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Chile pushes back against Trump copper tariff probe
The Chilean government wrote to President Donald Trump’s administration informing them that the copper imports from Chile - the largest supplier of metal to the United States - do not pose a threat to U.S. national security. Trump ordered an investigation in February, under Section 232 of the 1962 Trade Expansion Act. This is the same U.S. legislation he used during his first term in order to impose global tariffs of 25% on steel and aluminium. In a letter dated March 31, the Chilean government expressed their anti-tariff position in a U.S. Commerce Department document that is now available publicly on a U.S. Federal website. Chile's Ambassador in Washington, Juan Valdes, wrote that copper imports from Chile contributed to the United States supply chain security. They did not pose any threat to their national security interests. The Trump administration has yet to provide any details on the results of its February investigation that aims to reduce China's influence on the global copper market. Section 232 investigations must be completed within 270 calendar days after they are initiated. Chile is the largest copper producer in the world, accounting for a quarter. Most of Chile's exports are sent to China. A free trade agreement has been in place since 2004 to cover its imports into the United States. The American Chamber of Commerce in Chile stated that Chilean copper exports are beneficial to the United States in terms of security and economy, and that tariffs may end up helping China. The group's CEO, Paula Estevez said that "the playing field has been leveled and tariffs would only serve to increase the attractiveness of Chilean copper exports to China and ultimately weaken the economic and security interest of the United States" in a March 31 letter, which is also available on the U.S. Federal website.
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B2Gold will cut 300 jobs from Namibia in this year
B2Gold, a Canadian gold mining firm, plans to reduce 300 jobs in Namibia by the end of this year. The company will continue its phased downscaling at Otjikoto after it has exhausted open pit reserves. Otjikoto, which started commercial production in March of 2015, produced an unprecedented 198,142 gold ounces last year. This accounted for almost a quarter B2Gold’s total output. "By 2025, we will reduce our permanent staff from 700 to 400. This means that 300 employees will be affected during 2025", B2Gold Namibia’s country manager John Roos told reporters Monday at a company presentation. Otjikoto also reported a record profit thanks to record-high gold prices. The company plans to continue processing the stockpiles until at least 2032. Current underground operations of the mine are expected to last until 2027. An extension is possible if exploration uncovers new mineral deposits. B2Gold began its phased reduction in Namibia in the first quarter 2024. 130 employees were laid off in that year. Otjikoto is expected to produce 165,000-185,000 ounces gold this year. B2Gold has gold mines operating in Mali, the Philippines and other countries. It also has numerous exploration and development projects in Mali, Colombia, and Finland. (Reporting and editing by Nelson Banya, Tomaszjanowski, and Tomasha Janowski).
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Stellantis Chairman: US tariffs and EU rules put auto industry at risk
John Elkann, Chairman of Stellantis, said on Tuesday that the U.S. Tariffs and strict European Union emission standards put automakers in danger at a time they are facing increased competition from China. Elkann, at a shareholder's meeting, said that the American and European auto industries were at risk due to the current course of tariffs and regulations. He said: "That would be tragic as the car industry is a source for jobs, innovation, and strong communities." Elkann is leading the group as it searches for a new chief executive officer after Carlos Tavares departed late last year. He said that "China is on a different trajectory", with the auto market in China set to surpass the combined U.S., European and Asian markets for the first ever. Elkann stated that automakers in the United States are faced with "layers upon layers of additional compounding duties including those on steel, aluminum and parts", beyond the 25% rate on automotive imports. He said that the statement made by U.S. president Donald Trump on Monday, in which he indicated he would consider some type of tariff reprieve to auto and auto part imports from Mexico and Canada, and other countries, was encouraging. Elkann said that the EU's CO2 regulation was "a realistic path to electrification but disconnected from the market reality". He said that "Governments in Europe, sometimes abruptly, have withdrawn purchase incentives and the charging infrastructure is still inadequate." In 2021, Stellantis was created by the merger between Fiat-Chrysler, Peugeot-Citroen and PSA. Jeep, Alfa Romeo, and Opel are also part of its brands.
