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France's Orano files a lawsuit against staff detention in Niger
Orano, a French uranium mining company, announced on Tuesday that it had filed a suit with Niger courts for "arbitrary arrests, illegal detentions and unjustly confiscated property" in relation to its staff and assets. The Niger, Mali and Burkina Faso neighbours have increased pressure on foreign mining firms over the last year. They have seized assets and removed permits to ensure that all three Sahel nations assert greater sovereignty over their natural resource. Orano claimed that it was unable to reach its director of mining in Niger Ibrahim Courmo. He had been taken to the headquarters of Niger's external intelligence agency General Directorate of External Documentation and Surveillance. The Niger Government was not available for immediate comment. The company said that the police still prevent access to its subsidiary offices in Niamey, Niger's capital. Nigerien security forces raided Orano subsidiaries Somair and Cominak in Niamey, last week, and confiscated cellphones and other electronic devices from the employees, according to the company. Orano stated that the managing directors of these subsidiaries were held in their offices and interrogated. Orano announced in early December of last year that the Niger military government, which took power in a coup 2023, has taken control of Somair, a mine of which Orano holds about 63%. The government owns the remainder. A mining permit was also issued to the company for its subsidiary Imouraren, which would expire in June 2024. The following month, Canada's GoviEx Uranium also faced similar problems. In recent months, Malian authorities arrested foreign executives and confiscated gold stocks during negotiations with mining firms. Burkina Faso junta promised to seize more industrial mines owned by foreigners last month. Reporting by Anna Peverieri, Forrest Crellin, in Paris and Portia CROWE in Dakar. Editing by Milla Nissi Prussak and Susan Fenton.
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Sources say that the Saudi oil export to China is expected to remain at a record high of one year in June.
Trade sources reported on Tuesday that Saudi Arabia's crude supply to China would remain the same in June, after reaching its highest level in over a year the month before. This follows OPEC+'s decision to increase production. Saudi Aramco, the state oil company, will ship 48 million barrels of crude oil to China in June. This is the same amount as May and the highest since at least 2024. Aramco has not responded to the request for comment regarding its June allocations. Sources say that Sinochem, a Chinese state-owned refiner, and private refiners such as Rongsheng Petrochemical, Hengli Petrochemical, and Sinopec will all lift more Saudi crude this June. However, CNOOC, Aramco, and the joint venture Fujian refinery of Sinopec and CNOOC will be lifting less. Saudi Aramco slashed the price of crude oil for loading to Asian refiners in May to a near four-year low. This coincided with OPEC+’s decision to increase output in May and in June. Aramco last week The slightest of raises As expected, the crude oil price for Asian buyers will be higher in June. Saudi Arabia is China's second largest crude oil supplier after Russia. China imported 145.6 millions barrels of Saudi Arabian crude in the first three months of this year. That's 1.62 million barrels a day. This is up 3.8% compared to the 1.56million bpd it imported in the same time period last year. (Reporting and editing by Louise Heavens, Christian Schmollinger and Florence Tan in Singapore)
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Sources say India will defend its import restrictions on copper in a legal dispute with trade associations.
