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Saudi Arabia reports a 1.3% GDP growth in 2024. Non-oil sector is a major contributor.
Saudi Arabia's economy is expected to grow in 2024. The real gross domestic products increased by 1.3% over the prior year, according to preliminary data released Thursday. Non-oil activities boosted GDP. Estimates from the General Authority for Statistics show that GDP growth soared by 4.4% compared to the same period one year ago. This is the highest quarterly rate of growth in two years. Non-oil activities increased 4.6%. Oil activities decreased by 4.5%, while government activities increased 2.6%. Saudi Arabia's economy shrank by 0.8% in 2023, as lower oil prices and oil production cuts hit the growth of the world's largest crude exporter. Saudi Arabia, which is a leading member of OPEC+, has continued to suffer from the impact of the extended cuts in oil production. The International Monetary Fund has reduced its GDP growth forecast for Saudi Arabia for 2025 to 3.3%. This is mainly because of extended cuts in oil production. It also lowered its forecast for 2030. The growth rate for 2024 was estimated at 1,4%, higher than the Saudi government's estimate of 0,8%. "We should be cautious when using GDP to measure growth because we need to consider other indicators," said Finance Minister Mohammed al Jadaan at the World Economic Forum earlier this month in Davos. The total GDP doesn't matter. We are focusing on the non-oil GPD, which has grown very well over the past few years. This growth is likely to continue in the medium-term. As part of its efforts to transition away from hydrocarbon revenue, the kingdom is on a tight schedule to complete massive infrastructure projects. The government has projected a fiscal surplus of $27 billion by 2025. It also expects to have a deficit that is equivalent to approximately 3% of the GDP in the coming years, as it increases spending and invests in domestic projects. (Reporting and editing by Christopher Cushing, Raju Gopalakrishnan).
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China's imports of iron ore, coal and other minerals fell in January but prices varied: Russell
China's iron ore imports and seaborne coal arrivals are expected to be soft in the first quarter, with January arrivals falling to multi-month lows. The price trend for two of the most important bulk commodities is divergent. Iron ore has held steady, while thermal coal has fallen to its lowest level in almost four years. According to Kpler, commodity analysts, China is the largest iron ore purchaser in the world. It will import 99.5 millions metric tons of this key raw material for steel in January. This would be a drop from the official December customs figure, which was 112.5 million tonnes. It would also be the lowest total monthly since June's 97.5 million. Due to the Lunar New Year holiday, which fell this year at the end and beginning of January, there is caution in regards to iron ore imports for the month of January. Some cargoes may be pushed into February due to the Lunar New Year holidays, which this year fell at the end of January and early in February. Kpler estimates that China imported 27.97 millions tons of coal in January. This is a 26% decrease from the 37.59 million tons imported in December. The data shows that coal imports in December totaled 52,35 million tonnes. This includes arrivals by land from countries like Mongolia and Russia. In the past, coal imports have tended to decline in January and in February after the peak winter demand has passed. However, the drop in January from December this year is much greater than the 9% in January 2024 or the 10.9% in January 2023. China, which is the largest coal producer, consumer, and importer in the world, may require less coal from the seaborne markets as the domestic supply increases. According to data released by the government on January 17, December coal production reached 439 million tonnes, an increase of 4.2% over the same period a year ago. The annual output increased 1.3%, reaching 4.76 billion tones. SteelHome, a consulting firm that assesses thermal coal in Qinhuangdao, has assessed the impact of this robust increase on domestic coal prices. The price of a ton was 765 yuan (106 dollars) this week. This is down 12.6% from its 2024 peak of 875 yuan, reached in September 2024, and it's the lowest since April 2021. As a result, the price of coal in China is falling. This has spilled over to other countries' exports. Argus, a commodity reporting agency, assessed Indonesian coal at $48.76 per ton during the week ending Jan. 24. This was the lowest price since April 2021. It also represented a 16.2% drop from the peak of $58.17 reached in March 2024. Australian coal with a 5,500-kcal/kg energy content, which is popular among Chinese buyers, cost $80.12 per ton during the week ending Jan. 24. This was down 17.1% compared to its March 2024 peak of $96.66 and the lowest price since July 2021. RESILIENT IRON ORE Iron ore prices follow a different trend. While coal prices reflect China's domestic dynamics, they are slightly off. The price of futures on the Singapore Exchange is stable despite the expected decline in imports in January. The contract closed at $101.55 per ton on January 6, up 4.4% since the low of $97.31. Since October, the price has remained above $100 per ton. The exception was a five-day trading period earlier in January. Iron ore prices reflect that China's imports of iron ore have remained stable in recent months, despite a small drop in steel production in 2024. Iron ore, unlike coal, may be supported by sentiment. Some market participants are optimistic that Beijing’s stimulus efforts in 2025 will be rewarded with a stabilised property sector, and an increase in consumer demand for manufactured products. Iron ore prices have also shrugged off so far the threat of a global trade war from the Trump administration, which has stated that it may impose tariffs up to 60% on Chinese imports. These are the views of the columnist, an author for.