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Mali closes Barrick Gold Bamako's office due to alleged non-payment taxes
Two sources familiar with the situation have confirmed that the Malian authorities closed the Canadian miner Barrick Gold’s office in Bamako due to alleged non-payments of taxes. This is the latest in a long-running dispute over mining revenue. Barrick Gold didn't immediately respond to an inquiry for comment. It had previously denied all wrongdoing. Since 2023, the Toronto-based miner has been involved in a dispute with Mali over the new mining code of the West African nation that grants Mali's Government a larger share in the mine. One source said that staff in Bamako could not access the office. The closure, however, did not affect Barrick’s Loulo-Gounkoto mine complex in western Mali where operations had been suspended since the middle of January. Both sides are in negotiations to settle the dispute. On February 19, Barrick reported that it had signed a settlement agreement that is awaiting approval by the Malian government. Two other sources and one source who talked about the closure of the headquarters said that a resolution of the dispute could be expected by next week. All sources asked to remain anonymous due to the sensitive nature of the subject. The government seized three tons of gold from the Loulo Gounkoto complex in January, accusing it of failing to meet its tax obligations. One source said that the tax dispute was separate from the reason for the office closing this week. Since early November, the Mali government, which came to power following coups in 2020 & 2021, has been blocking gold exports by the company. A fifth source confirmed that Barrick's Kibali Mine in Democratic Republic of Congo is temporarily transferring nearly 40 Malian employees from the Loulo-Gounkoto Complex. The person who spoke to us said that the transfers were part of a "first wave", but 100 Malian employees in total had been identified as being relocated, which is a sign that operations will not be restarted soon. (Reporting and editing by Silvia aloisi and Barbara Lewis.
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Russell: China's Q1 imports of key commodities were weak, but outlook is mixed.
China's imports were low in the first quarter. The challenge is to determine whether this was due to temporary factors, or a deeper economic malaise. In the first quarter of 2025, the four biggest commodity imports - crude oil, iron ore coal and copper - all fell compared to 2024. The soft imports can be explained by the fact that the second largest economy in the world is still trying to gain momentum for economic growth. This task is made more difficult by the trade war escalating by U.S. president Donald Trump. This ignores some factors that are unique to each commodity. Consider crude oil as an example. Customs data released Monday showed that imports in the first quarter were 135,25 million metric tonnes, or 10.97 million barrels a day. This is a 1.5% decrease from the same time last year. On the surface, this seems like a poor result. Crude imports certainly struggled in January and Febraury. Arrivals roared to life in March with a rise of 4.8% and reached 12.1 million bpd. This is the highest level since August 2023. It is unclear whether the increase in imports in March was due to an improvement in fuel demand or if it was driven by temporary factors. It is more likely that Chinese refiners purchased as many cargoes as possible of Iranian and Russian oil before the new U.S. sanction on these two countries' oil exports took effect. Kpler, a commodity analyst firm, estimated that China's imports of Iranian oil in March were 1.37 million barrels per day (bpd), up from 746 000 bpd and the highest since October. Kpler estimated that seaborne imports to Russia reached 1.25 million bpd. This is up from 760,000 in February, and the highest since November of last year. China imports pipelines from Russia at a rate of just under 1,000,000 bpd. The crude oil market is generally weak, and the strength seen in March was likely due to the United States' actual and anticipated measures. WEATHER HITS Imports of iron ore fell to 93.97 millions tons in March from 94.21 in February and 6.7% lower than March last year. Arrivals of key steel raw materials for the first quarter were 285.31 millions tons, a 7.8% decline from the same period last year. The weather disruptions in Australia, the country that supplies two-thirds China's total iron ore imports, were a major factor in the decline in iron ore prices. Exports of Australian iron ore to China fell to 50.5 millions tons in February, their lowest level in five years. The Chinese imports for April could be higher because many of the February-loading shipments arrived in March. Imports of coal of all grades were 114.85 millions tons in the first three months, down by 0.9% compared to the same period last year. Weather-related delays also affected shipments of iron ore from Australia. Australia is China's second largest supplier, after Indonesia. Australia's exports of goods to China fell to a two-year record low in February, at 3.74 million tonnes. Although they rose to 6.17 millions in March, they were still well below the average monthly volume of 6.7 million tones in 2024. Weaker Chinese prices encouraged utilities to switch from imports to local supplies. This trend is likely to continue and will put downward pressure on the volume of imports. Imports of copper unwrought also fell by 5.2% in the first three months, to 1.3 millions tons. Copper is another temporary factor. Shipments to the United States increased as traders rushed to capitalize on higher U.S. metal prices before the impending tariffs. Chinese buyers chose to reduce their imports as the United States was a major source of cargoes. They will wait for cheaper prices when the situation regarding Trump's possible tariffs is clarified. China's first-quarter commodity imports show a soft trend, with temporary factors causing the signs of strength. For example, crude oil arrivals for March were boosted by temporary factors. The outlook is also cloudy due to Trump's new tariff of 145% on U.S. imported goods from China. If this continues, it will be harder for Beijing achieve its economic growth target of 5% by 2025. These are the views of the columnist, an author for.
