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Arctic doomsday vault receives more than 14,000 samples
The vault, which stores food crops seeds from all over the world in caves created by humans on an isolated Norwegian Arctic island, will receive 14,000 more samples on Tuesday. In 2008, the Svalbard Global Seed Vault was created as a backup to the gene banks around the world that store genetic codes for thousands of species. The vault, protected by permafrost and ice, has received samples all over the world and played an important role in the rebuilding of seed collections that were damaged in the Syrian war between 2015 and 2019. In a press release, Crop Trust Executive Director Stefan Schmitz said that the seeds represent more than just biodiversity. They also reflect the culture, knowledge and resilience of communities who care for them. The Crop Trust stated that the new contributions included a sample from 15 species of Sudan consisting of various varieties of sorghum, a plant which is important for both the food security of the country and its cultural heritage. The conflict between the Rapid Support Forces (RSF) and the army that erupted in April 2023 killed tens thousands and forced 12 million people to flee their homes. It also plunged half of Sudan into famine and other locations into hunger. In a recent statement, the Director of Sudan's Agricultural Plant Genetic Resources Conservation and Research Centre stated that "these seeds are a symbol of hope in Sudan". The Crop Trust announced that a total of 14,022 samples, including rice from Thailand and seeds from Nordic tree species, will be collected at 1430 GMT. (Reporting and editing by Terje Sollvik and Christina Fincher, and Louise Rasmussen).
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India's UltraTech Cement will spend $206 Million to enter the cable and wires business
UltraTech Cement will invest 18 billion rupees (206 million dollars) in a new wires and cable business to strengthen its position in the construction materials industry, the company announced on Tuesday. The building products division of UltraTech will include waterproofing products, TMT bars, plywood and sanitary ware as well as electrical products such as switchboards. UltraTech will build a factory by December 2026, with an investment spread over two-years. This is to capture demand in a market that has seen a growth of 13% annually between fiscal 2019-2024, according to the Aditya Birla Group. The sector is dominated primarily by Polycab and Havells, and is also plagued by the volatile price of copper - an important raw material – and fierce competition from smaller and cheaper local players. The infrastructure and construction industries - key clients for the wires and cable makers - will also likely experience a slowdown by 2025, due to the "modest" increase in capital expenditure announced earlier this month in the annual budget. The cement industry has seen several deals recently by industry leaders, including UltraTech and Adani Group. They are acquiring smaller firms in order to increase their presence. Reporting by Manvi Pan in Bengaluru, Editing by Savio d'Souza
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LME Copper edged down, but tighter key spread was in focus
The price of copper in London dipped on Tuesday, after U.S. president Donald Trump reiterated the import tariffs he planned to impose on Canada and Mexico. Meanwhile, the market focused on a tightening of a key spread. By 1207 GMT, the London Metal Exchange's (LME) three-month copper was down by 0.1% to $9.483 per metric tonne. On Monday, when asked whether Canada or Mexico had done enough in order to avoid the 25% U.S. duty, Trump said that tariffs are "on schedule and on time." He didn't mention the March 4th deadline, but he did later refer to his desire to have "reciprocal tariffs" to equalize the duty rates of all countries and to offset their trade barriers. The LME copper contract has gained 5% this month. This is due to a volatile premium from U.S. Comex Copper Futures, which hit a record-high of $1,000 per ton in mid-February. The premium on Tuesday was $600 per ton. The spread between the LME Cash Contract and the Three-Month Contract Last Friday, the price was discounted by $40. The last time it was $3 higher per ton. The premium increased to $13.4 on February 14 due to short-covering. Due to cancellations, the spread tightened after the copper stocks in the LME system decreased significantly to 170 975 tons in less than one week, the lowest level since July. They were 258,425 tonnes on February 19. The CME has a large premium on its metal due to tariff concerns. This is why LME metal is being cancelled. Munro stated that "we saw how trades were caught in front during the Feb-March squeeze and the market has been very nervous since then." It certainly appears that the copper term structure is undergoing a structural change, whether it's artificial or driven by demand. LME aluminium fell by 0.3%, to $2.648 per ton. Zinc dropped 1.1%, to $2.819.50. Lead eased to $1.982, while tin declined 0.6%, to $33,015; and nickel shed 0.9%, to $15,290. (Reporting and editing by Janane Venkatraman; Additional reporting by NehaArora; Reporting by PolinaDevitt)
