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Shares of Australia's Ampol drop due to weaker retail volume; margins at Lytton increase
Ampol, Australia's largest fuel retailer, recorded a lower third-quarter sales volume due to softer performance in its domestic convenience retailing business as a result of challenging weather conditions during August. The company's shares fell by as much as 3,1% Thursday, their lowest intraday performance since June. Stocks fell to their lowest level since October 23, 2009. The Australian convenience retail segment performed poorly compared to the previous year when it had enjoyed favorable market conditions due to the decline in fuel input costs. In August, New South Wales, Queensland, and other states experienced prolonged bad weather, which negatively affected sales. However, conditions began to improve in September. The company reported a total third-quarter volume of 6,028 millions litres. This is a 7.6% drop compared to the previous year. Ampol attributes the decline in volumes to the "timing of the opportunities and the availability during the period". Ampol has reported an increase of 22.2% in the refining margins on its Lytton refinery. This was due to improved performance and higher margins from fuel production in Asia. The company reported that its Lytton Refinery margin increased from $8.71 per barrel to $10.64 in the third quarter. The increase in the refining margins was attributed to the strengthening of Singapore refine cracks compared to first half of fiscal year. The company said that global refining margins had risen since late September, due to a tightening of supply, mainly driven by refinery interruptions and low inventories. Newly announced EU restrictions on Russian Crude and U.S. Sanctions on Russian Oil Firms have also added pressure. Ampol said that the replacement cost earnings for the quarter had been higher than the average quarterly result of the first half due to the stronger margins in the fuel and infrastructure businesses, excluding Lytton. The refinery also contributed to the improvement.
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Sources: China lifts partial iron ore ban on purchases from Australia's Hancock
Three sources with direct knowledge said that China's state buyer allowed its steel mills the opportunity to buy a certain type of iron ore again from Australia's Hancock Prospecting, after preventing such sales for more than a year during a dispute over negotiations. China Mineral Resources Group told steelmakers in October that they can again purchase MB fines from Hancock. This lifted a previously unreported ban. Two sources, who spoke on the condition of anonymity due to the sensitive nature of the subject, said that Chinese steel mills have been prohibited from purchasing MB fines since early 2024. This is because negotiations regarding CMRG being the exclusive seller of Roy Hill in China, which is now part of Hancock's portfolio, stalled. CMRG and Hancock have not responded to requests for comments. CMRG, established in 2022, was created to consolidate China’s steel mills under a single buyer. It also aims to win better prices for the few iron ore mining companies. CMRG and its larger rival BHP have also been involved in difficult negotiations. Sources have confirmed that Chinese steel mills are not allowed to buy certain BHP cargoes. However, other grades of BHP are still being traded. No one of the sources could confirm that CMRG had settled their dispute with Hancock. The third source, however, said that CMRG was now the sole authorized seller of miner's ores in China. Multiple industry sources have confirmed that the West Australia-based company sold regular cargoes in China to clients such as two large traders and a number of steelmakers. Hancock Iron Ore was formed by the merger between Roy Hill and Atlas Iron in July. It has a combined annual production capability of 74,000,000 metric tons. (Reporting and editing by Kim Coghill; Staff Reporting)
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Oil prices remain unchanged as markets focus on US-China trade negotiations
Early trading on Thursday saw oil prices hold on to the majority of gains made in the previous session as investors waited for the U.S. China trade talks scheduled later that day. They were hoping for any signs that the tensions clouding economic growth prospects would ease. Brent crude futures dropped 3 cents or 0.05% to $64.89 per barrel at 0032 GMT. U.S. West Texas Intermediate Crude futures declined 11 cents or 0.18% to $60.37. On the sidelines the Asia-Pacific Economic Cooperation summit (APEC), U.S. president Donald Trump and Chinese president Xi Jinping are scheduled to meet in Busan, South Korea on Thursday. The markets hope that they will reach an agreement to reduce trade tensions, which have hurt global growth prospects and fuel demand. Trump said that he expected to reduce U.S. Tariffs on Chinese Goods in exchange for Beijing’s commitment to curtail the flow of precursor chemical to make the drug Fentanyl. In line with expectations on the market, the U.S. Federal Reserve also lowered interest rates Wednesday. The Fed did, however, indicate that this might be the final cut for the year due to the government shutdown. Claudio Galimberti, Rystad's chief economist, said that the Fed's move reflects a wider shift in its policy cycle. It favours reflation over restraint and supports commodities that are sensitive to economic activity. Brent and WTI both rose by 52 cents each in the previous session, on the back of optimism over the trade negotiations and a bigger than expected decline in U.S. fuel and crude inventories. The EIA reported that crude inventories fell by 6.86m barrels, to 416m barrels for the week ending October 24. This was a far cry from the 211,000 barrels analysts had predicted in a survey. (Reporting Colleen Waye; Editing Kim Coghill).
