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France invests 50 million euros in Imerys Lithium project
Imerys announced that France would 'invest 50 million euro ($59.61 million) in a'minority stake' in Imerys lithium mine project. Other investors could join France in this country's flagship battery metal project. The first time the minerals group announced the Emili Project was in 2022. It aimed to produce 34,000 tonnes of lithium hydroxide annually, which could meet the lithium needs of 700,000 electric cars annually. Imerys announced on Wednesday that the French government's investment would help to?cover feasibility before a final decision is made on investment in the mine. It is currently expected to begin production?in 2020. Alessandro Dazza, CEO of the company, told reporters that they expect to bring in more investors to finance the lithium project. He said that it would not necessarily hold a majority share, but would consider itself the logical option to run the future site. THE TOTAL COST OF PROJECTS RAISED TO 1,8 BILLION EUROS Imerys has increased its initial estimate of the cost of the project from 1 billion to 1.8 billion, but Dazza stated that he expects the final figure to be "significantly lower" than the current estimate. The Emili project involves developing a mine underground beneath an existing Kaolin mine in Central France along with a?processing facility. Imerys said late in October that it was in exclusive discussions with a potential buyer to sell a minor stake in the project. Last year, the timeline for?starting production? was?pushed back to 2030 instead of 2028. This is partly because public debate about the project's impact on the environment.
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Iron ore consumption in China is down after the top consumer releases weak data
Iron ore futures struggled to find direction on Wednesday, before erasing their?early gains. This was despite China, the world's largest consumer, offering financial support. The most-traded May iron ore contract at China's Dalian Commodity Exchange was down by 0.07% to 762.5 Yuan ($110.31). As of 0700 GMT, the benchmark March iron ore was trading at $99.9 per ton on the Singapore Exchange. China's central banks?said on Tuesday that it would increase financial support for domestic demand as a result of?industrial excess and lacklustre consumer confidence, which dampened the growth outlook. Data released on Wednesday showed that China's consumer price inflation decreased in January while the producer price deflation continued. This prompted market participants to call for additional policy measures. The consumer price index (CPI), which measures prices for consumers, increased by 0.2% on a year-over-year basis. This is below the 0.4% rise predicted in a poll. The producer price index (PPI), which measures the cost of goods produced, fell by 1.4% on an annual basis, continuing a trend of deflation that has lasted for years. This continues to affect the profits of industrial firms, and indicates the need for additional policy measures in order to increase the effective demand as well as address the deep-rooted imbalances within the economy. China relies on exports to absorb production capacity. However, a growing list anti-dumping measures in destination countries and trade rules could derail the export-driven growth of demand, especially for Chinese steel exports. According to a ANZ report, as anti-dumping'resistance' grows globally and China signals tighter production, the export momentum will fade in 2026. Total volumes could fall by up to 30%. Coking coal and coke both fell by?0.31%, and 0.86% respectively. The Shanghai Futures Exchange steel benchmarks were mixed. Rebar and wire rod fell by 0.07% and 0.15 % respectively, while stainless steel and hot-rolled coils remained stable at 0.06% and 2.22 % respectively.
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Portugal's interior minister resigns due to storm response
Maria Lucia Amaral, the Portuguese Interior Minister, resigned amid criticism by opposition parties and communities over what they call a slow and ineffective response from authorities to the devastating 'Storm Kristin' two weeks ago. The office of President Marcelo Rebelo de Sousa announced late on Tuesday that it had accepted the resignation of the Minister at the request from Prime Minister Luis Montenegro. Amaral claimed she no longer met the "personal and political requirements" to fulfill the role. The President's Office said Montenegro would temporarily take over interior until a successor was appointed. Storm Kristin hit central Portugal on the morning of January 31. Its winds reached 200 kph and its heavy rains caused widespread damage, including to homes, factories, and critical infrastructure. At least six people were killed. Direct reconstruction costs are estimated to be more than 4 billion euros. Amaral is the first to resign since the centre-right minor government came into power about eight months ago. Andre Ventura of the far-right Chega Party wrote on X, that the resignation showed the government's inability to deal with adversities. Montenegro, he added, was losing control over the government. How long will it be before the government corrects its other "casting mistakes"? ?he asked. Jose Luis Carneiro, leader of the Socialist Party, told reporters late Monday that Montenegro is "the first one responsible" for the failure of the government to respond to storms. In recent weeks, Portugal and Spain were hit by a series of storms. After the devastation caused by Storm Kristin's?wind, rain and flooding, subsequent tempests Leonardo, and Marta, also brought heavy rainfall, strong winds and further damage. According to the Portuguese Institute of the Sea and the Atmosphere, Portugal is currently feeling the 'indirect effects' of Storm Nils. The storm is not expected directly to hit the country.