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Botswana, De Beers sign long-delayed diamonds deal
The Botswana government signed on Tuesday a long delayed diamonds sales contract with Anglo American's De Beers unit, expressing the hope that it will create jobs in an economy which is struggling. The negotiations began in 2018. The two sides agreed on terms in 2023, under the previous Botswana president. However, they never signed a formal agreement. The new president Duma Boko, who came to power in October last year, made the signing of the De Beers deal a top priority. The deal is crucial to Botswana, as its economy is heavily dependent on diamond exports. "We are confident that this deal will take us forward." This agreement is for the people of Botswana. It's about the jobs that it will create," Botswana President Duma Boko told the crowd at a signing in Gaborone. The deal is broadly in line with the terms agreed on in 2023. Botswana is increasing its share of rough stone it receives from the Debswana joint-venture with De Beers, which it currently gets 25%. The mining license of Debswana will be extended by 25 years, until 2054. Botswana’s economy was believed to have contracted in 2017 due to a prolonged decline in the global market for diamonds. In addition to a glut of supply and declining demand, the price of rough diamonds has fallen due to the popularity of lab-grown stones and the shift of younger consumers away the precious stone. The government is hoping that the economy will improve. The following are some examples of a successful return on investment This year, the diamond market has improved globally and other sectors have performed better.
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China's total gold imports through Hong Kong in January hit a near three-year high
Hong Kong Census and Statistics Department figures released on Tuesday show that China's total imports of gold via Hong Kong fell by 44.8% in January compared to December, and reached their lowest level since April 2022. Why it's important China is the largest consumer of gold in the world, and its buying activities can have a significant impact on global gold prices. Hong Kong's data might not be a complete view of Chinese gold purchases as it is also imported through Shanghai and Beijing. By the Numbers The data revealed that China imported 13.816 tons of goods in January, compared to 25.007 tons for December. CONTEXT Gold spot gained 27% in value last year. This is the largest annual increase since 2010. It has maintained its record-breaking rally this year with the price hitting a new high of $2,956.15 in Monday. In China, the demand for gold has been very low. Buyers have avoided purchasing due to record-high prices. Swiss customs data revealed last week that gold exports to China from Switzerland fell by 99% annually. India's gold exports will also fall 85% from last year to the lowest level in 20 years in February, as record prices of the precious metal sap demand, according to a government official. (Reporting from Anjana Anil, Bengaluru; additional reporting by Anmol Chaubey; editing by Andrew Heavens & David Evans).
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EU to support steel industry as US tariffs threaten
The EU Commission said on Tuesday that it would present plans in spring to protect Europe's steel industry from the looming U.S. tariffs and make it more competitive. The action plan will be developed following a "strategic dialog" with representatives from the sector, which was presided over by Ursula von der Leyen, president of the commission. This dialogue took place on 4 March. In November, the European steel industry called upon the EU Commission to take immediate measures to prevent what they termed as the irreversible decline of the sector. It called on the EU to develop plans that address trade, the EU’s carbon tax on imports and energy as part of wider proposals to assist companies in reaching the EU’s 2050 goal for carbon neutrality. Since then, U.S. president Donald Trump announced plans to introduce 25% new tariffs on all imports of steel and aluminum into the United States on top existing metals duties. "The steel sector is a major part of the European Single Market." Von der Leyen stated that this industry was of paramount importance to our fight against climate changes. "We want the European steel industry to be competitive and sustainable on a long-term basis." The Commission announced that on March 4, steel producers, raw material suppliers and other parties involved in the sector would discuss ways to improve competitiveness, accelerate decarbonisation and electricisation, and ensure fair trading relations. The Commission's Vice President Stephane Sejourne is then expected to launch an "action plan dedicated to steel and metals" in the spring.
