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Aluminium and copper prices are tightened by US tariff uncertainty
The prices of aluminium and copper were largely unchanged on Thursday, as the markets assessed the impact President Donald Trump’s decision to impose tariffs of 25% on imports of steel and aluminum starting March 12. The London Metal Exchange's (LME) three-month aluminium was down by 0.2%, at $2,616 per metric ton, as of 1049 GMT. Copper, however, rose 0.2%, to $9,475.50. The vast majority of the aluminium used by the U.S. comes from Canada. The majority of Canadian aluminium comes from Quebec. On Wednesday, Quebec's Premier Francois Legault said that Canada could consider export tariffs for products such as aluminum "where it really needs us". The price of copper has not changed in the U.S. yet, but after Trump announced tariffs for the metal late last month, the premium between the U.S. Comex contract and the LME contract soared to a new record earlier this week. The tariffs on steel and aluminum of 25% were announced this week as an extension to Trump's Section 232 tariffs from 2018, which were aimed at protecting domestic producers of steel and aluminum on national security grounds. Marcus Garvey is the head of commodities strategy for Macquarie. He said that the same mechanism would not allow tariffs to be applied to other commodities quickly, because it would require an investigation by the Department of Commerce. He added that "this suggests recent volatility in CME-LME Copper Spread... was likely to have exceeded normal levels, although prices remain susceptible to either blanket or country specific tariffs which would impact a significant portion of U.S. Imports." Last week, Trump deferred a 25% tariff for goods coming from Mexico and Canada to March in order to negotiate steps to secure the U.S. border and stop the flow of fentanyl. LME zinc dropped 0.2% to 2,857.50 per ton. Lead rose 0.7% at $1,987, and tin increased 0.5% to $31,640. The price of nickel fell 0.6% to $15,325 after stocks in LME registered warehouses (0#MNISTX-LOC>) rose to 180,900 tonnes following the delivery of 5,094 tons. (Reporting from London by Polina Devlatt; Additional reporting by Violet Li, Editing by Kirsty Donovan).
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Palm oil prices fall on Dalian crudes and Dalian oils.
Malaysian palm futures fell on Thursday, ending a five session rally. Weakened Dalian oils, and a decline in crude oil prices caused by the talks to end the Ukraine/Russia war, weighed heavily on the market. At the close, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for April delivery fell 65 ringgit (1.41%) to 4,556 Ringgit ($1,023.13) per metric ton. Anilkumar bagani, head of commodity research at Mumbai's Sunvin Group, said that crude palm oil futures fell following a selloff on energy markets, after U.S. president Donald Trump launched diplomatic efforts to end Ukraine's war. He said that the easing of the Ukraine and Russia war could mean the logistics costs are reduced, and the uncertainty around the Black Sea Sunflower Oil trade is resolved. This would allow the flow of oil to reach key destinations markets. He added that the Black Sea Corridor is expected to see a decrease in freight rates, which will likely lead to a drop in sunflower oil and, consequently, put pressure on palm oils prices. The oil prices dropped slightly due to a possible peace agreement between Russia and Ukraine, as well as the rising crude inventories of the United States. Palm oil is less appealing as a biodiesel feedstock due to the weaker crude oil futures. Trump began discussions on Wednesday with the Russian President Vladimir Putin as well as the Ukrainian President Volodymyr Zelenskiy in order to start talks about ending the conflict in Ukraine. China also called for peacekeeping measures to end the conflict. Bagani noted that the downward pressure on the Chinese palm olein market and the decline in soyoil was also evident. Dalian's palm oil contract, which is the most active contract, fell 2.2% while soyoil prices dropped 2.22%. Chicago Board of Trade soyoil was down by 1.1%. As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils. The palm ringgit's trade currency strengthened by 0.38% compared to the dollar. This made the commodity more costly for buyers who hold foreign currencies. ($1 = 4.4530 ringgit)
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Elliott, a hedge fund that is known for its relentless activism, has captured the attention of C-suites.
