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China vows to crackdown on price wars as iron ore gains for the second consecutive week
Iron ore futures prices continued to rise on Friday, and are headed for their second weekly gain in a row. This is due to an improved market mood after Chinese officials called for a reduction in aggressive price competition. The September contract for iron ore on China's Dalian Commodity Exchange ended the morning trading 1.03% higher, at 735.5 Yuan ($102.65). This week, the contract has gained 3,01%. As of 0345 GMT the benchmark August iron ore was $96.55 per ton on the Singapore Exchange. It was up 2.4% this week. The Central Financial and Economic Affairs Commission has called for more stringent measures to combat aggressive price cutting amongst companies. Analysts said that this has led to hopes for a second round in supply reforms, which could increase steel margins and mills' tolerance of price for ingredients. The upside potential was limited by signs of a softening in demand, in part because of environmental protection-related production controls in Tangshan (China's largest steel-producing hub). The average daily hot metal production, which is a measure of iron ore consumption, fell by 0.6% from the previous week to 2.41 million tonnes as of July 3. This was the lowest level since April 19. The dollar rose on Thursday, following a surprising robust report on jobs. Dollar-denominated investments become more expensive to holders of other currencies when the greenback is stronger. Coke and coking coal, the other steelmaking ingredients, traded in a sideways manner. All steel benchmarks at the Shanghai Futures Exchange increased. The benchmarks for steel on the Shanghai Futures Exchange all increased. ($1 = 7.1651 Chinese yuan). (Reporting and editing by Eileen Soreng; Lucas Liew)
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Australia commits $283m to Orica's green hydrogen project, as the industry is hesitant
Australia announced on Friday that it will invest A$432,000,000 ($283.82,000,000) in a project to produce green hydrogen, led by Orica. Orica is the largest explosives manufacturer in the world. The investment supports the industry's growth amid a recent wave of cancelled and delayed projects. The funding will be used to support the Hunter Valley Hydrogen Hub. This hub aims at decarbonising Orica's nearby explosives and ammonia manufacturing operations, and ultimately supplying green ammonia fuel for export. The Minister for Climate Change and Energy, Chris Bowen, said that the funding of the project on Australia's east coast would help secure the country's energy future. He also stated that green hydrogen is a key component to the government's net-zero goal. Bowen stated in a press release that the project would also reduce emissions at Orica's ammonia plant and produce green ammonia to be used domestically by mining, agriculture, and manufacturing sectors. The green hydrogen industry in Australia is now a step closer to success after a number of delays and withdrawals cast doubts on its viability. Plans to build a A$12,5 billion CQH2 plant in Queensland, Australia, collapsed on Sunday after the project's lead developer, State-owned energy company Stanwell, ceased its involvement. This was one of Australia's most ambitious and advanced projects. Orica's Hunter Valley Hydrogen Hub was once a joint-venture with Origin Energy. Last year, the power producer pulled out, citing concerns about costs and the challenges in the green hydrogen industry. Orica stated that the government's support was "essential", in order to bridge the "commercial gap" of the project. The explosives manufacturer added that in recent months, it has received a lot of interest from potential partners and will work to reach a final decision on investment "in due time". Sanjeev gandhi, CEO of Orica said: "We are committed to helping our customers achieve their decarbonisation goals through low-carbon products and supporting Orica in its next phase of decarbonisation." The hub's first phase is expected to produce 12 tonnes of green hydrogen per day, using a 50-megawatt electrolyser powered with renewable energy. (1 Australian dollar = 1.5221 dollars) (Reporting and editing by Kate Mayberry in Sydney)
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Iran commits to nuclear treaty, oil falls
Oil futures dropped on Friday as Iran reaffirmed their commitment to non-proliferation of nuclear weapons and amid expectations major producers will agree to increase their output this weekend. Brent crude futures fell 22 cents or 0.32% to $68.58 a barge by 0445 GMT. U.S. West Texas Intermediate Crude dropped 12 cents or 0.18% to $66.88. The U.S. Independence Day is a holiday. The U.S. news site Axios reported Thursday that the U.S. planned to meet with Iran to restart nuclear talks next week, while Iran's Foreign Minister Abbas Araqchi stated that Tehran remains committed the Nuclear Non-Proliferation Treaty. The threat of renewed hostilities has been significantly reduced by the news on Thursday that the U.S. was preparing to resume its nuclear talks with Iran and Araqchi’s clarification that cooperation between the U.N. Atomic Agency had not been stopped, said Vandana hari, founder of the oil market analysis company Vanda Insights. Araqchi made his comments a day after Tehran passed a law that