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Japan's crude imports for FY2024 down 7.1%; second consecutive year of decline
The Ministry of Finance (MOF), on Thursday, reported that Japan's crude oil imports cleared by customs in 2024 fell 7.1% from the previous year, and the value of the imported crude oil dropped 5.7%, to 10.65 trillion Japanese yen ($74.7billion), due to the lower oil price. The preliminary data show that Japan, which is the fourth largest crude buyer in the world, imported 2,32 million barrels of crude oil per day (134,67 million kilolitres), for the period ending March 31. The MOF reported that this was the second consecutive decline in value and volume year-over-year. The volume of Japan's LNG imports rose by 1.5% in the past financial year to 65.87 millions metric tons, while the value increased 2% to $6.17 trillion yen. The data revealed that imports of thermal coal used for power generation rose by 7.4%, to 105.46 millions tons. However, the value of the thermal coal imported fell by 11.9%. The MOF reported that crude oil imports for March fell by 13.6%, to 2,19 million bpd (or 10,78 million kilograms). Japan's LNG imports totaled 5,15 million tons in the last month. This is down 7.2% compared to a year ago. The data shows that imports of thermal coal used in power generation rose by 8.8% to 8,31 million tonnes in March. The following is a breakdown of the energy imports in Japan for last month. Volumes of crude oil, petroleum products, gasoline/naphtha, LNG, LPG, and coal are in millions of kilolitres, and values are in millions of yen. FY2024 figures Fuel Volume Yr/Yr (%) Value Yr/Yr (%) Mineral Fuels n/a 25074,903 -3.6% Crude Oil 134.671 10,650,207 -75.7 Oil Products n/a 2 970 054 11.0 (Mogas/Naphtha) 27.988 -0.5 2,141,629 8.1 LNG 65.874 1,5 6,171,814 2. LPG 9.98 0.2 952,291 11. Coal 165.3 1 0 4,282,331 (- 15.8) (Thermal Coal) 105.458 7.4 2,428,864 -11.9 March figures Fuel Volume Yr/Yr (%) Value Yr/Yr (%) Mineral Fuels 1,917 329 -12.5 Crude Oil 10,777 -13.6 805,831 -17.2 Oil Products n/a (Mogas/Naphtha) 2.294 6.2 164,411 0.9 LNG 5.151 -7.468.500 -11.6 LPG 1,192 40,618 44,9 Coal 12.29 -6.4 265,283-31.2
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Copper trades at a low volume as the dollar edge up
The copper price fell in London Thursday, under the pressure of a stronger dollar. However, it remained within a narrow range, despite lower trading volumes before a four-day break for Easter. There was also no sign that the trade war between China and the U.S. had de-escalated. By 1019 GMT, the benchmark three-month price of copper on London Metal Exchange was down by 0.9% to $9,120.50 per metric tonne. Metals that are important for growth have lost 6% this month due to an escalating global trade war. The two biggest economies in the world have imposed triple-digit import duties on each other. This is threatening global demand and growth. In a recent research note, Citi analysts said that "Tariffs may have peaked but de-escalation has not yet been seen." China's Commerce Ministry on Thursday called on the U.S. not to put "extreme pressure" against Beijing, and demanded that any trade negotiations be conducted with respect. However, both sides are still unable to agree on who will initiate these talks. China is the top metals consumer in the world. Citi forecasts that global growth will slow to just 2.1% in 2018, down from a little under 3% the previous year. In 2026, growth is projected to only rebound slightly, to 2.3%. This is because of the continuing effects of U.S. wide tariffs. Since the U.S. announced their tariffs early in April, copper prices have fallen below its major moving averages. These are now at resistance level. The 100-day moving is $9,284. The dollar's rise on Thursday pushed up the price of metals for buyers who use other currencies. LME aluminum fell by 0.3%, to $2.375 per ton. It is already subject to a 25 percent U.S. tariff on imports, and it has fallen 7% this year. Alcoa, a major U.S. producer, said that the U.S. still faces a shortage of 3.6 millions tons of aluminum even if the entire idle smelting capability in the country was restarted. The company expects U.S. Tariffs on Aluminium Imports from Canada will cost it $90 million in the third quarter. Nickel fell 0.6% at $15,595. LME zinc dropped 0.8%, to $2,561 per ton. Lead lost 0.2% to $1,904. Tin rose, however, by 0.6%, to $30,880. The LME will be closed for Easter on Friday and Monday. Reporting by Polina Devlin in London, Editing by Rachna uppal
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Hyundai will suspend EV production due to US tariffs and slow demand in South Korea - Yonhap
