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Iron ore prices fall as the focus shifts from China's steel demand to a softening of iron ore.
Iron ore futures fell on Thursday as the focus returned to a softening of steel consumption during China's off peak demand season. As of 0238 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.14% lower. It was 701 yuan (US$97.61) per metric ton. As of 0228 GMT, the benchmark July Iron Ore traded on Singapore Exchange fell by 0.69% to $94.8 per ton. Galaxy Futures analysts said that due to the lack of driving forces, the price of the main steelmaking ingredient is expected to fluctuate despite the seasonal weak demand. The iron ore market is not changing fundamentally. "The wave of upward momentum caused by the price rally of coal has faded so ore prices have also weakened," said Zhuo Guqiu, a broker at Jinrui Futures. Zhuo said that the downside potential of hot metal production is limited by its relatively high output despite reductions in production and declining inventories at ports. Iron ore demand is usually gauged by the hot metal production. Galaxy's analysts noted that despite a recent trade truce, the steel exports are showing signs of a slump, which is dragging down demand. A weak steel demand is also a risk to feedstocks. Following Wednesday's rally of more than 6%, other steelmaking ingredients coking coal, and coke, have also seen gains, albeit slower. They rose by 1.01% and 0.11 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange are range bound. Hot-rolled coils fell 0.19% while wire rods and stainless steel gained 0.2%. ($1 = 7,1820 Chinese Yuan) (Reporting and editing by Amy Lv, Lewis Jackson)
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Gold prices remain stable as US payroll data is awaited for direction
Gold prices were stable on Thursday, as investors looked at weaker than expected U.S. economic data and global economic and political uncertainty. They also anticipated U.S. employment data to provide further economic signals. As of 0210 GMT, spot gold remained unchanged at $3,372.82 per ounce. U.S. Gold Futures fell 0.1% to $3395.50. Matt Simpson, senior analyst at City Index, said that gold is in a holding pattern, and it's at the mercy of Trump's headlines on trade. It's supported but hesitant to move above this week’s high. The volatility is also suppressed as we wait for the comments of FOMC members, and Friday's NFP Report. It could be a sign of a more positive jobs report, which would weigh on gold. In May, the U.S. service sector contracted for the first month in almost a year as businesses were faced with higher input costs amid fears of stagflation. The Federal Reserve announced a slowdown of U.S. Economic Activity, citing increased costs and prices due to tariff increases since the previous policy meeting. Bullion has gained momentum since U.S. president Donald Trump reiterated on Wednesday his call for Fed chair Jerome Powell to reduce interest rates. Investors are awaiting the nonfarm payrolls data on Friday for more information about the labor market. Trump's doubled tariffs on imports of steel and aluminum took effect. His administration is seeking "best offers from trade partners" to avoid additional levies scheduled for July. Trump said that Xi Jinping, the Chinese president, was "extremely difficult to deal with", highlighting tensions before a long-awaited phone call between two leaders scheduled for this week. In a low interest rate environment, gold, which is a safe haven during periods of economic and political uncertainty, tends thrive. Other than that, silver spot fell by 1.3%, to $34.51, platinum increased 0.9%, to $1,093.07, and palladium remained at $1.001.70.