suspended cooperation with the U.N.'s nuclear watchdog agency, the International Atomic Energy Agency. Hari stated that "but the price correction might have to wait until Monday, when U.S. reopens after a long weekend, and takes into account Sunday's OPEC+ decisions, which are likely to be another 411, 000 barrels per daily target increase in August." Four delegates told Reuters that OPEC+ - the world's biggest group of oil producers - is planning to increase production by 411,000 bpd for August in order to regain market shares. As the 90-day hiatus on increased levy rates nears its end, there is renewed uncertainty about U.S. tariff policy. Washington will begin sending letters to other countries this Friday, detailing the tariff rates that they will be facing on goods shipped to the United States. This is a significant shift from previous pledges to negotiate dozens of trade agreements. Donald Trump, before leaving for Iowa on Thursday, told reporters that tariffs of 20-30% would be applied to 10 countries. Trump's 90 day pause in raising U.S. Tariffs ends on the 9th of July, and many large trading partners are yet to sign trade agreements. This includes the European Union and Japan. Treasury Department: The U.S. announced sanctions against Hezbollah and a network of smugglers who smuggle Iranian oil in Iraqi oil. Media reports say that Prince Khalid bin Salman, the Saudi Arabian Minister of Defense, met President Trump at the White House to discuss deescalation efforts against Iran. Trump said Thursday that he will meet with Iranian representatives "if necessary". Barclays also raised its Brent crude oil forecast for 2025 by $10 per barrel to $70, and by $6 per barrel to $72 for 2026 due to an improved outlook on demand. Mohi Nairayan reported from New Delhi, and Florence Tan from Singapore. Arathy Sommesekhar contributed additional reporting in Houston. Tom Hogue edited the story.
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Indonesian nickel miners ask government to keep mining quota for three years
The Indonesian nickel miners association APNI urged the Indonesian government on Friday to continue mining quotas for three years, to maintain a consistent climate of business. The Mining Minister said on Wednesday that the government intends to reduce the duration of mining quotas (also known as RKABs) to one year in order to better control the supply and support the prices of commodities like coal and nickel. The resource-rich nation extended the validity of quotas to three years in order to reduce the burden on authorities and applicants. Companies are still able to make revisions to their respective quotas every year. APNI said on Friday that while it appreciated efforts to sustain mining, reducing quotas would create bottlenecks for the approval process because thousands of miners would have to apply for quotas each year. "The government must strengthen its internal evaluation and supervision capacity, rather than lengthening the bureaucratic chains with shorter licensing terms," APNI stated in a press release. It said that a medium-term plan is essential for planning and investment. In a late-night statement, the ministry reiterated its plan to maintain price stability and mitigate the impact of price decreases on government revenues. (Reporting and editing by Christopher Cushing; Additional reporting by Hongmei LI; Reporting by Fransiska Naangoy)
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US Environmental Agency puts 139 employees on Leave after criticizing Trump's Policies
The U.S. Environmental Protection Agency has placed 139 employees in administrative leave following a letter they signed criticizing President Donald Trump's policy. The letter, titled "Declaration of Dissent," was made public this week. The letter accused the federal agency of "harmful deregulation," of "ignoring scientific consensus in order to benefit polluters," and of "promoting a climate of fear." The letter was sent as another round of expected staff reductions is looming and as the agency undergoes major reorganization. This includes the dissolution and cancellation of millions of dollars of grants and its office of Research. The letter was signed by hundreds of EPA employees, both current and those who had recently been terminated. As of Thursday evening, the public version of this letter had removed the names of signatories. Before it was made public, an earlier version of this letter was sent internally to EPA Administrator Lee Zeldin. The Environmental Protection Agency (EPA) has a policy of zero tolerance for career bureaucrats who illegally undermine, sabotage, and undercut the agenda of the administration, the EPA stated in a Thursday statement. The EPA said the letter misleads public about the agency's business. It also placed 139 employees, pending investigation, on administrative leave for signing the letters using their official titles. The EPA reorganization consolidates several key offices to reflect plans to reduce regulatory red tape and encourage more fossil fuel energy developments, as laid down in Trump's Executive Orders. Employees of the National Institutes of Health sent a similar statement to their director in June to protest politicalization of research and disruption of science progress. (Reporting and editing by Lincoln Feast in Washington. Kanishka Singh is the Washington correspondent.
