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Australia's trade minister said that the US has approved of Australia's increased aluminium exports.
Don Farrell, Australia's Trade Minister, said that the U.S. had approved the increase in aluminium supplies to Australia. This was a response to Canberra's application for exemption from U.S. steel and aluminium tariffs. Donald Trump, the U.S. president, said this week that he was considering an exemption for Australia to a 25% flat tariff on imports of steel and aluminum. However one of his closest advisors claimed Australia "killed our aluminum market". The executive order imposing the tariffs stated that the volume of aluminum from Australia had risen after Trump granted it a tariff exemption in 2018. This was despite the fact that the country ignored a verbal agreement to limit aluminium supply. Farrell claimed that Australia increased its aluminum exports after the supply interruptions caused by Russia's ongoing conflict with Ukraine, with the blessings of the former administration of President Joe Biden. "All that was done in full knowledge of the American Government." "We haven't ever done anything the American government was not comfortable with," he told ABC in an interview. The center-left Labor Government of Anthony Albanese, Prime Minister, is facing national elections due in May. They recently announced a A$2 Billion ($1.26 Billion) plan to assist aluminium smelters to transition to renewable electricity. The initiative is designed to protect up to 75,000 direct jobs and indirect ones. Australia is the sixth largest producer of aluminium in the world. Its aluminium exports to the U.S. accounted for only 2% of the total. (1 Australian dollar = 1.5918 dollars) (Reporting and editing by Sonali Paul in Sydney, Alasdair Needham and Kirsty Neetham)
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Andy Home: Tariff threat creates rift between copper prices in the US and Europe
The market has already priced in the possibility that after steel and aluminium, the red metal could be the next to receive import tariffs. In recent days, the arbitrage between CME and London Metal Exchange (LME), has become more pronounced. The CME premium exceeded $1,000 per metric tonne earlier in the week. The market expects a minimum 10% tariff based on the current price of LME 3-month copper, which is currently around $9,400 a ton. CME premiums could rise further if Trump imposes the same 25% tariffs on imports of aluminum and steel. Doctor Copper's likely reaction to a escalating trade war and its negative impact on global growth is being overlooked. Mind the Widening Gap The CME’s U.S. Midwest Premium Contract is where the aluminium trade takes place, because the CME’s underlying contract for aluminium mirrors the LME’s international delivery status. CME copper contracts, on the other hand, are customs cleared and only have domestic delivery locations. This means that any premium associated with U.S. deliveries must be reflected in this contract. The CME premium is a good indicator of potential U.S. copper tariffs. Right now, it's trading at record-highs. It even surpasses last year’s short squeeze explosion. CME's copper stock has recovered from its depleted level that fueled the squeeze, and now totals over 100,000 tonnes. The U.S. Geological Survey reports that the U.S. consumer is highly vulnerable to tariff barriers, as the country still relies on imports to meet around 45% domestic consumption. Trump's tariff threat is affecting prices, but it is not yet clear what tariffs will be applied or against which countries. The announcement of tariffs on aluminum and the possibility of even higher duties if trading partners retaliate has spooked copper markets, forcing arbitrage to become more widespread. DAMAGE IMPACT According to the USGS, the immediate focus of the trade in copper tariffs is on refined metal. This is understandable, given that the United States only imported just under 800,000 tonnes of this product in 2024 compared to its own production of 850,000, tons. The CME premium, which is currently a major incentive for metals to be shipped to the United States, will adjust the trade flow over time. Tariffs on copper could have a much more complicated impact, due to the complex flow of materials between the United States, Canada and Mexico, which both face 25% tariffs. Copper wire is exported by the United States to Mexico for use in automotive parts, such as electric motors and wiring harnesses. These are then sent back across the border. Analysts at Project Blue estimate that this trade represents 220,000 tons of copper per year. If high tariffs are imposed on these imports, harness assembly will likely move from Mexico to cheaper Asian countries. This would have negative effects on both Mexican and U.S. automotive companies. Tariffs may cause copper scrap flows to be diverted to other countries - most likely China - at the expense of U.S. secondary manufacturing. TARIFF DRAG The interconnectedness between North American copper flows and the globalised picture is only part of the bigger, complex globalised picture. This leaves the metal vulnerable to any shifts in trading patterns that may result from U.S. Tariffs. Doctor Copper is a title that has been given to the metal because of its importance in the global economy. The possibility of tit-fortat tariffs being imposed between the United States, and its trading partners, could have a significant impact on consumer spending. The market hasn't yet priced this in. The LME copper has increased by 7% in price since January 1, fueled by the expectation of an improved demand, especially in China. China, along with everyone else, is in the sights of the Trump administration. Copper will be affected by the tariff wars if they have started. This will reflect in the international prices rather than U.S. prices, suggesting a further fracture between CME-LME markets. These are the opinions of the columnist, an author for.
