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UK industrial plan focuses on clean energy and advanced manufacturing
The UK's industrial strategy, published on Monday, outlines a key reform that will reduce the electricity bills for thousands of businesses by 2027. Below are the main components of its plan. ADVANCED MACHINING Up to 3.76 billion pounds (2.8 billion pounds) will be invested in R&D programs over the next 5 years to stimulate innovation, automation and digitisation. CLEAN ENERGY INDUSTRIES By 2035, Britain aims to double the current levels of investment in clean energy industries. CREATIVE INDUSTRIES Create a 150-million-pound fund for growth and provide financial support to screen, music and video games. LIFE SCIENCES Making Britain the third largest economy in life sciences through investment and reforms, including 600 million pounds to fund a Health Data Research Service, which will create a secure and AI-ready platform for advanced health data. Professional and Business Services The government announced that it would include the sector for the first in a national industry plan, as it aims to capitalize on UK strengths in areas like accountancy and legal services. The government said that it would fund artificial intelligence, work with other governments to establish mutual recognition of professional qualifications in order to boost exports, and launch five new hubs for professional business services in England and Scotland. DIGITAL AND TECHNOLOGY The UK wants to be one of the three top places in the World for technology business development. It has promised reforms that will boost R&D, skills and improve regulations, as well as collaborate more closely with other nations and the private sector. It stated that it would prioritize frontier technologies, such as advanced connectivity and artificial intelligence. EU COOPERATION Britain announced that it would work more closely with the European Union to reduce red tape, make it easier for businesses to trade and to enable investment in North Sea projects. The strategy stated that "we will explore the UK's involvement in the EU internal electricity market as well as continue technical regulatory discussions on new energy technologies." ($1 = 0.7437 pounds) (Reporting by UK bureau)
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Gulf stock markets continue to grow despite regional conflict
Investors were anxiously waiting to see if Iran would respond to U.S. strikes on its nuclear sites. The price of oil has risen to its highest level since January, as supply fears were stoked by the United States joining Israel to attack Iran's nuclear sites. The market participants are expecting further price increases amid growing fears that a retaliatory move by Iran could include the closing of the Strait of Hormuz through which approximately a fifth of world crude oil supply passes. Saudi Arabia's benchmark stock index rose 0.7%. Al Rajhi Bank gained 0.6%, and Saudi Arabian Mining Company added 2%. Hani Abuagla is a senior analyst at XTB MENA and said that regional stock markets had recovered to a certain degree as investors saw the U.S. intervening in Iran's affairs, which could force Iran into peace negotiations. Dubai's main stock index rose 1%. This was led by blue-chip developer Emaar Properties, which saw a 2.4% increase and the sharia compliant lender Dubai Islamic Bank, which saw a 1.7% rise. Gulf States, which are home to several U.S. bases, were on alert Sunday. Their leaders called on all parties involved to exercise maximum restraint after U.S. attacks on Iran raised the possibility of an even wider conflict. Saudi Arabian and UAE nuclear authorities said that they did not detect any signs of contamination after the Iranian strikes. Abu Dhabi's index increased by 0.2%. Abuagla says that most markets have experienced a significant drop in value, and some investors may have even priced in the worst possible outcome. If the current conditions do not change too drastically, then we could see a market normalization. The index rose 1.3% in Qatar. The largest lender of the Gulf, Qatar National Bank, grew by 0.8%, while Qatar International Islamic Bank jumped 3.6%. (Reporting and editing by Alex Richardson in Bengaluru, Ateeq Sharriff in Bengaluru)
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Ukraine reports that seven people were killed and dozens injured in the Russian attack on Kyiv.