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HSBC lowers Brent forecasts due to trade tensions and sluggish demand for oil
HSBC reduced its Brent crude forecast on Tuesday. It cited rising trade tensions as well as an expected decrease in global oil consumption. The Bank cut its Brent Price Forecast to $68.5 per barrel in 2025, and $65 for 2026. The company also reduced its forecast for global demand growth in 2025 to 0.7 million barrels per day (mbd), and to 0.8 mbd in 2026, compared to the previous 0.9 mbd. This was due to an expected one-percentage point drop in global GDP. The ambiguous U.S. policy on trade has created uncertainty in the global oil market and prompted the Organization of the Petroleum Exporting Countries to reduce its demand forecast by 150,000 barrels a day. HSBC stated in a report that if prices remain between the low and mid $60s per barrel next winter, then the group may decide to pause its unwinding. Brent crude futures fell 20 cents or 0.3% to $64.66 a barrel at 1049 GMT. The bank stated that the U.S. pressure on Iran has not yet shown results. Other banks, including JPMorgan and Goldman Sachs, have also revised down their oil forecasts. Federal Register filings revealed that the Trump administration, on the geopolitical side, has begun investigations into imports of pharmaceuticals and semiconductors. The investigation was prompted by national security concerns arising from a heavy reliance on imported products, according to the Federal Register. (Reporting from Daksh Grocer and Anjana Anil, both in Bengaluru. Editing by David Evans.)
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India's sugar industry and government clash over jute bags
India, which is the largest sugar consumer in the world, has seen the federal government and jute bag producers go to court over an issue that has been a source of contention: Jute bags. The government of Prime Minister Narendra Modi has tightened the enforcement of a law from 1987, which requires sugar mills pack 20% of their supply in jute bag or pay fines if they do not comply. This is in an effort to support traditional fibres. Indian sugar mills have filed a lawsuit challenging the law, claiming that using jute bags costs them $76 million more per year than recyclable plastic bags. The Indian sugar mills also claim that the fibre bags increase the risk of contamination with sugar, according to previously unreported documents. In a court filing, the Indian government argues that concerns about contamination are unfounded because jute bags have a higher level of durability and pest resistance than recyclable plastic packaging. The Indian government also informed the High Court in Karnataka of the importance of the law to protect the traditional industry that supports 4,000,000 agricultural families. These lawsuits are the latest in a series of legal battles between Modi's Government and big companies. Daikin, Samsung and other global and Indian electronics companies are suing Modi separately over his plans to regulate the amount they have to pay for recycling e-waste. The documents related to the lawsuit that began in August were not made public, but they have been reviewed this week. The Karnataka High Court will begin hearing the final arguments on Wednesday. A ruling is expected to be issued in the coming weeks. One letter from December shows that the government warned sugar factories to "take non-compliance of jute packaging regulations seriously" and take "severe action". Both the sugar industry group in India and the Indian government have not responded to our queries. In court documents, sugar producers claimed that the jute bag regulations were also damaging to business. Many buyers refused to accept such bags. South Indian Sugar Mills Association stated that their bulk consumers, "like Pepsi Coke, Britannia ITC, Nestle, Nestle, Britannia... do accept sugar in bags made of jute due to contamination, food safety, and hygiene risks." India, with an estimated 28 millions tons of sugar consumption, is the largest consumer of sugar in the world. Modi has long been a supporter of rural and traditional sectors. He has also spoken out in favor of protecting the jute sector. He said that in 2023 such "reservation standards" for jute packing contributed to "revitalising the sector" and helped farmers.
