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One person is killed and several injured in an explosion at MOL’s Tiszaujvaros Petrochemical Plant
A petrochemical explosion in Tiszaujvaros in eastern Hungary has resulted in the death of a person, and serious injuries to several others. In a post on Facebook, Magyar stated that MOL's Zsolt Henadi and Istvan Kapitany, his minister of economy were on their way to the plant. Magyar posted a picture of 'huge black smoke billowing from the plant. An explosion occurred at MOL Petrochemicals in Tiszaujvaros, during the restarting of the Olefin 1, plant. MOL reported that firefighters had contained the fire and are still working to put it out. The company did not provide any further information. Kapitany said in a post on Facebook that, according to the latest information, a compressed exploded during the restart of the Olefin 1 facility and the fire is still being extinguished. The steam cracker is located at the petrochemical facility of MOL in Tiszaujvaros. MOL's Olefin-1 has a production capacity of approximately 370,000 metric tons of Ethylene per year. According to MOL, there are two steam-crackers with a 660 kt/y capacity in Tiszaujvaros. MOL uses the majority of its ethylene to produce polyethylene plastics that are sold to plastics and packaging industry.
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Dollar nears six-week high as stocks rise amid uncertainty over Iran talks
As uncertainty surrounds the U.S.-Iran talks, global stocks rose and the U.S. Dollar hovered at its highest level in six weeks. Oil prices also edged higher. U.S. State Secretary Marco 'Rubio' said that there were "some positive signs" in the?talks aimed at ending the U.S. and Israeli war against Iran. However, differences remain regarding Tehran’s uranium stocks and control of the strait. Investors are worried about the possible closure of the Strait of Hormuz. This is a vital artery that supplies energy to the world. The oil price has soared and the outlook for global interest rates has changed due to inflationary fears. The MSCI World Stock Index rose by 0.22%. STOXX Europe 600 rose 0.43%. Nasdaq Futures rose 0.31%, and S&P500 futures rose 0.26%. S&P 500 index rose 0.17% to 7,445.72 on Thursday, after reaching 7,517.12 in the previous week. This is a new record high. MSCI's broadest Asia-Pacific index outside Japan increased by 0.74%. Japan's Nikkei rose 2.8%, barely missing a record high. This was due to artificial intelligence shares. Oil prices are also moving higher as investors weigh the risks that talks will drag out or break down, said Matt Britzman senior equity analyst of Hargreaves Lansdown. "The truth is, nobody knows the outcome of these negotiations. But, for now, the markets are moving tentatively as if good news was just around the corner." Brent crude futures were up 2% at $104.96 per barrel, but they are set to drop 6% for the week. U.S. West Texas Intermediate Futures rose 1.35% to $97.64. The war's prolonged energy disruptions could have a ripple effect on prices around the world, prompting traders to price in rate increases in both developed and emerging market countries. The markets are pricing in more than 50% of a U.S. Federal Reserve rate hike by the end the year, compared to expectations of two rate reductions before the war began. This has boosted Treasury yields, and the dollar has also benefitted from safe-haven demands. The euro is at $1.1614 and close to its six-week low, which it reached on Thursday. It will drop 1% this month. The dollar stood at 99.247 against a basket. The Japanese yen was last trading at 159.11 to the dollar, dangerously close to the 160-level that traders fear will bring Japanese authorities back into the market. George Saravelos said that the energy prices must be reversed quickly, as the combination of fiscal expenditure and capex boom could lead to a lot more inflation, particularly in the U.S. Saravelos stated that the incoming Federal Reserve chair Kevin?Warsh will have to choose between increasing volatility in front-end interest rates and helping the dollar or lowering them at the back end and hurting the dollar. He can't do both. In theory, Fed rate increases would push up short-dated yields. However, no action from the central bank may increase borrowing costs for long-term loans as the markets are pricing in higher inflation. Two-year U.S. Treasury rates rose by 1 basis point to 4.09% this week, while two-year bond yields in other major markets fell sharply. The dollar has remained strong against the yen despite an 'intervention' worth $65 billion by Tokyo a few weeks ago to shore up the currency. The last time it was up 0.1%, at 159.125?yen. The data on Friday revealed that Japan's core rate of inflation fell to its lowest level in four years in April. This complicates the Bank of Japan’s path of raising rates. Analysts said the stronger-than-expected first quarter GDP and firm April exports data earlier this week showed the resilience of the Japanese economy despite the energy shocks, which supported a Bank of Japan hike.
