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Silver reaches new records, gold edges ahead of Fed decision
Silver continued its record-breaking rise above $60 per ounce, as silver continues to be pushed higher by investors awaiting the Federal Reserve Chairman Jerome Powell’s guidance on the day the bank is expected cut interest rates. As of 0309 GMT, spot gold rose 0.2% to $4215.61 an ounce. U.S. Gold Futures for February Delivery rose by 0.2% to $4244.70 an ounce. Spot silver was up 0.6% to $61.06/oz, after reaching a session high of $61.46. It has built on Tuesday's breakthrough above the $60 level, driven by depleted stocks and strong industrial demand. GoldSilver Central's?MD Brian Lin said: "What we are seeing on spot gold is that it's range-bound and people will be looking to the Fed interest rate tonight (to see if there'll any further news)" Powell will hold a press conference at 30 minutes after Powell's rate announcement at 1900 GMT. The FOMC meeting, which lasted two days, concludes on Wednesday with a decision about the interest rate. Investors currently price in an 88.6% probability of a 25 basis-point cut. Kevin Hassett is a White House economist and a leading candidate for Fed chairman. He said that there was "plenty" of room?for more. Rate cuts But rising inflation could change this outlook. Gold and other non-yielding investments tend to do well in low interest rate environments. "Many are now interested in silver because it (finally is) catching up to gold. "The (gold-silver ratio) has dropped sharply and there's a lot of demand for silver on major markets including India," Lan stated. Silver Institute, an industry association, said that a report released on Tuesday showed that sectors such as?solar power, electric vehicles, data centers, and artificial intelligence would drive the industrial demand upwards through 2030. Silver prices are supported by dwindling inventories worldwide, high demand and expectations that the Fed will ease interest rates. It has also been added to the U.S. Critical Minerals list. Palladium dropped 0.2%, to $1,503,26. Platinum fell 1.2%, to $1669.70. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich and Harikrishnan Nair)
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Copper falls below records as Fed caution tempers gains
The copper price hovered just below its record highs as investors waited for the U.S. Federal Reserve to announce a possible hawkish policy following their two-day meeting. As of 0315 GMT, the?most-traded copper contract at the Shanghai Futures Exchange?was down by 0.37% to 91,720 Yuan ($12,987.27) per metric ton. The benchmark three-month price of copper at the London Metal Exchange rose 0.67%, to $11,564 per ton. The upward trend in copper slowed as the Fed rate decision drew near. At a time of persistent inflation fears and a resilient economy in the United States, the market was expecting a "hawkish" cut in December. Analysts at Chinese broker Jinrui stated that investors have scaled back their positions due to the uncertainty of future rate cuts. They also noted that the expected'supply pressure outside the U.S. keeps prices high and volatile. The copper price has recently reached record highs due to the expectation that supplies will be tightening outside of the U.S. and mine disruptions. China's consumer price inflation reached a 21-month high in November. However, factory-gate deflation continued even as the government intensified its campaign to reduce overcapacity. Shareholders of Canadian miner Teck Resources approved the merger between Anglo American on Tuesday, paving the way for the review by regulators. Aluminium, among other metals, fell 0.34% on SHFE. Zinc dropped 0.43%. Lead?lost? 0.84%. Nickel declined 0.73%. Tin was the only metal to gain 0.72%. Aluminium gained?0.63% on the LME, while zinc gained 0.49%. Lead was up 0.33%. Nickel gained 0.31%. Tin rose 1.11%. Wednesday, December 10, DATA/EVENTS 0600 US Wheat, Corn and Soybean End Stocks 25/26 Dec 0600 US Wheat, Corn and Soybean E/S for the World 25/26 dec 0600 US Corn, Soybean, Wheat end stocks 25/26 dec 0600 US world soy, wheat, corn
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Rinehart: excessive regulation is putting Australia's mining industry at risk.