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French and Benelux stocks: Factors to watch
Here are some company news and stories that could impact the markets in France and Benelux or even individual stocks. EU/CARS: Ursula von der Leyen, the European Commission's chief, hosted auto industry executives and unions on Thursday for a discussion about how to make sure EU car manufacturers can compete with their more advanced Chinese or U.S. competitors at the same. Mersen, a French supplier of advanced materials, reported a higher-than expected annual consolidated sale of 1,24 billion euros ($1.29billion) on Wednesday. This represents organic growth of 2.6%. SCHNEIDER-ELECTRIC: French provider of energy solutions, Schneider Electric, announced on Wednesday that it has teamed up with Maxgrip in order to improve the performance of assets for its customers. Solutions 30 is a Luxembourg-based provider of support for digital technologies and energy transition Technologies Solutions 30 has reported a full-year revenue totaling 994.6 millions euros. VOLTALIA : French renewable utilities firm Voltalia reported revenue of 167.2 millions euros for the fourth quarter. The company expects to have a capacity of 2.5 GW by the end of 2024. 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........................ Main 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 nutshell: Top News ............. Equities.............. Main Oil Report ........... Main currency report .....
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Aluminium firms following EU ban on Russian imports
London aluminium prices rose on Thursday, after the European Union proposed to ban imports of this metal from Russia as part of a new package of sanctions in response to its invasion of Ukraine. The price of three-month aluminum on the London Metal Exchange rose 0.3%, to $2.627 per metric ton at 0407 GMT. The proposal stated that the EU ban would cover aluminium alloys, and there would be a phase-in of one year. Imports "necessary", amounting to 275,000 metric tonnes, were exempted during this time. Trade Data Monitor reports that the 27-member bloc imported 330,000 tonnes of Russian primary aluminum and alloys between January and November last year. Daniel Hynes senior commodity strategist at ANZ Bank said that aluminium led base metals to rise after the EU proposal. Hynes stated that the threat of additional sanctions on Russia's aluminium led to an increase in metal heading to China. The benchmark copper price remained at $9,073 after Wednesday's drop to its lowest level since January 8 The dollar index dropped 0.1% from the one-week high reached in the previous session, as the Federal Reserve stopped its easing cycle over night. The greenback is cheaper to those who hold other currencies. In an earlier statement, Donald Trump, the U.S. president, said that he planned to impose tariffs against aluminium, steel, and copper. The White House reiterated this position on Tuesday, saying that Trump will still impose tariffs against Canada and Mexico on the following Saturday. He is also considering new tariffs against China. Citi stated in a report that "we continue to expect LME flat metal prices to weaken in response to confirmations of larger tariffs." We expect the Comex copper price to be higher than LME as soon as tariffs have been confirmed and implemented. LME Zinc held steady at $2.782.5 per ton. Lead rose 0.6% at $1.972, tin increased 0.2% to $30,175, and nickel fell 0.6% at $15,400. The Shanghai Futures Exchange will be closed during the Lunar New Year holidays. (Reporting and editing by Subhranshu S. Sahu, with Ashitha Shivaprasad reporting from Bengaluru).