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Asia stock markets fall as Fed cuts, BOJ meeting and Trump-Xi in view
Asian stocks were up and down early on Thursday, as investors watched to see if U.S. leaders and Chinese leaders would reach a deal. MSCI's broadest Asia-Pacific index outside Japan traded flat last, while U.S. S&P500 e-minis futures edged up 0.1% after Wall Street stocks posted a small loss to end a four-day streak of gains. As the Trump administration in the United States imposes tariffs on imports from abroad, global markets are undergoing a series of central bank decisions. These will provide clues as to the future path of interest rates. Trump will meet with Chinese leader Xi Jinping later today in South Korea. U.S. negotiators are signaling that they want to return to the fragile truce in the trade war, but tensions still remain high. Long-term economic irritations will continue between geopolitical competitors. Sally Auld is the chief economist of the National Australia Bank, Sydney, in a podcast. She said that after a lot of activity in the first two days of the week, the central banking story will probably end with a whimper over the next 24 to 48 hours. The Nikkei opened down 0.1%, in anticipation of the Bank of Japan's decision later today. It is widely expected that the central bank will keep interest rates unchanged. The U.S. Dollar was unchanged against the yen at 152.70 yen last after comments by U.S. Treasury Sec. Scott Bessent, who called for faster rate increases to avoid a currency that is too weak. Analysts said this may have an impact on the BOJ communication about the pace of future rate hikes. Fed Chair Jerome Powell said that policymakers will likely become more cautious in the absence of additional job and inflation data. The traders have reduced their predictions of a rate cut of 25 basis points next month. This was viewed earlier as near certainty. Fed funds futures imply that the Fed is likely to hold rates during its next meeting, on December 10. This compares with the 9.1% chance it had yesterday. The yield on a 10-year Treasury bond in the United States was trading at a high of 4.0757% last week, an increase of 1.77 basis points from the previous close of 4,058%. The dollar index (which measures the strength of the greenback against a basket six currencies) reached a new two-week high at 99.131. Gold rose 0.4% to $3,944.25 an ounce. The euro last remained unchanged at $1.16035, ahead of the policy decision made by the European Central Bank in the afternoon. It is expected that the bank will leave rates at the same level for the third time in a line. Investors are also becoming more anxious about the costs of AI development, despite the fact that the U.S. appears to be in good health. This is putting pressure on the tech megacap stocks, which account for the largest weighting in S&P 500 Index. Meta forecast on Wednesday "significantly larger" capital expenditures next year, as its revenues exceeded market expectations. Microsoft's spending for artificial intelligence infrastructure reached a record high of almost $35 billion during the third quarter. Both companies' shares fell. Alphabet, the parent company of Google, a rival tech giant, bucked this trend. Its shares rose in after-hours trade after exceeding revenue expectations. Brent crude oil was unchanged on the energy markets at $64.92 a barrel.
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UK energy watchdog to take on 4.4 billion pound consumer debt
Ofgem, the UK's energy regulator, announced on Thursday plans to address debts of 4.4 billion pounds ($6billion) that customers have accumulated. These debts are driving up household bills for millions. The unrecovered energy debt will be added to all consumer bills. This adds 52 pounds or around 3% to the current cap price of 1,755 pounds per year. Ofgem announced that it would soon publish a debt-relief scheme, which aims to erase 500 million pounds in debts, benefiting around 195,000 clients, but did no detail on how the program will be funded. Charlotte Friel said, "We must protect the consumer by striking a balance between ensuring those who can pay receive support and focusing on those in need." BILLS STILL 50 % HIGHER THAN BEFORE THE UKRAINE INVASION The regulator proposed that the process for moving into a new house be changed so that no debts accumulate in anonymous accounts prior to the registration of new residents with an energy provider. Although domestic energy prices are down since their peak of 2023, they still remain about 50% higher than the summer of 2021. This was before Russia invaded Ukraine and sent gas prices skyrocketing, causing an energy crisis across Europe. After a price cap for domestic gas and electricity was raised in October, the government is being pressed to lower bills. Consumer groups say energy costs are still unmanageable by many. They have urged the government for more assistance for those who struggle.