Officials from Ukraine said that Russian missile and drone attacks on and around Kyiv over the weekend killed seven people and injured dozens. They also caused fires to break out in residential areas, and damaged an entrance to a bomb shelter in a metro station. Tymur Tkachenko of Kyiv’s military administration said that at least six people died in the busy Shevchenkivskyi District of Kyiv, where a section of a residential building high-rise was destroyed. He added that four children were among the 25 injured in the attack. Tkachenko stated that "the Russians' style has not changed - they hit people wherever there are. "Residential building, exits from the shelters - that's Russian style." Moscow has intensified drone and missile attacks on Kyiv, and other Ukrainian cities, in recent weeks, as the talks to end this war, which began in February 2022 with Russia's full scale invasion, have failed to produce any results. Both sides deny that they have targeted civilians. However, thousands of civilians - mainly Ukrainians - have died in the conflict. Russia has not responded to the latest attacks. Ihor Klimenko, the interior minister of Kiev, said that people may still be trapped under the rubble. The overnight attacks in six out of the 10 districts caused extensive damage. "To be honest, I wasn't scared. "It was more like I was frozen in time," said Liudmyla, a 75-year old local resident. "You are frozen, thinking about all of it. UK VISIT The Ukrainian air force claimed to have shot down 339 out of 352 Russian drones, and 15 out of 16 missiles that were launched in an attack on four Ukrainian provinces. When visiting Britain, Ukrainian President Volodymyr Zelenskiy will discuss Ukraine's defense and put additional pressure on Russia in order to stop such attacks. The photos posted by Ukraine's State Emergency Service show rescuers guiding people away from burning buildings and structures in the darkness. Officials said that the entrance to the Sviatoshynskyi metro station, in Kyiv, was also damaged along with a bus stop adjacent. During the war, the deep metro stations of Kyiv were used as safe bomb shelters. Kyiv Polytechnic Institute reported that the attack caused damage to its sports complex, academic buildings and dormitories. Officials said that a woman aged 68 was killed in the wider Kyiv area, which surrounds the Ukrainian Capital. At least eight other people were also injured. Last week, hundreds of drones attacked Kyiv and killed 28 people. More than 150 were injured. Reporting by Pavel Polityuk, Gleb Garanich and Anastasiia Menko. Writing by Lidia Kelley in Warsaw and Aidan Lewis. Editing by Tom Hogue and Raju Gopalakrishnan.
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Aluminium outperforms Copper on Energy Cost Concerns amid US-Iran Tensions
On Monday, the most traded aluminium contract at the London Metal Exchange beat copper as U.S. attacks on Iranian military sites pushed up energy costs - an important cost factor for this energy-intensive metal. By 0700 GMT, the LME 3-month aluminium contract had risen 0.82% to $2,570.5 a metric tonne. After an initial rise, the most traded aluminium contract at the Shanghai Futures Exchange fell 0.24%. It now stands at 20,365 yuan (US$2,833.79) per ton. Comparatively, LME copper increased 0.07% at $9,640, while SHFE copper rose by 0.14% to 78,290 Yuan. Aluminum is more sensitive to energy prices and has therefore reacted strongly to oil price fluctuations. The key now is whether Iran will close the Strait of Hormuz, said a metals analyst in Beijing from a futures firm. He said that the Strait of Hormuz was crucial for the Middle East's bauxite, alumina, and power shipments. Power accounts for 40% of total costs in aluminium melting. Senior officials in the Trump administration warned Tehran not to retaliate after the U.S. struck key military sites on the weekend. Brent crude futures rose 2.44% to $78.89 per barrel as of 1122 GMT. This was the highest price since January. LME Zinc contract rose 0.7%, to $2,648 per ton. Lead gained 0.35%, to $1,999. Tin fell 0.7%, to $32,465, while nickel dropped 1.1%, to $14,850. SHFE tin rose 0.4%, to 261,880 Yuan per ton. Lead gained 0.4%, to 16,920 Yuan. Zinc was up by 0.3%, at 21,980 Yuan. Nickel fell 1.1%, to 117440 Yuan. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0800) EU HCOB Manufacturing, Composite Flash PMI, June 0830 UK Composite Manufacturing, Composite Services Flash PMI, June 1345 US S&P Global Manufacturing, Composite PMI, Flash June 1400 US Existing Homes Sales, May ($1 = 7,1865 Chinese Yuan) (Reporting and Editing by Sonia Cheema, Sherry Jacob Phillips)
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Dalian Iron Ore reaches a new high in a week on the back of improved China demand
