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EU delays signing climate pledge with China, FT reports
A top climate official said in comments published by the Financial Times on Monday that the European Union will not sign a joint climate pledge with China during a summit to celebrate a half-century diplomatic relationship. EU climate targets are some of the most ambitious in the world, but have always been based on domestic emission reductions. The bloc has a deadline of mid-September to submit to the UN a new climate target for 2035. Officials from the EU said that Brussels refused Beijing's repeated demands for a climate agreement after the summit between the second and third largest economies of the world, unless China promised to do more to reduce greenhouse gas emissions. Wopke H. Hoekstra, Climate Commissioner told the newspaper: "A declaration is only worthwhile if it also contains content and demonstrates ambition." A spokesperson for the foreign ministry responded to these comments by saying that China has actively promoted green and low carbon development. Mao Ning told a regular press briefing that "we will continue to work together with other countries in order to strengthen international co-operation on climate change and to contribute to green transformation and sustainable human development." China is likely to miss its five-year target of a 18% reduction in carbon intensity. The European Commission has not responded to an immediate request for comment. Reporting by Dheeraj K. Kumar in Bengaluru and Liz Lee in Beijing. Editing by Tom Hogue, Clarence Fernandez
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China's tightening grip on its rare earths sector
Smuggling was rampant in China when China, during a diplomatic spat in 2010, restricted rare earth exports from China to Japan. When China imposed new restrictions on April of this year, it caused shortages in the auto industry within two months, leading to some to stop production. Beijing, through quotas and consolidation, has transformed a sector that was once unruly, accounting for 90% of the rare earth processing capacity into a powerful diplomatic tool. Here's a brief summary of the ways in which the number one producer of rare earths has tightened the grip on the industry. CONSOLIDATION China started its crackdown in the mining and processing sector 15 years ago. There were hundreds of miners. In 2013, ten producers controlled nearly all mining. Today, only two giants are state-owned: China Rare Earth Group (CREG) and China Northern Rare Earth Group High-Tech. David Abraham, associate professor at Boise State University in Idaho, said that the consolidation process, which lasted for more than a decade, gave Beijing greater control while also curbing environmental damage caused illegal and reckless mining. In the past, rogue miner's illegal supply chain delivered ore to non-authorised separation facilities. The finished products were then disguised and sent abroad. In 2014, it was estimated that 40,000 metric tonnes of rare earth oxides had been smuggled abroad. This is half the amount exported by official means. Magnet makers have not been consolidated as much as the upstream mining sector. There are dozens of magnet producers and processors in China, such JL Mag Rare-Earth, and Ningbo Yunsheng. China has introduced a tracking system in its rare earth magnet industry since June. Companies are required to provide information, including customer details and volume of transactions. The ultimate goal is to track the entire chain. QUOTAS China's production quota system (introduced in 2006) has been used to control the supply, along with its consolidation. Quotas are set for mining, smelting, and separation. They are usually issued twice a years and widely monitored to gauge global supply. Beijing has gradually reduced the number of groups eligible for quotas. In 2024, there will only be two state-owned companies, as opposed to six before. China's supply growth has been dramatically reduced since 2024, when the total mining production quota increased only 5.9% annually compared to a 21.4% annual increase in 2023. Analysts and traders predict that mining output quotas will either remain flat this year or increase by as much as 5% compared to 2024. Beijing restricts the export of technology as well. Since long, the tools and methods used to separate and extract rare earths are banned. It extended the ban in late 2023 to include technology used to manufacture rare earth magnets. Staff Reporting; Editing by Lewis Jackson, Sonali Paul
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China's export controls on rare earths are bad for business, but good for Beijing