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Australia's Lynas misses the market estimate despite Q1 revenue rising
Lynas Rare Earths, based in Australia, missed the market's expectations on revenue for Thursday. The company reported a 66.1% increase for its first quarter. It also noted that market conditions remain challenging, as strategic metal prices continue to fluctuate. As China tightened export restrictions, governments outside the dominant producer have scrambled to find alternative supply routes for their industries. This includes automotive and defence. The largest rare earths producer outside China reported sales revenue of A$200.2 (130.09) million for the quarter ending September 30. This is up from A$120.5 a year ago, but below the Visible Alpha consensus forecast of A$230. Lynas' statement added that "the initial relaxation of China magnetic exports during the third quarter led to an increased demand for NdPr by China magnet manufacturers." The market price rose through July and August, but then reversed itself in September as the magnet makers assessed demand. The future of the company's heavy rare earths processing plant in Seadrift, Texas is also "significantly uncertain". The total rare earth oxide production for the first three months of this year was 3,993 tons, up from 2,722 tons reported last year.
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The Australian government claims its environmental protection legislation will benefit business and nature
The Australian government will introduce a bill on environmental protection into the parliament on Thursday. It said that this would help businesses by making approvals of resource and construction projects faster and easier. The center-left Labor party hopes that its legislation will give a boost to an economy geared toward resource extraction. Australia is one of the world's largest producers of metals, coal and gas. The environment ministry released a statement saying that "these vital changes had been waiting five years for delivery, and we have seen our environment going backwards, and businesses losing time and money." The bill will bring Australia modern, balanced environmental laws that are good for both the environment and business. The ministry stated that it would like to have the legislation passed through both chambers of parliament before the end of this year. The centre-right Coalition and the Greens on the left will need to vote together in order for the bill to pass. The Coalition wants a more business-friendly bill, while the Greens want stricter environmental protection. Murray Watt, the Environment Minister, said that he is still in negotiations with both parties and has not decided yet which amendments he will accept. According to the Environment Ministry, the bill was intended to define "unacceptable impacts", and increase penalties for violations. The bill would also create an independent National Environmental Protection Agency to enforce the rules. However, the Environment Minister would still have the final say on whether a project is approved. According to the Ministry, it has promised to make the approval process easier and faster for businesses. This should help reduce the time required to reach a decision.
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US Export-Import Bank to consider $200 million loan for REalloys, a rare earths company
The U.S. Export-Import Bank has sent a letter of intent to Rare Earths firm REalloys for a loan of up to $200,000,000 to fund processing and magnetic facilities. This would be Washington’s latest effort to boost American production of these specialized materials. If approved, the loan could increase U.S. accessibility to magnets that are used in electric cars, cell phones and fighter jets, among other products. These magnets are the focus of a global trade dispute as China is using them to leverage negotiations with the Trump Administration. A letter from September 18 was seen by and shows that privately-held REalloys met the initial requirements for applying for the $200 million EXIM Loan. If approved, the loan would have a repayment period of 15 years, which is longer than what the company would likely have had with private financing. EXIM, the U.S. export credit agency, has confirmed that the letter of intent was received on the same day REalloys revealed the potential loan. In order to qualify for the loan, it was stated in the letter that the project must find customers in the United States to purchase its magnets. The Ohio company formed in 2023 plans to convert rare earths from mined ore and recycled electronics into metal in Saskatchewan. The company signed an agreement in the first week of this month for ore to be sourced from a Greenland mining project that Critical Metals Corp hopes to develop. The metal will then be transported to Ohio where it will be transformed into an alloy, and then into magnets. REalloys will provide details of its costs for both facilities next month. The company aims to produce 10,000 tons of magnets per year by 2029. This is roughly the same amount as MP Materials, which receives price support from the U.S. Government. REalloys did not receive any guarantees regarding price protection. (Reporting and editing by Matthew Lewis in Houston, Ernest Scheyder)
How huge fossil-fuel-producing countries export emissions abroad
Black dust coats streets and gathers on rooftops in the area adjoining a vast cement factory in the Egyptian city of Alexandria.