Bankers and lawyers that have dealt with Elliott Investment Management say that executives should expect to receive a thorough analysis of their weaknesses, backed up by rigorous research and financial power. Elliott is now focusing on the legendary oil giant BP. The $70 billion investment firm has not revealed the size of their stake in BP, or what they want to see changed. The mere hint that Elliott was playing the corporate agitator in this week's BP share price spiked to its highest level since August on the expectation the fund would force improvements and unlock shareholder value. The day after Elliott's announcement, BP announced that it would reset its strategy following weaker than expected results. The chief executive of BP declined to comment about the hedge fund investment. It was unclear whether Elliott had played a part in the company's decision. The hedge fund's bankers and lawyers, who worked for it or defended the company against it, said that Elliott is an investor no board should ignore. In bankers' notes, the fund has a reputation for being a persistent activist. It is sometimes referred to as an aggressive player but can also be a powerful one. Elliott, on the other hand, argues that its tenacity will eventually earn investors in its target company and portfolio greater returns. "Elliott’s team is truly frightening smart." "Sometimes the emphasis is on smart and at other times, it's on scary," said Kai Liekefett. He is co-chairman of Sidley Austin’s shareholder activism practice and corporate defense. The firm's expertise is in analyzing a company's peers, sector and competitors, as well as potential buyers, if the sale of a company is being considered. Lawyers and bankers have said that sometimes executives are taken by surprise by Elliott's investment. They noted that a news article or a phone call announcing the position would spark a feverish defense. "Elliott revived the ambush attack" in recent years. Elliott, and other activist investors, used to approach a target first privately. Today Elliott goes public immediately - often without much advance notice," Sidley’s Liekefett stated. Elliott is not just a one man show, as some prominent activist firms are. Its roots can be traced back to founder and co CEO Paul Singer's middle initial. The firm, which has about 600 employees, is instead reliant on a large group of analysts and portfolio managers who monitor sectors from retail to energy in all parts of the world. The team is more comfortable staying out of the spotlight to let their work speak for themselves, whether they are trying to dismantle a deal between two corporations in Asia or an American conglomerate. If Elliott is not convinced by the company's counterarguments and they resist, then discussions can quickly escalate to public threats such as proxy battles or special meetings. Attorneys, bankers, and other investors who have worked with or against the firm say Elliott sends a clear message to companies: Either agree with us, and you can take credit for any positive changes that occur, or refuse and suffer the consequences. Many sources asked to remain anonymous for fear of upsetting their firm. Elliott has declined to make any comments. Elliott is a multi-strategy fund, which invests in real estate and convertible bonds, as well as sometimes buying out companies. However, it's equity activism strategy that has garnered the most attention. Elliott approached 15 companies, including Southwest Airlines, Starbucks and other large corporations, last year. The firm also secured 12 board positions. A person familiar with Elliott's performance stated that since its founding in 1977, with $1.3 Million in assets, Elliott returned approximately 13% per year net of fees. In the last seven year, assets have doubled. Industry data shows that Elliott has been targeting ever larger companies over the past five years. Elliott investors are pleased with the steady returns of the company. It may not be as impressive as other firms that have made huge gains on occasion, but it has only had two years of losses over its 50-year-history. Elliott's outreach and negotiations are often conducted privately. Sometimes, they don't become public until the matter is resolved. This happened last year at Etsy when an Elliott portfolio manger joined the board. The firm is confident that it can continue to push its thesis of corporate overhaul, even if the company rejects it. Southwest Airlines eventually agreed to changes at the board level, while CEO Bob Jordan was left in place. Elliott's appetite for rapid changes was evident again this week when media reported that the fund increased its stake in U.S. refining company Phillips 66 from $1 billion to $2.5 billion. Phillips 66 already had a plan in place to improve performance and increase shareholder returns. Elliott now wants to push operational changes as well as the sale of midstream. In an interview with David Rubenstein, a private equity executive, Elliott founder Singer (now 80) said that he approved of every position taken by the firm. Singer says it's good for companies that become Elliott's activist targets to have their executives listening "with an understanding that we are real and can carry out our projects." Reporting by Svea Autumn-Bayliss, with additional reporting from Anousha Sakoui, in London; editing by Paritosh and Nia Bansal.
