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LyondellBasell's quarterly profit forecast misses on account of weak volume
LyondellBasell missed Wall Street's quarterly profits expectations on Friday due to maintenance activities and lower volumes of its largest segment, supplying raw materials for the automotive, construction, and electronics industries. Following the results, shares of the petrochemicals producer fell 2.5% on premarket trading. The company announced an improvement plan for cash flow to help it navigate current macroeconomic volatility, and boost its earnings to $500 million. The chemical industry has been suffering due to a slump in demand and the rising cost of raw materials, particularly in Europe. Businesses are also being forced to reconsider their strategy in the region due to the strict regulatory environment. In a recent statement, CEO Peter Vanacker stated that "we continue to take reasonable measures to improve our near-term cash flow generation and remain committed to delivering our three-pillar strategies through this extended industry downturn." Eastman Chemical, a peer company, announced plans on Thursday to reduce expenses as a result of the market volatility caused by President Trump's tariff plans. The business activity in the Eurozone barely increased in February as a slight increase in services barely compensated for the ongoing decline in manufacturing. LyondellBasell’s largest segment in terms of sales volume, olefins and polyolefins, Americas, reported core adjusted earnings of $251 millions, down from the $521 million earned last year as higher feedstock prices impacted margins. The adjusted core profit for its Intermediates & Derivatives segment, which produces oxyfuels, intermediate chemicals and intermediate chemicals, dropped 69.9% from the previous period to $94 millions. The revenue for the quarter ending March 31 decreased from $8.3 Billion last year to $7.7 Billion. In the second quarter, the company anticipates seasonal improvements in demand across all businesses. According to LSEG, on an adjusted basis the company reported a profit per share of 33 cents in the quarter of January-March, compared to analysts' estimates of 43 cents. (Reporting from Pooja Menon, Bengaluru. Editing by Vijay Kishore.)
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Secretary of State for India says India will offer incentives to steelmakers in order to promote decarbonisation
The federal secretary of steel announced on Friday that India has a number of incentives in place to encourage the production of green-colored steel and to drive the decarbonisation efforts of local steelmakers. India wants to reduce its greenhouse gases emissions. India, after China the largest steel producer in the world, is working on a "green steel" policy to reduce carbon emissions from the production and procurement of this key building material. Sandeep Poundrik, speaking at a recent industry event, said: "We're trying to do many things to encourage green steel... including working on a project... where we'll try to support industry decarbonisation." The government will hopefully approve it soon." Poundrik said that firms would be encouraged to produce greener steel and use renewable energy. The official also said that the government was working to mandate a certain percentage green steel in all state-funded projects. India last year defined green steel to be steel that emits less than 2,2 tonnes of carbon dioxide per tonne of production. (Reporting by Neha Arora in Mumbai and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala)
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Asian and European stock markets steady; US stocks jittery due to conflicting trade tension signals
The dollar is on track to see its first weekly gain in over a month as investors take comfort in signs that the U.S., China and other countries are willing to end their trade war. In a sign that investors are unsure of how long this relief will last, U.S. Stock Futures were slightly down by 1048 GMT after the publication of an interview in Time magazine with U.S. president Donald Trump, where he stated that high tariffs on imports from abroad a year hence would be a "total win". Trump said that his administration had been in contact with China about a possible tariff agreement and that Chinese President Xi Jinping called him. This was contrary to comments made by Chinese officials on Thursday. The STOXX Index, the benchmark for Europe, rose by 0.27% after China removed some U.S. imported goods from its 125% tariffs. This was the clearest indication yet that Beijing responded to concerns over the impact of titt-for-tat duties on its economy. U.S. Futures started positively after Alphabet, the parent company of Google and tech giant Alphabet, beat profit expectations and confirmed AI spending targets. Its shares rose nearly 5% after-hours and pulled along its peers. S&P emini futures were down 0.26% by 1048 GMT, and NASDAQ 100 futures were down 0.36%. . The dollar, after a turbulent few weeks that saw tariff announcements and reversals, as well as a flight from U.S. assets and assets, has