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Rare Earth prices reach two-year high after MP Materials stops China shipments
The price of two rare earths, which are needed to make super-strong magnets, has risen to its highest level in over two years. This is because U.S. miner MP Materials has stopped exports to China's leading magnet manufacturer due to rising demand. China is the dominant player in the rare earths supply chain, with 90% of the refining capacity, and 70% of the mined output. But the U.S. has responded by signing a contract in July with its largest producer MP to refine their output at home. Adamas, a consultancy, said that MP's shipments have in the last three years contributed 7% to 9% of China's production of oxides from rare earths (neodymium) and praseodymium(NdPr), which are vital for magnets used to power electric vehicles and wind turbines. Adamas' managing director, Ryan Castilloux said that MP's shipments were an important part of the NdPr supply to China's factories. "This has left a large void," he added. NdPr oxide: Chinese price The benchmark price, which is regarded as the industry standard, has increased to 632,000 Yuan per metric tonne or $88 per kilogram, its highest level since March 2023. It was $63 per kg on July 9, and it's now at $88 per kilogram, the highest rate since March 2023. The West is looking to reduce its dependence on Beijing, and the 40% increase in the stock price after years of decline will help mine projects that are seeking outside investment. After China, in April, clamped down its exports amid a trade dispute with the U.S. and forced some auto plants to close their doors, it became urgent for the West to boost rare earth production. Last month, the U.S. announced an unprecedented agreement with MP that stipulated that the company stop shipments to China. The U.S. government also offered MP a price support for its NdPr, based at $110 per kilogram, which was then about twice as much as the Chinese price. Analysts said that MP had stopped shipments to China due to high tariffs in April, but any shortages were masked due to a weakness in magnet demand caused by Chinese export restrictions. U.S. supply of rare earth ore to China dropped in May, then reached zero in June, before spiking last month. This was probably due to MP's final shipments. China's rare earth magnet exports have recovered and reached a six-month peak in July, after Beijing loosened its export controls following a series agreements with the U.S. POPULAR MANUFACTURING SESSION In recent years, NdPr has been affected by an oversupply. Prices in March of last year fell to 345, 000 yuan - the lowest since November 2020. Recent gains in their stock prices are also due to a rebounding demand. China is in the peak of its manufacturing season for consumer electronics, electric vehicles and wind turbines. The cyclical increase in demand for NdPr has increased the pressure on supply. The uncertainty around Chinese mining and smelting quotes, which were released without the usual public statements this year, has also been a source of support. Castilloux stated that some players might be anticipating lower quotes. He added that he anticipates a modest increase of 5% in Chinese production this year in contrast with a demand growth of about 10%. Ellie Saklatvala is the head of metal pricing for Argus. She said that whether the rally continues will depend in part on the demand from magnet manufacturers and their ability to absorb higher prices. The producers of NdPr are relieved that prices are now moving away from the loss-making zone. It will be up to buyers like magnet makers to decide if their margins are strong enough to continue paying these higher prices for feedstock.
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Company: Worker killed by Russian attack on coalmine in eastern Ukraine
DTEK reported on Tuesday that a Russian attack near the frontlines of eastern Donetsk inflicted three injuries and killed one miner in a DTEK coal mine. In recent weeks, Russian invasion forces intensified their offensive against eastern Ukraine where the majority of coal mines in the country are located. The attack caused damage to the company's equipment and buildings, and a power failure. DTEK posted on Telegram that 146 underground miners are still being brought to the surface. The report did not mention the exact location or how the Russian forces struck the mine. Ukraine reported this month that small groups of Russian soldiers had advanced about 10 kilometers (six miles), towards the main defensive lines near the eastern city of Dobropillia. This has raised fears of an even wider break-through, which could threaten other key cities. Later, Ukrainian officials claimed that Kyiv had stabilized the battlefield in a part of the east where Russian troops had suddenly pushed to penetrate Ukrainian defences.