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Asian shares continue to rise, while the dollar languishes in front of the ECB
The U.S. Dollar remained stagnant as the European Central Bank released its outlook on a turbulent global economy. Dollar fell in the previous session due to weak U.S. data on jobs and services. Friday will bring more important employment data. The damage to the U.S. economic system is becoming more evident as a result of President Donald Trump's erratic trade policies, and bilateral agreements remain unrealised. Canada was preparing possible retaliations against new U.S. tariffs on metals, while the European Union announced progress in its trade negotiations with Washington. Market watchers will therefore pay more attention to the signals that Christine Lagarde gives about future decisions. Kyle Rodda is a senior analyst for Capital.com. He said that there's uncertainty regarding the guidance given by the central bank, due to the uncertain outlook of U.S. global trade policy and U.S. Trade Policy. If the central bank fails to provide sufficiently dovish advice, it could disrupt the equity markets and give the euro upward momentum. Trump's doubled tariffs on imports of steel and aluminum took effect on Wednesday. They were aimed at Canada and Mexico. On the same day, Trump's administration asked trading partners for "best offers" to prevent other import levies from taking effect in July. Ryosei Acaza, Japan's top trade negotiator, will be in the U.S. for a second round of negotiations on Thursday. Friedrich Merz is due to travel to Washington as well. MSCI's broadest Asia-Pacific share index outside Japan rose 0.7% in the early trading, while Japan's Nikkei index fell 0.2%. The dollar index (which measures the greenback versus a basket currencies) was flat at 98.85, after a 0.5% decline on Wednesday. The dollar gained 0.1% to 142.92 yen. The euro traded at $1.1416, unchanged from the previous trading session when it had gained 0.4%. Gold lost its gains of the previous day, while oil fell after an increase in U.S. stocks and Saudi Arabia slashed its July crude prices for Asian buyers. Spot gold was down 0.1% to $3,372.7 an ounce. U.S. crude fell 0.2% to $62.75 per barrel. The Euro Stoxx futures for the entire region were not much changed, while U.S. stocks futures, S&P 500 E-minis were down by 0.1%.
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Copper prices rise on weaker dollar
London copper prices rose slightly on Thursday, despite a weaker dollar. The market's focus was on the ongoing trade talks between the U.S. As of 0102 GMT the three-month copper contract traded on the London Metal Exchange rose 0.31%, to $9,651 a metric ton. The most actively traded copper contract at the Shanghai Futures Exchange was largely unchanged, at 78.190 yuan. Dollar-denominated investments are cheaper for holders of currencies other than the dollar. On Wednesday, U.S. president Donald Trump said that his Chinese counterpart Xi Jinping was "extremely difficult to make a trade with". This exposed frictions, after the White House had raised expectations for a long-anticipated phone call between these two leaders. Canada was preparing possible retaliations, while the European Union announced progress in trade negotiations on Wednesday as the new U.S. Metals Tariffs caused more disruption to the global economy, and increased urgency in negotiations with Washington. ANZ reported that "Trump's tariffs of 50% on aluminum and steel have raised expectation that he would soon follow through on his pledge to impose tougher duties on copper, as well." Tin prices on the LME fell around 0.3%, to $31,935 per ton. This was after they had hit a record high of $17,648 a ton on Wednesday. The reason for this is that there are concerns about the slow resumption in supply from Myanmar's rich tin state Wa. Lead added 0.5% at 16,720 yuan and tin was up 1.4% on Thursday. Nickel fell 0.2% to 121.800 yuan. Aluminium gained 0.5%. Nickel edged up 0.1% to $15,415 and lead fell 0.4% to $1982. Click or to see the latest news in metals, and other related stories. DATA/EVENTS - (GMT 0600 Germany Industrial orders MM 0400 Germany Manufacturing O/P cur price, Consumer Goods SA 0830 US S&P GLOBAL pmi: MSC COMPOSITE – OUTPUT MAY 1215 EU ECB refinancing, deposit rate Jun 1230 US international trade $ Apr 1230 US initial jobless Clm 31 may, w/e