Gina Rinehart, baroness of mining in Australia, said that excessive regulations have put the industry's global competitiveness under threat. Rinehart, executive chairman of?Hancock Prospecting?, Australia's 4th-largest miner of iron ore, has risen to the top of Australia's richest list over the last 15 years. The comments were made in a speech marking the 10-year anniversary since Hancock first shipped iron ore. They echo previous statements by BHP executives. However, they are her first remarks since Australia passed an environmental law reform in a bid for a reduction in red tape last month. Rinehart cited a report from the Minerals Council of Australia that stated that 80% of mining projects were abandoned. The lobby group blamed this on "poor policies" which increased costs for the miners. "This is the result of bad government policies. Rinehart stated that the reality of a significant risk to Australia's mining industry and high government burdens is putting?our competitiveness at risk. Hancock said in its annual reports that it was awaiting final approvals for the development of two iron ore project. However, a spokesperson announced on Wednesday that approvals were received and construction has begun. Geraldine Slattery, BHP Australia's director of Australia, said in October that the country needs to speed up environmental approvals as well as increase access to low-cost power if it wants to compete with other nations for mining investment capital. BHP's Mike Henry, the CEO of BHP's coking coal division in Queensland, also warned in October that "difficult" decisions were ahead after the state raised its royalty payments without consulting with industry. Rinehart highlighted the contribution mining made to the nation’s wealth. She pointed out that her Roy Hill mine generated A$12 billion in taxes and royalty payments and A$15.4 billion in contracts for Western Australian companies in the last 10 years. She had previously called on Australia to adopt a Donald Trump-style of leadership in order to reduce government spending while increasing defence and energy security. Last month, Australia reached an agreement with the Greens to reform its environmental laws. The MCA described the bill as "an inferior and disappointing outcome" for Australian firms who currently have to "go through a lengthy, complex and double-track approval and assessment process on issues that are largely identical." Reporting by Melanie Burton, Editing by Muralikumar Anantharaman. $1 = 1.5078 Australian Dollars
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Markets focus on Ukraine peace talks as they cap gains due to supply concerns
Investors awaited progress in the Russia-Ukraine talks and concerns about supply exceeding demand. Brent crude futures rose 11 cents or 0.2% to $62.05 per barrel at 0241 GMT. U.S. West Texas Intermediate Crude was trading at $58.38 per barrel, an increase of 13 cents or 0.2%. ING analysts said that while the oil market has moved deeper?into a glut expected, Russian supply is still a concern. ING stated that "while Russian seaborne export volume is holding up well, barrels?are having a hard time finding buyers", adding that Russian oil 'output would start to drop if buyers cannot be found. After days of intense diplomacy, Ukrainian President Volodymyr Zelenskiy announced that his country and European partners would soon present "refined documents," on a plan to end the war with Russia. The lifting of sanctions against Russian companies could be achieved by a peace agreement between Ukraine and Russia. The Energy Information Administration has said that it expects the U.S. The Energy Information Administration expects oil production to reach a record high this year, surpassing previous expectations. It has also raised its forecast for 2025 by 20,000 barrels to 13.61 million barrels. The organization, however, reduced its forecast of total production in 2026 to 13,53 million bpd by 50,000. (Reporting and editing by Thomas Derpinghaus; Emily Chow)
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GE Vernova and the US Government work together to increase stocks of rare earth yttrium
By Laila K. Kearney and Lewis Jackson NEW YORK - The CEO of GE Vernova, Scott Strazik, said on Tuesday that the company is working with?U.S. Scott Strazik, CEO of GE Vernova, said that the U.S. government is increasing its stockpiles for the rare earth element?yttrium. Strazik, one of the three largest gas turbine manufacturers in the world, said that GE Vernova has enough yttrium to last until 2025, and possibly into next year. He did not specify how long supplies would last. He added that the company was also looking at alternatives to certain rare 'earths' used in production, should it become necessary. However, there are some cases where cost or performance is sacrificed. Strazik responded to a question on yttrium shortages on Tuesday at an investor's day, "We are focused on it every?day." We're well-prepared for the future, as we have all the supplies we need to get us through this year and into next. We will, however, continue to "be opportunistic" whenever we have the opportunity to add inventory. In April, China, which is the largest supplier of a?element that's used in special alloys for engines and coatings to shield against high temperatures, such as those found in gas-turbines, restricted the exports of this?element along with six others?rare Earths as retaliation against U.S. tariffs. Washington and Beijing agreed on a new regime for accelerating rare-earth exports. However, users of yttrium, from aerospace to semiconductors, complain about severe shortages. Prices outside China rose 4,400% in the period between January and November. Reporting by Laila KEARNEY in New York, and Lewis Jackson in Beijing. Editing by Muralikumar Anantharaman.