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China's carbon markets will introduce absolute emission caps in 2027
The cabinet announced on Monday night that China would tighten the market for carbon trading by introducing absolute emission caps in certain industries starting 2027. According to a joint statement from the State Council of China and the Central Committee of the Communist Party, the caps will first be implemented in industries that have relatively stable carbon emission levels by 2027. China's national carbon market, or emissions trading system (ETS), will be largely established by 2030. "Policymakers have tightened the system", said Xuewan Chen senior research analyst at LSEG. In a statement, it was stated that the national carbon market would replace the eight pilot markets currently in place, launched in 2021. It would feature absolute emission caps, as well as a mix of paid and free carbon emissions allowances. CEAs currently are based more on benchmarks for carbon intensity that are gradually reduced, than on absolute emission caps. A quota is given to each company and, if the actual emissions are higher than the quota in a compliance period, the company must purchase more allowances on the market. If the company's emissions are lower than expected, they can sell their excess CEAs. The (cabinet document) provides much-needed clarity for the timeline of China's carbon market development, said Mai Duong Asia-Pacific Carbon Markets Analyst with Veyt. She added that it demonstrated China considers carbon markets to be "the key" tool in meeting its goals for decarbonisation. The statement did not specify which industries would be covered by the ETS. Analysts believe that chemicals, petrochemicals and papermaking, as well as domestic aviation, will be included in China's plan. Duong added that the regulation will also increase liquidity by allowing banks and financial institutions to participate in the market. China announced in September of last year that it would expand the carbon market to include steel cement and aluminum, which would cover approximately 60% of the country’s greenhouse gas emission. Analysts said that because of the high number of allowances available, the carbon market had so far not affected China's emissions. Duong stated that it is a positive development that China has now set a timeline for the full-scope expansion. However, whether or not this will have measurable effects in reducing China's huge emissions remains to see.
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China's net imports of gold via Hong Kong have more than doubled since July
Hong Kong Census and Statistics Department figures released on Tuesday showed that China's net imports of gold via Hong Kong increased 126.81% from June. Why it's important China is the largest gold buyer in the world. Its buying activities can have a significant impact on global gold markets. Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing. By the Numbers The net imports from Hong Kong into China in July totaled 43.923 tons, up from 19.366 tons for June. China's total imports of gold via Hong Kong fell 67.91% to 58.296 tonnes in July from 34.719 tonnes in June. CONTEXT Official data released earlier this month showed that China's central banks added gold to their reserves in July, marking the ninth consecutive month they have done so. The World Gold Council reported last month that global gold demand, including OTC trading, rose by 3% on an annual basis to 1,248.8 tons in the second half of 2025. Investments grew 78%. KEY QUOTE "I think Chinese investors are still looking at gold to diversify their assets base, and we have therefore seen a change in flows towards China," said UBS commodities analyst Giovanni Staunovo. Staunovo said that the Shanghai gold price was above the London gold price for most of July. This is an indication of strong demand in July. However, this month the difference has been less. (Reporting and editing by Susan Fenton, Bernadettebaum, and Anmol Choubey from Bengaluru)
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Indonesia: US tariff exemptions for palm oil, cocoa, and rubber
Indonesia's chief trade negotiator announced on Tuesday that the United States had agreed in principle to exclude Indonesian exports such as cocoa, rubber and palm oil from the tariff of 19% imposed by Donald Trump since August 7. Airlangga hartarto, chief economic minister and also the U.S. ambassador to Indonesia, said that the exemption would take effect when both parties reached a final agreement. However, no time frame has been established because the U.S. was busy with tariff negotiations with other countries. Airlangga told an interview that the two countries discussed possible U.S. investments in fuel storage in Indonesia, in partnership with Southeast Asia's sovereign fund Danantara as well as state energy company Pertamina. He added, "We're waiting for their reply, but basically the principle (exemption) was agreed during the meeting for products that are not produced in the U.S. such as cocoa, palm oil, and rubber... It will be zero or near zero." The U.S. Embassy in Jakarta didn't immediately respond to an inquiry for comment. Indonesia is a major supplier of rubber and palm oil in the world. Tariffs: Certainties Indonesia, which is the largest economy in the region, was one of the first countries to reach a tariff agreement with Trump. However, Jakarta's rate ended up being the same as other countries like Thailand and Malaysia and only slightly below Vietnam's 20%. Indonesia made an offer to invest billions in the U.S., and purchase planes, farm products, LPG and crude oil. It also promised to impose zero tariffs on nearly all U.S. products entering its market. Airlangga stated that recent progress made in negotiations about a free-trade agreement with the European Union and the certainty of U.S. Tariffs could boost Indonesia's economy, helping it reach its 5.4% growth target for 2026. This is up from an estimated 5% this year. He said that "they bring an optimistic perspective from the global markets since most investors look for certainty, and Indonesia is a country that provides global certainty." Airlangga, a Jakarta-based economist, said that the city wants to attract foreign investors in order to develop industrial facilities. This includes the processing of key commodities. Airlangga stated that the government also wants to increase investment in silica processing, such as the production of wafers and solar panels for semiconductors. (Editing Gayatri Suryo; Editing Clarence Fernandez, Helen Popper).