Dalian iron-ore futures reached their highest level in over a week Monday, boosted by improved short-term prospects for the steelmaking component in China's top consumer. The daytime trading price of the most traded September iron ore contract at China's Dalian Commodity Exchange was 706 yuan (98.25 dollars) per metric ton. In the morning session, the prices reached 709.5 yuan - their highest level since June 13. As of 0717 GMT, the benchmark July iron ore traded on Singapore Exchange was up 0.36% at $93.85 per ton. According to Chinese consultancy Mysteel, hot metal production, which is a measure of iron ore consumption, increased 0.24% on a weekly basis to 2.422 millions tons as of 20th June. Everbright Futures, a broker, said: "Hot metal production is expected to remain stable in the short-term, which will support iron ore prices." Broker Galaxy Futures stated that the construction materials consumption in China has already weakened as we enter the off-season. The peak construction season is usually the spring, before the June rains that have dampened demand prospects. Mysteel, in a separate report, said that the capacity utilisation rate for China's electric arc furnace steelmakers dropped 2.2% from week to week to a low of 54.5%. It attributed this to the persistently negative margins. The dollar index rose 0.12% Monday, mainly due to safe-haven demand. Dollar-denominated investments are less affordable for holders of currencies other than the greenback. Stainless steel dropped 1.16% on the day to 12,390 Yuan, after falling to a low of 12370 yuan earlier in the session. Mysteel Global reported that "a new round of price reductions by major producers further weakened an already fragile market mood." The Shanghai Futures Exchange saw a decline in most steel benchmarks. Hot-rolled coils, rebar, and wire rod all declined. Coke and coking coal, the other steelmaking ingredients traded in a sideways manner.
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India's imports of soyoil fell to a four-month low due to port congestion in June
Industry officials have said that India's imports of soyoil in June will likely fall 18% from the previous month to their lowest level in 4 months. This is because congestion in a major port will cause vessels to be unloaded in July rather than June due to congestion. Nearly two-thirds (67%) of the world's largest importer of edible oils is met by imports. Delays in unloading ships could lead to a shortage on the local market, which would increase prices. According to Rajesh Patel of GGN Research and edible oil trader, the June soyoil exports will likely fall to 325,000 tons from an earlier estimate of 400,000 tonnes, due to congestion at Kandla Port. Kandla Port in Gujarat's western state accounts for one quarter of India’s total imports of vegetable oil. This is because many nearby edible oil refineries choose this port to import their products. "At the moment, edible oil ships are subject to waiting periods between 9-10 days. According to the list of incoming ships, this wait could increase to 15 days, said B.V. Mehta. He is the executive director of Solvent Extractors' Association of India. Mehta stated that delays result in high demurrage charges, which increase import costs overall and raise the price of edible oil for consumers. A New Delhi-based trader at a global trading house said that the congestion at Kandla also affects palm oil imports. However, any impact on their supplies will be minimal, as a significant amount is being discharged in ports in eastern India. India imports a lot of palm oil, mainly from Indonesia, Malaysia and Thailand. It also imports sunflower oil and soyoil from Argentina, Brazil and Ukraine. (Reporting and editing by David Evans; Rajendra Jadhav)
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West Africa mine operators use drones to detect illegal miners as gold prices rise
Three men launch a drone in the clear skies above Gold Fields' Tarkwa mine, a sprawling 210 square kilometer gold mine located in southwest Ghana. The drone's cameras scan the area for any intruders as the sun beats down. A drone detected something strange, and a 15-person police team arrived within 20 minutes. The team found abandoned clothing, newly dug trenches and rudimentary gear in pools of mercury- and cyanide contaminated water. Wildcat miners who work on the fringes of official mines in Africa left the equipment behind. They put their health, the environment, and the profits of official mine operators at risk. The team seized seven diesel-powered pumps, as well as a "chanfan", a processing unit that is used to extract gold out of riverbeds. According to mining executives and experts, the high-tech game of cat-and mouse is becoming more common as gold prices rise above $3,300 an ounce. This has led to