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Sources say that China's June fuel exports are set to increase slightly as restrictions remain in place
Three trade sources familiar with the issue said that China will only see a small increase in refined fuel exports from May to June, because Beijing plans to maintain export restrictions for a fourth month in order to protect domestic supply. Two sources said that June exports were estimated to be around 550,000 metric tonnes or slightly more than expected, compared to about 500,000 tons in May. The two sources and another person said that state oil firms must now seek approval from the government on a regular basis for every shipment they export. This is because China, the world's largest oil importer, has been dealing with disruptions to crude supply due to the closure of the Strait of Hormuz as a result of the war in Iran. National Development and Reform Commission and Ministry of Commerce didn't immediately respond to comments. According to two people, details?on the countries that will receive fuel from China have not yet been finalised. In April, China shipped small amounts of jet fuel, gasoline and diesel to Southeast Asia, Australia and other areas. One source said that diesel and jet-fuel will make up the bulk of exports for June, excluding Hong Kong. The remainder is gasoline. The same source said that fuel supplies to Hong Kong will be around 800,000 tons. This is compared to estimates of 910,000 tons in May. China's current export regime is a departure from previous years when the government issued a?second?batch? of refined fuel quotas, usually around April or may after the first batch?was issued in December of the previous year?. Beijing only issued one batch of a 19 million metric ton quota in December this year. According to two industry sources in China, diesel and gasoline export margins are still high, at nearly 3,000 Yuan ($441.11) per ton, respectively.
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Iron ore to suffer second weekly loss due to higher supply and concerns about demand
Iron ore prices began on a shaky footing?on Friday. They were poised to fall for a second consecutive week amid expectations?of rising supplies and a?seasonally weakened demand. However, resilient 'near-term' consumption in the top buyer China, curbed large losses. The Dalian Commodity Exchange's most traded iron ore contract closed the daytime trading down 0.13% to 792 yuan (116.51 dollars) per metric ton. This represents a 2.5% weekly drop. At 0700 GMT the benchmark June Iron Ore at the Singapore Exchange was 0.25% higher, $106.05 per ton. This represents a 2.8% decline so far this week. Earlier in the session, the?contract reached its lowest level since April 28, at $105.45. The sudden increase in the number of shipments arriving at Chinese ports from Australia and Brazil, two major suppliers, suggests that more shipments will arrive there over the next few weeks. Analyst Guiqiu zhuo at Jinrui Futures said that there is a general expectation that the steel demand will be seasonally lower, while the ore supply will increase in the second quarter. Zhuo stated that the combination of rising supplies and weaker demand would pressure iron ore price, although solid consumption for this key ingredient in steelmaking is currently limiting losses. Data from Mysteel revealed that the average daily hot metal output, which is a measure of iron ore consumption, increased by 0.6% compared to the previous week, reaching a record high of 2.41 million metric tons on May 21. Coking coal, and coke - the other ingredients in steelmaking - fell by 3.69% and 2% respectively. Galaxy Futures analysts said in a recent note that "coking coal inventories at some coking plant have recovered to a reassuring level after several rounds of restocking." They added that "some buyers were reluctant to accept higher coal prices and replenished only hand-to mouth, exerting downward pressure on coking coal prices." Steel benchmarks at the Shanghai Futures Exchange have lost ground. Hot-rolled coils fell by 0.73%. Wire rods dropped 0.12%. Stainless steel dropped 0.64%. ($1 = 6.7975 Chinese Yuan) (Reporting and editing by Shri Navaratnam, Mrigank Dhaniwala and Lewis Jackson)
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Document shows that the Indian steel ministry is pushing to eliminate metallurgical coal tariffs
