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Orion CMC is in advanced talks for three Asian partnerships
Executives have revealed that Orion Critical 'Mineral Consortium is in advanced talks to establish three new public-private partnership in Asia as it looks to fund a?global? pipeline of $20 billion opportunities. The consortium will form a third leg of investment in Asia to complement the $1.8 billion raised last year by the group to improve access to critical minerals such as copper, lithium and rare earths. The project is being led by Orion Resource Partners a mining-focused private equity firm, and backed up by the U.S. International Development Finance Corporation and Abu Dhabi’s sovereign wealth fund ADQ. Orion Resource Partners CEO Oskar?Lewnowski? said that there are three "fairly advanced" sets of discussions to add Asian counterparts to the list. He said that the U.S., the Middle East, and Asian investors were all progressing well. However, he added, "We would love to have a third leg of investors based in Asia." Other potential partners include sovereign wealth funds and government agencies as well as original equipment manufacturers. Prior to this, it was not reported that Asia would be the next "major" investment destination of the consortium. The impending partnerships as well as the size of the investment expected beyond the previous target of $5 billion had also not been disclosed. He said that the 'push' comes from an increasing demand for critical minerals, which is driven by data centres, hyperscalers and continued urbanisation. Lewnowski stated that the expansion of infrastructure will require approximately $2.4 trillion by mid-century. This includes at least $800 Billion over the next 15 Years to bring projects on line. Copper production alone must double by 2050. Banks have withdrawn from pre-revenue financing of projects, resulting in a funding gap. The amount of money needed is enormous. Lewnowski stated that to activate this kind of pipeline we will need to mobilize all our forces. The world's untapped mineral supply is largely concentrated in emerging economies while the demand for minerals is concentrated in developed economies. This creates what executives have described as a "political push and pull" over where and how new mines should be developed. ASIAN OPPORTUNITIES Orion, based in New York, is positioning itself to be an alternative financing partner for Chinese investors and trading companies. It targets?mid-sized mining groups rather than major mining firms. John Dorian is a portfolio manager for Orion Resource Partners in Asia. He said that the growth was not with major mining groups because they have under-spent so long. He said that the firm saw significant opportunities in Southeast Asia where a number of multi-billion dollar?critical mineral projects were under development. There are?probably 5 in Indonesia... He said there were probably some in Vietnam, a few in the Philippines and a lot in Australia. Orion also assesses opportunities in Central Asia in Kazakhstan and Uzbekistan, in Africa’s copper belt in Morocco, Namibia, Mali and South America in Brazil, Argentina, and Chile.
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Sources say that India's LPG imports to the US will surpass 1 million tonnes in June.
Industry sources say that India's imports from the U.S. of liquefied petrol gas (LPG), a record-breaking amount, will top 1 million metric tons in June. This is because New Delhi has turned to more expensive suppliers to compensate for disruptions from the Middle East. India relied on Middle Eastern LPG producers to provide 90% of its imports of LPG, which totaled about 2 million tonnes per month. Government data revealed that imports of LPG - widely used in Indian homes as a cooking fuel - fell to 696,000 tonnes in April due to 'the strait blocking'. Data showed that imports rose to 1.15 millions tons in May. As part of its efforts to rebalance the trade with Washington, New Delhi planned to increase U.S.LPG imports to around 10% of total imported products before the disruption. A trade source familiar with the purchases said that the closure of 'the waterway' accelerated spot-buying from the U.S. Indian refiners purchased unprecedented volumes of cooking gas at high spot-market premiums, as the government was prioritizing uninterrupted supplies. Sources declined to name themselves publicly because they are not authorized to speak with the media. India has also asked refiners for maximum LPG production, prioritized LPG sales to homes and accelerated the installation of gas pipes. One source said that efforts had already begun to reduce India's consumption of LPG by 15 to 20 percent. Two sources at Indian refiners say that India will receive between 1.1 and 1.2 million tonnes of U.S. LPG this June. Meanwhile, supplies from the United Arab Emirates are beginning to recover, reaching 300,000-400,000 tons in July. Sources said that the UAE offered LPG cargoes from Oman's Sohar Port on a free-onboard basis, at a premium price of $100 per ton over Saudi CP, and added?that Abu Dhabi National Oil Co. deployed four or five vessels to get LPG to Sohar. Sources claim that Indian refiners will also receive 45,000 tonnes of LPG in June from Kuwait. Sources say that the partial opening of the Strait will increase LPG supply from the Middle East, and help lower prices in the coming months. According to Kpler data, India imported 648.300 tons of LPG from the U.S. in May and 134.700 tons from UAE. Kpler's figures show that the number of imports from Iran was 145,000 tons. Other traditional suppliers, such as Saudi Arabia, Oman, and Qatar, also contributed a limited amount. According to Kpler’s preliminary data for June, India will import approximately 1.07 million tonnes of LPG. This includes around 223,800 tons from the UAE, and around 116,200 from Iran. Kuwait is also expected to supply 108,600 tons, and some quantities are expected from Oman.