found its footing at around $1.1354 for the euro and 143.3 Japaneseyen. Eli Lee, Chief Investment Strategist at Bank of Singapore said that the peak of tariff threats is likely to be behind us. Both sides have stated that they will not increase rates above current levels. The tit-for-tat tariffs, which began on April 2, when U.S. president Donald Trump announced hefty import duties, had threatened to stall the trade between two of the world's largest economies. They also sparked concerns of a global slowdown. UNEASY CALM Hong Kong's Hang Seng index rose 1%, and mainland China’s Shanghai Composite Index and blue-chip CSI300 also saw small gains. The Nikkei 225 index rose 1.8% in Japan on Friday, regaining all of its losses following Trump's announcement that the United States would be imposing the highest tariffs it has ever seen. Trump suspended most of these tariffs, with the exception of China, which will have a 10% tariff. In a client note, ING currency analyst Francesco Pesole said that there is a sense among market participants that they can now impose a more favourable stance from the U.S. Government. Investors will seek confirmation of a more optimistic view on U.S. Assets to justify further dollar gains. The U.S. Dollar Index was up by 0.2% this week, at 99.623, while U.S. Treasury Yields remained flat. WARNING SIGNAGE The gold price, which has soared in this year due to investors seeking safe haven assets that are not tied to the dollar, fell 1% on the Friday, and was heading towards a weekly decline on signs of a possible de-escalation in trade tensions. There were plenty of warnings that the calm surface on the markets may not last. Procter & Gamble cut or withdrawn forecasts for American Airlines, PepsiCo and Chipotle Mexican Restaurant overnight due to increased consumer uncertainty. The Gold/S&P500 ratio, which is a measure of investor gloom and reflects the mood of the market, has reached its highest level since 2020, when the bear market was triggered by the pandemic.
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Phillips 66, a US refiner, reports a larger-than-expected quarter loss
Phillips 66 announced a larger-than-expected first-quarter loss on Friday. Lower refining margins due to widespread maintenance and turnaround activities across the U.S. refinery sector weighed down on its performance. In preparation for summer driving, U.S. refineries undergo seasonal maintenance and turn-around activities. This scheduled downtime can temporarily impact refinery performance and revenue capture. Mark Lashier, CEO of the company said: "Our results are not only reflective of a macro-environment that is challenging but also reflect our biggest spring turnaround program ever." The refining division of the company posted a $937 million loss during the first quarter of this year, compared to a $216 million profit a year earlier. Phillips 66 reported that its realized refining profit margins dropped to $6.81 a barrel in the quarter January-March, down from $11.01 a barrel a year ago. Its refinery usage was 80%, compared to 92% a year ago. According to data compiled and analyzed by LSEG, the Houston-based company reported an adjusted loss per share of 90 cents for the three-month period ended March 31. This compares with the analysts' average loss estimate of 72 cents. Reporting by Vallari Shrivastava, Bengaluru. Editing by Maju Sam and Shilpi Majumdar.
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Former Brazilian President Collor is arrested for corruption
Fernando Collor de Mello, the former Brazilian president, was arrested in Maceio on Friday after a Supreme Court judge rejected his appeals against a prior conviction and ordered that he begin serving time behind bars. Collor's attorney, Marcelo Bessa said that Collor was arrested at 4:00 am local time (0700 GMT), while traveling to Brazil’s capital Brasilia. He planned to surrender himself following Supreme Court Judge Alexandre de Moraes’ arrest order. Bessa, in a press release, said that the former president had been detained by federal police officers in Maceio. This is the capital of Alagoas. Moraes issued his order on Thursday after Collor, who was the first president of Brazil to be elected after the end the military dictatorship ended in 1985, had been sentenced to eight years and ten months in jail in 2023 for corruption and money laundering. Collor's attorney had expressed "surprise" and "concern" over Moraes decision in a statement released late Thursday. However, he added that the former President would comply with the Order. The 2023 conviction was handed down after Brazilian prosecutors accused Collor receiving bribes of around 30 million Reais ($5.28million) from a subsidiary of the state-run oil firm Petrobras. Collor was elected president in 1990. However, he did not complete his term because Congress decided to impeach Collor two years later over a separate scandal of corruption for which the Supreme Court acquitted Collor in 1994. Later, he was elected to the Senate as a Senator for Alagoas. He left Congress at the beginning of 2023 after an unsuccessful attempt to become governor of Alagoas.
