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Heerema Installs Substation at Inch Cape Offshore Wind Farm
The Inch Cape Offshore Wind Farm offshore jacket foundation and substation platform have been installed at the North Sea site of the 1.1 GW Scottish project.The Siemens Energy Offshore Transformer Module (OTM) and its 68-meter jacket foundation are now in position 21 kilometers from the Angus coast having been installed by Heerema Marine Contractors (HMC) semi-submersible crane vessel Sleipnir.The compact 2700-tonne platform comprises two circuits with two transformers and reactors, making it Siemens Energy’s first ever double OTM.The modular fabrication, which enables offshore wind platforms to be smaller and lighter than conventional alternating current designs, has now been in use for 10 years.A team of more than 250 at the Smulders yard in Newcastle, fitted out and assembled both the OTM and its jacket foundation over the past approximately 18 months. Around 80 local U.K. sub-contractors supported the project with work that included lifting, scaffolding, engineering and coating.Owned in a 50-50 equal joint venture by ESB and Red Rock Renewables, Inch Cape, is the largest offshore wind farm now in construction in Scotland. Once complete it will generate almost 5 terawatt hours (TWh) of energy each year or enough to power half the homes in Scotland.“This has been an impressive team effort by Siemens Energy, Smulders, Heerema and the myriad smaller contractors who contributed to ensuring the safe and efficient fabrication and installation of these major Inch Cape components,” said John Hill, Inch Cape Project Director.Inch Cape Offshore Wind Farm is owned by Inch Cape Offshore Wind, an equal joint venture between ESB and Red Rock Renewables.Construction of the project’s onshore substation and landfall works in Cockenzie, East Lothian, are well advanced and the next key offshore activity will be the installation of the first of two export cables, scheduled for late summer this year.First power is expected in late-2026 and with commercial operation date in 2027.
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Toyota and Honda prepare for profit drops as US tariffs and strong yen weigh
Toyota Motor and Honda Motor will report lower first-quarter earnings in the coming week as U.S. tariffs on imports and a stronger Japanese yen impact profits, despite strong demand for hybrids from their largest overseas markets. Japanese automakers are facing increasing uncertainty in the U.S. where tariffs on imported vehicles are driving up vehicle prices, and testing consumer demand. Investors are looking for clues as to how Japan's largest automakers will offset such burdens. According to the average forecast of seven analysts surveyed by LSEG, Toyota, the top selling automaker in the world, will post a 31% drop year-on-year in operating profit on Thursday. This would amount to 902 billion yen ($6.14 billion). This would be its worst quarterly result in over two years. Honda will report its second consecutive quarterly decline of 36% in operating profit, to 311.7 billion Japanese yen. The automaker had already predicted a 59% drop in its full-year profits. Following a bilateral agreement last month, both companies are now facing 15% tariffs on Japanese imports of autos to the U.S. The same tariffs and stronger currency have caused other Japanese automakers to report lower earnings. Christopher Richter, an autos analyst with CLSA, said that the first quarter will be tough for Toyota. He said that things should improve in the future, thanks to lower tariffs. Honda's dependence on the U.S., in particular, has grown in recent years due to the decline in sales in other areas. Both companies manufacture key models for the U.S. markets in Canada and Mexico. Honda's U.S. sales accounted for about two-fifths in the first six months of the year. The company's sales worldwide fell by 5% during the period. This was mainly due to double-digit drops in China, Asia, and Europe. Toyota's sales worldwide rose by 6% during the period, largely due to the strong demand for hybrid petrol-electric cars that typically have higher margins than traditional petrol cars. The Camry and Sienna Hybrids are still strong sellers in the U.S. In recent months, the company's performance in China has improved. It posted a 7% increase year-on year in vehicle sales in the first half year. Honda announced in May it would scale back its investments in electric vehicles due to a slowing market and focus on hybrids, with several redesigned models. The company had delayed its plans to establish an EV base in Canada because of the slowing demand for electric vehicles. Investors are looking forward to updates on pricing strategies and revisions of full-year forecasts from both companies. CLSA's Richter stated that the Japanese automakers are taking steps such as transfer prices to reduce the import tariff burden. Toyota shares are down 16% this year so far, while Honda's are flat.