increased unofficial activity, which can lead in some cases, to deadly confrontations, between corporate concessions, and artisanal miner's in West Africa. Edwin Asare is the head of Gold Fields Tarkwa Mine’s protection services. "Because the vegetation covers the area, you will not know if something is going on," says Asare. It's as if you get eyes in the air to help you place boots on the ground. No reports have been made of any injuries to official mine personnel. Conflicts in corporate mines have caused production to be halted for up to one month. Companies then pressed governments to provide more military protection. Boots on the Ground According to a United Nations report from May, the unofficial mining operations in Sub-Saharan Africa provide a critical source of income for almost 10 million people. Other industry data indicate that in West Africa, between three and five million people are dependent on unregulated gold mining. This accounts for about 30% of the region's gold production. These people provide economic support to a region where there are few formal job opportunities. Many residents, like Famanson Keita, 52 years old in Senegal’s gold-rich Kedougou Region, grew up in their localities mining gold. They supplemented their farming incomes with simple and traditional methods until corporate mining companies arrived and relocated them to other communities, promising jobs and rapid growth. Keita said, "Those promises were not fulfilled." Many of our youth are working in low-level jobs that do not have contracts, with little pay and without stability. "Small-scale farming cannot support our families." Local residents have tried to make a living in the shadows of mining companies for many years. However, the majority of illicit activities, especially those that occur around large bodies of water and forests, are now carried out with sophisticated equipment, such as dredging and digging tools, and funded by local cartels or foreigners. Economic pressures With central banks buying more gold and geopolitical tensions increasing, gold could reach $5,000 per ounce. Ulf Laessing, a mining and security analyst focusing on the Sahel region, warned that violent clashes near mining operations are likely to increase in the months ahead. Laessing is the head of Germany's Konrad Adenauer Foundation's Sahel Program. She said: "The higher the gold price, the more conflict we will see between the industrial and informal miner." A source from the company, who declined to identify themselves, said that nine wildcat miners had been shot dead at AGA’s Obuasi Mine in Ghana in January when they opened the 110-square-kilometer concession fence to search for gold. According to a source with knowledge of the mine operations, in February hundreds of wildcats invaded AGA's Siguiri Mine concession, located northeast of Guinea. This prompted military intervention. Police said that in January at least three wildcat miner were shot and injured by guards on Newmont's Ahafo Gold Mining Site in northwestern Ghana. An excavator driver at a Kenieba illegal mining site told a reporter that Chinese bosses have been deploying new equipment on new sites in Mali's gold rich Kayes region as gold prices rise. We were unable to determine who these Chinese operators are, or if they have any connections with companies or official organisations. Ghanaian authorities are destroying dozens of unregulated gold mining operations, including in protected areas, and arresting foreigners and locals. Marc Ummel is a researcher with Swissaid. He says that because of weak regulations and porous borders, most of their products are smuggled, denying the countries the full benefits. Swissaid analysed data from the exports of Ghana between 2019 and 2023. It found that Ghana lost 229 metric tonnes of gold, mainly artisanal, to smuggling. Adama Soro is the president of West African Federation of Chambers of Mines. He said that artisanal miner's compete with large-scale mining companies for ore and shorten mines lives. He said that artisanal mines were digging as deep as 100 meters, which was affecting the ore bodies of large-scale miners. ARMED MILITARY PROTECTION The head of an mining company heavily affected by wildcat miner in Ghana said that miners have resorted to unconventional methods, and they are increasing their spending at the expense community projects and investment. Source: The mine spends about half a million dollars annually to combat wildcat-mining, which includes drone surveillance. However, it still suffers frequent attacks. Recent incursions have been reported at Nordgold, Galiano Gold B2Gold, and Barrick Gold. Ghana's corporate mining giants have increased their efforts to secure military protection for their mine sites in the past year. According to three mining