China's export restriction on rare earths has brought the global auto supply to a standstill and the U.S. president Donald Trump to the negotiation table. They're a major headache for businesses in the United States, who are already suffering from a slowing economy. Beijing cut rare earth and magnetic exports in April as a retaliation to U.S. Tariffs. This has led to a drop in magnet makers' overseas sales, at a time when they are also facing pressure from an economy that is weak and EVs, one of their main markets. Even after the U.S. announced on June 27, a deal with China to restart rare earths production, it is unlikely that magnet makers will see any relief anytime soon. In a WeChat post 12 hours after the announcement, Baotou Rare Earth Products Exchange (a state-backed trading site) noted that stock was piling up at warehouses. Export curbs caused a 75% decline in magnet exports within two months of the restrictions being imposed, and several automakers were forced to temporarily halt production. In May, Baotou Exchange, located in Inner Mongolia and one of China's rare-earth hubs, stated that the restrictions had caused a crisis for local magnet manufacturers. Public filings reveal that while China consumes 90% of rare earth magnets worldwide, exports will range from 18% to 50 % of revenue by 2024 for the 11 largest publicly traded magnet producers based on capacity. Ellie Saklatvala is the head of metal prices at commodities information provider Argus. They have temporarily lost a large part of their clientele, and there is no guarantee that they will ever regain this customer base. Few major listed companies that deal with rare earths have directly commented on how the controls may affect their business. Two rare earth magnet manufacturers, who spoke on the condition of anonymity due to the sensitive nature of this issue, said that revenue was expected to drop in 2018. It's difficult to say how much we will lose for the moment, but it will be a big impact on our export business," said one rare earth magnet producer, who requested anonymity because of the sensitive nature of the issue. According to a second source who declined to give their name, small and medium sized producers reduced production by 15% between April and May. EXPORT CURBS IMPACT UNDERESTIMATED China's rare-earth magnet manufacturers are also victims of their own success, much like the U.S. chipmaker Nvidia. In April, after the announcement of export restrictions, the share prices of listed magnet manufacturers plummeted. They were caught in the geopolitical crossfire between Washington's tariffs on imports and China's response. They have recovered from their lows in the last three months. Cory Combs is the head of Trivium China's critical mineral research. He said that there was no reasonable forecast for the future of this industry. He said: "I can see different market outlooks that are more or less positive depending on assumptions. But none of them result in a sustained rise in the share price as we are seeing." He said that many magnet manufacturers are also privately owned, and therefore share prices can only give a limited picture. Many producers were already facing weaker conditions in their home countries, such as a price battle among electric vehicle manufacturers, a key segment of customers, which has seen manufacturers demanding discounts from suppliers. Four sources, who spoke anonymously, said that the highly customized nature of magnet products made it difficult to resell them domestically. This forced magnet makers to keep the cargos in storage while they waited for licenses. CONSOLIDATION MAY BE IMPACTED BY DIFFICULTIES In its annual report, released late April, Baotou Tianhe Magnetics Technology Co reported the export restrictions and warned that export revenues could fall if the global situation worsened. Yantai Zhenghai Magnetics announced last week that it had obtained export licenses, and that production was as usual. Investors are referred to the upcoming financial filings of Yantai Zhenghai Magnetics for more specific results. According to Argus, Saklatvala, a return to the old status quo will be unlikely if rare earth controls are implemented similarly to those for other critical minerals such as germanium and Antimony. China implemented export controls on antimony and germanium in 2023 and 2024. Customs data show that despite the fact that most of these materials are used by civil industries which should have no problem obtaining licenses in theory, exports still haven't recovered. Europe receives only a fraction of the antimony that it imported from China prior to export controls being imposed in September last year. These shortages have already caused major problems for the lead-acid batteries commonly used in gasoline engines. Saklatvala said that, "looking at China's recent controls on exports of other critical minerals such as antimony", it was clear that exports can take longer to normalise and resume than anticipated. David Abraham, an affiliate professor at Boise State University in Idaho, says that the large amount of information requested by authorities is a permanent change to the industry, which will cause delays and increase costs for producers. He said that "in a sense, it's impossible to go back." He said that in an industry with hundreds of manufacturers the pressures may lead to a consolidation. "I don't know if Beijing views that as a negative thing because more consolidation is helpful to control and understand where materials go."