Two sources say that the Indian government will argue there is a sufficient supply of copper cathodes in India and an adequate number suppliers as it prepares its response to two trade associations' case regarding import restrictions. India is the second largest importer of copper refined in the world. Imports are needed to meet demand and address shortages, especially for sectors like energy, defense, automotives, and infrastructure. India has identified copper as one of 30 critical minerals it will need by 2023. The government of India imposed quality controls on copper cathode imported in December. All suppliers, both domestic and foreign, were required to get certification from Indian authorities. The Bombay Metal Exchange, along with the Bombay Non-Ferrous Metals Association, have filed a petition to the Bombay High Court, claiming the government's action could lead to an oligopoly dominating three domestic suppliers. Where are the shortages? One source familiar with government thought told us: "The only evidence that they (trade organisations) have is the fact that imports were down in December and January, which is outdated data." Sources said that the companies imported large amounts of copper in November and October, which led to lower imports for the months following. The source declined to identify herself as the government had not yet filed an official response. A second source confirmed that the government will defend its position. Requests for comments were not immediately responded to by the Indian mines ministry or trade associations. DEMAND SURGE India's copper demand is expected double by 2030, as it tries to meet its industrial needs and energy transition. Hindalco Industries is one of the domestic companies that are involved in the copper sector. Other companies include Vedanta and Adani as well as the state-owned Hindustan Copper. India's refined production of copper is estimated to be around 555,000 tonnes per year. New Delhi imports about 500,000 tons a year in order to make up the difference. Since the closure of Vedanta’s Sterlite Copper Smelter in 2018, imports have risen. In December, however, the government stated that the ramping up of Adani Enterprises smelter will meet India's domestic demand and reduce imports. The smelter is expected to be operational within the next four week. About two-thirds (about $2 billion) of India's refined cobalt imports come from Japan, followed by Tanzania and Mozambique. Both sources confirmed that there are 10 certified foreign copper producers, including seven Japanese and five domestic suppliers.
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France increases sugar beet projections and reduces soft wheat estimates
The French Ministry of Agriculture on Tuesday reduced its estimate for the soft wheat harvest in 2025 to 4,60 million hectares, down from the estimated 4.63 million hectares in April. This is still 9.1% higher than last year's drought-hit harvest. The ministry's forecast for total barley sown (winter and early spring) remained virtually unchanged, at 1,74 million hectares. The crop ratings of wheat and barley, as estimated by FranceAgriMer farm office, have remained higher than last year's levels hit by rain. However, the dryness in north France is a growing concern as crops move into crucial yield-determining stages. Analysts and traders are expecting a strong rebound in the production of soft wheat in France, due to the improvement in yield prospects and the increase in land area. The ministry has raised the estimate of France's sugarbeet area this year to 393,000 hectares. This is up from last months' estimate of 391,000 ha, but still 4.6% less than last year. At this stage, it is not possible to estimate the area of maize (corn). The dry, warm spring has helped maize plantation advance faster than last year. However, the area planted is expected to decrease due to the increased wheat sowing in the autumn. Reporting by Sybille De La Hamaide, Gus Trompiz and Louise Heavens. Editing by David Goodman and Louise Heavens.
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POSCO Future M, a South Korean battery materials manufacturer, will raise $775 million via a share issue
POSCO Future M is a South Korean manufacturer of chemical and battery materials. On Tuesday, it announced that it would be issuing new shares in order to raise approximately 1.1 trillion won (775 million dollars) for its expansion both at home and abroad. This includes its joint venture with General Motors Canada. The plan states that the company will continue to invest in the future despite "political risk" in Korea and in the United States. It also says that tariffs in the United States and possible cuts in federal subsidies for electric vehicles under the Trump Administration could slow down EV sales. POSCO Future M is spending 353 billion won to help finance its cathode-manufacturing factory in Canada with General Motors, which was pushed back until 2026 due to a cooling of EV demand. In a press release, its parent company POSCO Holdings announced that it would purchase all new shares in the company proportionally to its 59.7% stake in POSCO FutureM worth 525.6 billion dollars. Separately the company said that it would also acquire new shares valued at 328 billion won in its joint venture with Australia’s Pilbara Minerals which produces lithium hydroxide batteries materials. Reporting by Hyunsu Yaim and Hyunjoo Ji; Editing by Jacqueline Wong and Ed Davies