Hyundai Motor will temporarily stop production of some electric vehicles in South Korea, Yonhap reported on Thursday. The news agency cited unnamed sources. Yonhap reported that the South Korean automaker will stop production on certain lines at its Ulsan facility, where it produces electric vehicles Ioniq 5 & Kona, from April 24-30. Yonhap said that the suspension is due to the fact that EV orders have dropped sharply from major markets in April after the removal of government EV subsides and U.S. Tariffs on imported cars. Hyundai Motor is not available to comment immediately outside of regular business hours. The Trump administration in the United States announced this month a 25% import tariff on cars and light trucks. Hyundai Motors has announced that it will keep the sticker price of its current model line at the same level for the next two month to allay customer fears that tariffs would impact dealer lots. The program runs until June 2 and follows the South Korean Auto Group's $21 Billion investment in the U.S. announced back in March. Heekyong Ya, Ed Osmond (reporting)
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Indonesian nickel smelter asks for a delay in royalty increases until prices increase
The chairman of the Indonesian Nickel Smelters Association requested that the government delay the new mineral royalties until the nickel price on the London Metal Exchange has risen to $17,000 a metric ton. The LME 3-month nickel contract is currently trading at around $15,600. According to a copy the regulation, Indonesia will begin charging higher royalties of between 14% and 19% depending on the price level on nickel ore production, up from 10%. According to the regulation, nickel matte and nickel pig iron, both semi-refined products, will be subject to a royalty of 5% to 7.5%, whereas nickel pigiron will only have a royalty of 3.5% to 5.5%. The regulation said that nickel matte would be charged a 3.5% to 5.5% royalty, compared to the current nickel pig iron single tariff of 5% and nickel pigiron's current single tariff of 2%. Alexander Barus (FINI), chairman of the smelters' group Indonesia Nickel Industry Forum, told officials from the mining ministry that "we support" the government's plan for royalty payments. He said that the group has asked the Energy and Mineral Resources Ministry for consideration to wait until the nickel price on the LME reaches at least $17,000 per tonne, which would allow the companies to cover their costs of the royalty increase. BMI researchers said that earlier this month they had reduced their nickel price forecast for this year, from an average annual of $17,000 per ton to $15,000 due to conditions of oversupply. Meanwhile, President Trump's policies on trade have added to the risks. The prices of our products, like stainless steel, nickel pig-iron and ferronickel are also falling now. Barus said that the royalties would be a burden. Indonesia Nickel Miner Association has stated that nickel miners have already been hit by higher fuel costs after the government eliminated subsidies for biodiesel in early this year. APNI also asked for a delay in the implementation of new fees. The Energy and Mineral Resources Ministry's senior official in charge of mining did not respond immediately to a comment request. Other products, such as refined tin, copper concentrate and copper ore will also see a rise in royalties. The government had previously stated that the new royalty policy aimed to improve industry governance. The government's deficit is growing due to the drop in tax revenues and increased spending on President Prabowo's flagship programs. (Reporting and editing by David Evans; Fransiska nangoy)
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Officials say that three people were killed in an attack by Russia on the south of Ukraine
Local authorities reported that Russian missiles and drones killed three people and injured ten more in Ukraine's southern region on Thursday after an overnight barrage. The regional governor announced on Telegram that two men aged 56 and 60 were killed and five others were injured in an artillery attack on Nikopol. He said that the attack caused a fire, damaged a civilian infrastructure and a store. The mayor of Kherson said that one person died during an airstrike by the Russians on Kherson. A teenager and four adults were also injured. Moscow's forces frequently attack both cities by their positions on the other side of the Dnipro River. The Ukrainian air force claimed that Russia launched five missiles, and 75 drones in an overnight attack. Meanwhile, Russia claimed to have destroyed or intercepted seventy-one Ukrainian drones across six Russian regions. The violence continues despite President Donald Trump’s attempts to arrange a truce in the three-year old war that was sparked by Russia’s total invasion of Ukraine. On Thursday, top Ukrainian officials visited Paris in an unannounced trip. They were there to attend talks between European and U.S. officials on Ukraine.
