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LME fines Access World Access World $77,000 for violating warehouse rules
London Metal Exchange (LME), has taken disciplinary actions against Access World Vlissingen B.V. for breaches of LME warehouse rules that date back to 2022. The company agreed to pay an amount of 60,000 pounds ($77328) as a penalty. The exchange, which is the oldest and largest industrial metals market in the world, announced that a settlement had been reached prior to the institution of any disciplinary proceedings. Four warrants of full-plate nickel cathodes, between October 18, 2022, and November 16, 20,22 were loaded erroneously out of a shed at Access World's Rotterdam office. LME warrants confer ownership. A third party, commissioned by Access World for an independent audit to produce a report, discovered the incidents. The LME reported that Access World notified the LME of the incidents. The LME released a statement on Tuesday that said Access World informed them during the investigation that the incidents had been caused by human error. They have taken steps to minimize the possibility of it happening again. Access World didn't immediately respond to a request for comment. Hong Kong Exchanges and Clearing Ltd. owns the LME. ($1 = 0.7759 pound) (Reporting and editing by Kirby Donovan, David Evans and Polina Devitt)
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JBIC, a commercial bank in Japan, agrees to lend Codelco $666 Million
Codelco (the world's biggest copper producer), a state-run company in Chile, announced on Tuesday that it had agreed to a loan of $466 million from the Japan Bank for International Cooperation, and an additional loan of $200 million co-financed by a commercial lender. Both institutions stated that the loan was intended to provide a steady supply of copper concentrates to Japanese manufacturers. JBIC stated in a press release that since Japan is solely dependent on imported copper concentrates it was important to ensure a stable and long-term supply of copper. The metal is also needed for electric cars, renewable energy installations, artificial intelligence, data centers, as well as for renewable energy. Codelco is also looking for funding sources to fund its multi-billion dollar investment plan. This includes overhauling key mines to combat a decline in ore grade across all of its operations. These projects have been funded. Delay and Setback Copper consumers are looking for a guarantee of supply due to the increased demand from EVs, decarbonization and other factors. Tariffs that could be charged Donald Trump . (Reporting and writing by Fabian Cambero, Alexander Villegas, Paul Simao).
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Trump's aides are targeting 20% tariffs, as the world waits for 'Liberation Day.'
White House staffers have drafted The Washington Post reported Tuesday that President Donald Trump is preparing to announce reciprocal trade tariffs, which have businesses, consumers, and investors worried about a global trade war intensifying. Trump has been putting a circle around April 2, 2019 As a "Liberation Day", he has set a date to deliver his most ambitious initiatives yet, to overturn more than a half-century of global trade norms. These norms saw barriers to international trade fall, in ways that the Republican President believes disadvantage American goods and workers. Trump announced on Sunday that the reciprocal tariffs would target all countries, and the White House said Monday that any country who treated Americans unfairly could expect to be hit with a tariff. The Post reports that White House advisors have said no final decision had been made, and several options were on the table. Trump's administration also considers using the trillions it expects to earn in new import revenues for a refund or tax dividend, according to the report, which cited three unnamed sources familiar with the issue. The White House representatives did not respond immediately to a comment request on the reported proposal. Investors around the world are eagerly awaiting more details. The Republican President has already imposed new tariffs on autos, aluminum and steel, as well as increased tariffs for all Chinese goods. As April 2 nears, there are signs that the U.S. economic growth that was above trend for the past couple of years has slowed down amid the uncertainty created by Trump's chaotic approach to economic policymaking. This is especially true around trade. Surveys of businesses and households have shown that confidence in the economy is waning. The consumers are worried that Trump's tariffs could lead to inflation. They still remember the recent price spikes. Investors have been selling stocks aggressively since more than a week, wiping out nearly $5 trillion from the value of U.S. stock values since mid-February. Risks are not limited to the U.S. The Tuesday Business Surveys showed The outlook is dimmed by the waning of factory activity in Asia, as the tariff war intensifies and global demand slows. Initial signs of manufacturing recovery in Europe were overshadowed, however, by concerns that buyers may have front-loaded orders in order to beat Trump's new tariffs. Cyrus de la Rubia is the chief economist of Hamburg Commercial Bank. He said that "some backlash can be expected" in the months to come. Reporting by Susan Heavey and Dan Burns from Washington, and Gursimran K. in Bengaluru. Additional reporting by Gursimran K. in Bengaluru. Editing by Andrew Heavens and Frances Kerry.