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TotalEnergies reports a 13% decline in profit for the fourth quarter due to lower oil and gas prices
TotalEnergies, a French oil major, reported a 13% decline in its fourth-quarter earnings on Wednesday. This was slightly below expectations, as the company's soaring margins from refining fuels, and cash generated by selling stakes in renewables assets, failed to compensate for lower oil and natural gas prices. Total reported a fourth-quarter net profit of $3.8 billion (3,2 billion euros), down from $4.4 billion the year before. According to a LSEG consensus, analysts had predicted $3.9 billion. Total, in an 'year marked by a near doubling of its debt as a result of a series of acquisitions has reduced its share buybacks while increasing oil and gas production during the fourth quarter. This was to compensate for a drop of 15% in Brent crude and 18% on liquefied gas prices. The company reported that it increased production by 5% in the third quarter, but the income from the "exploration" segment fell 21.6% and reached $1.8 billion. Meanwhile e Arnings from the chemical and refining business increased by 215% to $1 billion. TotalEnergies previously stated that margins at European refineries during the period increased by 231% in comparison to the prior year. CEO Patrick Pouyanne attributed?the increase to U.S. Sanctions on Russia's Rosneft, and Lukoil as well as an import ban by the European Union on fuels made from?Russian Oil. The French oil giant?also announced that it would 'buy back $750 millions worth of shares during the first quarter 2026.
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Voestalpine profits narrowly miss forecasts due to European industrial downturn
Voestalpine missed its core 'profit expectations for nine months' on Wednesday. This was due to the continuing industrial downturn across Europe, and the persistent weakness of Europe's automotive industry. The company reported earnings before taxes, depreciation, and amortization (EBITDA), of $1.25 billion ($1.2 billion), for the nine-month period ending in December. This was about $50 million below a Vara consensus forecast. In the same time period of?2024 the figure was 968 million euro. Voestalpine continues to face pressure on its results due to its exposure to both the German industrial sector and the global auto industry. Both have seen a drop in demand as a result of customer destockings and production cuts. The company's strength in niche businesses like aerospace and rail, as well in high-performing areas such as India, were not enough to counteract the wider cyclical problems. Voestalpine announced that its flagship project to reduce emissions from steel production through new technologies is on track. It is investing 1.5 billion euro in the first phase to replace coal-based?blast furnaces with electric arc?furnaces at its 'Austrian sites of Linz and Donawitz. Investors want to know if Voestalpine can protect earnings through its noncyclical green and high-tech divisions. Voestalpine has confirmed its outlook for the full year.
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Siemens Energy profits nearly tripled on AI-driven demand of gas turbines and grids
Siemens Energy announced on Wednesday that its net profit had nearly tripled during the first quarter of its fiscal year. This was boosted by AI driven demand for grid equipment and gas turbines, as well as a smaller loss in its struggling wind division. The results show a robust demand for large gas turbines, grid technology and wind turbines, which are both essential to the global construction of data centres that will power AI technology. The AI boom helped Siemens Energy's stock increase more than tenfold in the last two years. It now has a market worth of 130 billion euro ($155 billion). Christian Bruch, Chief Executive Officer of the company, said that "the high demand for our grid technologies and gas turbines businesses has a significant impact on overall performance." "There are also early signs of modest improvement in the wind business." In pre-market trading, it was indicated that the shares of the company - now Germany's 6th most valuable listed firm? - would open 4.3% higher. The net?profit for the quarter ended December was 746 million euros (889 million dollars), up from 252 millions a year earlier. This beats out the 732 million predicted in a LSEG poll. Siemens Gamesa, a company plagued with quality problems, has reduced its operating losses to 46 million euros compared to 374 million during the same period last year. This was due to improved productivity.
