's goal is to restore 2 million hectares (roughly 400,000 acres) of unproductive or degraded land in the next 20-year period.
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Copper prices near 3-week high in hopes of tariff relief
The copper price hovered at a three-week-high on Friday, and was headed for a gain of about 5% on the week on signs of potential de-escalation of U.S. China trade tensions. Meanwhile, President Donald Trump’s slew of comments caused confusion and volatility on global markets. By 0334 GMT, the benchmark copper price on London Metal Exchange was up 0.3% to $9,418 per metric tonne. Metals reached a high of $9,481.50 in the first half of this week, their highest level since April 3. The Shanghai Futures Exchange's (SHFE) most-traded contract for copper rose by 0.2%, to $10,664.95. LME copper prices have risen by about 10% after hitting a low of $8.105, a level not seen in 17 months. "Signals coming from the U.S. Administration suggesting a substantial decrease in tariffs on Chinese products have fueled hope of a de-escalation of trade friction between the U.S. Beijing said on Thursday it had not begun direct trade negotiations with Washington. However, Trump repeated the statement later that day. The concurrent decline in dollar index provides an additional tailwind, Sachdeva added. He also noted that the copper price has a technical hurdle at $9,500 a metric ton and a break above this level is essential to maintain the current upward trend. This week the dollar has fluctuated dramatically. It started with a 1% drop against major peers, but then surged 1.5% on Tuesday after Trump's remarks. The dollar index will rise 0.27% for the entire week after a four-week losing streak. The dollar price of commodities increases when purchased in other currencies. Other metals saw an increase of 0.5% in aluminium to $2.461.50 per ton. Zinc rose by 0.2% to 2,691.50. Lead increased 0.2% at $1.962.5. Tin gained 0.1% at $31,800. Nickel was up by 0.06% to $15,830. SHFE aluminium rose 0.5% to 19.995 yuan per ton. Zinc climbed 1.3% to 22.830 yuan. Lead grew 0.7% to 17.040 yuan. Nickel was up 0.05% to 125.850 yuan. Tin gained 1.1% to 262,730.
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Dollar and stocks are set to rise weekly on Trump's tariff reversal
The dollar rose for the first time in over a month on Friday, as investors welcomed the apparent softening of White House's stance towards China despite the lack of any detente. Alphabet, the parent company of Google, also beat expectations for profit and reaffirmed AI expenditure targets. This pushed its shares up by nearly 5% after-hours and pulled along with peers and S&P futures which rose by 0.5%. Wall Street investors shrugged off mixed corporate results overnight and the S&P 500 was up 2%. The dollar has been weakened by a series of volatile events, including tariff announcements and reversals, as well as a flight from U.S. assets. However, the dollar has stabilized around 143 Japanese yen per $1.1350, with dollar sales in Asia easing on Friday. In a client note, ING currency analyst Francesco Pesole said that there is a sense among market participants that they can now impose a more friendly stance from the U.S. Government. Investors will seek confirmation of a more optimistic view on U.S. Assets to justify further dollar gains. The U.S. changed its tone this week and declared that the situation was unsustainable. China has, however, denied that it has held any trade talks with Washington despite the comments of U.S. president Donald Trump to the contrary. It has also warned other countries not to strike deals with the U.S. at China's cost. Christopher Wood, global head of equity strategies at Jefferies, said: "The equity recovery in the last two days is a direct result of Donald Trump’s apparent U-turn on China tariffs. This confirms that the U.S. doesn't have the cards in this poker game." The Nikkei 225 index rose 1.4% in Japan on Friday. It has recovered all of its losses following Trump's announcement on April 2, of the highest U.S. Tariffs in 100 years. Trump suspended most of these levies, with the exception of China and the 10% baseline tariff. The tech shares were the biggest gainers, with Nidec shares up 11% after it predicted a record profit for the year and Nissan shares jumping 2% on investors' bets that the worst is over since the automaker had forecasted a record loss. The Hang Seng in Hong Kong rose by 0.9%, and the Shanghai Composite and blue-chip CSI300 on mainland China also saw small gains. The U.S. Dollar Index was up 0.4% this week to 99.619. The markets in Australia and New Zealand closed due to a public holiday. The markets were showing signs of unease, but this may not last long. Gold was steady at $3,349 per ounce, and analysts from Philip Securities in Singapore noted that the Gold/S&P500 ratio, which is a measure of investor's gloom, had reached its highest level since the bear market driven by the pandemic of 2020. Procter & Gamble cut their forecasts or canceled them due to the increased uncertainty of consumers. The U.S. Treasury Market is still under pressure. It was heavily sold as Trump's tariffs rattled confidence in U.S. assets and leadership. On Friday, 10-year yields were at 4.3168%.