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Copper prices drop amid uncertainty about US trade talks
The Shanghai Futures Exchange (SFE) and London Metal Exchange (LME) saw copper prices fall on Monday due to concerns about U.S.-China trade negotiations, and the uncertainty around potential tariffs before President Trump's deadline of July 9. As of 0707 GMT the three-month contract for copper on the LME dropped 0.68%, to $9,797 a metric ton. The most traded contract on SHFE fell 1.12%, to 79270 yuan (11,051.78) per ton. Trump announced on Sunday that the U.S. was close to finalising a number of trade agreements. He will inform about a dozen nations starting on Monday of increased tariff rates. The higher rates are scheduled to go into effect on August 1. "Markets worry that Trump's policy could trigger a slowdown in the global economy and harm demand for industrial commodities," ANZ stated. A Shanghai-based metals analyst from a futures firm said that "Copper prices are expected to soften due to the recent rise in copper stocks on LME and SHFE and the dampened consumer enthusiasm over higher prices." Copper inventories By July 4, SHFE-monitored storages had gained for the third week in a row, rising by 3.7% to reach 84,589 tonnes. This was 73.7% less than the previous year. Total Copper Stocks The LME registered warehouses saw a rise of 5% in four days, up to Friday. SHFE tin fell 2.03% to 263,520 Yuan per ton. Nickel dropped 1.6% to 125,540 Yuan. Zinc declined 1.16% at 22,090 Yuan. Aluminium lost 1.11% at 20,410 Yuan. Lead shed 0.35% at 17,210 Yan. LME tin fell by 1.36%, to $33,245, Nickel dropped by 1.3%, to $15,090. Aluminium went down 1.14%, to $2.560.5. Zinc was down 0.95%, to $2.698, and Lead was down 0.78%, to $2.042.5. Click or to see the latest news in metals, and other related stories.
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Typhoon Danas hits southern Taiwan with winds records, injuring dozens
Early on Monday morning, Typhoon Danas slammed southern Taiwan with strong winds and heavy rain. Two people were killed and more than 500 injured in the rare attack to the densely-populated west coast of Taiwan. Taiwan is frequently hit by typhoons, but they usually land on the sparsely-populated and mountainous east coast that faces the Pacific. The storm, which reached winds of up to 220 km/hr as it ripped through Yunlin in the southwest county after landing on Taiwan's southern shores late Sunday night, forced businesses and schools to close along the west coast. Government data revealed that over 700 trees had been felled in western cities and towns, and road signs had been ripped and scattered across the streets. Local television footage showed that in the southern city Tainan, concrete poles snapped at their base, while a wooden temple gate collapsed. Taiwan's weather authority had listed Typhoon Danas as the second strongest storm at one time. Since then, it has weakened and is expected to hit eastern China this week. In a Facebook post, President Lai Ching Te urged citizens to prepare for the typhoon. Government data revealed that power was cut to over 700,000 homes and more than 300 domestic and foreign flights were cancelled. North-South high-speed rail service was reduced. According to the National Fire Agency, one person died when a tree fell on them while they were driving. Another person died after a respirator malfunctioned because of a power outage. No major damage was reported in the Tainan Science Park, which houses tech giants like TSMC. According to CCTV, maritime officials in Zhejiang Province, eastern China, raised their emergency response level to the second highest level on Monday. CCTV reported that as of 10 am (0200 GMT), 64 ferry routes and 121 passenger vessels had been suspended in the province. As a precaution, authorities also suspended 181 construction projects including wind farms. According to the China Meteorological Administration, Danas will gradually approach coastal areas between Zhejiang’s Taizhou city and Fuzhou in the neighbouring Fujian Province. (Reporting by Yimou Lee; Additional reporting by Ethan Wang and Ryan Woo in Beijing; Editing by Saad Sayeed) (Reporting by Yimou Le; Additional reporting in Beijing by Ethan Wang, Ryan Woo; Editing by Saad sayeed)
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EU delays signing climate pledge with China, FT reports