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Global Lithium Australia management resigns before AGM
Global Lithium Resources, an Australian company, announced on Thursday that two of its three directors had resigned ahead of a shareholder meeting scheduled for later that day. The shareholders' meeting was to be held in order to strip the directors of their control over the company and the cornerstone asset. Matthew Allen, former chief financial officers and director, withdrew his nomination to be elected as a nonexecutive board member ahead of the shareholders' vote. The management had claimed that Dianmin Chen, a non-executive Director of Manna Lithium Project in Western Australia, was working with foreign investors who held between 30 and 40 percent of shares. Mitchell claimed that an unreported association between shareholders could violate Australia's Takeover Laws and the Foreign Takeovers Act. The accusations were made in reports to Australia's Treasury, to the Western Australian Supreme Court and to the Australian Securities Exchange. The Takeovers Panel refused to review the company’s request for finding of unacceptable circumstance, saying that last week evidence pointed towards "shareholder pressure" rather than combining to take control. The company announced that Chen would act as the chairman of the annual meeting, and that he intended to vote for his reelection as well as the appointment of Liaoliang Zhu (Leon) as a director. In a letter sent to shareholders, Zhu (a Chinese-born property developer) who controls Sincerity Group – Global Lithium’s third largest shareholder – had asked to join the board, citing excessive spending and a management pivot away from lithium.
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South32's profit for the first half of the year is boosted by strong aluminium and copper sales
South32, a diversified Australian miner, reported a nine-fold increase in its first-half profits on Thursday. This was due to higher sales of aluminium and copper and high commodity prices. The shares of the company grew 2.3% early in trading, compared to a rise of 1.1% in the sub-index for miners. A rise in the price of aluminium, fueled by a tightened alumina supply and market, has led to a $160 million increase in the operating profit for the aluminium division. The copper division's earnings also increased by $98 millions, thanks to higher prices and lower labor costs. South32, world's largest manganese producer said that its earnings underlying for the six-month period ended December 31, were $375 millions, up from the $40 million reported a year earlier. Visible Alpha's consensus estimate was $370.1million. The Perth-based company, which split from BHP Group last year, announced an interim dividend per share of 3.4 cents, up from 0.4 cents a year ago. South32 has re-established its production forecasts at its Mozal Aluminium Smelter for fiscal 2026 and reduced them slightly for this year. The forecasts were withdrawn in December following civil unrest. The company increased its forecast of unit operating costs for the full year at its Worsley Alumina Project in Western Australia by 5 percent. Citi analysts called the results "solid", however, they said that the cost pressures on the miner are still apparent. South32 has also reduced its capital expenditure forecast for the full year, excluding exploration costs and intangibles by approximately $105 million.