According to a document reviewed by, India's Ministry of Steel asked the Ministry of Finance to remove?anti-dumping duties on low-ash coke imports. They cited inadequate domestic supplies and higher prices. India, the second largest crude steel producer in the world, imposed an anti-dumping provisional duty on imports of low-ash metallurgical coal - also known as metcoke – for a period of six months. India imports met-coke primarily from China, Indonesian, Poland, Japan and Switzerland. Industry?experts claim that import volumes have dropped sharply since curbs were implemented. In a memo dated May 18, the Steel Ministry referred to anti-dumping duty acronyms as ADD. Emails seeking comments from the ministries were not responded to. The Steel Ministry has highlighted the problems faced by the state-run Rashtriya Ispat Nigam Ltd. (RINL), stating that the company was unable to obtain adequate quantities of met coke from the domestic market at reasonable prices, resulting in a 20 percent increase in input costs. The Steel Ministry memo stated that RINL's?operational viability and competitiveness?has been adversely affected due to inadequate met coke supplies. RINL didn't respond to an email asking for comment. The 'Steel Ministry' also raised concerns about small and medium-sized companies that rely heavily on met coke merchant suppliers. The report stated that "the domestic market has not been able?to ensure adequate availability of met-coke at competitive prices to meet the needs of the steel industry." (Reporting and editing by Mayank Bhahardwaj, Tom Hogue and Neha Arora)
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Kenya cuts diesel prices after protests over soaring energy prices
William Ruto, Kenya's President, said that the government will cut the price of diesel in the country to provide relief to the consumers. This comes after protests against the rising energy prices caused by the Middle East conflict. Kenya's public transportation workers staged a two day strike this week, which left four people dead and around 30 injured. The protests were prompted by anger over sky-high fuel costs that have pushed the cost of living up. Ruto stated in a televised address that he has directed the cost of diesel to be reduced by 10 kenyan shillings (US$0.0772) during the June-July price cycle, to stabilize pump prices and to provide additional relief for consumers. Ruto stated that "through the government-to-government fuel supply framework we have guaranteed fuel supplies despite global supply chain disruptions, ensuring fuel supply availability throughout the country." He stated that his government had spent at least 28 billion Kenyan Shillings (about $28 billion) on reducing fuel prices, such as tax reliefs between April and June. Kenya raised retail fuel prices last week by up to 23.5% in the May-June price cycle due to a squeeze on global crude supplies and high energy prices resulting from 'the Middle East conflict.
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Vucic, Serbian President, says he's not optimistic about a deal being reached in time over the NIS oil company
Aleksandar Vucic, Serbia's president, said that he was not optimistic about the possibility of reaching an agreement over the Hungarian oil firm 'MOL's bid for a majority stake in NIS, operator of the Balkan country's only refinery. The deadline is Friday. Gazprom and Gazprom, two Russian oil companies, agreed to sell their majority 56% stake in NIS in January to?MOL after the United States demanded that Russian shares be divested due to sanctions imposed by the United States over Moscow's conflict in Ukraine. Washington has given MOL and the Russian companies until May 22th to complete the sale. This requires the Serbian government's consent due to the 29.9% stake that NIS holds. Vucic told Serbia's RTS TV late Thursday that it was unlikely that a deal would be struck between MOL, the Russian companies and Friday. "We've had countless meetings" with MOL. "I hope we'll end successfully but I am not optimistic," said he. He said that Washington was expected to give more time to the parties involved to reach a settlement. In October, the U.S. sanctioned?NIS due to its Russian ownership. This was part of broader?measures that targeted Moscow's energy industry. The Office of Foreign Assets Control of the U.S. Treasury has granted a number of waivers to?NIS. (Reporting by Angeliki Koutantou; Editing by Kirsten Donovan )
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ASIA GOLD - Price volatility dampens India's demand, while China's premiums are easing
