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London metals benefit from Trump's tariff reprieve
Metal prices in London increased on Monday, after U.S. president Donald Trump reversed his threat to impose a 50% duty on imports coming from the European Union beginning June 1. This boosted market sentiment. The London Metal Exchange's three-month copper gained 1.19%, to $9,614 a metric ton, by 0256 GMT. Meanwhile, the Shanghai Futures Exchange's most traded copper contract climbed 0.73%, to 78400 yuan (US$10,929.88). Trump extended his deadline for the trade talks from Friday's June 1 to July 9, after Ursula von der Leyen, the President of the European Commission, said that the EU needed more time to reach a "good deal". Hexun Futures, a broker, says that the current shortage of raw copper materials may cause copper prices to rise in the near future. The Shanghai Futures Exchange also monitors copper inventories at warehouses. Last week, the number of tons fell by 9% to 98 671 tonnes. Everbright Futures said that tariff uncertainty could continue to limit the performance of copper price. Other London metals include aluminium, which rose by 0.41%, to $2466 per ton. Zinc also climbed by 0.56%, to $2712, while lead jumped 1.22%, to $1994, and nickel grew 0.49%, to $15,570. Tin rose 0.89% to $30,665. The price of aluminium in the SHFE increased by 0.15%, to 20,195 Chinese yuan per ton. Lead was up 0.36%, at 16,835 Yuan. Zinc fell 0.49%, to 22,190 Yuan. Nickel was down 0.2%, to 122640 Yuan. Tin dropped 0.26%, to 263,990 Yuan. $1 = 7.1730 Chinese Yuan (Reporting and editing by SumanaNandy).
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Gold prices drop as Trump delays EU tariff deadline
Gold prices fell on Monday, after U.S. president Donald Trump announced a deadline of July 9 for a deal with the European Union. He also revoked his June 1 threat to impose a tariff of 50%. As of 0312 GMT, spot gold was down by 0.3%, at $3,346.59 per ounce. U.S. Gold Futures dropped 0.6% to $3345.70. Kyle Rodda is Capital.com's Financial Market Analyst. He said, "There's a relief element in the market after the pause of tariffs against the EU. We're also seeing gold weaken." He said that the United States actions are still impacting the gold market, and could have a negative impact on the dollar. Trump has backed down from his threat of accelerating 50% tariffs on imported goods from the European Union. He agreed to extend the deadline for his trade negotiations until July 9, after the head the EU executive said that the bloc needed additional time to "reach an agreement." Gold prices rose by more than 2% on Friday to reach a new two-week high, boosted by inflows into safe-haven assets after Trump suggested 50% tariffs on European Union Imports starting June 1, and said he would consider a 25% tax on any Apple iPhones manufactured outside of the United States. In the meantime, the dollar index fell to its lowest level in nearly a month against its competitors. Gold priced in greenbacks becomes cheaper for holders of other currencies when the dollar is weaker. Officials said that on the geopolitical side, Russian forces launched 367 drones or missiles overnight at Ukrainian cities, the largest aerial assault of the war to date. At least 12 people were killed and dozens injured, they added. SPDR Gold Trust is the largest gold-backed ETF in the world. Its holdings dropped 0.15% on Friday to 922.46 tonnes from 923.89 on Thursday. Spot silver remained unchanged at $33.46 per ounce. Platinum fell 0.2% to $1093, while palladium rose 0.7% to $99.90.
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Dalian iron ore falls to a two-week low due to weak China steel demand and property woes
Iron ore futures prices fell on Monday due to a decline in steel consumption by China, the world's largest consumer. Meanwhile, persistent weakness in China's real estate market also dampened sentiment. As of 0316 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 2.15% lower. It was 707 yuan (US$98.56) per metric ton. Early in the session the contract had reached 704 Yuan, its lowest level since May 12. On the Singapore Exchange, benchmark June iron ore traded at $97.2 per ton, down 0.94%. Mysteel, a consultancy, reported that "Chinese iron ore prices fell on both the spot and futures market during May 19-23. Hot metal production by steelmakers also decreased amid an approaching low season in steel demand." Everbright Futures, a broker, said that hot metal production, which is typically used to gauge demand for iron ore, fell 0.48% on a month-to-month basis to 2.4 millions tons in May. They added that, while output may have declined, the level of production has remained high. Galaxy Futures, a broker, stated that the continued challenges in the construction and real estate sectors have significantly impacted domestic steel demand. A poll found that the property market in China is likely to remain weak this year. Home prices are expected to drop by nearly 5% in 2019 and then stay flat in 2026. The stronger dollar also affected prices, after U.S. president Donald Trump rescinded the threat of imposing a 50% tariff on European Union products from June 1. Dollar-denominated investments are less affordable for holders of currencies other than the greenback. Coking coal and coke, which are both steelmaking ingredients, were down by 1.16% and 1.25 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange have fallen. Rebar fell 1.51%, while hot-rolled coil dropped 1.94%. Stainless steel eased by 0.08%, and wire rod plummeted 3.2%.