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French and Benelux stocks: Factors to watch
Here are some company news and stories from France and Benelux that could impact the markets in the'region or individual stocks. RENAULT/STELLANTIS :?Demand 'for electrified cars' continued to support growth in Europe's automotive market in May. This offset a sharp drop in petrol and diesel sale and allowed Chinese?brands?to expand their footprint. VALEO - French automotive supplier Valeo has signed a contract with Nissan to provide smart electric vehicle charging using'vehicle to grid technology. VIOHALCO: Belgian Industrial Group Viohalco has launched a 100% secondary bookbuilding offer to institutional investors for about 6,000,000 existing ordinary shares of Cenergy Holdings in which they currently hold 69.7%. Cenergy will not receive any proceeds from this transaction. Pan-European market data: European Equities speed guide................... FTSE Eurotop 300 ?index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top ?10 ?EUROSTOXX sectors...................... Top 10 Eurotop 300 sectors..................... Top 25 European pct gainers....................... Top 25 ?European pct losers........................ Stock markets: Dow Jones ............... Wall Street Report ..... Nikkei 225............. Tokyo report............ London report ........... Xetra DAX............. Frankfurt ?items......... CAC-40................. Paris items............ World ?Indices..................................... Survey of global bourse outlook ......... European Asset Allocation........................ News in a glance Top News ............. Equities.............. Main Oil Report ........... Main currency report .....
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Copper prices fall on US rate concerns
Copper prices fell on Tuesday amid fears of growth headwinds resulting from a Federal Reserve rate hike after yesterday's closely watched U.S. Iran talks. By 0300 GMT, the benchmark three-month copper price on?the London Metal Exchange?fell by 0.51%. It was now $13,580 per?metric?ton. The Shanghai Futures Exchange's most traded copper contract was down by 0.61% to 104,060 Yuan ($15.353.97) per ton. Many banks have predicted that the Fed will raise interest rates in this year because of persistent inflation, and due to a hawkish attitude from new chair Kevin Warsh. Increased interest rates can dampen industrial metals' growth prospects by increasing borrowing costs and slowing economic activity. National Bureau of Statistics data showed that refined copper production in China increased 2.2% on an annual basis to 1.26 million tonnes. In a note, ING analysts wrote: "Higher sulphuric 'acid by-products prices supported output and encouraged higher operating rates." Aluminum fell 1.38% at the LME, and 0.94% at the SHFE as traders weighed Gulf disruptions of supply against the stronger output in China and the rising Chinese exports. The U.S. War against Iran has caused disruptions in shipments through the Strait of Hormuz, and reduced?Gulf Production to levels well below those pre-war. IAI data show that global primary aluminum output increased 3.5% on an annual basis to 6.2 millions tons in May, largely due to stronger Chinese production. China's exports of stranded aluminium wire, which are increasingly being used to ship aluminum abroad due to its tax advantages over unwrought metal, have more than tripled since April, reaching 50,224 tonnes in May. Analysts at ING wrote: "However the aluminium market will still be in deficit for this year." Zinc?lost 0.97 %, lead?lost 0.53 %, nickel lost 0.98%, and tin?fell 2.73%. On the SHFE, other metals like zinc, lead, and nickel all fell. Tin also plunged by 3.26%.