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Miner Vale will invest $12 billion in expanding Carajas, the Brazilian government has said
The Brazilian miner Vale announced on Wednesday that it would announce a 70 billion real investment ($12.2 billion), on Friday, to expand its copper and iron ore mining operations in the Carajas Complex located in the north of Brazil. The presidential palace announced that the investments would be completed by 2030. It added that the announcement would be made during an event attended by Brazilian President Luiz inacio Lula Da Silva and his cabinet. Vale, the world's largest iron ore producer, didn't immediately respond to an inquiry for comment. Carajas is Vale's biggest iron ore production facility, located in Brazil's Para state. It contributed 177.5 million metric tonnes last year or more than half the total output of steel ingredients in the period. Has faced criticism Lula or cabinet members have said this in the past. Lula's mining ministry complained last year about the lack of investment by the company in Brazil, and delays with a deal to repair a dam that collapsed in 2015. In October, an agreement was finally reached. Vale Chief Executive Gustavo Pimenta met with Lula for the first time last month. According to Vale, Pimenta highlighted the "enormous alignment" between Vale projects and the development agenda of the country. The Brazilian presidential palace confirmed that Vale would present its "New Carajas project" at the event, but did not provide any further details. Vale produces nickel and copper in Para at its Sossego and Onca Puma Mines.
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IAEA chief: Military activity stopped Zaporizhzhia Monitor Rotation
The head of United Nations nuclear watchdog, said that intense military activity was the reason for the cancellation of a rotating mission of monitors on Wednesday at the Russian-held Zaporizhzhia Nuclear Power Plant in southern Ukraine. Rafael Grossi is the director general of International Atomic Energy Agency. He did not assign blame but stated that his staff shouldn't be put in such a stressful situation. Russia and Ukraine both blamed the other for cancelling the rotation. Grossi stated in a website statement that he was "deeply disappointed" by the cancellation of the carefully planned and agreed-upon rotation of staff. The staff is performing vital work under very difficult circumstances in order to prevent a nuclear incident during the conflict. It is unacceptable to put our staff's safety at risk in this manner. Grossi said that he would consult both sides in order to ensure that monitors can continue their mission while maintaining nuclear safety. Russia accused Ukraine that it was engaging in "provocations", to disrupt rotation. Yevgeny Balitsky, the Russian-installed Governor of the Region, accused Ukraine of launching an attack by drone on Enerhodar. This is the closest city to the plant where many employees live. He claimed that drone debris had fallen within 300 metres (984.25 feet) of one reactor at the plant. Heorhii Tikhyi is a spokesperson for the Ukrainian Foreign Ministry. He said that Russia deliberately disrupted rotations, a tactic which he claimed had been used in the past. Tykhyi stated that "Russia gives vague signals about its readiness to ensure safe passage but, an hour before starting the rotation, it opens fire or begins hostilities." In the first weeks of Russia's invasion of Ukraine in February 2022, Russia took over the Zaporizhzhia Plant, Europe's biggest with six reactors. Since then, each side has accused the other of staging an attack around the nuclear plant and putting the facility at risk. Since September 2022, the IAEA has been stationing monitors in the station and is present at all nuclear facilities in Ukraine. (Reporting and Writing by Lucy Papachristou, Editing by Christina Fincher Ron Popeski Richard Chang
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Albemarle benefits from cost cuts to offset the low lithium price
Albemarle is the world's biggest producer of lithium. Cost cuts offset the low price of the metal used in electric vehicle batteries. However, adjusted results announced on Wednesday were below analysts' expectations. After-hours, shares of the Charlotte-based company rose by 2.5% to reach $78.50. Albemarle has, along with many of its competitors, struggled to survive the lithium glut that was brought about in part by an overproduction in China. Albemarle executives announced last year that they would cut staff and cancel expansions projects, including a U.S. Lithium refinery, in order to save hundreds millions of dollars, and protect their balance sheet, and operations throughout the Americas and Asia. Albemarle plans to spend between $700 and $800 