executives, and an industry analyst who requested anonymity, similar requests were made in Burkina Faso, and Mali. Ahmed Dasana Nantogmah is the chief operating officer of Ghana’s Chamber of Mines. He said, "Ideally, we would like to have a military presence in all mining operations. However, we do understand that we need to prioritize those sites which are consistently attacked while maintaining regular patrols on others." Nantogmah said that industry leaders met with government officials to discuss their concerns in mid-April. Discussions yielded "positive" outcomes. Ghana's government has not responded to any requests for comment. Two mining executives involved in the negotiations said that Ghanaian authorities wanted miners to pay for deployment costs. These are estimated at 250,000 Ghana Cedis (18,116 dollars) per daily contingent of less than 50 personnel. The Minerals Commission in Ghana, which regulates the mining industry, has taken a major technological step forward by establishing a control room powered by AI to analyze data collected from 28 drones that are deployed at illegal mining hotspots. The system includes tracking devices on excavators, and a remote control system to disable excavators that are operating outside of authorized boundaries. Sylvester Akpah is the consultant for Ghana's mining regulator's drone and AI-powered surveillance project. (Reporting and editing by Veronica Brown, Claudia Parsons, and Emmanuel Bruce Additional reporting by Maxwell Akalaare Adombila)
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After Congo extended its export ban, China cobalt prices hit a 3-month high.
The price of cobalt in China, the world's largest consumer of the material, jumped Monday to its highest level in more than three months as the Democratic Republic of Congo extended the export ban. This rekindled supply concerns. Congo, world's largest cobalt producer, has extended its ban for another three months, after initially imposing a four month restriction in February, to reduce the oversupply of this material used in electric vehicle batteries. The cobalt futures contract with the most activity on China's Wuxi Stainless Steel Exchange rose more than 9%, reaching its highest level since March 14, at 254 yuan per kilogram ($35.34). Analysts at Guosen Metal stated that "the seven-month ban on exports by Congo will reduce global supply of cobalt by over 100,000 metric tonnes and will cause a shortage in supply in the domestic market." Export ban triggered after cobalt prices hit historically low levels. Automakers were hurt and miners increased output of copper (from which cobalt can be extracted as a co-product) to take advantage of high prices. China's CMOC Group - the world's largest cobalt producer - said that the extension would not have a significant impact on its operating results. A CMOC spokesperson stated that "a stable and healthy market is conducive to sustainable development and continuous growth in demand for cobalt product," adding that operations at the Tenke Fungurume Mining site and Kisanfu Mining site are currently normal. Reports earlier this month stated that the world's second largest cobalt producer, Glencore, had declared force majeure for some cobalt deliveries from Congo, days after the Congolese government banned exports of battery material. Reporting by Amy Lv, Lewis Jackson and Sumana Nandy; editing by Sumana Niandy.
After Congo extended its export ban, China cobalt prices hit a 3-month high.
The price of cobalt in the top consumer China rose to a three-month high Monday as the Democratic Republic of Congo extended its export ban, rekindling supply concerns.
Congo, world's largest cobalt producer, has extended its ban for another three months, after having imposed a four month restriction in February, to reduce the oversupply of this material used in electric vehicle batteries.
The cobalt futures contract with the most activity on China's Wuxi Stainless Steel Exchange rose more than 9%, reaching its highest level since March 14, at 254 yuan (US$35.34) a kilogram.
Analysts at Guosen Metal stated that "the seven-month ban on exports by Congo will reduce global supply of cobalt by over 100,000 metric tonnes and will cause a shortage in supply in the domestic market."
Export ban was caused by the cobalt price hitting historically low levels. This was due to weak demand by automakers, and miners increasing output of copper (from which cobalt can be extracted as a co-product) in order to take advantage of high prices.
Reports earlier in the month stated that the Congo government had suspended the export of battery materials. Glencore declared force majeure for some of its cobalt deliveries. Reporting by Amy Lv, Lewis Jackson and Sumana Niandy; editing by Sumana Naandy.
(source: Reuters)