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India launches antidumping investigation against met coke imports
A government notification states that India launched an anti-dumping investigation at the request of an industry group over imports from Australia, China and Russia of met coke (low-ash metallurgical or met coal). In a March 29 notice, the Commerce Ministry said that the Indian Metallurgical Coke Manufacturers Association requested an investigation into the imports. These imports have more than doubled in the last four years due to concerns about local companies. According to the notification, the trade body said that there was no difference between the quality of met coke imported from abroad and the domestically produced version, which is a crucial ingredient in steelmaking. The association has also reiterated their demand for anti-dumping duty on imports from these countries. India, which is the second largest producer of crude iron and steel in the world, implemented quantitative restrictions with country-specific quotas for imports of low ash met coke. The overseas purchases were limited to 1.4 millions metric tons between January and June. The curbs, however, have worried big steel producers who are concerned with the quality of met coke produced locally. ArcelorMittal Nippon has recently sued India in the matter. A court also denied JSW Steel and Trafigura requests for certain shipments. In February, it was reported that the government could extend its restrictions past June due to steel companies' unwillingness to purchase met coke from local producers. In its announcement of the investigation, the commerce ministry asked all interested parties to provide their comments. Sethuraman N.R., Editing by Savio d'Souza
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Kremlin continues to speak to US despite Trump's threat of secondary sanctions against Russia
The Kremlin announced on Tuesday that Russia is continuing its dialogues with the United States despite threats from President Donald Trump of secondary sanctions against Russian oil if Moscow fails to work towards ending the war in Ukraine. Trump, who this week said he was "pissed" with Russian president Vladimir Putin, told journalists on Monday that he wanted the Kremlin to make a deal in order to end the conflict. Trump stated in the Oval Office, "I would like to see him reach a deal that will stop Russian and Ukrainian soldiers from being killed and also other people." "I want him to follow through and I believe he will," Trump said in the Oval Office. "I want to make sure that he follows through, and I think he will." Dmitry Peskov, a Kremlin spokesperson, told reporters Tuesday that when asked about Trump's recent remarks about wanting Putin do a deal with Ukraine: "We continue our contact with the American side." The topic is complex. We are dealing with a very complex issue, namely the settlement in Ukraine. This is a very complex issue that requires extra work. Trump's conciliatory approach towards Russia had made Western allies nervous as he attempted to end the conflict in Ukraine. Russia has publicly responded to Trump's overtures with caution, agreeing that it will halt its attacks on Ukrainian infrastructure for energy if Kyiv also does so. Both sides accuse the other of violating a moratorium. It cites a list of conditions that it believes must be met before it will proceed. Moscow has refused to sign a ceasefire that is broader than the one Trump wants. (Reporting and Writing by Felix Light, Editing by Andrew Osborn).
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Maruzen Petrochemical Japan to close ethylene unit at Chiba
Maruzen Petrochemical in Japan, a subsidiary of Cosmo Energy Holdings will close its ethylene plant in Chiba during the fiscal year 2026/27 and consolidate its production at Keiyo Ethylene - its joint venture with Sumitomo Chemical - the companies announced on Tuesday. The three companies released a joint statement saying that the move is intended to improve the utilization rate of Keiyo Ethylene. Keiyo Ethylene is owned by Maruzen and Sumitomo, respectively. Low operating rates have plagued Japanese ethylene plants due to a global oversupply caused by China's large-scale capacity expansions, as well as a declining domestic market. Energy transportation is also under increasing pressure from the industry to achieve carbon emissions net-zero. Maruzen Petrochemical, and Sumitomo Chemical, decided that they would optimize their ethylene production near Tokyo in the Chiba region to reduce costs and maintain competition. The Chiba unit of Maruzen, which began operations in 1969 has a production capacity of approximately 525,000 metric tonnes per year. Keiyo Ethylene was launched in 1994 and has a production capacity of 768 tons per annum. Last year, Idemitsu Kosan Japanese oil refiner and Mitsui Chemicals announced that they would consolidate their ethylene compounds in Chiba. Ethylene, a petrochemical, is used in the production of plastics like polyethylene to make plastic bags and containers. (Reporting and editing by Yuka Obayashi)
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Gold and stocks rise to record levels as investors wait for Trump tariff clarity