Activists and regional citizens accuse the plant run by the Alexandria Portland Cement Business (APCC), a subsidiary of Greece's Titan Cement, of fouling the air by burning coal.
Every night, we see particles falling from their chimneys. Under street lights, you can plainly see the dust drizzling down, stated Mostafa Mahmoud, a supermarket owner in the Wadi al-Qamar area.
Reuters could not individually confirm the assertion. Titan Cement says the plant's emissions are within legal limits, and it prepares to minimize its use of coal in coming years.
Like many cement makers in Egypt and across North Africa, the factory uses imported coal to fire its kilns. Lately, a growing number of the region's coal is coming from the United States, according to U.S. export data.
Fossil fuel exports have been a hot subject at the United Countries climate conference in Baku this year, with activists and delegates from some climate-vulnerable countries arguing countries must be held liable for the contamination they send out overseas - typically to poor establishing nations - in the type of oil, gas and coal. Some are looking for to get the question of how to do this onto the program at future environment tops.
A landmark arrangement reached in Paris in 2015 to combat environment modification needs countries to set targets and report on development reducing nationwide levels of planet-warming greenhouse gas emissions. But it does not impose such requirements for emissions generated from fossil fuels they drill, mine and ship somewhere else.
That has actually permitted nations like the United States, Norway, Australia and others to state they are making development toward international climate goals while likewise producing and exporting fossil fuels at breakneck rate, said Bill Hare, co-founder of Environment Action Tracker, an independent clinical project that tracks government environment action.
Most of these fossil-fuel-exporting countries can get to look good with their domestic environment action, he stated on the sidelines of the COP29 conference in Baku today. Their. exported emissions are someone else's problem.
U.S. nonrenewable fuel source exports-- including coal, oil, gas and. refined fuels-- caused over 2 billion lots of carbon dioxide. equivalent emissions in other countries in 2022, according to a. computation carried out by Climate Action Tracker and confirmed. using data from the International Energy Company. That. is equivalent to about a 3rd of U.S. domestic emissions, the. information showed.
A years-long drilling boom has made the U.S. the world's top. oil and gas producer, while robust demand has actually lifted its coal. exports for 4 years running, according to data from the U.S. Energy Details Administration (EIA).
Asked how Washington squares its climate ambitions with its. nonrenewable fuel source production and exports, President Joe Biden's. environment advisor, Ali Zaidi, said strong energy output was needed. to keep customer prices low during a transition to cleaner. fuels.
I do not believe there is social license for a decarbonisation. playbook that puts upward price pressure for retail customers in. the market, Zaidi informed Reuters.
Inbound president Donald Trump, a climate modification sceptic,. has said he wishes to even more enhance the country's fossil fuel. production.
For other manufacturers, greenhouse gas emissions from fossil. fuel exports in some cases exceed domestic emissions, Environment. Action Tracker said.
That held true for Norway, Australia and Canada in 2022, the. newest year for which data is available for all countries. evaluated. Reuters got special access to the computations.
Norway's Ministry of Climate and Environment said it is. approximately other nations to manage their own carbon footprints.
Each nation is responsible for lowering its own. emissions, the ministry stated in a statement to Reuters.
Authorities at the environment and climate ministries of. Canada and Australia did not comment.
Addressing the top in Azerbaijan, host President Ilham. Aliyev implicated some Western politicians of double requirements for. lecturing his federal government about its oil and gas usage, saying,. They better look at themselves.
CEMENT AND BRICKMAKERS
A lot of U.S. gas exports now go to European countries looking for. to minimize reliance on Russia, while China has actually become one of. the leading purchasers of U.S. crude and coal, according to the EIA. figures. America's greatest development market for coal, however, is. North Africa.
U.S. coal mines exported around 52.5 million short lots. globally in the very first half of 2024, up almost 7% from the exact same. period a year earlier, the information revealed.
Much of the boost was driven by cement and brickmakers in. Egypt and Morocco, which together took in more than 5 million. short loads over the period, the EIA stated in a current report.
These clients value the high heat content of U.S. thermal. coal, which makes their production operations more. efficient, the report stated.