A top climate official said in comments published by the Financial Times on Monday that the European Union will not sign a joint climate pledge with China during a summit to celebrate a half-century diplomatic relationship. EU climate targets are some of the most ambitious in the world, but have always been based on domestic emission reductions. It faces a deadline of mid-September to submit to the United Nations a new climate target for 2035. Officials from the EU said that Brussels refused Beijing's repeated demands for a climate agreement after the summit between the second and third largest economies of the world, unless China promised to do more to reduce greenhouse gas emissions. Wopke H. Hoekstra, Climate Commissioner at the Dutch newspaper De Tijd, said: "There's only merit to having a statement from our perspective when there are also nuts to crack and ambition to display." China is likely to miss its five-year target of a 18% reduction in carbon intensity. The European Commission has not responded to an immediate request for comment. Reporting by Dheeraj K. in Bengaluru, Editing by Tom Hogue & Clarence Fernandez
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Vietnam imposes antidumping tariffs on hot-rolled Steel from China
Vietnam has implemented an anti-dumping tax of up to 27,83% on certain hot-rolled coils steel products that originate from China, after a similar tariff had expired. The ministry stated in a press release that the tariff will remain in effect for five years. In March, the Ministry imposed a temporary anti-dumping levie that lasted 120 days. Baoshan Iron & Steel, Maanshan Iron & Steel are among the companies that will be hit with the 27.83% duty. Guangxi Liuzhou Iron and Steel Group also faces duties of 23,1%, which is higher than the 19,38% rate imposed by March, according the statement. It said that "Domestic Production suffered significant damage." There is a direct correlation between damage to the domestic industry and the dumping of imports from China. Vietnam launched an investigation into anti-dumping in July last year following complaints by Vietnamese producers. Vietnam's government reported that between January and September of last year, the country imported 8.8 million tonnes of hot-rolled metal, of which 72% came from China. Reporting by Phuong nghuyen, Editing by David Stanway
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Amman's copper concentrate export is being questioned by Indonesian Minister
Indonesia's Interior Affairs Minister Tito Karnavian said on Monday that he had asked the country’s mining ministry to lift a ban on Amman Mineral International's export of copper concentrate, citing the effect it has on the local economies. Tito Karnavian said that the Nusatenggara Barat Province, where Amman Mineral International operates, saw its economy contract by 1.47 percent annually in the first three months of the year. This was due to the inability of the company to export concentrates while their smelters are being upgraded. Indonesia has banned the export of copper concentrates, as well as other raw minerals. This is to encourage metal-processing at home. Amman, however, was allowed to continue exporting until December 2024 when the new smelter was expected to be operational. Amman's newest smelter made its first copper cathode in March. This material is used to make wires, cable and electronic products. However, the company stated that it would take time for "optimal, sustained operations" to be achieved. Tito said at a government meeting that he had asked the minister of energy and minerals if there was a way to export while the smelter is being built. He did not reveal the answer. A spokesperson in Amman and officials at the ministry of mining did not respond immediately to requests for comment. Amman stated in February that it had asked the government for flexibility to allow the company to export copper concentrator. Amman's copper-smelter can produce up to 220,000 metric tonnes of copper cathode annually. Reporting by Bernadette Cristina Munthe and Fransiska Nangoy, Editing by Harikrishnan Nair
Unknown trust links India's leading services with Modi's election war chest
Behind the doors of a. little, nondescript workplace in the heart of New Delhi lies the. head office of an electoral trust run by simply two guys that is. the largestknown donor to India's judgment Bharatiya Janata Celebration. ( BJP), according to a review of public records. The Prudent Electoral Trust has raised $272 million because its. development in 2013, funnelling roughly 75% of that to Prime. Minister Narendra Modi's party. The trust's contributions to the BJP. overall 10 times as much as the $20.6 million it issued to the. opposition Congress party, the records reveal.