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Gold drops as dollar remains firm amid Fed rate hike expectations
The?U.S. dollar was stronger on Tuesday and this pushed gold prices down?more that 1%. ?dollar fell?more than 1% on Tuesday,?pressured by a firmer 'U.S. As of 0414 GMT, spot gold was down by 1.1%, at $4,142.61 an ounce. U.S. Gold Futures for August Delivery fell 1% to $4160.20. Tim Waterer is the chief market analyst at KCM Trade. He said that while gold had received some relief this week from lower oil prices, it was not getting any help from the U.S. Dollar, which "continues" to rise on expectations of Fed interest rate hikes. Gold is less affordable for buyers who hold other currencies because the dollar has remained near its one-year high. After the first talks in a new peace agreement, the United States lifted sanctions against Iran for 60 days starting Monday. Meanwhile, officials in Lebanon reported that fighting has slowed down under the agreement. JD Vance, the U.S. vice president, said that talks with Iranian officials held in Switzerland laid a solid foundation for a peace agreement. Iran has denied having begun to discuss its nuclear program. Chicago Fed President Austan Goolsbee stated that the labor market is stable and that he's focused on determining whether the too-high rate of inflation will remain that way or if it will decline as the effects of high tariffs wear off, and if there's a resolution to the Middle East conflict. CME FedWatch Tool shows that traders now expect an 88% probability of a rate increase in December. This is up from 61% prior to the Fed meeting held last week. Investors are watching U.S. The Fed's preferred inflation gauge, Personal Consumption Expenditures, is due this week. This data will provide further monetary policy clues. Silver spot fell by 3.3%, to $63.05 an ounce. Platinum dropped 1.9%, to $1,646.30 and palladium declined 1.8%, to $1,242.75. (Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu Sahu)
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Coach says that despite Senegal's problems, the World Cup dream is not dead.
Senegal is in a difficult position following two?World Cup losses, but coach Pape Bouna Thiaw has said that?his team's hopes to progress at the tournament remain alive. Senegal was expected to be one of the strongest contenders in North America for the World Cup but they lost their first Group I match 3-1 to France, and then went down to Norway 3-2 on Monday. Thiaw said, "It was a tough game against a very powerful Norwegian team that put us in very difficult situations because they were very efficient." "We conceded two goals just before the half and just after the second half. "But we need to congratulate Norway and I encourage my players to not be despondent, because it wasn’t easy." We were hoping for a good result, and to leave with three points. But this didn't happen for us tonight. Both France and Norway, which beat Iraq earlier this year in Philadelphia 3-0, are on six points. They will both advance to the next round. Senegal's best chance is to finish in the top eight of their group, but they must beat Iraq on Friday in Toronto to have any hope. Thiaw: "We have one more match, and it's important that we focus on the last game and try to get three points. Then, let's cross our fingers." "I think it's too soon to declare that we have failed. We're not dead. We're in a not-so-good position and it's true that this is the first World Cup where Senegal started with two losses. "But we still have a chance to qualify and we're going focus on the last game. We're going to focus on the last game and try and get three points. He added, "Once you get to the next round it's a new tournament."