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US auto suppliers call for immediate action on China's rare earths restrictions
A group of auto suppliers from the United States has called for immediate action in response to China's restrictions on rare earths and minerals, as well as magnets. They warn that the issue can quickly disrupt auto part production. China, which controls 90% of the global processing capacity for rare Earths, used in everything from cars and fighter jets, to home appliances and household appliances, implemented restrictions in April, requiring exporters obtain licenses from Beijing. The new restrictions were imposed after the U.S. and China began a trade dispute following President Donald Trump's tariffs against Chinese imports. The Vehicle Suppliers Association, in a recent statement, said that parts manufacturers face "serious and real-time risk" to their supply chain. The group stated that "the situation is still unresolved, and the level concern is very high." "Immediate action and decisiveness are needed to avoid widespread disruptions and economic fallout in the vehicle suppliers sector." The White House has not yet commented. In a letter sent on May 9th, the supplier group expressed urgent concerns over the Chinese restrictions. The group was joined by the trade group that represents General Motors (GM), Toyota (Toyota), Volkswagen, Hyundai, and other major automakers. MEMA and Alliance for Automotive Innovation, in a letter to Trump's administration, wrote: "Without reliable, timely access to these magnets and elements, automotive suppliers would be unable produce key automotive components such as automatic transmissions and throttle bodies. They also could not manufacture sensors, seatbelts, speakers, lights and motors. Exports of rare-earth magnets from China have halved since April, as companies struggled to deal with a complex application process that requires hundreds of pages of documentation. In a post on social media last Friday, Trump accused China for violating the terms of an agreement reached in May that would temporarily reduce tariffs and other trade restrictions imposed by both sides. The restrictions are already having an impact on U.S. automobile companies. Ford said it shut down production at its Chicago plant of the Explorer SUV for a whole week in May due to a shortage of rare-earth metals. (Reporting and editing by Sandra Maler, Christian Schmollinger, and David Shepardson)
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Saudi Arabia cuts prices on the back of US stockpile building
The oil prices fell in the early hours of Thursday's trading after an increase in gasoline and diesel stocks in the United States and Saudi Arabia lowering its July crude prices for Asian buyers. Brent crude futures dropped 21 cents or 0.3% to $64.65 per barrel at 0047 GMT. U.S. West Texas Intermediate Crude lost 29 cents or 0.5% to drop to $62.58. The price of oil closed about 1% lower Wednesday, after data revealed that U.S. gasoline stocks and distillate inventories grew more rapidly than expected. This was due to a weaker demand for the top economy in the world. Saudi Arabia, which is the largest oil exporter in the world, has cut its crude oil prices to Asian buyers by nearly 40% since July. Saudi Arabia's price cut, a key oil producer in OPEC+ – the oil producing group which includes members of the Organization of the Petroleum Exporting Countries (OPEC) and their allies like Russia – follows the OPEC+ decision over the weekend to boost production by 411,000 barrels a day for the month of July. Reports state that Saudi Arabia and Russia, the two leaders of OPEC+, are pursuing a strategy to punish producers who overproduce and regain market share. The European Union and Canada both reported that they had made progress in their trade negotiations as the new U.S. tariffs on metals caused more disruption to the global economy. In a recent note, Ole Hansen of Saxo Bank stated that "Uncertainty fueled by President Trump's changing stance on tariffs" has increased fears of an economic slowdown. (Reporting from Tokyo by Katya Glubkova; editing by Tom Hogue).