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Stocks pause to catch their breath as the yen surges higher
On Wednesday, bond prices rose and stock market gains slowed after U.S. retail figures that were weaker than expected. Meanwhile, the yen's rally has continued and could be signaling a change in investor sentiment since Japan's election. The dollar has been under pressure due to the upcoming release of U.S. employment figures. There is also the possibility that recent numbers will be revised downward. The holiday in Japan slowed trade in Asia, but the third consecutive session of gains in the yen saw it rise to 153.3 per $1. This prompted traders to wonder if it was riding high due to dollar weakness or if it was getting a boost from Tokyo. Since Prime Minister Sanae Takayichi's sweeping election victory on Sunday, the dollar has risen by about 2.5%. This is contrary to some expectations that her stimulus plan would continue to put pressure on the currency. Brent Donnelly is a currency trader, founder of analytics company Spectra Markets, and he said, "To be long yen you must believe that the Nikkei correlation will break, and it will become an unhedged buy Japan' trade." "That's possible. "I just think that the jury is still out." The yen usually falls when the stock exchange rises. In recent sessions, Japan's stock exchange has reached record highs in anticipation of the government supporting consumers. Nikkei Futures rose on Wednesday, even though the cash market remained closed for a holiday. The gold price rose above $5,000 per ounce, and Treasury futures also rose a bit. Cash market was closed. The benchmark 10-year U.S. Treasury rate fell by nearly six basis points and reached a low of 4.14 percent on Tuesday. This was after data revealed a 0.1% drop in U.S. core retail sales for December, and downward revisions in November and October. When bond prices increase, yields will fall. The S&P 500 ended 0.3% lower as the recovery from heavy software share selling last week begins to lose momentum. S&P futures were 0.3% higher, European futures flattened out and FTSE Futures rose 0.3%. CBA LEAPS AND CSL SINKS IN AUSSIE EARNINGS China's consumer stocks dropped and bonds rose after weaker-than-expected results The inflation rate is estimated to be around Highlighting weaknesses Hong Kong shares rose 1% and Taiwanese chipset maker TSMC helped Taiwan stock prices reach a record. The Australian?market rose by nearly 1.7% as a result of earnings. Shares of Commonwealth Bank of Australia rose 6.8% after the top Australian mortgage lender reported record earnings and loan growth. It also maintained its market share, while increasing its dividend. CSL shares, a biotech firm that makes the majority of its money by selling blood plasma treatments to treat rare diseases, plunged 11%, reaching an eight-year-low after the company reported a drop in its first-half profits and announced late Tuesday the departure its CEO. The Australian dollar reached a record high of $3.50, while the euro hit $1.19. This was after the central bank's deputy governor stated that inflation is too high. This fueled speculation among investors about the need for further policy tightening. China's Yuan was "steady" near its highest level in nearly three years. This was due to the corporate demand for money ahead of Lunar New Year. Brent crude oil futures remained steady at $69.18 per barrel as markets hung on the U.S. diplomacy with Iran. Bitcoin struggled to break through the $70,000 barrier on Wednesday and was stuck at around $67400. (Reporting and editing by Tom Westbrook, Stephen Coates, Kim Coghill and Shri Navaratnam)
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India's demand for oil has improved since tensions between the US and Iran.
The oil prices rose on Wednesday as a result of a heightened risk, despite the fact that U.S. Iran?talks remained tense. In addition, signs of easing surpluses, fueled by improved demand from India, also contributed to this increase. Brent crude oil futures rose 55 cents or 0.80% to $69.35 per barrel at 0356 GMT. U.S. West Texas Intermediate crude oil rose 57 cents or 0.89% to $64.53. LSEG analysts stated in a recent report that "oil maintains a bullish bid for tail risk as US-Iran negotiations continue, but remain fragile. This keeps the Strait of Hormuz premium at a high level amid continued?sanctions, tariff threats related to Iranian trade and a heightened U.S. military posture in the region." Iran's Foreign Ministry spokesperson stated on Tuesday that the nuclear talks between Iran and the U.S. had allowed Tehran to gauge Washington’s seriousness, as well as a consensus for 'continuing on the diplomatic path'. Diplomats from Iran, the U.S., and Oman held talks last week to try to revive diplomacy after Donald Trump positioned a flotilla of naval ships in the region. This raised fears about new military action. ANZ analysts wrote in a note that while oil prices initially?eased when Oman's Foreign Minister said discussions?tied?to the U.S. Iran talks with Iran's chief security official were productive. Hopes of a peaceful solution were then dashed by reports that the U.S. could send a second plane carrier to the Middle East if the talks fail. Trump announced on Tuesday that he is considering sending a 2nd aircraft carrier to the Middle East. This comes as Washington and Tehran are preparing to resume talks aimed at averting another conflict. Signs of an easing surplus also supported oil prices, as the markets were able to absorb some of the surplus barrels that had been seen in 2025's last quarter. "With oil prices likely to remain stable in the near term, as mainstream oil is returning to normal levels on water and India's demand for oil is increasing," said Vortexa analyst Xavier Tang. Indian refiners have avoided Russian oil purchases in order to help New Delhi sign a trade agreement with Washington. They are now increasing their purchases of oil from West Africa and the Middle East. The Energy Information Administration will release its weekly U.S. Oil Inventory data on Wednesday. The analysts polled estimated that on average crude inventories increased?by 800,000 barrels during the week ending February 6. Distillate and gasoline stocks are expected to have fallen by 1.3 million and 400,000 respectively. U.S. crude stocks rose by 13,4 million barrels during the week ending February 6, according to market sources citing American Petroleum Institute data on Tuesday.