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Investors focus on Hormuz after peace talks to reduce oil prices
Investors were looking for more clear signs of progress regarding the restoration of crude flow through the Strait of Hormuz following the U.S. Iran peace talks. Brent crude 'futures' fell 20 cents or 0.3% to $77.70 per barrel. U.S. West Texas Intermediate dropped to $73.74 per barrel, down by 12 cents or 0.2% as of 0323 GMT. Prices dropped more than 3% after the United States granted Iran 60-days of sanctions waiver following the initial peace talks. Officials also reported a lull between hostilities and the wider agreement in Lebanon. The gradual increase in oil flow through the Strait of Hormuz has continued to impact on the market, according to ING analysts. Ship-tracking data shows that two crude tankers with just under 2,000,000 barrels of oil passed through the Strait of Hormuz Monday. This is a sign of a resurgence in traffic after Sunday's lower flows due to fears about?passage of the waterway. In a recent note, Sparta Commodities head of research Neil Crosby said: "Transits in the last few days appear to have increased sharply. (This) will be treated by the market as a proxy both for physical oil, or perhaps paper oil, as well diplomatic progress." "It seems like we'll be stuck in this bearish, risk-off, optimistic mood until something changes." Price declines follow a weekend which appeared to have put the week-old agreement in danger, with threats by U.S. president Donald Trump that he would restart the war if Iran disrupted shipping via the Strait of Hormuz following Tehran's declaration of the strategic waterway as closed. Tim Waterer is the chief market analyst at KCM Trade. He said that there was a "prevailing" skepticism in the market, which stemmed from a deep-seated distrust between Washington and Tehran. This suggests that any return to oil prices prior to World War II will be delayed, rather than immediate. Separately analysts in a survey expect U.S. oil inventories, as well as distillate and gasoline inventories, to have decreased last week. The U.S. Strategic Petroleum Reserve (SPR)?recorded a drop in crude oil stocks to 331.2 million barrels in the week ending June 23, 1983. This was due to the tightening of supplies in response to the U.S. - Iran conflict. Reporting by Pranav Mathur in Bengaluru, and Trixie Yap from Singapore. Editing by Jacqueline Wong and Shri Navaratnam.
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Gold drops as dollar remains firm amid Fed rate hike expectations
The gold price fell on Tuesday as a result of the 'firmer U.S. Dollar' and expectations that Federal Reserve interest rates will be raised this year. Investors also assessed U.S. - Iran peace talks. As of 0228 GMT the spot gold price was down 0.7%, at $4,162.60 an ounce. It had fallen nearly 1% in the previous session. U.S. Gold Futures for August Delivery fell by 0.5% to $4180.50. Tim Waterer is the chief market analyst for KCM Trade. He said that although gold had been helped by lower oil prices, it was not able to benefit from the U.S. Dollar, which continued to rise on expectations of Fed rate hikes. Gold became less affordable to buyers who hold other currencies as the dollar held steady near its one-year high. Oil prices also recovered after a sharp drop on Monday. The rise in oil prices fuels inflation fears and increases expectations for higher interest rates. Gold is usually seen as a hedge against inflation but loses its appeal when interest rates are high. After the first round of talks in a new peace agreement, the United States lifted sanctions against Iran for 60-days starting Monday. Meanwhile, officials in Lebanon reported that fighting has ceased in the country. JD 'Vance, the U.S. vice president, said that talks with Iranian officials had been a success in laying a solid foundation for a peace agreement. Iran however denied having begun discussions about its nuclear program. Chicago Fed President Austan Goolsbee stated that the labor market is'stable' and that he is concentrating on whether the too-high level of inflation will remain that way, or if they will decline as high tariffs wear off and the Middle East conflict resolves. CME FedWatch Tool shows that traders now see 88% of the chance for a rate increase in December. This is up from 61% prior to the Fed meeting held last week. Investors are watching U.S. The Fed's preferred measure of inflation, Personal Consumption Spending?data is due this week for more monetary policy clues. Silver spot fell by 1.8%, to $64.02 an ounce. Platinum dropped 1.6%, to $1.651.79 and palladium declined 0.7%, to $1.256.27. (Reporting by Pablo Sinha in Bengaluru; Editing by Subhranshu Sahu)
Asia's refinery cuts are intensifying due to the war in Iran, putting jet fuel and diesel supplies at risk
Analysts and refining sources predict that Asian refinery throughput will fall in April and may as crude imports reach a decade-low and the Iran war forces refiners into processing lighter grades. This reduces diesel and jet fuel production by at least one million barrels a day.