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Gold prices rise for a fourth session, as US job data boosts Fed rate-cut bets
Gold edged higher on Tuesday for a 4th session, supported by a weaker dollar and lower Treasury yields. Weaker-than-expected U.S. job data boosted expectations of a September rate cut. As of 0239 GMT, spot gold rose 0.1% to $3375.89 an ounce. U.S. Gold Futures gained 0.1%, reaching $3,430.40. Dollar index was near its lowest level in a week, making gold more accessible to holders of currencies other than the dollar. The yield on 10-year Treasury notes, the benchmark note, fell to a new low. OANDA Senior Market Analyst Kelvin Wong stated that "short-term momentum for the bullish story has improved...fundamental message supporting gold prices is the Fed's continued intention to cut rates in September." U.S. Employment growth in July was lower than expected, and non-farm payroll numbers for May & June were revised downward by 258,000 jobs. This suggests a worsening of labor market conditions. CME FedWatch shows that traders now expect a rate cut in September. Mary Daly, San Francisco Fed Bank president, said that rate cuts are imminent given the mounting evidence of a softening U.S. labor market and the lack of persistent inflation due to tariffs. In an environment of low interest rates, gold, which is traditionally viewed as a safe haven during times of political and economic uncertainty, tends thrive. Donald Trump threatened again on Monday, on the trade front to increase tariffs on Indian products over its Russian oil purchase. New Delhi called Trump's remarks "unjustified," and pledged to protect its own economic interests. This further exacerbated the trade gap between the two nations. Gold still faces technical resistance. "I do not believe traders will push up above $3,450. OANDA's Wong stated that the gold price will not rise above this level unless there is a clear catalyst. The price of palladium rose by 0.2%, while platinum was up 0.1% at $1,330.31. (Reporting and editing by Sumana Nandy, Sonia Cheema, and Brijesh Pate in Bengaluru)
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Iron ore continues to gain on China's resilient demand
Iron ore futures rose for the third consecutive session on Tuesday. This was aided by a resilient short-term demand from China, a major consumer. However, expectations of a possible steel production limit ahead of Beijing’s main event limited gains. As of 2100 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.38% higher. It was 792 yuan (US$110.33) per metric ton. The benchmark iron ore for September on the Singapore Exchange rose 0.3% to $101.5 per ton. Analysts at Shengda Futures, a broker, said that iron ore fundamentals remained strong due to a firm demand. This supported the price of this key ingredient in steelmaking. Since April, the average daily hot metal production, which is a measure of iron ore consumption, has hovered around 2.4 millions tons, even during off-peak season in July and August, when output usually contracts. According to data from the consultancy Mysteel, the production would drop to 2,21 million tons at the end of August 2024. Analysts at ANZ noted that iron ore prices were also supported by the "hope" that efforts to address overcapacity problems in China's Steel Industry would ultimately improve demand. Price gains were however limited due to the prospect of a possible restriction on steel production for the September 3, Beijing ceremony commemorating the 80th Anniversary of the End of World War Two. Chinese steelmakers, particularly those in the north, often restrict production in advance of major events in order to maintain air quality in Beijing. This could lead to a decrease in demand for raw materials such as iron ore and a rise in prices. Coking coal and coke, which are used to make steel, have both gained in value, up by 2.31% each and 0.47% respectively. The benchmarks for steel on the Shanghai Futures Exchange have advanced. The Shanghai Futures Exchange saw a rise in steel benchmarks. ($1 = 7.1782 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Hong Kong issues its highest weather warning as rains close schools, courts, and hospital wards
Hong Kong's Weather Bureau said that its highest "black", or rainstorm, warning would remain in effect until 11 am on Tuesday. Heavy rains pounded the Asian financial center, forcing the closure of hospital wards and schools as well as the courts and register office. These storms come after deadly flash floods that occurred in Southern China at the weekend. Five people were killed in Guangdong Province and over 1,300 rescuers took part in a massive search. "Persistent rainfall will lead to serious flooding of roads and traffic congestion." The Hong Kong Observatory issued a warning on its website advising the public to seek shelter in a secure place. China's weather agency reported that between 6 a.m. and 6:59 am, 9,837 lightning strikes were recorded over Hong Kong. The city and nearby Chinese city Guangzhou are receiving 60-90mm of rain per hour. Hong Kong receives 2,220mm in average annual rainfall. More than half usually falls between June and August. Hong Kong Stock Exchange is open for business, after changing its policy late last year to allow trading in all weather conditions. Hong Kong's Hospital Authority announced that emergency and accident wards would remain open. However, general outpatient clinics as well as geriatrics and psychiatrics day hospitals will be closed due to extreme weather. In a press release, the judiciary stated that the courts, tribunals, and register offices will open "as quickly as possible within two hours of the cancellation of the 'black rainstorm' warning." Post office announced that it would suspend all of its services and premises until the storm warning has passed. Airports in the city have not reported any disruptions. Hong Kong Disneyland is still open with limited services.