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Brazil Plans Additional Offshore Oil Auction for 2025
Brazil plans to hold an additional oil auction this year for uncontracted areas in the pre-salt offshore region after Senate approval of legislation that clears the way for the sale, a senior energy official said on Wednesday.The government aims to boost revenue to meet this year's fiscal targets after Congress overturned a presidential decree to increase financial transaction tax on certain operations, cutting an estimated 12 billion reais ($2.2 billion) from projected revenue this year.State-run oil company PPSA will hold the oil auction this year, said Pietro Mendes, secretary for Oil, Natural Gas and Biofuels at the Ministry of Mines and Energy, in a social media post. Mendes also chairs the board of state-run oil company Petrobras.PPSA is responsible for selling the portion of oil that companies producing under sharing contracts in pre-salt oilfields must hand over to the government under Brazilian law.Government sources had previously estimated the auction could raise between 15 billion and 20 billion reais.The measure gained Senate approval on Tuesday, having already been passed by the lower house, and now awaits presidential sanction.Treasury Secretary Rogerio Ceron had indicated that, with full congressional backing, gains from the auction could be included in the government's next bimonthly revenue and expenditure report, due by July 22.($1 = 5.4269 reais)(Reuters - Reporting by Marcela Ayres; Editing by David Goodman)
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Trump signss order raising national park fees for foreign tourists
The President Donald Trump signed a directive on Thursday that will increase the entrance fees for foreign visitors to U.S. National Parks, even though his administration is trying to reduce national park spending by over a third. The White House announced in a press release that the additional revenue from higher fees for foreign tourists would raise hundreds of millions to fund conservation and maintenance projects. The order does not specify how much the fee will increase or when it will be implemented. The agency did not specify how many of its 433 park units will be affected. Admission fees are charged at only 100 of the Park Service's sites. The order also directs that the Park Service give priority to U.S. citizens in its reservation or permit systems. The statement stated that U.S. citizens pay more to visit scenic natural wonders, historic landmarks, and other national parks than foreign tourists because they are required to pay admission fees, as well as contribute a portion of the tax revenue from the U.S. The statement continued, "International tourists are charged higher fees for entrance to national parks around the world." The Trump administration proposed to cut more than $1 billion in the Park Service's budget for fiscal 2026. This would be a reduction of over a third from the previous year. Cuts to federal employees have already worsened the staffing shortage in national park across the nation. The National Parks Conservation Association (a watchdog and advocacy group) released an analysis Wednesday that showed the permanent staffing of the Park Service has decreased by 24% since Trump's January inauguration. Only 4,500 out of the 8,000 season workers the administration had promised for this summer were hired. The NCPA stated that reduced staff levels in some national parks including Yosemite National Park in California and Big Bend National Park in Texas have led to closures, reduced programs and hindered emergency response activities. In recent years, visitors have continued to flood into national parks at record numbers. Admissions last year reached a new high, a whopping 331 million, an increase of 6 million since 2023.