The global stock market rose on Tuesday, following Wall Street’s overnight gains. Gold reached a record high and Treasury yields dropped as markets waited for details about U.S. president Donald Trump’s reciprocal tariffs. The Japanese yen and Swiss franc held steady as demand for traditional safe-haven assets increased. The risk-sensitive Australian Dollar also rebounded, after the Reserve Bank of Australia kept interest rates unchanged, as expected, while warning of a "pronounced" uncertainty in the global economy. Investors anxiously await April 2, the day Trump has called "Liberation Day", where he promises to reveal a massive tariff plan. The Office of the U.S. Trade Representative published its annual report on Foreign Trade Barriers on Monday. It contained scores of policies and regulations of other countries that it considers as trade barriers. It was not clear how Trump's tariff reciprocity plans would be affected by the 397-page document. The Washington Post reported Tuesday that White House Assistants A proposal was drafted to impose tariffs on imports into the United States of about 20%. The European stock market recovered from a day of profit-taking. This was especially true for assets that were highly susceptible to U.S. Tariffs. The benchmark index rose by 5.1% during the first quarter of this year and was up by 0.9% at midday. Pharma and technology stocks led the rally. "We still do not know the countries that will be affected by the tariffs and at what rate. The administration may not yet have a final plan in place," said Jim Reid, a strategist at Deutsche Bank. Uncertainty has reached a high level. In the last few days, volatility measures for stock, bonds and currencies have increased sharply, reflecting the difficulty of trading in the unknown. S&P 500 futures fell 0.1% on Monday but the S&P 500 rose 0.55%, ending a losing streak of three days. Tony Sycamore is an analyst with IG. He said: "It's possible that a large portion of the rebound last night in key Wall Street indices could be attributed to month-end or quarter-end rebalancing, as well short-covering ahead of Trump Liberation Day. There's considerable uncertainty as to what will happen next." The U.S. stock markets are priced to reflect a slower growth rate and lower earnings. They are not priced for recession. If the U.S. enters a recession, U.S. stocks could easily drop another 10%." Gold reached a new record for the fourth consecutive session. It now stands at $3,148.88 an ounce. Kyle Rodda is a senior financial market analyst at Capital.com. He said that, in addition to the general risk aversion of investors, they are increasing their allocations to gold, as the Trump administration’s trade policy threatens the dollar’s special reserve status. The fundamentals of gold remain strong. DOLLAR UNDER SUBSTRESS As prices rose on Tuesday, yields on 10-year benchmark notes fell by nearly 8 basis points, to 4.169%. The dollar fell 0.4%, and the yen strengthened. The dollar has been under pressure for the past nine years due to investor caution. Its performance in the first quarter of this year against a basket currency was its worst in nearly a decade. The Aussie fell from its day-highs and traded flat for the day, at $0.625. The RBA kept rates at 4.1% after cutting them by a quarter-point in February, for the first cut in four years. In its statement, the RBA noted that "Geopolitical uncertainty is also pronounced", adding that U.S. Tariffs have an impact on global confidence. Matt Simpson, senior analyst at City Index, said that the RBA's announcement suggests it is inching toward its next cut but not in a hurry to announce one. Bitcoin grew 2% to $84,218. The oil prices rose, continuing Monday's 2% rise. Brent crude was 0.5% higher at $75.13 per barrel while U.S. Crude rose 0.5% to 71.84. Trump threatened to impose secondary tariffs against Iran and Russian crude oil at the weekend. He warned Iran that he would bomb the country if it did not reach an agreement with Washington on its nuclear program. Kevin Buckland, Himani Sarkar and Kim Coghill edited the article.
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Couche-Tard and 7-Eleven's store divestiture plans face an early obstacle
The plan of convenience store giants Couche-Tard & Seven & i to sell thousands of stores in North America, to reduce regulatory concerns before a possible merger, is being tested by rival bidders. According to several antitrust experts and people who are familiar with the situation, it is likely that the two store operators will struggle to attract offers from other convenience stores chains. They may be wary about their own antitrust risks from a potential deal. Seven & i is the owner of the 7-Eleven chain, which operates more than 12,000 convenience stores in the U.S. Sources said that so far, private equity firms have been the most interested in buying the stores. The potential for a headache for Canada’s Couche-Tard, and Japan’s Seven & i is that U.S. regulators frown on private equity firms buying divested stores as they are not likely to be long-term investors. Experts say that the U.S. Federal Trade Commission doesn't view private equity firms as attractive buyers of divested retail stores because the model is based on short-term profits. Michio Suzuki is an antitrust partner with Baker McKenzie, based in Tokyo. From their perspective, the buyer of the divested stores should be strong enough so that they can run them as a competitive unit. The companies have proposed a divestiture package that includes more than 2,000 U.S.