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Gold's lightning run rains down on India's wedding seasons, China offers discounts
The stellar rise in global gold prices has cast a dark shadow over jewellery purchases during India's wedding season. Dealers in China have offered discounts to entice buyers. This week, benchmark gold prices reached a record of $2,942.70 per ounce as investors flocked to the safe haven due to fears about a possible global trade war sparked by new U.S. Tariffs. Customers are hesitant to purchase gold during the wedding season because of rising prices. "They keep calling us asking when prices will go down and when is the best time to buy", B Muthuvenkatram said, a jeweller in Coimbatore. In India, weddings are the main reason for gold purchases. Bullion in the form jewellery is a key part of brides' attire and a very popular gift. The jewellery market is currently suffering a major decline, with a 70-80% drop. Jewellers across the country are experiencing slow sales, said Surendra Mehta. He is the secretary of the India Bullion and Jewellers Association. The domestic gold price in India, which is the second largest gold consumer in the world and also a major gold importer, reached an all-time record of 86.360 Indian rupees (993.81 dollars) per 10 grams Tuesday. The price of gold has risen by more than 10% in 2025, after rising by more than 21% last year. Indian dealers have offered a discount due to the recent price spike that has dampened demand. In the last four months, official domestic prices have been reduced by $30 to $38 per ounce (inclusive of 6% import duties and 3% sales taxes) compared to what they were in the previous weeks. "Demand for the product is negligible." In normal circumstances, the discounts would have been over $100 per ounce. However, due to a shortage of supplies, they are now only about $25 per ounce. "Consumers need time to adjust these record-high price levels." Last week, China's top gold consumer offered gold at a discounted price of $7 to $10 per ounce compared with spot prices. Record prices had dampened appetite. "We saw a rise in demand before the Chinese New year, but it should have been holiday-related." The demand is weaker now that the price has increased," said a China-based merchant. According to the World Gold Council's (WGC) data, India's jewellery demand will surpass China's in 2024 at 563.4 tons. China and India combined account for more that half of the global gold consumer demand. Edward Meir, Marex analyst, said that the high gold price has certainly impacted physical demand, particularly in China and India. However, we have seen good ETF purchases as well as central banks buying, which is offsetting this. Ross Norman, an independent analyst, said: "Now that Chinese new year is over, we've seen a clear easing of demand and the offtake for gold in China has dropped sharply." He added that "gold prices, reflecting the overall weaker demand for physical gold, have fallen from a premium of $20 over Chinese New Years to an 18% discount against the international market price."
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Scatec CEO: Cheaper solar panels and batteries will expand renewables' role on the power market
Scatec's CEO, who is a developer of renewables, said that cheaper solar power and batteries are increasing the role of these technologies in stabilising the energy system and offering more opportunities to renewables. Scatec, a Norwegian company, builds and owns renewable energy plants. Scatec has 4.2 gigawatts (GW) in operation, another 0.8 GW is under construction and 2 GW are near-term projections. Equinor is its largest shareholder. Scatec CEO Terje Piskog stated in an interview that solar panel prices had dropped by 66% and battery system prices by 58% over the past two years. This dramatic change has made renewable projects cheaper. He added: "Now renewables are able to be used in more situations, and they can assume a greater, I would call it, responsibility within a power system." Solar is the most cost-effective energy source in many countries, even though the situation is different in Europe. He said that the power could be used as baseload, or in capacity. He said that Scatec was the winner in South Africa over other technologies for a tender to supply a stable system capacity. Its combined solar and batteries plant offers a stable supply of 16.5 hours per day. Scatec develops a majority of its projects in emerging markets, and in many cases receives a subsidy or a capacity payment. However, Scatec says that this is still cheaper than countries relying on fossil fuels. Pilskog stated that Scatec has helped Cameroon save between $35 and $40 million by leasing solar plus battery systems. Egypt is another example, where the company has built a 1 gigawatt project in order to meet domestic demand. He added that this would allow the country's natural gas to be sold on the global market, instead of using it at home for the generation of electricity. Nora Buli reported. (Editing by Jane Merriman.)
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The Eurozone industry shrinks faster in December than expected
The euro zone's industrial production declined more than expected in the month of December, showing that the two-year slump is still far from over, even though some figures on sentiment and orders have indicated a bottoming out. Eurostat data showed that the output of the 20 countries sharing the euro fell by 1.1% from December to the previous month. This was below expectations of a 0.6% decline, as Germany, the industrial powerhouse, shrank by 2,9%, and Italy by 3,1%. The industry has been a drag for Europe since years, as high energy prices, weak Chinese demand, increased global competition and old-fashioned car models are all factors that have a negative impact on orders. The production of capital goods dropped by 8.0%, which was a huge drop compared to the previous year. Even though some indicators point to a stabilisation of the industry, the new U.S. steel and aluminum tariffs, compounded with the threat of additional trade barriers are likely to have a negative impact on the sector. Some economists worry that tariffs on China will also be a drag for Europe because Chinese products are likely to search out new markets, and may crowd out local items. Comparing November to December, the output of capital goods fell by 2.6%, while that of intermediate goods was down by 1.9%. This decline in output has been partially offset by an increase in output for consumer goods. The growth of the euro zone has stagnated for most of the last year, as consumers save their surplus cash. This is partly due to the worrying news about the health of the industry, which is a major employer.