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India looks at using expensive gas-fired electricity to meet peak demand
An adviser at the Power Ministry said that India is considering using gas-fired plants to only meet the surge in electricity demand during peak summer months, May and June, due to higher costs. Gas' share in India's electricity generation fell to 1.5% in 2020 from 3%, because prices reached $12 per million British Thermal Units and ranged from $8 to $18 in the last two year, which means that other forms of power generation are cheaper. About 75% of India’s electricity is generated by coal-fired power plants, which are more carbon-intensive. The country is trying hard to increase its use renewable energy. Ghanshyamprasad, the chairman of the Central Electricity Authority, spoke at the Indo-American Chamber of Commerce's energy summit on Tuesday in New Delhi, but did not provide details about how gas-fired generators would be supported. He said that the government had, in May, drawn up a plan of 100 days to ensure that gas-based plants can be used to meet demand if necessary. The plan also included a contract structure which includes support for startup costs as well as gas price fluctuations. After years of sitting idle due to high gas prices, the government reduced the capacity of the gas plants that are connected to the grid from 25 gigawatts to 20 gigawatts. Prasad stated that India used around 13-14 GW of this capacity during the period with high demand last year. The economic slowdown and heavy rains this year have reduced power demand. The peak power demand was 242 GW, compared with the predicted 270GW. Sethuraman NR in New Delhi, edited by Barbara Lewis.
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German court rules that Apple Watch is not a "CO2-neutral" product
Apple cannot advertise the Apple Watch in Germany as a CO2-neutral product, after a ruling by a German court on Tuesday. The court upheld an environmentalist complaint, and found that Apple had misled its consumers. A Frankfurt regional court said that Apple advertised the device as "our first CO2-neutral" product online. The claim was found to be unfounded by a panel and to violate German competition law. Apple's spokesperson declined to comment on the decision, saying that it "largely upholds our rigorous approach to Carbon Neutrality". Apple said in June that the German lawsuit threatened to "discourage the kind of credible climate action around the world needed." A spokesperson still referred to a Tuesday report that Apple would phase out the "carbon neutral" label it uses on Apple Watches to comply with EU legislation which will come into effect in September 2026 and restrict the use of these terms. Apple's claim of carbon neutrality is based on a project that it runs in Paraguay, where it offsets emissions by planting Eucalyptus trees. Eucalyptus trees are grown in plantations throughout the world. Criticised Ecologists claim that monocultures are harmful to biodiversity and water-intensive, earning them the name 'green deserts'. Frankfurt's court ruled that 75% of the area was not leased beyond 2029, and the company couldn't guarantee that these contracts would be renewed. The statement stated that "the continuation of the Forest Project is not a secure future." Meta and Microsoft, along with Apple, have invested in similar projects throughout Latin America to earn carbon credits. The environmentalist group Deutsche Umwelthilfe, which brought the case and sued Apple, hailed this ruling as a victory against "greenwashing." In a press release, DUH's Juergen Resch said that "the supposed storage of CO2 by commercial eucalyptus plants is limited to only a few short years. The contractual guarantees are insufficient for the future and the ecological integrity in monoculture areas cannot be guaranteed." (Reporting and editing by FriederikeHeine and Louise Heavens).