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Trump announces US Steel will be controlled by the US as part of Nippon Deal
Donald Trump, President of the United States, said on Sunday that as part the partnership between Nippon Steel and U.S. Steel, the United States would have control over U.S. Steel. Nippon Steel announced Friday that it would invest up to $14 billion in U.S. Steel operations. This includes $4 billion for a new mill. Trump claimed on Friday that the merger will create 70,000 new jobs. When asked for more information about the agreement on Sunday, Trump replied: "It'll be controlled by the United States. Otherwise, I wouldn’t make it." Trump told reporters that he was pushed to sign the agreement by lawmakers as he headed to Washington from his New Jersey club. He said that the deal was a partial ownership and an investment, but would be controlled by USA. According to World Steel Association statistics, the merger would make China's Baowu Steel Group, and Luxembourg's ArcelorMittal the third largest steel producer in terms of volume. Investors have expressed their confidence in terms that are similar to those that were agreed upon in 2023, despite the fact no specifics have been released. Investors believe that U.S. Steel shares will be paid out in cash when the company ceases to be publicly traded. The deal was one of the most anticipated on Wall Street, and then it became a political issue with concerns that foreign ownership could lead to job losses in Pennsylvania where U.S. Steel has its headquarters. (Reporting and editing by Tom Hogue, Muralikumar Aantharaman and Steve Holland)
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Asian stocks, euro gain after Trump delays EU tariffs
Stock markets in Asia rose on Monday. The euro also rallied, after President Donald Trump extended his threat of imposing 50% tariffs on EU products by over a month, signaling another temporary respite as part his erratic policy on trade. Trump extended his trade deadline from Friday's June 1 to July 9 after European Commission President Ursula von der Leyen stated that the EU needed more time to reach a "good deal". The market sentiment was stable after a sharp drop in most assets during the month of November. Trump had paused his tariffs that were affecting growth and investors wanted to make new trade agreements after an agreement with UK and temporary agreement with China. Analysts have pointed out that investors are moving their money from the U.S. into Europe and Asia, as they factor in a potential U.S. economic recession and subsequent global slowdown. "(The tariffs) are well above the original reciprocal 20% tariff on the EU." This escalation is bad news for the world as it affects 60% of the global GDP. Apple was also caught up in the crossfire of trade on Friday after Trump threatened to levy a 25% tax on all iPhones imported by U.S. customers. The broadest MSCI index of Asia-Pacific stocks outside Japan rose 0.12% on Monday. Japan's Nikkei also edged up. Due to the fact that the United States and United Kingdom markets are closed on Monday due to public holidays, trading volumes are expected to be low. Nippon Steel, a Japanese company, jumped by 4.3% on Friday after Trump expressed his support for its $14.9 billion offer to acquire U.S. Steel. He said that their "planned partnership", would create jobs and benefit the American economy. U.S. Steel shares soared by 21% on the Friday. Investors will try to gauge Bank of Japan's outlook for monetary policy by focusing on super-long Japanese bonds. Inflation data is expected later this week. Last week, yields on tenors reached record levels. The ballooning debt levels of developed economies have also been brought to the forefront following Moody's downgrading of the United States' credit rating and the weak auctions for debt in the U.S.A. and Japan held last week. Hong Kong's Hang Seng Index fell 0.4% in the early morning trading of Monday while China's blue chip index dropped 0.2%. The euro gained 0.3%, reaching its highest level since April 30. Meanwhile, the dollar recovered up to 0.3%, to 143.085 Japanese yen after a 1% drop on Friday. Nvidia, the leader in artificial intelligence (AI), will release its earnings report on Wednesday. It is the last member of the "Magnificent 7" group of growth shares that led the U.S. bull run of more than two years. Analysts believe that the quarterly report of the semiconductor giant could be the catalyst for the markets as its forecasts can be seen as a sign of demand for technology infrastructure. Nvidia shares have fallen more than 2% in this year as investors have taken note of cheaper Chinese AI models following the release of DeepSeek. CEO Jensen Huang also warned that U.S. Export curbs would affect sales. Reports on Saturday indicated that Nvidia would launch a new AI chipet in China for a lower price. This is subject to U.S. approval. Gold prices dipped from their two-week high, but crude oil prices rose.