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Finland investigates Russia sanctions breach regarding nuclear plant construction
The Finnish customs authority announced on Thursday that it was investigating a possible breach of Russian sanctions involving documents relating to the construction and operation of a nuclear plant. The Economic Crime Investigation Unit of Finnish Customs released a statement that the preliminary investigation focused on an important number of archived documents which were allegedly taken from a warehouse in Kymenlaakso to Russia. According to preliminary investigations, certain data are classified as materials subject to sanctions against Russia. Finnish Customs refused to comment on the matter further but stated that the managing director for a construction firm involved in the project is a suspect. Finn Customs has said that a decision will be taken about whether or not to charge a person after the investigation is complete. Finland has five reactors in two power plants, Loviisa & Olkiluoto. Fortum, the owner of Loviisa, and TVO, Olkiluoto’s owner, both said that their plants were excluded from the investigation. After the Russian invasion of Ukraine, Finland canceled plans to build a sixth plant in Hanhikivi. The reactor was to be supplied by Rosatom.
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State media reports that an Iranian minister has arrived in Russia to deliver a message by Khamenei.
Iranian state media reported that Iranian Foreign Minister Abbas Araqchi arrived in Moscow on Friday to deliver to Russian President Vladimir Putin a message sent by the Islamic Republic's supreme leader Ali Khamenei. U.S. president Donald Trump has repeatedly warned Iran of bombings and secondary tariffs, if Tehran fails to reach an agreement with Washington regarding its disputed nuclear programme. The United States have also moved additional warplanes in the region. Both sides characterized the U.S.-Iran talks held in Oman at the weekend as constructive and positive. Araqchi stated on Wednesday, ahead of the second round of negotiations that will take place this weekend in Rome, that Iran's right not to enrich uranium was non-negotiable. Araqchi posted a video on his Telegram account of him arriving at Moscow. Western powers claim that Iran refines uranium beyond the permissible level for a civil energy program and near to the level required for an atomic weapon. Iran has long denied seeking nuclear weapons. Russia has stated that any military attack against Iran would not be legal and inacceptable. On Tuesday, the Kremlin declined to respond to a question about whether Russia would be willing to take over Iran's enriched uranium stocks as part of an eventual nuclear agreement between Iran and United States. Reporting from Moscow and Dubai, Felix Light's writing; Guy Faulconbridge, Mark Trevelyan and Guy Faulconbridge are responsible for editing.
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Tariffs weigh on major Gulf markets, causing them to decline
Investors were concerned about the uncertainty surrounding U.S. trade policies and a possible economic slowdown. Traders await signs of progress in negotiations between the administration of U.S. president Donald Trump and its trading partners. This includes ongoing trade discussions with Japan. The biggest concern is the direction of any possible discussions with China. Saudi Arabia's benchmark Index fell 0.5%. This was due to a fall of 1.5% in ACWA Power Company, and a drop of 1.3% in Saudi Arabian Mining Company. Investors also absorbed comments made by Federal Reserve chair Jerome Powell who warned about the risks of slowing down growth and increasing prices due to tariffs. Dubai's main stock index fell 0.1% due to a drop of 1.6% in Emaar Properties, a blue-chip developer. Abu Dhabi's index also fell by 0.1%. Commercial Bank lost 2.6% after a sharp drop in the first-quarter profits. Qatar's benchmark dropped 0.5%. Oil prices rose on the prospect that supply would be tightened after Washington imposed new sanctions to curtail Iranian oil trade and some OPEC producers promised to cut more production to compensate for pumping over their agreed quotas.
EU Commission to discuss US tariff strategy and trade with industries
A letter of invitation seen by revealed that the European Commission had invited the most affected sectors by U.S. Tariffs to a meeting in person on Thursday. The commission is weighing new trade agreements and countermeasures.
Participants from the auto and steel industries will be invited to the meeting, which is being led by Stephane Sejourne, the industry chief for the Commission. Ursula von der Leyen, the Commission president, had called executives from the autos and pharmaceutical industries as well as metals industry.
In the letter of invitation, it was stated that the meeting would be held to determine what impacts EU companies have already experienced in the "short- and medium-term" and how best to respond in terms "of sector-specific policies and counter-tariffs as well as non-tariff countermeasures."
Washington has imposed sector-specific tariffs on steel, aluminum and vehicles, in addition to reciprocal tariffs.
The Commission is worried about the impact of the upcoming measures on "pharmaceuticals and minerals, as well as copper, semiconductors and lumber." The Commission warned of possible additional tariffs which could hit EU companies who still use Venezuelan crude oil "directly" or indirectly.
The Commission is looking for input from the industry to determine the best tool to use, whether it be free trade or partnership.
The letter stated that "the two-hour meeting is an opportunity for the EU to exchange views on the impact the tariffs have on different industrial sectors, as well as measures it could take to reduce their impact." Reporting by Julia Payne, Editing by David Gregorio
(source: Reuters)