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Dollar falls against the yen after Fed rate-cut bets.
Investors increased their bets that the Federal Reserve would act to support the world's biggest economy by boosting the shares in Asia for the second consecutive session. U.S. stocks rallied Monday, boosted by generally positive earnings reports. Bets on a Fed rate cut in September increased after Friday's disappointing jobs report. Oil prices remained low after OPEC+ increased their output and President Donald Trump threatened to increase tariffs against India for its Russian petroleum purchases. The Nikkei 225 index of Japan rose after data showed a surge in service sector activity across the country in July. Rodrigo Catril is a senior currency strategist with National Australia Bank. He said that there are signs of weakness within the U.S. MSCI's broadest Asia-Pacific share index outside Japan rose 0.6% in the early trading. The Nikkei rose 0.5% on Tuesday after having fallen the most since two months Monday. The dollar fell 0.1% to 146.96 Japanese yen. The euro remained unchanged at $1.1572, and the dollar index, which tracks greenbacks against a basket major counterparts, rose 0.1% following a two-day decline. CME Fedwatch says that the odds of a rate cut in September are now at 94%. This is up from 63% on July 28. The market participants expect at least two quarter point cuts before the end of the year. The poor nonfarm payrolls figures on Friday reinforced the need for a Fed cut, and added drama to the situation with Trump's decision of firing the director of labor statistics who was responsible for these numbers. The news that Trump will fill the Fed governorship early has also raised concerns about the politicization of interest rates policy. Trump threatened again to increase tariffs on Indian goods above the 25% level announced by Trump last month over its Russian oil purchase. New Delhi, however, called Trump's attack "unjustified", and pledged to protect its own economic interests. Investors are eagerly awaiting the earnings reports of Walt Disney, Caterpillar and other companies this week. Palantir Technologies' revenue forecast was raised for the second time in this year, as it expects to see sustained demand for artificial intelligence services. Michael McCarthy, Moomoo Australia's market strategist, said in a recent note that "Company earnings continue to drive market movements." The S&P Global final service purchasing managers' index in Japan grew to 53.6 from 51.7 in the previous month, which is the largest increase since February. After three days of declining oil prices, the price was little changed on account of mounting concerns about oversupply. The potential for further Russian supply disruptions also provided support. Brent crude futures remained flat at $68.76 a barrel while U.S. oil futures fell 0.02% to $66.28 per barrel. Gold spot was slightly higher, at $3381.4 an ounce. Euro Stoxx futures in the Euro region rose by 0.2%. German DAX futures gained 0.3%, and FTSE Futures rose by 0.4%. The S&P 500 E-minis and U.S. Stock Futures were both up 0.2%. Bitcoin's price was barely changed after a two day rally. It now stands at $114.866.06.
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Oil prices are little different from one week ago, but concerns about oversupply persist
After three days of declining oil prices, Tuesday's price was little changed. The market was still concerned about oversupply after OPEC+ decided to increase output by a large amount in September. However, the possibility of further Russian supply disruptions helped the market. Brent crude futures remained unchanged at $68.76 per barrel at 0036 GMT, while U.S. West Texas intermediate crude fell 2 cents or 0.03% to $66.27 per barrel. Both contracts dropped by more than 1 percent in the session before, settling at their lowest levels in a full week. The Organization of the Petroleum Exporting Countries (OPEC+) and its allies pump about half of the oil in the world. They have been reducing production for years to help the market. But this year, they increased output to regain some market share. In a recent decision, OPEC+ decided on Sunday to increase oil production by 547,000 barges per day in September. Analysts caution that the actual amount returned to the market may be lower. The U.S. is also urging India to stop purchasing Russian oil, as Washington tries to pressure Moscow to reach a peace agreement with Ukraine. This has increased concerns about a disruption in supply. Donald Trump, the U.S. president, has threatened to impose secondary tariffs of 100% on Russian crude purchasers. The 25% tariff announced in July was followed by a similar one on Indian imports. India is the largest buyer of Russian crude oil by sea. It imported about 1.75 million barrels per day (bpd) of Russian oil between January and June of this year. This represents an increase of 1% compared to a year earlier, according to trade sources. Since the invasion of Ukraine in 2022, India has become the largest buyer of oil from the Kremlin. "Any disruption in these purchases would force Russia find alternative buyers among an increasingly small group" of allies, ANZ senior commodities strategist Daniel Hynes wrote. Analysts fear that the latest U.S. Tariffs against its trading partners could dampen economic growth, and also fuel demand. (Reporting by Anjana Anil in Bengaluru; Editing by Christian Schmollinger)