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IEA: Russian oil production unaffected so far by US sanctions
The International Energy Agency (IEA), in its latest report on the oil market, said that Russian oil exports may be maintained if workarounds are found to the new U.S. sanction package, following a slight increase in Russian crude production last month. The IEA reported that Russian crude oil production increased by 100,000 barrels per month (bpd), to 9,2 million bpd last month, despite the fact that its energy sector had been hit with extensive sanctions on January 10th. The IEA stated that oil markets had shown resilience and adaptability to major challenges in the past, and it is not likely to change this time. The Paris-based agency said in its previous monthly report that Washington's new sanctions package could disrupt Russian oil supply chain, but held off on changing its forecasts until it was clear what impact they would have. The IEA said that the sanctions announcement pushed oil prices up $8 to five-month-highs by mid-January. However, those gains were almost reversed at the end of January due to growing concerns about the global economy, and the possible impact of emerging trade wars. The IEA continues to forecast that non-OPEC+ supply will grow faster than global demand. The IEA predicts that non-OPEC+ oil production will increase by 1.4m bpd in this year. This is compared to a forecast for demand growth of 1.1m bpd, which was slightly higher than the previous forecast. The IEA stated that China is still the main driver of global oil demand. Its petrochemical industry will be affected by the slowdown in China's demand for conventional transportation fuels. In a sign that structural changes are reshaping Chinese demand for oil, the use of three of the most important fuels, gasoline, jet/kerosene, and gasoil, has declined slightly in 2024. Reporting by Robert Harvey in London and Alex Lawler Editing by David Goodman & Aidan Lewis
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China's Iron and Steel Association warns that US steel tariffs could spark a global trade war.
China Central Television reported that the Iron and Steel Association of China said that the 25% increase in tariffs on all steel and aluminium exports to the United States will have a negative impact on the supply chains of the global industry for steel, including China. U.S. president Donald Trump raised tariffs on imports of steel and aluminum on Monday by a substantial 25%, "without any exceptions or exclusions". He hopes this will help the struggling American industry but it also threatens to spark a multi-fronted trade war. The impact of the United States on China's exports of steel is minimal in the short-term. In the long term, however, the United States could force other countries to follow their lead, thereby reducing China's competitiveness in steel exports," said the association. Last year, China exported 508,000 tons of steel net to the United States. This represents 1.8% of American steel imports. Zhang Longqiang is the deputy secretary-general for the China Iron and Steel Association. He said the association was against the tariff increase and that it did not promote "healthy and fair market competition and trade." He said that the tariff increase would have a negative impact on the global steel industry's industrial chain, and its supply chain, including China. Washington claims that although China only exports a small amount of steel to the United States it is the source of most of the excess steel production in the world. The report says that China's subsidised steel production forces other countries to increase their exports, and this leads to the transshipment of Chinese metal through other countries and into the United States in order to avoid tariffs and trade restrictions. Reporting by Farah master and the Beijing Newsroom; Editing and rewriting by Muralikumar Aantharaman and Emelia Matarise
Australia's 50 wealthiest now control $153 billion as Rinehart again tops the list
Forbes reported on Thursday that the combined wealth of Australia’s 50 richest individuals has increased by nearly 10%, to A$243.92 billion ($152.92 Billion), in the last 12 months. Mining magnate Gina Rinehart topped the list once again.
Forbes reported that technology executives benefited from the continued growth of the sector, whereas mining fortunes have been bumpier over the past year due to rising costs and falling commodity prices.
Rinehart's wealth, which is controlled by Hancock Prospecting and amounts to A$29.4 billion, fell 4% but she retained her title of the richest person in Australia.
In the last year, she purchased the energy assets of Mineral Resources. The company's founder Chris Ellison was dropped from Forbes 2025 list after a decade-long scandal involving tax evasion.
Rinehart is lobbying Australia’s center-left Labor Government and its conservative Coalition to adopt industrial policies and resource policies modeled after U.S. president Donald Trump, in preparation for a May national election.
She was also pictured at Trump’s victory party.
Harry Triguboff, a property tycoon who has risen to A$18.8billion in net worth after a 5-year absence, reclaimed second place.
Forbes reported that the Meriton Group, owned by Triguboff, was able to increase its residential build-to rent portfolio in Australia with several new constructions over the last year due to a strong rental housing market.
Atlassian cofounders Mike CannonBrookes (18,3 billion dollars) and Scott Farquhar (17,9 billion dollars) both saw their shares soar by over A$4 billion.
Andrew Forrest was ranked fifth after Fortescue Metals Group stock fell by more than one-third, reducing his wealth from A$5.4 billion (now A$16.1billion) to A$5.4billion. (1 Australian dollar = 1.5891 dollars) (Reporting and editing by Rashmi aich; Christine Chen)
(source: Reuters)