The previous Congress-led federal government introduced electoral. trusts in 2013 to permit tax-exempt contribution to celebrations. It stated the mechanism would make campaign financing more. transparent by decreasing money contributions, which are more difficult to. trace. However some election specialists say the trusts contribute to opacity. around the financing of political celebrations in India, where this. year's general election-- due to be called within weeks-- is. anticipated to return Modi to power for a rare 3rd term, surveys. predict.
While Prudent does not disclose how contributions made by. private corporate donors are distributed, used public. records from 2018 to 2023 to track flows from some of India's. largest business.
Eight of India's most significant company groups contributed at least. $ 50 million in total between 2019 and 2023 to the trust, which. then issued cheques for corresponding amounts to the BJP,. according to the analysis.
Four companies whose transactions were determined . - steel huge ArcelorMittal Nippon Steel, telco Bharti. Airtel, facilities designer GMR and energy giant. Essar - have actually not given cash to the party straight and do not. appear on its donors' list.
GMR and Bharti Airtel said in reaction to concerns. that Prudent identifies how their contributions are distributed.
Prudent chooses as per their internal standards, which we. are uninformed of, said a GMR representative. He added that the business. does not like to align with any political party.
Bharti Airtel, which developed Prudent before transferring. control to independent auditors Mukul Goyal and Venkatachalam. Ganesh in 2014, stated it has no impact on the choices,. instructions and mode of disbursal of funds.
Spokespeople for the other groups did not react to calls,. text and e-mails.
Goyal and Ganesh did not respond to concerns sent out via email. and post. When asked on a brief call about how Prudent. functioned, Goyal said: That is something we do not discuss.
Sensible - the largest of India's 18 electoral trusts - is. legally required to state how much it has actually gathered from each. donor and the overall quantities disbursed to each celebration.
But it is the just one amongst India's four biggest electoral. trusts to accept contributions from more than one business. group.
Trusts supply one layer of separation in between companies and. parties, stated Milan Vaishnav, a specialist on Indian campaign. finance at the Carnegie Endowment for International Peace, a. Washington-based think-tank.
Political financing in India is extensively seen as dirty, with. most political contributions in India undisclosed, Vaishnav added. BJP said in its latest public disclosure in March 2023 that its. political war chest - funds it had offered consisting of cash. reserves and possessions - was valued at 70.4 billion rupees ($ 850. million). That offers it a colossal financial advantage over. Congress, which had 7.75 billion rupees in funds.
BJP spokespeople did not react to repeated requests for. remark for this story.
The records show that Prudent was also the largest-known. donor to the Congress celebration in the years to March 2023.
LAYER OF SEPARATION
India's Supreme Court stated in a February project finance. ruling that business contributions are purely service. deals made with the intent of securing benefits in. return.
was not able to develop if political parties know. the identities of donors that give through trusts that get. contributions from several groups.
MV Rajeev Gowda, head of research for Congress, told . that electoral trusts are a semi fig-leaf and that he believed. parties understood the donors' identities. Gowda, who doesn't manage. the celebration's financial resources, didn't supply evidence.
BJP's next largest recognized donor is Tata Group's Progressive. Electoral Trust, which has offered the celebration 3.6 billion rupees. collected from the salt-to-airline conglomerate's companies. Progressive is also Congress's next largest donor, having actually offered. it 655 million rupees.
Progressive's by-laws need it to distribute funds. proportionate to the variety of seats held by each party in. parliament. Sensible has no similar limitations and '. analysis of its contributions found no such pattern.
NEAR-INSTANT TRANSFERS
Trusts are enabled to retain an optimum of 300,000 rupees for. annual business expenses. Remaining funds need to be disbursed in. the fiscal year they were received.
In its analysis of contribution reports filed by Prudent to. electoral authorities, identified 18 transactions. in between 2019 and 2022 in which the 8 corporate groups made. big contributions to the trust. Within days, Sensible released. cheques for the very same total up to BJP.