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Oil prices drop after IEA reduces demand outlook
The oil prices fell on Tuesday, after the International Energy Agency (IEA) followed OPEC and lowered its oil demand projection. However, price drops were limited by President Donald Trump’s suggestion for some new tariff exemptions. Brent crude futures fell 50 cents or 0.8% to $64.38 a barrel at 1005 GMT. U.S. West Texas Intermediate Crude also fell 50 cents or 0.8% to $61.03 per barrel. OPEC lowered its demand forecast on Monday due to the uncertainty created by a vacillating U.S. Trade Policy. The IEA cut its estimates for the global oil demand to 730,000 barrels a day (bpd), down from 1.03million bpd, and to 690,000. bpd, next year. It cited escalating tensions in trade. UBS, a Swiss bank, cut its Brent price forecast by $12 per barrel to $68 per barrel on Tuesday. The UBS analyst Giovanni Staunovo said that if the trade war escalates, the downside risk scenario -- i.e. a worsening U.S. economy and a hard landing on the Chinese mainland -- would see Brent trading between $40-60/bbl in the next few months. BNP Paribas has lowered its average price expectations for this year and the next to $58 per barrel from $65. Chris Wright, the U.S. Energy Secretary, said in comments that helped support Friday's prices that the United States can stop Iranian oil exports to Tehran as part of Trump’s plan to pressurize Tehran over its nuclear program. China's crude imports were up nearly 5 percent in March compared to a year ago, as Iranian oil shipments surged. Trump's announcement that he would consider modifying the 25% tariffs on auto imports from Mexico, among other countries, also helped risk assets like equities and crude oil. (Additional reporting from Colleen Chow in Beijing and Emily Chow, Singapore; editing by Sonali, Kim Coghill, and Jason Neely.)
London Copper pares gains due to concerns about US semiconductor tariffs
London copper prices lost their gains on Monday, weighed down with concerns about President Donald Trump's threats of tariffs against semiconductors. Meanwhile, hopes for Chinese stimulus helped to limit losses.
As of 0404 GMT the benchmark three-month price for copper on the London Metal Exchange was up by 0.1% to $9,160 per metric tonne, after reaching its highest level in over a week.
The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 1.5%, to $75,920 yuan per ton ($10,389.61).
The dollar index dropped 0.4% against its competitors. The dollar is weaker, making commodities priced in greenbacks cheaper for buyers of other currencies.
Trump announced on Sunday that he will announce tariffs for imported semiconductors in the coming week. He also said there would be some flexibility with certain companies.
Trump's desire to reset the trade in semiconductors will probably result in a short-term exclusion of computers and smartphones from the reciprocal tariffs he imposes on China.
BMI, an arm of Fitch Solutions, said that tariff threats are still a major concern for copper.
Beijing's response, which could be a massive stimulus package, is likely to offset the losses.
Last week, Chinese Premier
State media reported that Li Qiang stated China needed to implement proactive macroeconomic policy and quickly roll them out, as "external pressures" had pressed on China's stabilisation.
Investors await additional stimulus measures by China to reduce the impact of Trump’s tariffs.
SHFE aluminium increased by 0.4% at 19,695 Yuan per ton. Zinc rose 0.5% at 22,465 Yuan. Lead gained 0.7%, reaching 16,885 Yuan. Nickel was up 1.5%, at 122760 Yuan. Tin advanced 2.5%, to 260480 Yuan.
LME aluminium rose by 0.5%, to $2408.5 per ton. Lead rose by 0.2%, to $1918, while tin rose 2.1%, to $31,870. Zinc rose 0.4%, to $2661, and nickel increased 0.6%, to $15,155. $1 = 7.3073 Chinese Yuan Renminbi (Reporting and editing by Rashmi aich and Sumana Nandy in Bengaluru)
(source: Reuters)