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Ukraine and the U.S. discuss ways to make a minerals fund operational within a year
Ukraine's Yulia Shvyrydenko said that the United States and Ukraine have discussed ways to make the minerals fund operational before the end of this year. The fund's initial meeting is scheduled for July. Svyrydenko signed the agreement in Washington, after months of hard negotiations, which made the terms more favorable for Kyiv. The agreement was heavily promoted by U.S. president Donald Trump. The Ukrainian parliament then ratified this agreement. Svyrydenko met with U.S. Treasury Sec. Scott Bessent on Wednesday and the Development Finance Corporation which will be the partner of the Minerals Fund. "We discussed very concrete steps to make this fund functional during this year," Svyrydenko told reporters. We will have our first board meeting in July to discuss the seed capital needed to operate this fund. We should also adopt the investment strategies for this fund over the next few decades. Negotiations leading to the signing of the Mineral Fund deal were preceded by a heated discussion between Trump and Ukrainian president Volodymyr Zelenskiy at the White House about how to end Ukraine's war with Russia, which has lasted for three years. Zelenskiy's ability to repair his relationship with Trump was dependent on the agreement. In April, the two men briefly met at the Vatican during the funeral for Pope Francis in order to get their relationship back on track. Reporting by Gram Slattery, Costas Pitas and SonaliPaul; Editing by Ron Popeski & SonaliPaul
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UN: Southwest Pacific to be hit by unprecedented marine heatwaves in 2024
The UN's weather agency said that in 2024, unprecedented heat waves in Southwest Pacific will affect more than 10% the surface of the ocean, damaging coral reefs, and placing the last tropical glacier in the region at risk of extinction. In an annual report, the World Meteorological Organization stated that the average 2024 temperature in the region (which includes Australia and New Zealand and southeast Asian island countries like Indonesia and the Philippines) was nearly half a degree Celsius higher than the mean temperatures between 1991 and 2020. Blair Trewin of WMO, who is one of the authors of the report, said that "much of the region experienced at least severe conditions of marine heat waves at some point in 2024," particularly near and south the equator. The report stated that extreme heat in 2014 affected 40 million square kilometers (15.4 million sq miles) of ocean and new temperatures were recorded in Australia and the Philippines. Ocean surface temperatures broke records as well, and the total heat content of the ocean was second highest on average behind 2022. In October and November, the Philippines was also hit by an unprecedented number of cyclones that experts attribute to climate change. The report also noted that sea levels are continuing to rise faster than the global average. This is an urgent issue in a region with more than half of its population living within 500 metres (547 yards), or less, from the coast. Satellite data also showed that the only tropical glacier in the region, located on the western side of New Guinea island, Indonesia, shrank up to 50% during the past year. Thea Turkington of the WMO, one of the authors of the report, said: "Unfortunately, the rate of glacier loss is so high that this glacier may disappear by 2026, or soon thereafter." (Reporting and editing by Stephen Coates; David Stanway)
Sibanye secures debt financing for Finland lithium mine as costs downturn
Sibanye Stillwater said on Thursday it had actually protected an extra 500 million euros ($ 557.30 million) debt financing to finish a brand-new lithium mine in Finland, forging ahead with the project amidst a. slump in costs for the battery metal.
The Johannesburg-based precious metals producer said the. loan funding, partly moneyed by the European Financial Investment Bank. ( EIB), will assist it bring the Keliber lithium project to. production from 2026.
Sibanye, which mines gold and platinum metals in South. Africa and the U.S., will continue to advance the mine and. processing plant as it sees possible for recovery in lithium. rates, James Wellsted, the representative, said.
We still have a strong conviction that there is going to be. ( lithium supply) deficits in the market and rates are going to. increase, Wellsted informed Reuters.
Albemarle, the world's largest lithium manufacturer,. last month said it would slash costs for the second time this. year, starting an extensive review of its operating. structure due to toppling costs for the metal utilized to make. electrical lorry batteries.
A basket of lithium costs tracked by Benchmark Mineral. Intelligence shows they have fallen about 70% over the previous year. since of weaker-than-expected global need for electrical. cars, due in part to high loaning costs and worldwide. economic unpredictability.
The Keliber task, in which Finnish Minerals Group owns. minority stake, is anticipated to produce about 15,000 metric heaps. of battery-grade lithium every year for a minimum of 16 years.
While the project might provide European electrical lorry. makers and gigafactories, Sibanye hasn't started selling. the offtake yet, Wellsted said.
Sibanye prepares to begin processing third-party spodumene. materials at the Keliber plant in 2025 and focuses from its. own mine the year after, he added.
Sibanye CEO Neal Froneman stated in an earlier statement the. latest funding package will assist enhance the business's. liquidity, effectively ring-fencing the existing group. facilities for functional requirements, Froneman included.
Sibanye formerly raised about 250 million euros through. equity to fund the job.
(source: Reuters)