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US lawmaker expresses concern about Ivanhoe Atlantic’s ties to China
John Moolenaar is the U.S. representative who chairs the bipartisan committee of the U.S. House of Representatives focused on China. He raised concerns on Thursday about the alleged ties between the mining company Ivanhoe Atlantic and the?Chinese Communist Party. I am writing you to bring your attention to information about companies that have been supported by the State Department for their ties with the Chinese Communist Party. Ivanhoe Atlantic, a company that has well-documented ties with Chinese state-owned companies, is one of these companies. According to the website of Ivanhoe?Atlantic, I-Pulse Inc. is the largest shareholder. It's a US-based company that was founded by Robert Friedland and is chaired under his leadership. Friedland was also founder and executive chair of Toronto-listed Canadian mining company?Ivanhoe Mines. According to?LSEG, units of Chinese companies CITIC and Zijin Mining own nearly 33% of Ivanhoe Mines. In his letter, Moolenaar referred Rubio to U.S. Federal Communications Commission for putting CITIC's telecommunications services on a list because they pose "an unacceptable threat to the national safety or security of United States citizens." He said that due to forced labor in China, Zijin will be added to the Uyghur Forced Labor Prevention Act (UFLPA), entity list in 2025. Moolenaar said that the Chinese Communist Party secured critical mineral supply chains by indirect, minority-share investment in foreign mining 'firms, as part of the two markets, two resource strategy. Ivanhoe Atlantic & Ivanhoe Mines didn't immediately respond to comments outside of regular business hours. The U.S. embassy in Liberia supported the signing of a $1.8 billion deal between Ivanhoe Atlantic, and the Western African nation. This agreement was to create a rail line connecting Guinea and Liberia. "I share State Department's commitment of?expanding U.S. Commercial Engagement in Africa and reducing reliance on Chinese controlled critical mineral supply chain. I am willing to work with State Department in order to avoid any entanglements between our commercial diplomacy and the CCP," Moolenaar said. (Reporting and editing by Michael Perry in Mexico City, Shubham Kaalia from Mexico City)
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Sources: Top Indian arms manufacturers held rare meetings with Russian counterparts on joint ventures.
Three people with knowledge of the matter said that at least a half-dozen executives from Indian arms manufacturers, including Adani Defence, Bharat Forge and others, participated in rare meetings held this year in Russia to discuss possible joint ventures. Three people familiar with the?matter?said that at least half a dozen executives from top Indian arms makers, including Adani Defence and Bharat?Forge, attended rare meetings in Russia this year to discuss potential joint ventures. It was not reported before that the business leaders from India's defence industry were visiting Russia. The Indian government wants to refocus its decades-old defense ties with Russia on joint weapons development. A potential collaboration with Russia could set back plans for Indian defence firms to develop Western weapons in conjunction with Russian companies as part of Prime minister Narendra Modi’s push to turn India, which is one of the largest arms importers, into a global manufacturing center. Western diplomats previously stated that the vast majority of Russian-origin weapons used by the Indian army, which totals about 36%, is a major obstacle to the transfer sensitive military technology. The talks were held in Moscow on the sidelines a visit of an Indian defence-industrial delegation on October 29-30 led by India's Defence Production Secretary Sanjeev Kumar. This visit was to prepare for the visit of Russian President Vladimir Putin to India on December 4 and 5. Adani Group spokespeople and Bharat forge representatives denied that any executives from their respective companies were present at the meeting. The sources cited the Indian defence ministry as well as the other companies that were cited. They did not respond to a request for comment. Joint Production in India Two sources and an industry executive said that the meetings focused on the potential for the manufacture of spare parts for the Mikoyan MiG-29 jet fighter and other Russian-origin systems of air defence and weapons, as well a Russian proposal for the establishment of production units in India to develop equipment which could be exported to Moscow. The subject matter was sensitive, so they spoke under the condition of anonymity. Russia has been India’s largest arms supplier for decades. During Putin’s visit, the two sides agreed to reorientate their partnership to "joint research and development, as well as co-development and production of advanced defence technologies and systems" in order to support India’s independence in defence. INDIAN EXECUTIVES ARE IN MOSCOW Sources said that a large delegation of representatives of Indian defence units, state-owned companies, and startups involved in developing drones and artificial Intelligence for military purposes attended the meetings. Two sources confirmed that an?executive from Kalyani Group