This week, gold prices in India continued to be at a steep discount, due to price volatility, which dampened demand, while premiums in China were reduced. Dealers in India quoted discounts This week, you can save up to $78 per ounce on official domestic prices, including 15% import duty and 3% sales tax. That's a significant drop from the previous week when you could save up to $207 per ounce. Retail buyers are confused by the recent price fluctuations after the government increased import duty earlier in the month. "Most of them are waiting for the prices to come down," said a jeweller in Kolkata. This month, the South Asian country raised import duties on gold and silver from 6% to 15% in an effort?to curb overseas purchases and reduce pressure on foreign exchange reserves from rising oil prices. A Mumbai-based bullion seller with a private banking firm said that jewellers are reluctant to build up stocks as wedding season approaches and retail demand remains uncertain. Bullion is traded at a premium in China, the world's largest consumer. The premiums were between $10 and $20 per ounce above the global benchmark, compared to the $15 to $20 that was charged the week before. Bernard Sin, Regional Director of Greater China for MKS PAMP, said that "fed rate hike anxiety, rising bond rates, and dollar strength continue weighing on gold in China." The stronger dollar increases the price of greenback-priced gold for holders of other currencies, while higher bond yields increase opportunity costs associated with holding the metal. He said that "near-term physical demand is caught between conflict-driven demand for safe havens and policy-driven headwinds." Spot gold prices fell to a two-month low Wednesday, due to higher Treasury yields as well as a stronger dollar. In Hong ?Kong, gold In Japan, the premiums are $2. Gold was sold for $0.25 off. In Singapore Gold was sold with premiums ranging from $1 to $3.
China presses Japan on rare earths, a repeat of the 2010 showdown
China has blocked Japan from obtaining several rare earths, heavy materials, and other minerals for at least four months. This coincides with a dispute over Taiwan between the two nations, indicating that Beijing is using its control of critical minerals to gain diplomatic leverage.
Japan is the second largest producer of rare-earth magnets outside of China, but, like the rest of the globe, it is largely dependent on Beijing to import certain heavy rare earths, which are used in magnets, aerospace, and defence as well as gallium.
Chinese customs data show that since December, Chinese exports to Japan of rare earth minerals such as dysprosium and terbium oxide, along with speciality metals gallium, have all but stopped, except for a small number of shipments of the yttrium.
Major Japanese magnet maker Shin-Etsu ?has stopped accepting new orders for dysprosium-containing magnets, according to a Western customer who spoke on condition of anonymity. The company declined comment.
The halt in exports began soon after a diplomatic row erupted over Taiwan in November. It is similar to Beijing's throttling exports of such materials to the U.S., during the current trade conflict.
Beijing tightened its export controls in Japan twice, firstly, in January and then again, the month after, targeting conglomerates such as?the shipbuilding division and aero engine division of Mitsubishi Heavy Industries.
Ryosei Acazawa is scheduled to attend a meeting on Saturday. He is the highest-ranking Japanese official to have visited China since the dispute began.
Tokyo takes measures to release stockpiled supplies when necessary, but does not reveal details. An official from the Japanese Industry Ministry said that the government was aware of the concerns about rising prices and tightening supply.
RARE EARTH DÉJA VU
David Merriman said that Japanese companies were better protected from the pressure campaign because a similar drop in Chinese rare earth mineral exports?in 2010 led to the building of stocks. The Japanese have also tried to reduce the use of heavy rare Earths in magnets, and looked for alternatives.
According to data, China continues to export normal quantities (of the rare earth magnets) used by the automotive and other industrial industries.
Components maker TDK said it does not expect any major impacts and has been diversifying its sources of supply. Mitsubishi Motors announced in February that it has secured rare earths until mid-year.
Japan has funded alternative producers, such as Lynas rare earths in Australia. Last year it became the first commercial producer outside China of separated terbium-dysprosium. The company has also launched rare-earth projects in Australia, France, and Australia.
It will take years for the Chinese to replace their supply of heavy rare earths. Lynas will produce 8 metric tonnes of dysprosium in the first quarter 2026. In 2024, China exported 14 tons of these two minerals per month to Japan.
(source: Reuters)