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Asian stocks tumble, dollar edged down as tariff deadline focused
As President Donald Trump's trade deadline looms next week, most Asian equity markets struggled Friday, despite overnight record highs on Wall Street. As traders weighed the implications of Trump's sweeping spending bill, the dollar lost some of its gains from Thursday. Japan's Nikkei gained 0.3% at 0152 GMT, after trading in the early hours saw gains and losses. Hong Kong's Hang Seng fell 1.3% while mainland Chinese blue-chips edged lower. Taiwan's equity index lost its early gains and fell by 0.2%. South Korea's KOSPI fell more than 1%. The U.S. S&P futures index dipped by 0.2% after the cash index had risen overnight by 0.8% to reach a new closing high. Wall Street will be closed on Friday in observance of Independence Day. Investors cheered on a surprising robust jobs report, sending all three main U.S. equity indices soaring in a short session. The House approved Trump's 869-page signature bill after the vote ended. According to the nonpartisan Congressional Budget Office, this would add $3.4 trillion dollars to the $36.2 trillion national debt. Trump said that he will also start sending letters to his trade partners, stating their tariff rates. Deals are still elusive before the deadline of July 9. After announcing an agreement with Vietnam on Tuesday, the U.S. president said that he expects "a few" more agreements to be added to the framework agreements signed with China and Britain. Scott Bessent, the U.S. Treasury secretary, said this week that an agreement with India was close. The White House had once said that agreements with Japan and South Korea would be announced as soon as possible. However, it appears these deals have fallen through. Tony Sycamore is an analyst with IG. He said that the lack of confidence in the market for the deals was responsible for the weakness of equity markets around the world, especially Japan and South Korea. Sycamore stated that the jobs data on Thursday showed "the U.S. Economy is holding up better than most people anticipated, which indicates to me that markets could easily continue to perform better from here." The data on jobs led traders to abandon any expectation of a Federal Reserve rate cut in this month. The U.S. Dollar rallied on Thursday, rising as high as 0.7% against a basket major counterparts before it pared back its gains to finish the session at 0.4%. The U.S. dollar gave up some of its gains early on Friday. It fell 0.2% to 144.62 Japanese yen, and 0.1% to 0.7942 Swiss Franc. The euro rose 0.1% to $1.1766 while the sterling traded unchanged at $1.3650. The U.S. Treasury Bond market is closed on Friday due to the holiday. However, 10-year yields increased 4.7 basis points to 4.34% and the 2-year yield rose 9.3 bps at 3.882%. Gold rose 0.1%, to $3329.54 an ounce. Brent crude futures climbed 1 cent to $68.81 per barrel while U.S. West Texas Intermediate crude gained 3 cents to $70.73. (Reporting and editing by Stephen Coates; Kevin Buckland)
AGL Energy, a power producer, beats profit expectations and narrows its annual forecast
AGL Energy, an Australian power company, reported a first-half profit that was ahead of analysts' estimates. However the company lowered its earnings forecast for the full year citing lower demand from customers in the second half.
AGL Energy has lowered its outlook for fiscal 2025 post-tax net profits to A$580 ($364.88 millions) to A$710, down from its previous expectations of A$530 to A$730.
This new range has a mid-point that is slightly lower than Visible Alpha's consensus profit estimate of A$657 millions, but substantially lower than fiscal 2024's underlying profit of A$812million.
The power producer stated that the narrowing of forecast is due to a strong performance in the first half, and earnings are expected to moderate during the second quarter, due to lower gas and electric demand from customers, as well as continued customer competition.
The company also lowered its forecast for annual operating earnings to A$1.94 billion - A$2.14 Billion, missing the consensus estimate of A$2.06 Billion.
AGL, which generates nearly 20% of the total electricity in Australia's National Electricity Market NEM, is fighting with lower contract price -- as the normalisation high wholesale electricity prices in the previous financial year affects contract pricing.
The company's bottom line was hurt by higher operating costs, due to inflationary pressures.
The underlying profit for the first half of the year fell below last year's A$399 millions to A$373 ($234.80) million.
It comfortably exceeded the Visible Alpha consensus of A$307,4 million.
"As expected, the results were impacted by an increased Consumer margin compression due lower customer prices and increased market competition," stated Chief Executive Officer Damien Nicks.
The company's losses were reduced by higher generation volumes and gross margins at its electricity and natural gas trading business and its coal-fired Bayswater Power Station in New South Wales.
The Melbourne-headquartered firm, which counts tech billionaire Mike Cannon-Brookes as its top shareholder, declared an interim dividend of 23 Australian cents per share, below the 26 Australian cents declared last year. Reporting by Sameer Mukherjee and Rajasik Mukherjee, both in Bengaluru. Editing by Alan Barona & Shilpa Majumdar.
(source: Reuters)