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SLB, a provider of oilfield services, misses its profit forecasts due to international weakness
SLB missed Friday's analysts' expectations for the first-quarter profit, due to a slowdown of demand for oilfield equipment and service in Latin America. Following the results, shares of the company dropped by nearly 2% during premarket trading. SLB's earnings report completes the first quarter earnings of top U.S. oilfield services providers. Halliburton, Baker Hughes and other rivals had earlier in the week expressed concerns over weakening markets and tariff uncertainty. Halliburton warned that its second-quarter earnings would be hit by tariffs and reduced North American activity in the oilfields, while Baker Hughes predicted further spending cuts from global producers due to waning demand expectations and declining crude prices. SLB CEO Olivier Le Peuch stated in a press release that the industry could experience a possible shift in priorities due to changes in global economic conditions, fluctuating commodities prices, and evolving tariffs. All of these factors may impact upstream investment in oil and gas and, ultimately, affect demand for SLB's products and services. SLB reported that international revenue dropped 5% in the first quarter to $6.73 Billion. According to LSEG data, the company, formerly Schlumberger, reported earnings of 72 cents for the three-month period ended March 31. This was below analysts' average estimates of 74 cents.
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Cornwall Insight reports that Britain's cap on energy prices will fall by 9% this July.
The cap on domestic energy prices in Britain is expected to drop by around 9% this July, after wholesale energy costs fell amid the warmer weather conditions and U.S. tariffs announcements fuelled fears about economic growth. The government would welcome a reduction in the cap, as it is under pressure to keep its promise to reduce household energy costs. The benchmark British gas price has fallen by around 40% in the last few months as warmer weather has curtailed demand. In addition, the EU Parliament endorsed weaker storage regulations for gas and there are growing fears about a global trade conflict that could hinder economic growth and industrial production. "We've all seen markets rise and fall quickly, and that the market fell so rapidly shows the vulnerability of the market to market and geopolitical shifts," said Craig Lowrey. Principal Consultant at Cornwall Insight. The British energy regulator Ofgem caps household energy bills every quarter, using a formula which reflects wholesale prices of energy and also includes network costs from suppliers and environmental and other social levies. Cornwall Insight predicts that Ofgem will lower its price cap in July, to 1,683 pounds (2,238.89 dollars) per year based upon average usage. In April it was 1,849 pounds. Lowrey stated that the high volatility of the market could mean the cap forecast will change before it is set by Ofgem at the end May. ($1 = 0.7517 pound) (Reporting by Susanna Twidale, editing by Mark Heinrich).
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Nordex sales are hit by less wind turbine installations but it sees no financial risks from US
The German wind turbine manufacturer Nordex announced on Friday that its quarterly sales were below market expectations. It installed 20% fewer turbines onshore than it did a year ago, but it said there was no financial risk from the United States. A company spokesperson said that the maker of onshore turbines will continue to plan to resume U.S. manufacturing at its Iowa facility, following Germany's RWE, which announced it would stop U.S. offshore activities in light of regulatory uncertainties under Trump. Nordex, despite the uncertainties caused by President Donald Trump’s energy and trade policies, spoke positively in February about U.S. prospects for growth, saying that it wanted to get back to a U.S. share of 15 to 18%. The spokesperson stated on Friday that "in the short-term, customer decisions could be delayed." Over the next five to ten years, we anticipate that the demand on the market will continue. This market is therefore important to us. The spokesperson stated that Nordex faces "no risk of financial loss" due to its operations in the U.S. Nordex's first-quarter earnings were above analysts' expectations, but its sales of 1,44 billion euros ($1.63billion) fell short, since the Hamburg-based company installed 180 wind turbines, compared to 227 a few years ago. North America includes Canada. The same results from last year did not include the region. Germany, Nordex’s home market, is aiming for record-breaking levels of approvals and installations in the wind industry. $1 = 0.8814 Euros (Reporting and editing by Milla Nissi in Gdansk)
What next as China approaches peak aluminum production? Andy Home
China's aluminum production is approaching its capacity limit.