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Sources: State Department revamps energy bureau and eliminates climate office
Four sources who are familiar with the notification said that the Trump administration terminated federal employees responsible for U.S. climate policy, climate aid and global climate policy as part of a reorganization at the State Department. Career employees at the Office of Global Change in the State Department’s Bureau of Oceans and International Environmental and Scientific Affairs played a leading role in U.S. negotiation under the United Nations Framework Convention on Climate Change. The office's officials also represented the United States in the International Civil Aviation Organization, the International Maritime Organization and their respective sectors of commercial aviation and shipping. The firings come after Donald Trump announced that the United States would withdraw from the Paris Climate Agreement, as well IMO negotiations on decarbonization measures in order to allow the global shipping industry reach net-zero emission levels by "around 2020". The United States is a member of the ICAO and has agreed to take part in its Carbon Offsetting and Reduction Scheme for International Aviation. (CORSIA), and to reach net-zero emissions by 2050. Trump's administration has, however, recently opposed ICAO’s decision to increase sustainable aviation fuel. It is unclear how or if America will continue to take part in these international accords, or whether certain office functions will be merged into other bureaus. The Trump administration is aggressively reversing existing U.S. Climate Policy and has dismantled U.S. Agency for International Development. Requests for comments from the State Department were not answered. According to documents internal and another source with knowledge of the situation, there are also changes in the works at the Bureau of Energy Resources of the State. The bureau was established during the Obama administration and helped to gather allies and partners in support of sanctions against Iran's oil exports. The bureau, which employs about 80 people, has been focusing on the development of alternative minerals, oil, and gas and weaning countries away from Russian fossil fuels in recent years. According to internal documents, the Bureau of Energy Resources will be absorbed by the Bureau of Economic and Business Affairs. This is "to ensure that a laser-like concentration on expanding and exporting American Energy." Sources familiar with the situation say that many employees working on other issues than critical minerals are expecting to be laid off within days. (Reporting and editing by Tom Hogue; Humeyra Pauk, Valerie Volcovici; Timothy Gardner).
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Isaiah Salinda and Kevin Velo set a new record of 58 in the Zurich Classic
Isaiah Salinda, Kevin Velo and their 14-under par 58 on Thursday took the lead in the first round of the Zurich Classic New Orleans at TPC Louisiana. Salinda, Velo and their best-ball format were 12 under par through the first 11 holes - an eagle for Salinda on the par-5 7th and all the other birdies - before slowing down. The team ended with four pars, and one birdie on the last five holes. Salinda is ranked No. 163 in the Official World Golf Ranking. Velo is ranked No. Both players have never won on the PGA Tour. Salinda Velo and Nicolai Hojgaard of Denmark, who shot a 13-under 59, are only one-shot ahead. The brothers did not make a single bogey. Collin Morikawa, Kurt Kitayama and the Australian Cam Davis are tied at 11-under 61 with Paul Peterson of Germany and Thomas Rosenmueller and Norwegian Kris Ventura. Rory McIlroy from Northern Ireland and Shane Lowry from Ireland both opened with a 64 at 8-under. McIlroy is playing in his first tournament after winning the Masters, completing his career Grand Slam. On Friday, the tournament will switch to foursomes (alternate shots). After the 36-hole cut is made, four-ball will play on Saturday followed by foursomes on Sun. Field Level Media
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Weekly oil prices drop on the possibility of more global supply
Oil prices rose on Friday, but are still on course for a loss of a week's worth as a potential OPEC+ production increase and a ceasefire in the Russia/Ukraine conflict could raise supply while at the same time contradictory U.S. Tariff signals limit demand. Brent crude futures rose 5 cents, to $66.60 per barrel at 0001 GMT. They are on course to drop 2% this week. U.S. West Texas Intermediate crude (WTI), which is a blend of West Texas and Texas, rose 6 cents a barrel to $62.85, but it was expected to fall 2.9% this week. In an interview with CBS News, Russian Foreign minister Sergey Lavrov stated that the United States and Russia were moving in the right directions to end the conflict in Ukraine. However, some specific aspects of a deal still need to be agreed. Stopping the war in Ukraine by Russia and easing sanctions could lead to more Russian oil reaching global markets. Russia is a member of OPEC+, which includes the Organization of Petroleum Exporting Countries. It is also one of the largest oil producers in the world, along with the U.S. Trump criticised Vladimir Putin on Thursday after Russia bombarded Kyiv overnight with missiles and drones, saying, "Vladimir! STOP!" Earlier this week, it was reported that several OPEC+ member countries had also suggested the group increase oil production for a second consecutive month in June. Abbas Araqchi, the Iranian foreign minister, said on Thursday that he is ready to travel to Europe to discuss Tehran's nuclear programme. If successful talks are held with Europe and the U.S., sanctions against Iranian oil exports will likely be lifted. Iran is OPEC's third largest oil producer, behind Saudi Arabia and Iraq. Even with the ongoing trade war between the U.S. and China, the two world's largest oil consumers, the outlook for demand remains cloudy. Due to the higher costs resulting from the trade conflict, businesses are raising prices and reducing financial guidance. This has also caused global supply chains to be tense and prompted fears of an economic slowdown in which oil demand could be affected.