Before the 18 contributions, which are not extensive of all. the contributions made by the groups to Sensible, the trust did not. have enough funds for the payments to BJP.
Business tied to billionaire L.N. Mittal's ArcelorMittal. group were among Prudent's many respected donors.
On July 12, 2021, for example, ArcelorMittal Design and. Engineering Centre Private Limited provided Sensible a cheque for 500. million rupees ($ 6.03 million). The next day, Sensible issued a. cheque to BJP for the very same amount.
ArcelorMittal Nippon Steel India also released 200 million. rupees to Prudent on Nov. 1, 2021, and 500 million rupees on. Nov. 16, 2022. The particular amounts were sent to BJP on Nov. 5,. 2021, and Nov. 17, 2022.
A representative for ArcelorMittal did not react to requests. for remark.
Bharti Airtel, meanwhile, issued 250 million rupees to. Sensible on Jan. 13, 2022 and 150 million rupees on March 25,. 2021. The trust sent out cheques to BJP for those amounts on. Jan. 14, 2023 and March 25, 2021.
And 3 companies in the RP-Sanjiv Goenka group - Haldia. Energy India, Phillips Carbon Black and Crescent Power - cut. cheques for 250 million rupees, 200 million rupees and 50. million rupees on March 15, March 16, and March 19, 2021. respectively. On Mar. 17, BJP received a 450-million-rupee. cheque from Prudent; a 50-million-rupee cheque followed on March. 20.
The RPSG group did not respond to ask for comment.
Contributions from Serum Institute and companies in GMR Group,. DLF Ltd and Essar Group moved to BJP instantly after. Sensible received them.
was unable to identify a similar pattern of funds. being sent out to the trust and transferred to Congress right away. afterwards.
However, found comparable patterns involving two. local parties. Megha Engineering and Infrastructure. transferred 750 million rupees to Prudent across 3. transactions on July 5 and July 6, 2022. The trust issued a. 750-million-rupee cheque on July 7 to Bharat Rashtra Samithi, a. centrist celebration in Telangana state, where Megha group is. headquartered.
And residential or commercial property developers Avinash Bhosale Group, based in the. western Maharashtra state, provided 50 million rupees to Prudent on. Nov. 27, 2020. The trust provided a cheque for that total up to the. Maharashtra Pradesh Nationalist Congress Party, which is. independent of the nationwide Congress celebration, on Nov. 30. The corporate groups did not instantly return ask for. remark. BRS's general secretary said he was not aware of. specifics about the contributions, while a senior NCP official said. that the party had just recently divided and every record will not be. available with us.
REASON FOR CONCERN?
Public records and party reports show BJP's war chest has. swelled given that Modi ended up being prime minister in 2014, from 7.8. billion rupees ($ 94.09 million) in March 2014 to 70.4 billion. rupees in March 2023. Congress' funds increased from 5.38. billion rupees to 7.75 billion rupees in the very same time period. The funding gap between the BJP and Congress is a reason for. concern, stated Jagdeep Chhokar of Association of Democratic. Reforms, a Delhi-based civil society group that was the primary. petitioner behind the electoral bonds difficulty in the Supreme. Court.
Level playing field is an important part of democracy, he. stated.
Some BJP authorities have actually said in the past that the large sums. it has raised on its books are an example of its transparency.
BJP has actually been the significant beneficiary of electoral bonds, a. system that permitted donors to offer unrestricted total up to. parties without public disclosure.
It got some 65.66 billion rupees of the 120.1 billion. rupees worth of such bonds sold between their January 2018. introduction and March 2023. Such bonds made up more than half. the contributions gotten by the BJP in all but one fiscal year. given that their introduction.
The Supreme Court called the system unconstitutional in. February and purchased the government-owned State Bank of India,. which issued the bonds, to launch purchasers' information. Specifics. are set for release by March 15.
(source: Reuters)