From just four million tons in 2004, massive investment in primary metals melting capacity has boosted Chinese production from only four million to 43 million tons by 2024. This is 60% of global output. The West has increasingly resisted China's increasing dominance in the global aluminum supply chain, first through trade complaints and antidumping duties, and then more recently with U.S. Tariffs.
China's semi-fabricated aluminum exports, which increased by 19% last year to a record of 6.2 million tonnes, were not affected.
Things are about to get better. The world is about to change.
Beijing's "Action Plan" on aluminium for 2025-2027 confirms that the cap will remain in place, and outlines a plan for what comes next.
TOUCHING the ceiling
According to the International Aluminium Institute, China's primary aluminum production increased by 2.6% on an annual basis in the first quarter 2025.
The average annualised production was 44 million tonnes between January and March, only a million ton short of the cap of 45 million tons set in 2017.
According to consultancy AZ Global, it is technically possible that the country's production could exceed the cap.
The capacity of a smelter is measured by the amperage designed for the electrolysis process. "One of the first tasks of any plant manager will be to push the output above the rate," the article says. The smelter can produce more than its capacity by increasing the amperage.
AZ China estimates China's capacity utilisation at 98.2%. This leaves little room for collective amperage to increase.
China's average annual growth rate of 4.0% over the past five years is beginning to slow down.
Going Green
Chinese operators continue to build new smelters. However, the new capacity will have to be offset by closing older capacity.
Beijing's policies in this sector focus on removing less-efficient capacity and ensuring that newer smelters use renewable energy sources.
Aluminium production is moving from coal-rich regions to new energy hubs such as Yunnan, with its hydropower and Inner Mongolia which has a massive wind and solar power potential.
The goal is to produce a greater amount of low-carbon metal. The action plan also calls for 30% of the national smelter's power to be generated by renewable energy by 2027.
Beijing wants to boost production by recycling scrap to reach a target of 15 million tons annually in 2027.
Reduced Exports
A second offset is already in effect. In December, the government eliminated tax rebates of 13% for exports of aluminum products. This was done to keep more metal on the domestic market.
Exports have slowed down sharply since then, with volumes outbound falling by 11% on an annual basis in January and Febraury.
Analysts at Macquarie Bank predict that exports will fall by 8% between 2025 and 2030. A more dramatic collapse is unlikely, as the world outside China relies heavily on its products for around 15% of the total demand.
Most Western buyers are likely to accept at least a part of the cost increase.
It is possible that Chinese aluminum exports have reached their peak.
REPRIEVE FOR WESTERN GENERALISERS?
Combining a slowdown in Chinese production growth with reduced exports opens up a window for the rest the world's primary aluminum producers.
Nearly a million tonnes of smelting capacity in the United States is idle. The 25% tariffs on aluminum imports imposed by President Donald Trump are meant to encourage restarts.
After the surge in power prices that followed Russia’s invasion of Ukraine, 2022, around half of Europe's primary smelting capacities are out of operation.
Although the structural changes implemented by the largest producer in the world may provide a reprieve for such plants, restarting idled capacities is also a matter of aluminium and electricity prices.
After years of low investments, there is renewed interest in greenfield smelters being built in the West. Century Aluminum, a U.S.-based producer, has received $500m in government funding for a project that will launch the United States' first new smelter since 1945. Rio Tinto has been studying low-carbon projects for smelters in Finland and India.
But the Chinese dominance will remain
Due to a lack of expansion opportunities in China, Chinese producers also look overseas. Beijing's aluminum action plan calls on deeper cooperation with resource rich nations like Guinea, where Chinalco has a project in place to convert Guinea's bauxite into alumina. Shandong Nanshan Aluminium, which produces alumina in Indonesia, plans to expand their refining capacities and add a smelter that can produce 260,000 tons of alumina per year.
China has stopped building its own capacity, but it appears that they have no plans to loosen their grip on a material classified by the United States as well as the European Union as a vital raw material.
These are the opinions of the columnist, an author for.
(source: Reuters)