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Nippon Steel shares rise after Trump supportss U.S. steel deal
Nippon Steel's shares rose on Monday after U.S. president Donald Trump expressed his support for the company’s $14.9 billion offer to acquire U.S. Steel. Trump stated in a Truth Social post that the "planned partnership", between the two companies, will create at minimum 70,000 jobs as well as add $14 billion to U.S. economic growth. Trump said that most of the investment will be made in the next fourteen months. He also announced that he would attend a rally on Friday at U.S. Steel, but did not provide any specifics. It's unclear if Trump's use of the term "partnership", refers to Nippon Steel's full acquisition U.S. Steel, which it has been pursuing. The White House didn't respond to any questions regarding the announcement made on Friday. Investors interpreted Trump's comments, which initially opposed the deal and meant Nippon Steel received his approval, as the last major obstacle for the deal. U.S. Steel as well as Nippon Steel have both praised the comments. Nippon Steel is Japan's largest steelmaker. The deal is central to their global expansion strategy. The deal would increase production from 63 to 86 millions metric tons, at a time of declining domestic demand. Nippon shares, the fourth largest steelmaker in the world, rose 5% in Tokyo to 3,025yen after they were untraded earlier in the morning due to a surplus of buy orders. Nippon was the largest percentage gainer in Tokyo's Nikkei 225 benchmark index. According to World Steel Association, a merger would make China's Baowu Steel Group the third largest steel producer in terms of volume after Luxembourg's ArcelorMittal and China's Baowu Steel Group. Mariko Katsumura, Muralikumar Aantharaman, and Neil Fullick edited the story.
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Origin Energy Australia raises the lower end of its full-year profit estimate
Origin Energy, Australia's largest energy company, raised its underlying profit forecast for fiscal 2025 to the lower end due to operational improvements as well as wholesale portfolio benefits. Energy retailer expects its full-year earnings before interest taxes, depreciation, and amortization to be between A$1.3billion ($844.35m) and A$1.4billion, up from the previous range of A$1.1billion to A$1.4billion. Origin said that it also projects a loss up to A$100m in its share in annual EBITDA underlying from Octopus Energy due to the unseasonably warm weather in March and April across United Kingdom, and other one-off effects. Origin estimated that it could contribute up to A$100m. The shares of the Sydney-based firm dropped up to 4.5%, reaching a low of A$10.55 (nearly three weeks ago). Origin announced earlier this month that it expected to lose its share of Australia Pacific LNG's (APLNG) EBITDA for the six-month period ending June 2025, after APLNG lowered prices on sales made to China Sinopec.
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Oil prices rise after Trump extends EU Trade Talks deadline to July
The oil prices rose in the early Asian trading on Monday, after U.S. president Donald Trump extended the deadline for trade negotiations with the European Union. This eased concerns over U.S. duties on the EU that could harm the global economy and fuel the demand. Brent crude futures were up 37 cents or 0.6% to $65.15 a bar by 0001 GMT, while U.S. West Texas intermediate crude was up 32 cents or 0.6% at $61.87 a bar. Tony Sycamore, IG's market analyst, said: "Crude oil and U.S. stock futures are up this morning following the extension of the deadline by U.S. president Trump." Trump announced that he had agreed to extend the deadline for the trade talks between the United States and the European Union to July 9, after Ursula von der Leyen said that the European Union needed more time to reach a deal. Sycamore stated that the headlines about trade and tariffs along with fiscal concerns will be the major wild card this week for crude oil and risk sentiment. Brent and WTI continued to rise after ending 0.5% higher Friday, as the limited progress made in U.S. - Iran nuclear talks eased fears of Iranian oil returning on global markets. Also, U.S. buyers were covering positions before the three-day Memorial Day Weekend. Baker Hughes, an energy services company, also released data that indicated U.S. companies, under pressure of lower oil prices and a reduction in the number operating oil rigs, had reduced the number to 465, the lowest level since November 2021. At the next meeting, the Organization of the Petroleum Exporting Countries (OPEC+) and its allies could decide to boost output by 411,000 barrels a day for July. This month, the group reported that it could complete the voluntary production cuts of 2.2 million barrels per day by the end October. It had already increased output targets for April, may and June by around 1 million barrels per day. Reporting by Florence Tan, Editing by Muralikumar Anantharaman
Official: India Government finalising response after top court cancels JSW Steel-Bhushan Deal
A government official revealed on Monday that the Indian government had discussed with banks an order by a court to cancel JSW Steel’s four-year old buyout of Bhushan Steel and Power, and was finalising its response.
The Supreme Court nullified JSW’s takeover of Bhushan Steel four years ago, under the country’s insolvency laws, and ordered its liquidation. This affected the deal’s bankers who had been paid.
"I've already discussed (the order with) all lenders." We have taken a stance, we've studied the judgement and we've gotten our lawyers' opinion on the judgment," M Nagaraju said, secretary of India's Department of Financial Services.
We are now deciding in the government how we will approach the judgement. We will be finalising soon."
Bhushan Power had a debt of over 470 billion rupees (5.58 billion dollars) to its creditors at the time it was shortlisted by the Reserve Bank of India in 2017 to be admitted to the country's Insolvency and Bankruptcy Code (IBC).
JSW Steel was the winner of the resolution application with a bid of 197 billion rupees ($2,35 billion) for Bhushan power. The acquisition is expected to be completed by 2021.
JSW Steel shares fell around 1% Monday after dropping 5.5% on Friday.
JSW announced to the exchanges that it would decide its next course of action on Friday.
(source: Reuters)