Asia, which is responsible for 37% of global refining and normally sources two thirds of its crude oil from the Middle East, has been the hardest hit by the Strait of Hormuz closure, with refiners cutting back on production, causing fuel prices to rise.
Kpler's preliminary data shows that crude imports into Asia will fall by 22% annually to 20.40 million bpd, which is the lowest level in 2016. This is despite refiners buying sanctioned Iranian oil and Russian oil on the sea, and paying record prices for alternatives from the Middle East.
The International Energy Agency reported that Asian refineries had to reduce their runs to 29.4 mbpd by 2.7 mbpd, and they are expected to further decrease to 28.6 mmbpd, and then 28.5 mmbpd, in April and May.
Consultancy Energy Aspects predicts that crude processing will drop to 28,4 million bpd by April and 28,7 million bpd by May from 30.4 millions bpd during March.
Amir Abu Hassan is a senior oil analyst with consultancy FGE NexantECA. He said that the deepest "run" cuts would occur in April, as Middle East crude supplies continued to be short. Alternative barrels are only expected this week.
Some analysts predict that the recovery will begin in June. However, this depends on the resolution of the conflict which keeps the Strait of Hormuz wide open.
North Asian Refineries
China, which has the largest refining industry in the world, has curtailed fuel imports since last month in order to maintain domestic supply. The IEA estimates that Chinese refinery output was 14 million bpd for March, down slightly from 15.2 millions bpd during February, and at 14.8 million bpd per year on average through 2025.
Horizon Insight, a Chinese research firm, estimates China's throughput at 13.4 million barrels per day (bpd) in the weeks to April 17 - down from 15.4 millions bpd the week before war began on February 28.
Horizon Insight analysts stated that the Chinese run-cuts are mostly at state owned refineries. These refineries have increased their yields of transportation gasolines, at the expense naphtha used for petrochemicals to ensure energy security.
Hassan, of FGE, said that the utilisation rate for refineries in South Korea and Japan will drop to 65% by late April or early May from its normal level between 70% and 80%. According to data from the Petroleum Association of Japan, Japan's refineries were operating at 68% of their designed capacity in April.
Hassan stated that the average refinery utilization rate in Singapore has fallen below 50%. This is down from 70%, which was normal. Nithin Prakash, an analyst with Rystad Energy, stated that Indian crude production fell by 13% in April to 5.0 million bpd from February.
LESS MEDIUM-SOUR CRUDE, MORE LIGHT GRADES COMING
According to Vortexa, of the 12 million barrels per day of crude oil that were unable to be shipped to Asia due to the closure of the Strait of Hormuz in March, 8 million of those barrels per day were medium density with high sulphur, also known as medium?sours. Most Asian refineries have been designed to process medium sours to maximize diesel production.
As a replacement, Asian refiners bought light West Texas Intermediate, medium-sour CPC blend, and sweet West African crude oil. These grades typically produce more gasoline or naphtha.
Vortexa data show that the share of Asia's crude oil slate containing light-sweet crude has reached a record-high of 21% for April-loading containers, up from just 11% in Feb.
DIESEL, JET FUEL ?OUTPUT LOSS
Middle distillates, such as diesel and jet-fuel, have been lost at Asian refineries due to the switch in crude grades. Middle East crudes produce 60% of middle distillates compared to 40% for WTI.
Rystad's Prakash stated that a drop of 1% or 2% in yields in Asia's 30 million bpd refinery system could result in a loss of between 250,000 and 500,000 bpd diesel and?jet fuel supply. This, combined with the export restrictions imposed by some governments and refinery runs, could lead to a combined reduction of 1 million bpd diesel and jet in the short term.
Sumit Ritolia (Kpler's Modelling and Refining Manager) estimated that the total middle distillate supplies losses in April were between 1.8 and 2.0 million bpd. The majority of this diesel.
He added that a lighter crude slate would lead to a lower use of secondary units, such as hydrocrackers and cokers, which are designed to upgrade residual gasoline into diesel.
(source: Reuters)