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Brazilian miner Vale posts 17% drop in Q1 net profit
The Brazilian miner Vale announced on Thursday that its net profit for the first quarter of 2014 was down 17% from a year ago, due to lower iron ore costs. Vale, the world's largest iron ore producer, reported a net profit of $1.39 billion for the three months ending in March. Analysts polled by LSEG expected a profit of $1.68 billion. Vale's earnings report stated that lower iron ore costs had a negative impact on its results. However, this was offset in part by the company's efforts to reduce the cost of iron ore production and the effects of the Brazilian real appreciating against the U.S. Dollar. The adjusted core profit, which is based on earnings before taxes, depreciation, and interest, was $3.12 billion. This represents a 9% decline from the previous year and comes close to analysts' expectations of $3.16 billion. Vale's output and sales report, released last week, showed a net revenue of $8.12bn for the third quarter, down 4% on an annual basis and below analysts' estimates of $8.03bn. Reporting by Marta Nogueira from Rio de Janeiro, and Andre Romani from Sao Paulo. Editing by Brendan O'Boyle.
Comex gold stocks are on course to reach new records in the coming months
Analysts and traders claim that gold stocks in Comex storage facilities are likely to reach new records within the next few days, due to the possibility of tariffs preventing shipments from other countries to the United States.
According to the latest data from Comex (part of CME group), gold in US warehouses has reached a record high of 43.3 millions troy ounces, worth $135 billion, compared with 17.1 in November, when Donald Trump became U.S. president.
On Monday, spot gold prices soared to new highs of $3,100 an ounce. Bullion prices are up 19% this year, after a 27% increase in 2024.
Sources say that although gold flows have slowed, they are still continuing to flow to the U.S., as Trump promised to announce a massive tariff policy on Wednesday. He has called this "Liberation Day."
A source at a Swiss refinery said, "There's still material going to America almost every day." The world's largest bullion transit and refining hub is Switzerland.
Comex received 25.4 million ounces worth $79 billion in gold between December and March as the threat of U.S. tariffs on imports increased the premium between Comex Futures and London Spot Prices.
These flows of gold, which are carried by planes at high speeds, are the most obvious example of how uncertainty has affected the price and the physical state of the market.
BNP Paribas estimates that the Comex gold stock is equal to 5 years' worth of U.S. gold consumption. This comes out to 8.8 million ounces per year.
Adrian Ash, BullionVault's head of research in London said: "I wouldn't be surprised if gold exports from the U.S. started anytime soon."
The market may see a trend reversal or at least a slight easing if gold is not included in U.S. tariffs.
Ole Hansen is the head of commodity strategy for Saxo Bank. He said: "If this is confirmed, there's no reason that some of these bars shouldn't be sent back to London. It remains the main trading center for physical gold."
London, which is the largest gold trading center in the world, has absorbed the shock of the massive supply to New York. Liquidity improved, as central banks lent money and stored their bullion in the vaults of the Bank of England (BoE).
According to three sources who are familiar with the situation and requested anonymity in order to disclose operations, the waiting time for loading gold out of BoE vaults is now only 2-3 weeks, down from 4-6 weeks back in January.
BoE has declined to comment.
London Bullion Market Association reported 8,477 tons of gold as of end-February - still six times the amount of gold in Comex gold stock. Analysts say that the price discovery process is still in London. (Reporting and editing by Pratima Deai, Aurora Ellis and Polina devtt)
(source: Reuters)