million in 2025. This is roughly half the capital budget for last year. In a recent press release, CEO Kent Masters stated that "we are taking decisive action to reduce costs and optimize our conversion network in order to maintain our long-term position of competitiveness." The company reported a profit of $33.6m, or 29c per share. This compares to a loss in the fourth quarter of $617.7m, or $5.26 a share. Albemarle lost $0.09 per share excluding one-time items such as restructuring expenses related to layoffs. According to LSEG, analysts had expected a loss per share of 70 cents. Energy Storage, the division of the company that sells lithium, has reported a drop in revenue of $1.1 billion due to a 53% decline in prices it receives for its product. Albemarle will discuss its quarterly results in a conference call on Thursday morning. (Reporting and editing by Chris Reese, Bill Berkrot, and Ernest Scheyder)
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China's Ganfeng begins lithium production at Argentina’s Mariana Project
The Ganfeng lithium mining company in China has started producing lithium in its Mariana project, located in northern Argentina. This is the first of many new lithium projects that are underway in South America. Ganfeng, one of the largest producers of white metal in the world is used primarily to manufacture rechargeable batteries. The Mariana plant in Salta province represents an investment of $790 million and is capable of producing 20,000 metric tonnes of lithium chloride each year. This comes from the extraction of the Llullaillaco flat salt. Ganfeng spent another $190 million on a solar park that will support the plant's needs for energy. Wang Xiaoshen is the president of Ganfeng Group. He said that other lithium projects in Argentina are progressing. Pozuelos - Pastos Grandes will begin construction in this year. The Incahuasi - Arizaro project, on the other hand, is currently in an advanced exploration phase. Ganfeng and Lithium Argentina are also co-owners of the Cauchari - Olaroz project which is currently in operation as well as the Pastos Grandes Project, which is in the feasibility phase. The administration of President Javier Milei has welcomed mining projects to attract foreign investment and offered an incentive scheme that has been praised by international miners of copper and lithium. The so-called Latin American lithium triangle includes Argentina, Chile, and Bolivia. It contains one of the largest reserves of this ultra-lightweight metal in the world. Other companies are also developing a number of lithium projects in Argentina, though some have been delayed because of low lithium prices due to oversupply as well as a slowdown of sales of electric cars. Luis Lucero, the Mining Secretary who inaugurated the project, expressed his hope that the Mariana Plant can strengthen the local economy. He said that the Mariana project was not only a source of earnings in foreign currencies, but it also created quality jobs for hundreds of families. (Reporting and writing by Eliana Razewski, Editing by Sandra Maler).
Gold prices rise as concerns about trade wars support the price
Gold prices stabilized on Wednesday amid safe-haven demand amid fears that a global trade conflict could be sparked by President Donald Trump's tariffs, as the market digested U.S. inflation figures that were hotter than expected.
As of 2:39 pm, spot gold was unchanged at $2.895.30 an ounce. ET (1939 GMT). U.S. Gold futures ended the day 0.1% lower, at $2.928,70.
Prices fell more than 1% following data showing the U.S. Consumer Price Index rose 0.5% more than expected last month. This reinforced the Federal Reserve message that they were not in a hurry to cut interest rates due to the growing economic uncertainty.
"With today's CPI data coming in hotter-than-expected, that has put weight on the gold market. At this point, the market has essentially ruled out any expectations of a rate cut in the future.
Bullion's opportunity costs increase as interest rates rise.
The trend is positive, and the trade concerns are still driving the market, said Peter Grant.
The advisers of U.S. president Donald Trump are finalising plans to impose reciprocal tariffs after raising steel and aluminum tariffs by 25% this week.
Gold prices are in uncharted territory, as bulls seize on the economic uncertainty caused by U.S. tariff plans. But behind the record of $3,000 an ounce is also a flag of a bear's case.
Even a small drop in price from $3,000 to about $1,500 isn't a catastrophe, according to Daniel Pavilonis. He added that people continue investing in gold due concerns over inflation, debt, and geopolitics.
Silver spot rose by 1.1%, to $32.17 an ounce. Palladium dropped 0.2% to $973.74 and platinum gained 0.6% to $889.43.
(source: Reuters)