-based stores. Experts said that there was no precedent in which private equity ownership of convenience store chains would be created after a large merger. Financial acquirers bought grocery and dollar store divested from larger retail mergers. However, they have had mixed success running these stores. When Dollar Tree bought Family Dollar for $9 billion in 2015, the FTC ordered the companies to divest hundreds stores. Dollar Tree selected investment firm Sycamore as the buyer of 330 stores. But two years later Sycamore sold them to Dollar General as it was no longer able to operate the stores as a standalone business. Sources familiarized with Couche-Tard & Seven & i argue that their divestiture packages consist of competitive stores across many states, which a private equity company can successfully operate. Five sources claim that buyout firms have shown early interest in the companies. They are eager to explore owning scaled-up convenience stores with a national footprint. Three sources stated that some firms are cautious when it comes to bidding for an asset that will be the result of a merger which is still not signed. KROGER ALBERTSONS FALLOUT In recent years, antitrust regulators around the world have been increasingly challenging large retail mergers. In order to avoid the overhang of a failed mega-deal in U.S. groceries, Couche-Tard & Seven & i took the unusual step before merging talks began: they preemptively shrank their combined potential business in North America. Seven & i wants to avoid a repetition of "the disastrous story" of Kroger/Albertsons. Seven & i received a warning from the FTC about an investigation of a possible merger with Couche-Tard - a rare occurrence before a formal deal is signed. The Kroger-Albertsons merger was announced for the first time in 2022. However, despite numerous attempts to convince U.S. Antitrust authorities to approve the deal - such as a $2.9 billion proposed divestiture of C&S Wholesale Grocers' 579 stores - this deal has not been approved. The FTC rejected C&S and called the divestiture packages a "hodgepodge" of unconnected shops. Alex Livshits is a partner with the law firm Fried Frank. He said, "Any target of a large-scale retail-store merger will take notice and become very cautious following that." Since August, 7-Eleven's owner has rejected Couche-Tard takeover attempts out of fear that it will suffer the same fate. The grocers gave up their $25 billion merger in December after significant regulatory opposition. This has been argued before as a cautionary story for retail mergers. Couche-Tard has agreed to the proposal of early joint regulatory work by Seven & I to alleviate potential antitrust concerns. Seven & I is the largest operator of convenience stores in the United States, with approximately 12,650. Couche-Tard is second-largest with about 7,100. Couche-Tard, with approximately 7,100 stores, is the second-largest operator in terms of convenience stores in the United States. The combined company would almost be seven times larger than the next biggest competitor, Casey's. There is a risk when you divest to a third-party that's legally binding, said Kathy O'Neill. She's a partner with Fried Frank and a former member of the Department of Justice's Antitrust Division. She said, "The agency may not like the buyer that you have selected or they might decide to divest more assets or store." Normally, companies seek regulatory approval after signing contracts. Experts said that the failure of the Kroger and Albertsons merger has provided a road map to successful regulatory approval in future retail mergers. It is a lesson on what not do. Experts said that Couche-Tard's and Seven & i's pre-emptive action also gives them the opportunity to get regulators on board with the idea. Reporting by Abigail Summerville and Anton Bridge, New York; Additional reporting by Rocky Swift, Tokyo; Editing and production by Anirban Sen, Edwina G Gibbs and Matthew Lewis.
Copper prices continue to rise despite Trump tariffs
The copper price continued to rise on Tuesday, as traders maintained speculative purchases based upon expected U.S. Tariffs. However, concerns remained that the rally wasn't based on strong consumer demand.
The benchmark three-month copper price on the London Metal Exchange increased by 0.4% at $9,997.50 per metric ton as of 1030 GMT, after rising 1% on Monday. However, it was still below its five-month high of $10,046.50, which was reached last week.
After U.S. president Donald Trump ordered an investigation into possible tariffs on imports of copper to rebuild U.S. copper production, traders have bid up the price of copper especially in New York.
The most active U.S. May Comex Copper Futures rose 1% to $5.14 per lb. This brings the premium of Comex to LME up to $1,350 per ton, or 13%.
"It is still about arbitrage and being able to move copper to the US to lock in a small profit." The premium appears to be settling in a middle ground between zero and 25% tariffs," Ole Hansen said, head of commodity strategies at Saxo Bank.
This is a market that's extremely hard to trade at the moment. It's not the end-users who are driving up demand. "This is a transfer of stock from one place to another."
Hansen said that there have been concerns that the siphoning of copper to the U.S. could create shortages in other parts of the world, but technical indicators on the LME Market do not support this.
Spread between cash LME and three-month contracts
The Shanghai Futures Exchange saw copper prices rise 1.2%, to 81 910 yuan (11 281.59) per ton.
The metals market was impacted by a stronger dollar that reached a three-week high after strong U.S. service data on Tuesday.
The dollar is stronger, making commodities priced in U.S. dollars more expensive to buyers of other currencies.
LME aluminium fell 0.4% to 2,606 per ton, while nickel dropped 0.2% to $16,975. Zinc rose 0.8% to $2968; lead gained 0.9% to $2055.50, and tin increased 0.5% to $34,535. ($1 = 7.2605 Chinese Yuan) (Reporting and editing by Maju Samuel).
(source: Reuters)