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Petronas Preps for Sabah-Sarawak Gas Pipeline Decom Op
Malaysia's Petronas will decommission the Sabah-Sarawak gas pipeline, the state energy firm said on Tuesday in its activity outlook report.The 500 km natural gas pipeline in Malaysia connects Kimanis in Sabah to Bintulu in Sarawak and has been operational since early 2014.For the next three years, Petronas' decommissioning plans include the plugging and abandonment of about 153 wells and the abandonment of about 37 offshore facilities, according to the report.In November last year, the company lifted the force majeure on gas supply to the Dua Malaysia LNG terminal after it was shut in 2022 following a leak in the Sabah-Sarawak pipeline.(Reuters- Reporting by Nikita Maria Jino in Bengaluru; Editing by Shounak Dasgupta)
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Vattenfall Pens PPA for Nordlicht 1 Offshore Wind Farm
Vattenfall has signed a power purchase agreement (PPA) with the chemicals group LyondellBasell (LYB) to provide it with fossil free electricity from the Nordlicht 1 offshore wind farm off the German coast.The agreement includes the supply of electricity from the Nordlicht 1 offshore wind farm over a period for 15 years, starting in 2028.LYB will then purchase around 450 GW hours of electricity per year for plastics production - equivalent to the annual electricity consumption of around 128,500 German households.Vattenfall is currently developing the Nordlicht 1 wind farm, which is still pending a final investment decision.The offshore wind farm is located around 85 kilometres north of the island of Borkum in the German North Sea. It will have a total output of 980 MW from 68 wind turbines.The project is due to be completed and connected to the grid in 2028. Vattenfall holds 51% of the shares, while BASF owns 49%. Vattenfall plans to use its share of future electricity generation to supply customers in Germany with fossil free energy.BASF Takes 49% Share in Vattenfall’s Nordlicht Offshore Wind Farms“With this electricity partnership with LYB, we at Vattenfall are sending a strong signal for our long-term strategy: We do not only want to decarbonize ourselves, but we also support our suppliers, partners and customers in leading a life without fossil fuels,” said Martijn Hagens, Head of Markets at Vattenfall.Vattenfall and BASF Pick Havfram for Nordlicht Offshore Wind Cluster Job
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Oil prices fluctuate as markets wait for clarity on Trump's tariffs against Canada and Mexico
The oil prices were not much different on Thursday, as the markets prepared for the threat of tariffs from U.S. president Donald Trump against Mexico and Canada, two of United States' largest crude oil suppliers. They also awaited a OPEC+ meeting. Brent crude futures fell 7 cents or 0.1% to $76.51 per barrel at 0411 GMT. U.S. Crude Futures were barely changed, with a 2 cent increase, or 0.03% to $72.64. On Wednesday, U.S. Crude Futures settled at the lowest price of this year. Karoline Lavitt, White House spokesperson, told reporters Tuesday that Trump will still follow through on his promise on Saturday to impose tariffs against Canada and Mexico. Howard Lutnick is Trump's nominee for the Commerce Department. He said that Canada and Mexico could avoid tariffs by closing their borders quickly to fentanyl. Lutnick also promised to slow China's artificial intelligence advancement. The U.S. crude oil stocks rose 3.46 million barrels during the week. This is in line with the analysts' estimates of a 3.19 million-barrel rise, due to the winter storms which swept across the country. After the recent U.S. sanctions, traders and calculations show that crude oil exports in Russia's west ports are expected to drop by 8% compared to the January plan, as Moscow increases refining. Investors also look forward to a meeting of the Organization of the Petroleum Exporting Countries (OPEC+) and its allies scheduled for February 3. Kazakhstan announced on Wednesday that the OPEC+ group, which includes major oil producers, will discuss Trump's attempts to increase U.S. production of oil and adopt a common stance. Russia is also a part of the OPEC+. Trump publicly called for OPEC, and its leader, Saudi Arabia to lower oil price, saying that this would put an end to the conflict in Ukraine. He also has a plan to maximize the U.S. production of oil and gas, which is already the largest in the world. Analysts believe that a price battle between the U.S., OPEC+ and other countries is unlikely because it could hurt both. In a recent note, analysts at BMI (a division of Fitch Group) said that a price war would see OPEC+ producers increase their output in order to reduce prices and push shale oil production down. According to them, Brent crude oil could fall below $50 because OPEC+ has the capacity to deploy 5 million barrels per day of spare oil. This would lead to a drop in U.S. shale production and prices. Reporting by Arathy Golubkova and Katya Somasekhar, both in Houston; editing by Sonali and Kim Coghill.