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Dollar drops as the trade deal sugar rush fades
The dollar and global stock markets lost momentum on Tuesday as investors' concerns about the impact of a trade standoff between the United States & China on the global economic situation grew. The two biggest economies in the world have agreed to a 90-day truce in their trade dispute. They will lower tariffs on both sides and remove other restrictions while they work out a permanent agreement. The agreement reignited investors' appetite for stocks and commodities. Wall Street saw a 3.3% rise the day before. On Tuesday, the enthusiasm for European stocks had diminished. They were up only 0.2% at first trading. This was boosted by positive corporate results, such as those from German pharma company Bayer and Danish wind-turbine maker Vestas. Both rose 10%. Futures for the S&P 500, Nasdaq and Dow fell by 0.4%. This shows the caution in the U.S. market. It's the pause which refreshes you and makes you feel good. You hope there will be more. This does prove that the current administration is not immune from market volatility. Chris Beauchamp, chief market strategist at IG, said that the market has reached a breaking point. After the Geneva talks, both the U.S. and China announced that they would reduce tariffs on Chinese imports from 145% to 30%. The ratings agency Fitch estimates that the U.S. tariff rate has dropped to 13.1% from 22.8% before the agreement, but is still above the 2.3% at the end 2024. The U.S. Government went further on Tuesday and announced that it would cut the "de minimis tariff" on Chinese shipments up to an amount of $800. This latest concession by the United States was not met with much reaction from the broader market. Amazon shares fell 0.5% on premarket, after Monday's 8% gain. FAREWELL "CRAZY US EXCEPTIONALISM"? Trump's unpredictable attitude towards the economy, international diplomacy and trade has fueled concern over the outlook for U.S. economic growth. These factors, along with the lack of progress made in negotiating trade deals, have driven investors away from U.S. assets, resulting in a move to safe-havens such as gold, the Japanese currency, and the Swiss franc. Economists and fund managers have stated that the 90-day break is welcomed, but it hasn't changed the larger picture. Christopher Hodge said that the tariffs would still be higher after all was said and done and this will have a negative impact on U.S. economic growth. On Monday, the dollar rose against a basket currency by more than it had in any day since April 22, 2007. On Tuesday, the dollar's gains had waned and most major currencies were stronger. The dollar fell 0.4% to 147.88 and the pound increased 0.2% to 1.3207. "You can still sense that people are generally thinking that we will put more money to work in the U.S. for the time being, but that we won't go back to the crazy "U.S. The December exceptionalism trade was that whatever you did, it had to be done in the US. Beauchamp, IG's Beauchamp, said that we've got be a little more circumspect. Investors will now focus on the U.S. inflation figures on Tuesday. Traders have reduced their expectations of Federal Reserve rate reductions due to the shift in U.S. China trade relations. They believe that policymakers will be more flexible if inflation risks decrease. The traders are now pricing 58 basis point cuts for this year. This is down from the over 100 basis point reductions that were priced in during the peak of tariff-induced panic in mid-April. The benchmark 10-year Treasury yield is flat at 4,453%. Oil prices were stable on Tuesday after rising 1.2% on Sunday to a 2-week high of $65 per barrel. Gold was around $3,260 per ounce after falling 2% on Sunday as investors abandoned some safe havens.
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Shanghai copper prices rangebound as caution tempers US/China trade optimism
The copper price ranged on Tuesday. The most traded contract on the Shanghai Futures Exchange - SHFE - was slightly lower as lingering caution tempered the relief of a U.S. - China tariff truce aimed to ease trade tensions. As of 0700 GMT, the SHFE contract had risen 0.1% to 78,090 Yuan ($10,859.86). The London Metal Exchange's benchmark copper was up 0.5% to $9,567 per metric tonne, despite the trade agreement signed between Beijing and Washington. Industrial metals rose on Monday after the joint U.S. and China statement promising to reduce tit for tat tariffs over 90 days, as well as work towards ending their trade conflict. U.S. president Donald Trump has increased tariffs on Chinese imports to 145%. This is in addition to the tariffs he imposed during his first term and those levied by Biden's administration. Other London metals include aluminium, which fell by 0.1% on Tuesday to $2478 per ton, zinc, up 0.5% at $2692, lead, up nearly 1% at $1994 and Nickel, down 0.2% at $15 605. Tin fell 0.7% to $22,360. SHFE nickel dropped 1.5% to 123.860 Yuan. Aluminium gained 1.3% at 20,005 Yuan per ton. Zinc was flat at 22.235 yuan. Lead gained 0.3%, to 16.970 yuan. Tin rose 0.2%, to 262,070 Yuan.