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Shares rise as oil is found in Mopane's Galp new well
The Portuguese oil company Galp announced on Tuesday that it had discovered significant amounts of light oil and condensate gas in a well at Namibia's Mopane Field, creating new exploration opportunities. This has sent its shares sharply up. Initial estimates of the Mopane oil and gas discovery by Galp were at least 10 billion equivalent barrels. The company has drilled four wells in 2024 in order to explore and appraise the first hub of the Mopane Complex in the northwest region. A fifth well was drilled last month in the southeast region. In a press release, it said that the new Mopane-3X well was 18 km away from the original and targeted two prospects, AVO-10, and AVO-13, as well as a deeper sand in 1,200 metres of water depth. The report also noted that the oil viscosity was low and there were high levels of pressure and permeability. Galp shares rose 7% during morning trading, leading the Stoxx 600 pan-European index. Jefferies stated in a research report that the well would de-risk the resource estimate of 10 billion boe for the Mopane Complex, and support the case to develop a Multi-Floating Production Storage Offloading Development. Galp wants to sell half its 80% stake of Mopane’s Petroleum Exploration Licence 83, but it says it's not in a hurry. (Reporting and editing by David Evans; Sergio Goncalves, Joao Vicente Mauicio)
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Palm oil prices rise on the back of strong Chicago soyoil and low production
The price of Malaysian palm oils futures rose on Tuesday. This was due to a weak outlook for production in February, and the strength of Chicago soyoil. However, weak Dalian oils, and muted exports, limited gains. By midday, the benchmark contract for palm oil delivery in May on the Bursa Derivatives Market gained 2 ringgit or 0.04% to 4,561 Ringgit per metric ton. A Kuala Lumpur based trader stated that "lower production provides support". Dalian's palm oil contract, which is the most active contract in Dalian, lost 0.97%. Chicago Board of Trade soyoil prices rose by 0.8%. As palm oil competes to gain a share in the global vegetable oil market, it tracks the price changes of competing edible oils. A senior regulatory official said that Malaysia's palm oils stocks will fall to 1.5 million tons by the end February due to floods which have affected production, and Ramadan, the festival of fasting, has boosted demand. A leading palm oil producer said on Tuesday that the supply of palm oil is likely to be tight for two to three more months due to the floods in Indonesia and Malaysia. These two countries are the top two producers of palm oil worldwide. According to cargo surveyor, the exports of Malaysian products containing palm oil in the period February 1-25 are expected to decline by 2.7%. Intertek Testing Services Independent inspection company AmSpec Agri Malaysia estimates that exports have increased by 1.2% compared to a month earlier. As a double-top or flat pattern may be forming, palm oil could fall towards the low of 4,457 Ringgit per metric tonne on February 17.
Sources say that India may extend the import restrictions on raw steelmaking material.
Two sources say that India could extend its restrictions on imports of low-ash metallurgical coke or metcoke to encourage steel mills in India to source their steelmaking ingredient domestically.
India, the second largest producer of crude iron and steel in the world, implemented quantitative restrictions with country-specific quotas for the import of low-ash metcoke. The total amount of overseas purchases was limited to 1.4 millions metric tons between January and June.
Sources who declined to be identified because they weren't authorised to speak to the media said that the government could extend the restrictions past June due to the reluctance by Indian steel producers in buying from local producers.
Sources said that India's Minister for Commerce and Industry, Piyush Goyal, expressed his concerns about the steel mills' preference to import met coke and stressed the importance of sourcing the raw material locally.
The Indian government also told local steel producers not to buy from Jakarta because met coke from China is being rerouted to India via Indonesia.
In spite of a recent warming in relations, the relationship between India and China has been tense ever since June 2020 when their biggest military clash in decades took place on their disputed Himalayan Border. The conflict resulted in 20 Indian soldiers and at least 4 Chinese soldiers being killed. India increased its scrutiny over investments by Chinese companies in response.
India's met coke imports have more than doubled in the last four years.
The quality of met coke produced locally has been a source of concern for leading steel producers such as JSW Steel, ArcelorMittal Nippon Steel India and JSW Steel.
The steel industry argues that any further restrictions on imports of raw materials could hamper their plans to increase production to meet India's strong domestic demand for the material. Reporting by Neha arora in New Delhi, and Amy Lv from Beijing; editing by Mayank bhardwaj and Christina Fincher
(source: Reuters)