Bharat Forge (which makes components for artillery and missiles) attended the meetings to discuss the possibility of collaborating on future helicopters as well as sourcing or developing components?for Russian aircraft and tanks. Sources said that Ashish Rajvanshi was the Chief Executive of Adani Defence and Aerospace. This unit is part of Gautam Adani’s Adani Group which includes everything from airports to apples. The Society of Indian Defence Manufacturers (SIDM) was also represented by an executive. This group includes more than 500 manufacturers of military and arms equipment, including state-owned companies such as Bharat electronics and the defence arm of the conglomerates Tata Sons and Larsen & Toubro. SANCTIONS-RISK reported that in 2024, Bharat Forge was one of three Indian companies that exported artillery to Europe. Some were then diverted to Ukraine. This led to a diplomatic protest by Moscow. A senior Indian executive stated that Indian companies would be reluctant to sign new deals with Russia because of the possibility of secondary sanctions. An Indian defence official stated that while India could use its diplomatic outreach and lobbying efforts to offer some protection against sanctions, the companies would still have to consider the political risks. (Reporting and editing by Frances Kerry in New Delhi)
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EU member states agree to reduce emissions by 90% from 1990 levels by 2040
The European Union reached a legally-binding climate agreement to "reduce greenhouse gas emission by 90% by 2040 compared to 1990 levels", involving the purchase foreign carbon credits?to cover?5% of these cuts, said the European Parliament on Wednesday. The agreement requires EU industries to reduce emissions by 85%. From 2036, EU countries will pay non-member nations to cut their emissions in their place to make up for the "remainder". It is a matter of formality to have the European Parliament and EU member states approve a target before it becomes law. The agreement is more ambitious than most other major economies' pledges to reduce emissions. The target was lower than the one recommended by the EU’s climate change advisers, and weaker than the original goal. This reflects disagreements between EU governments about the speed and cost of their green agenda. This agreement sends an important message to our partners around the world that climate, competitiveness, and independence are all interconnected. In a press release, Wopke Hoekstra, spokesperson for the EU climate commission said that they had agreed on a realistic but strong climate law. After months of negotiations, the target was a compromise reached by governments such as those in Poland, Slovakia, and Hungary, who argued that deeper cuts to carbon dioxide were too burdensome for industries already struggling with high energy prices, cheap Chinese imports, and U.S. Tariffs. The Netherlands, Spain, and Sweden cited the worsening of extreme weather and the need to catch up with China on manufacturing green technology. In order to win over its opponents, the EU agreed to weaken some other climate policies that are politically sensitive, like delaying the introduction of a fuel carbon tax by one year, until 2028. (Reporting and editing by Chris Reese, Christopher Cushing and Disha Mishra)
Iron ore prices rise as China's weak data boosts demand
Iron ore futures rose on Wednesday, following several sessions of losses. This was after soft factory data in the top consumer China raised hopes for fresh stimulus to boost?economic growth by 2026.
As of 0246 GMT, the most traded January iron ore contract on China's Dalian Commodity Exchange rose 1.66% to 776.50 yuan ($108.68), after falling by 0.7% on Tuesday.
As of 0236 GMT, the benchmark January iron ore traded on Singapore Exchange was up 0.75% at $102.55 per ton.
China's factory gate deflation has accelerated in the third year of its existence, and last month it grew even more, showing that domestic demand is weak, and unlikely to improve soon.
Official data revealed that the producer prices index (PPI), which measures changes in producer prices over a 12-month period, fell 2.2% in November compared to a 2.1% drop in October. This was worse than expected, as it was forecasted for a 2% decline.
Analysts expect Beijing to introduce some measures that will support growth in the first three months of 2026.
Analysts at the state-run China Mineral Resources Group, (CMRG), argued that current prices "deviated" from fundamentals.
In a Tuesday statement posted on the WeChat page of the state-backed Steel Association, CMRG analysts said that "speculative activity among traders has amplified price fluctuation."
Prices do not have grounds to trend up in the fourth-quarter against backdrop of increasing supply and weakening demands."
The CMRG was established in 2022 with the aim of centralising iron ore purchases and negotiating better terms with miners.
Coking coal, a component of steelmaking, and other ingredients dipped by 0.69%, and were?added to 1.35%.
The benchmarks for steel on the Shanghai Futures Exchange have gained ground. Rebar climbed by 0.49%. Hot-rolled coils grew 0.31%. Wire rod jumped 0.94%. Stainless steel gained 0.48%. ($1 = 7.0623 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
(source: Reuters)