Shanghai stocks building: Andy Home
The surge in metal inventories at the Shanghai Futures Exchange (ShFE), which was fueled by the Lunar New Year holidays, seems to be over. Registered stocks of copper and aluminium have all fallen over last week.
This is a yearly phenomenon. Most smelters continue to operate, despite the fact that many metal fabricators are taking time off over the holidays. This results in a visible increase in inventory.
This year, copper exchange inventories have reached their highest level since 2020.
The increase in ShFE Zinc inventories closely matches the pattern of last year, while Aluminium has seen a very muted rebuild compared to historical standards.
Nickel stocks have been increasing since the holidays and now stand at four-year-highs. Tin stocks are at their highest level since ShFE introduced its tin contracts in 2015.
COPER SURGE
ShFE copper stock has exploded from 30,905 tons to 285,090 tonnes.
This year's seasonal increase is the largest since 2020 when inventories peaked at 380 085 tons. The New Year holiday coincided that year with the first COVID-19 lockdowns, and the subsequent slump in Chinese manufacturing.
The rapid increase in exchange stock this year is likely due to a combination of faster domestic production growth, and increased imports.
Shanghai Metal Market, a local data provider, reports that the country's refined copper production increased by 9.0% in January and February, equating to 159,000 additional tons. Imports increased by 2.6% during the same period.
The number of stocks registered at Shanghai's International Energy Exchange has also increased from 9,760 tonnages at the end last year, to 40,511 currently. The mid-March peak for this year was 45,298 tonnes, which is less than last year's peak, which was 82,575.
MUTED RISE IN ALUMINIUM STOCKS
ShFE's aluminium stocks fell this week to 199.757 tons from the year-todate high of 206.417 tons last week.
If this is the seasonal peak for this year, then the rebuilding has been very muted compared to the previous four years.
The stockpiles have risen by only 100,728 tonnes since the beginning of January. Last year, they were up by 229,000 tonnes. The seasonal impact was even more pronounced over the period 2020-2022.
The visible inventory is still remarkably low, despite the high imports last year of more than 1.5 million tons. These bullish images reinforce the story of a tight market.
Seasonal NoRM for Zinc and Lead
The zinc exchange stocks in Shanghai increased a bit this week, to 121.873 tons, and now stand at 100.658 tons higher than they were at the beginning of January.
This is close to the seasonal build seen last year of 103.441 tons as well as that in 2021.
Shanghai's lead stock is 53,631 tonnes, up 747 tons from the beginning of 2024. This is similar to the 333 tons of growth seen in the first quarter of last year.
The lead battery death rate in winter months of the northern hemisphere is a good indicator that the metal is not as susceptible to the holiday effect.
China exports more refined lead. The volume of lead shipped in 2023 will be the highest since 2007. Shipments are up 62% on an annual basis.
Shanghai's inventory has been below 100,000 tons for the past two years due to the steady outbound flow.
NICKEL STOCKS ARE AT A FOUR YEAR HIGH
Shanghai nickel stocks fell to 560 tons by May of last year. This was due to a switch in production from refined nickel traded on the ShFE, to nickel sulphate for use in batteries in electric vehicles.
Over the past year, there has been a dramatic change in the dynamics. The new generation of Chinese nickel refining plants has been launched to take advantage of the growing import of Indonesian raw material.
ShFE stocks are now at 20,713 tonnes, which is the highest since December 2020. This build-up has also been mirrored in London, where the London Metal Exchange has been speeding up the listing of Chinese brands by Chinese companies. LME shares have increased by 21% this year.
Tin Stocks Reach Record High
The global exchange stocks of Tin, on the other hand, show divergent trends.
London's has fallen by one third to less than 5,000 tons this year, as the supply is restricted by delays in Indonesian exports.
Since the beginning of December, Shanghai tin inventories have steadily increased and now total 12,021 tonnes. This is the highest inventory ever recorded in the nine-year history of the contract.
In recent months, the country has been stocking refined tin, with imports reaching a record of 33,470 tonnes last year.
The author is a columnist.
(source: Reuters)