On the other hand, U.S. domestic coal usage has actually been sliding as cheap. gas and aids for renewables like solar and wind. drive coal-fired power plant closures, extending a more than. 15-year decrease in greenhouse gas emissions.
Egypt's cement market has depended on imported coal for. nearly a years, because consistent natural gas scarcities forced. many factories to search for alternatives, stated Ahmed Shireen. Korayem, vice chairman and board member at the Arab Union for. Cement and Building Products, a regional industry body.
The U.S. is Egypt's largest provider, accounting for 3.1. million of the 6.6 million metric lots of coal imported this. year, according to data from the London Stock Exchange Group.
Russia supplied most of the rest, 2.1 million metric lots. Its environment ministry referred questions to the foreign. ministry, which did not immediately comment.
Activists argue that the Egyptian federal government's choice to. lift a longstanding ban on coal imports in 2015 to support an. market central to its financial development strategies is harmful to. the environment and health of communities like Wadi al-Qamar.
Using information from the Alexandria plant's emissions-monitoring. system, researchers from Egypt's Al-Azhar University, Cairo. University and environment ministry simulated the dispersion of. polluting dust and poisonous gases in between 2014 and 2020.
The study
, published in the Journal of Environmental Health Science. and Engineering in 2022, concluded that the shift from using. gas to coal as the dominant fuel cause increased. emissions and concentrations of overall suspended particulates. ( TSP), nitrogen dioxide and sulfur dioxide. The concentrations. were mainly within legal limits, nevertheless.
Egypt's greenhouse gas emissions from burning fossil fuels. increased by more than a fifth in the years ended in 2022, hitting. 263 million metric lots of carbon dioxide, according to information. from the International Carbon Budget, a task led by Britain's Exeter. University.
The majority of these emissions originated from gas and oil, which stay. Egypt's main energy sources. Coal accounted for 3.4% of the 2022. overall, 9 million metric heaps.
The federal government devoted in 2021 to phase out making use of. coal and has actually asked companies that utilize it to introduce more. eco-friendly sources into their energy mix. But Heba Maatouk, a. representative for Egypt's environment ministry, stated there was. insufficient supply of alternatives, such as refuse-derived fuel. ( RDF) made from combustible garbage.
If business can not get the RDF, they will not stop running. and will use coal to avoid losses, Maatouk told Reuters.
LEGAL BATTLES
Decarbonising the cement industry is a difficulty,. especially in poorer developing nations like Egypt, due to the fact that it. requires huge amounts of energy, and technologies to keep. emissions from the environment are pricey.
In his COP29 address recently, Egyptian Prime Minister. Mostafa Madbouly said his nation's strategies to enhance eco-friendly. energy to 42% of its power mix by 2030 depend on foreign. assistance.
Homeowners in the Wadi al-Qamar neighborhood have been. participated in a prolonged legal fight with the Alexandria cement. factory, APCC, submitting several claims, stated Hoda Nasrallah, a. legal representative for the Egyptian Effort for Personal Rights (EIPR).
In 2016, community members backed by EIPR asked an. administrative court in Alexandria to overturn amendments to the. country's ecological policies that allow heavy markets. to use coal on health and ecological premises, according to. the rights group.
APCC officials did not react to an ask for remark made. through a legal representative.
Titan Cement verified that the factory sources coal from. the U.S. however did not elaborate.
In a statement issued by its group business interactions. director, Lydia Yannakopoulou, the company said the plant had. not violated any laws, had actually made 40 million euros in investments. in pollution controls because 2010, and prepared to reduce its use. of coal in coming years as it increases use of alternatives.
She stated a court-appointed committee of experts from. Alexandria University concluded there were no environmental. violations arising from the company's emissions or functional. procedures, and the emissions were within legal limitations.
Nasrallah stated legal representatives representing the community. believe the committee was headed by a company employee and have. taken their case to Egypt's greatest administrative court in. Cairo.
Neither side supplied a copy of the committee's report, and. Reuters could not separately confirm their assertions.
A ruling in the case is expected in December.
Meanwhile, frustration is building amongst nearby. locals like Hisham al-Akary, who says his family has lived in. Wadi al-Qamar for generations and can not afford to move.
This factory shouldn't be here, he told Reuters. We. need to remain, and they must leave..
(source: Reuters)