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Gold at a tight range as Trump's policies and inflation data focus attention
Investors focused on the tariff plans of U.S. president Donald Trump and an important inflation report to get a sense of monetary policy. As of 0402 GMT, spot gold rose 0.1% to $2,761.44 an ounce. U.S. Gold futures rose 0.1% to $2.773.30. The premium was nearly $12 over the spot rate. Investors will now be awaiting Friday's release of the Personal Consumption Expenditures (PCE) Price Index report to determine the trajectory of inflation. Jerome Powell, the chairman of the Federal Reserve, said that there was no hurry to reduce interest rates until inflation and job data indicated it would be appropriate. Bullion is a good hedge against inflation. However, higher interest rates reduce the appeal of non-yielding gold. Soni Kumari is a commodity analyst at ANZ. She said that the investment demand must increase in order to keep gold prices from falling below $2,900. The outcome will depend on the policy changes, inflation and geopolitical risk, according to Kumari. The White House announced earlier this week that Trump plans to impose steep tariffs against Mexico and Canada on Saturday, and is "very much considering" imposing some on China. London's bullion players are racing to borrow from central banks gold, after a surge of gold deliveries to the U.S. amid fears about tariffs. The European Central Bank will almost certainly cut rates in the afternoon and keep the door open to more policy easing. Silver spot was up by 0.2%, at $30.88 an ounce. Platinum rose 1.2%, to 957.67. Palladium was up by 0.9%, to $970.58. (Reporting and editing by Rashmia Aich and Subhranshu Shu in Bengaluru.
Trump's copper, aluminium tariffs might raise expenses for U.S. customers
President Donald Trump's. vow of tariffs on U.S. copper and aluminium imports would result. in higher expenses for local customers since of a deficiency of. domestic production and the length of time it would take to. restore the industry, experts and industry sources stated on. Tuesday.
In a speech to Republican lawmakers on Monday, Trump said he. would impose the tariffs on aluminium and copper - metals that. are required to produce U.S. military hardware - along with steel,. to lure producers to make them in the United States.
We need to bring production back to our country, he stated.
Trump won the U.S. presidency in November promising to lower. costs for customers still smarting from an inflation rise in. the first half of his predecessor Joe Biden's term. Nevertheless,. analysts argue his prepare for tariffs on imports to bolster the. country's production sector, another of his guarantees, may. undercut his price cutting promise.
It was not clear how broadly the tariffs could be used,. however several mining CEOs have actually formerly said they are preparing. for different scenarios as markets brace for a possible modification. to trade flows.
There's a couple of unknowns here. Will these tariffs be enacted,. and at what scale, and who will pay? Ultimately they generally. earn money by the consumer particularly in the event where there's. no domestic replacement, stated analyst Daniel Morgan at Sydney. financial investment bank Barrenjoey.
U.S. aluminium and copper smelters have actually been closing and. would require new facilities and power agreements to restart,. among other steps, all of which take time, he said.
Aluminium producers in Canada such as Rio Tinto and. Alcoa would be not likely to take income hits, instead the. expenses would likely be rolled to car manufacturers who would then pass. them to U.S. customers, he added. Rio Tinto declined to comment.
An Alcoa representative indicated remarks from CEO William. Oplinger from a results call last week that flagged the. potential for large range effects on supply, need and trade. flows. He approximated that a 25% tariff on current Canadian. export volumes to the U.S. could represent $1.5 billion to $2. billion of extra annual costs for U.S. clients.
On copper, John Fennell, CEO of the International Copper. Association Australia said any tariff on imports to the U.S. would impact its industry offered the nation is a net copper. importer, although it might speed the advancement of new mines. such as Rio Tinto's Resolution in Arizona.
This might be helpful for new mines like Resolution but that. is several years off, and the discomfort would be felt by regional. producers paying the tariffs in the interim, he said.
Freeport-McMoRan CEO Kathleen Peculiarity stated last week. that the miner would not be affected by any copper tariffs as. they sell all their U.S. copper domestically and their. Indonesian metal goes to Asia. But she stressed over any. possible inflationary impacts of copper tariffs.
In Japan, the world's third-largest steel maker, steel and. aluminium tariffs during Trump's previous term had a minimal. effect, noted Tomomichi Akuta, senior financial expert at Mitsubishi. UFJ Research Study and Consulting.
Most of Japan's steel exports are value-added. specialized products. And since value-added items were. excluded, we expect a similar approach this time. These. value-added items are challenging to substitute, making them. less likely to be targeted, Akuta stated.
(source: Reuters)