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Iron ore reaches a 2-week high after Sino-US trade truce; caution limits gains
Iron ore futures reached a two-week high Tuesday, supported by an interim trade agreement between China and the U.S., but caution about a final deal, and a possible slowdown in near-term demand, limited gains. The day-traded price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 1.06% higher, closing at 714.5 Yuan ($99.34). The contract reached its highest level since April 24, at 727 Yuan, earlier in the session. As of 0700 GMT, the benchmark June iron ore traded on the Singapore Exchange had fallen 0.7%, to $99.3 per ton, after reaching its highest level since April 24, at $100.35. On Monday, U.S. agreed that it would reduce levies for Chinese imports by 145% and 30% during a 90-day period of negotiation. China announced that it would lower duties on U.S. imported goods from 125% and 10%. This boosted sentiments and led to a general price rise across commodities. The initial excitement faded as uncertainty over the final deal and seasonal slow demand arose, causing concerns about a sluggish demand for ore in the coming week. Analysts at Shengda Futures expect that the hot metal production will show signs of a slowdown in late May. Analysts at CICC say that the lower hot metal production is expected to coincide when miners increase shipments in order to meet quarterly targets. This will add downward pressure to prices. The hot metal product is typically used as a gauge for iron ore demand. The benchmark steel prices on the Shanghai Futures Exchange rose. Steel benchmarks on the Shanghai Futures Exchange advanced. The DCE also saw a decline in other steelmaking ingredients, including coking coal, which fell 0.85%, and coke, which dropped 0.69%. $1 = 7.1925 Chinese yuan (Reporting and editing by Amy Lv, Lewis Jackson and Sonia Cheema).
Gold nears a more than one-week low following US-China trade truce
The gold price on Tuesday was hovering around a low of more than a week, which had been hit the previous session. A U.S. China agreement to temporarily halt tariffs reciprocally boosted risk appetite and diminished gold's appeal as a safe haven.
As of 0309 GMT, spot gold remained unchanged at $3,230.99 per ounce. Bullion prices fell by 2.7% in the previous session.
U.S. Gold Futures rose 0.2% to $3.235.20.
After two days in Geneva of negotiations, the U.S. announced that it would reduce its tariffs on Chinese imports from 145% down to 30%, and China's duties on U.S. imported goods from 125% down to 10%. This led to an increase in global share prices.
Last month, the U.S. imposed tariffs of equal value on China. This triggered a trade conflict.
Tim Waterer, Chief Market Analyst at KCM Trade, said that the prospect of improved trade relations between two of the largest economies in the world has led to a rise in risk appetite as well as a decline in demand for safe havens.
Waterer stated that "the dollar's consolidation has allowed gold to make a slight push higher".
Federal Reserve Governor Adriana Kugler stated that the pause in import levies will reduce the chances of the U.S. Central Bank needing to lower interest rates as a response to a slowdown in the economy.
Traders are waiting for the U.S. Consumer Price Index, which is due later today, to provide fresh information on the Fed's monetary policies.
Markets expect a Fed rate cut of 55 basis points this year, beginning in September.
In a low interest rate environment, gold, which is traditionally considered to be a safe haven during periods of economic and political uncertainty, thrives.
Waterer stated, "I think that buyers will still be attracted to pullbacks on gold as economic and geopolitical risk haven't been completely eliminated."
Citi forecasted a continuation of the short-term consolidation between $3,000 and $3,300, while downgrading the price target for the next 0 to 3 months to $3150.
Silver spot rose 0.6%, to $32.78 per ounce. Platinum rose 0.8%, to $982.70. Palladium fell by 0.4% to $942.19. (Reporting and editing by Sherry Phillips in Bengaluru, Anmol Choubey from Bengaluru)
(source: Reuters)