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Trump threatens India again with tariffs on Russian oil
Donald Trump, the U.S. president, threatened again on Monday to increase tariffs on Indian goods over their Russian oil purchases. New Delhi, however, called the attack "unjustified", and pledged to protect its own economic interests. This further exacerbated the trade gap between the two nations. In a post on social media, Trump stated that "India not only buys massive amounts of Russian Oil but they also sell it for a large profit to the Open Market." They don't give a damn how many Ukrainians are killed by the Russian War Machine. He added, "I will substantially raise the Tariffs paid by India to USA because of this." In response, a spokesperson from India's Foreign Ministry said that India would "take all necessary steps to safeguard its economic and national security." The spokesperson also added, "The targeting India is unjustified" and "unreasonable". Trump said that he would impose new sanctions against Russia and countries that purchase its energy exports from Friday, unless Moscow took steps to end the 3-1/2-year war with Ukraine. Vladimir Putin, the Russian president, has not shown any public signs of changing his stance in spite of the deadline. Two Indian government sources said that India would continue to purchase oil from Russia, despite Trump's threat. Since Russia invaded Ukraine at the beginning of 2022, India has been under pressure to distance itself. New Delhi has refused, citing economic and long-standing ties to Russia. Trump announced in July that he would impose 25% tariffs on Indian goods. U.S. officials cited geopolitical factors as obstacles to a U.S. India trade agreement. Trump has also portrayed the BRICS as a group of developing countries hostile to the United States. These nations have rejected his accusations, saying that the group serves the interests of all developing countries and its members. CRUDE BUYER India is the largest buyer of Russian crude oil by sea. It imported about 1.75 millions barrels of Russian oil per day from January to June of this year. This was an increase of 1% compared to a year earlier, according to trade sources. The Indian spokesperson stated that the country began to import oil from Russia after traditional supplies had been diverted to Europe following the outbreak of conflict in Ukraine. He called it a necessity compelled by the global market conditions. The spokesperson noted also the West's bilateral trade, especially with the European Union: "It's revealing that those nations who criticize India indulge in trade with Russia." Sources say that despite the Indian government's defiance last week, the country's major refiners stopped buying Russian oil. After Trump threatened to impose hefty tariffs, discounts for other suppliers have narrowed. Officials of the Indian government deny any policy changes. Four trade sources said on Monday that India's largest refiner Indian Oil Corp. has purchased 7 million barrels from the United States and Canada, as well as the Middle East. India is also frustrated that Trump has repeatedly claimed credit for the ceasefire between India and Pakistan, which he announced in May on social media. This ended days of hostilities. Richard Rossow, director of the India Program at Washington's Center for Strategic and International Studies, says that the unpredictable nature of the Trump administration is a challenge for Delhi. He said that India's continued purchases of energy and defence from Russia present a greater challenge because it does not know how the Trump administration is going to approach Russia month-to-month. Reporting by Kanishka, Doina, and David Brunnstrom from Washington; Harshita, Meenaktshi, and Manoj, Patel, and Shivam Patel in New Delhi. Writing by Joseph Ax. Editing by Bill Berkrot, Rosalba, and Rosalba Ax.
Australia provides $87.4 Million bailout to Trafigura Lead, Zinc Smelters
The Australian government announced on Tuesday that it would provide A$135 (US$87.4M) in financial assistance to two smelters in Australia's southern region owned by Nyrstar. Nyrstar is a subsidiary of commodity trader Trafigura.
Trafigura placed its Port Pirie lead-smelting operations, in South Australia, and its zinc processing operation in Hobart in Tasmania under strategic review in early this year after high energy costs and lower processing fees rendered the businesses unprofitable.
Nyrstar, as part of its review, assessed the potential of producing antimony, a critical mineral, at its Port Pirie facility, but it would require government assistance to do so. The company said this in May.
Antimony is a metal alloy that is used to harden other metals, and it is also used as a flame retardant material.
Nyrstar, along with the Australian government, announced Tuesday that they will be undertaking studies to produce critical minerals in accordance with Australia's strategic goal to become a major producer of critical minerals.
Nyrstar said it would assess the modifications needed to its operations in order to produce germanium, indium and bismuth at Port Pirie and antimony, and bismuth, in Hobart. It will initially focus on speeding up an antimony pilot facility in Port Pirie.
(source: Reuters)