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This year, record wildfires have burned more than one million hectares in the EU.
EU data show that wildfires have destroyed more than one million hectares in the European Union so far this year, the most in any single year since records began in 2006. Data from the EU's European Forest Fire Information System (EFFIS), analysed by, revealed that 1,028,000 hectares of land in the EU were ravaged by fires on Tuesday. This is an area larger than Cyprus and the highest total for any previous year. In 2017, the previous record for wildfire area was 998,000 hectares. Spain and Portugal were the worst affected countries, accounting for two thirds of all EU burnt areas. EFFIS data revealed a dramatic increase in wildfires between 5-19 August, a period that coincided with a 16 day heatwave in Iberia. The heatwave that lasted for a week in both countries caused fires to spread, killing at least 8 people and forcing the closure of rail and road services. On Tuesday, however, 10 wildfires raged in Spain's Castille-Leon region where 700 people were evacuated. Meanwhile, blazes continued to burn in northern regions Galicia and Asturias. The cooler temperatures in Portugal brought respite and on Monday, a fire that had been burning for 12 days was put out. Piodao, with its more than 60,000-hectare burnt area, is the largest wildfire in Portugal's history. The climate change will make wildfires, droughts and heatwaves more severe and frequent. However, prevention measures like clearing land of dry vegetation can help to limit fires. EFFIS reported that wildfires have so far emitted more than 38 million tonnes CO2 in the EU. This is the highest level of any previous year. By 2025, the record annual emission will be 41 million tonnes. (Reporting and editing by Aidan Lewis; Additional reporting by Andrey Khlip in Lisbon, Inti Landauro at Madrid; Reporting by Kate Abnett)
Iron ore prices fall as investors focus on coking coal
Iron ore futures fell on Wednesday as investors shifted their focus from iron ore to coking coal due to concerns about the demand for the commodity in China, its largest consumer.
As of 0205 GMT, the benchmark September iron ore traded on Singapore Exchange fell 0.56% to $100.91 per metric ton.
The price of the most traded September iron ore contract at China's Dalian Commodity Exchange was unchanged, at 795.5 Yuan ($110.65).
Cao Ying is a Beijing analyst with broker SDIC Futures. She said that the buying in the spot market has been weak because mills are hesitant to stockpile raw materials in anticipation of the upcoming major event in September. This has dragged down futures prices.
The big event is a ceremony in Beijing on September 3, commemorating the 80th Anniversary of the End of World War Two.
Chinese steelmakers, particularly those in the north, often restrict production in advance of major events in order to maintain air quality in Beijing.
Cao, from SDIC, added that "speculative sentiment" is very low as capital has poured into the volatile coal market.
Iron ore open interest in Dalian dropped by 4.2% on Tuesday compared to the previous day, while Dalian coking coal saw a 13.7% increase.
Open interest is the number of option contracts that have not yet been settled between buyers or sellers. It's a measure for investors' participation on a particular market.
Three analysts and traders have said that they are now focusing on trading coking coal.
Analysts said that the price of coking coal increased by 6.76 percent, mainly due to fears about a possible contraction in supply, amid more stringent safety inspections for coal mines, and government investigations for reducing excess production.
The price fluctuations of coking coal have attracted more capital and investors, which has in turn increased the volatility, said Zhou Tao analyst at Galaxy Futures.
Coke grew by 2.42%.
The benchmarks for steel on the Shanghai Futures Exchange have gained some ground. Hot-rolled coils and stainless steel gained 0.08%, rebar and wire rod 0.84%. ($1 = 7,1891 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
(source: Reuters)