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JFE Holdings, Japan's largest investment company, aims to invest nearly $3 billion overseas in growth.
JFE Holdings (parent of Japan's second largest steel manufacturer) has set aside 400 billion Japanese yen ($2.8billion) to invest overseas over a three-year period. It expects the domestic demand to remain weak, and that China's exports will continue to pressure global markets. The company stated that its key strengths outside Japan include its partnerships with JSW Steel Limited India and Nucor Corporation North America. It also plans to increase its exposure overseas through strategic local partners. It added that "in parallel with considering large scale overseas investments, such as the acquisition of raw materials interests, promising opportunities will be pursued through local partnerships in growing markets to capture increasing steel demand abroad." JFE aims to increase its consolidated profit by 700 billion yen in fiscal 2035 from 135.3 billion last year. It expects that the steel business will remain challenging due to the declining demand in Japan, the increasing exports from China, and the uncertainty for the global economic situation resulting from U.S. Tariffs. JFE Holdings reported a net loss of 54% for the year ending March 31. This was below LSEG's forecast of 105.4 Billion Yen. The company also posted lower steel production due to weaker domestic and international demand. The company projected a profit for fiscal year of 75 billion yen. JFE stated that in addition to the low demand at home and U.S. Tariff measures, which are a major risk to its exports to North America, there is also a "significant risk" from the auto and construction machine sectors.
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Short covering and Indian buying of palms is limiting the decline in prices.
Malaysian palm futures fell Thursday, reaching their lowest level since September. However, strong Indian buying and short-covering helped to erase some of the early losses. By midday, the benchmark palm oil contract on Bursa Malaysia's Derivatives exchange for July delivery had fallen 1 ringgit or 0.03% to 3,727 Ringgit ($874.27) per metric ton. Anilkumar bagani, the research head at Mumbai-based Sunvin Group and a vegetable oil broker, said that "the futures opened lower than expected but quickly gained some ground on the back of Indian purchasing and short covering following a significant drop in recent months." He added that India is the first country to purchase palm oil because of its attractive prices compared to other oils, such as soyoil. Dalian's palm oil contract, which is the most active contract, fell by 0.63%. Chicago Board of Trade soyoil prices were up by 0.49%. As palm oil competes to gain a share in the global vegetable oils industry, it tracks the price changes of competing edible oils. Dorab Mistry, an industry analyst, said that Malaysian palm futures will likely continue to decline from June through November and trade at a level near the two-year low price of 3,500 Ringgit as a recovery in production results in a buildup of stocks. The day's oil prices rose, boosted by the hope of a breakthrough at upcoming U.S. China trade talks. Palm oil is more appealing as a biodiesel source because crude oil futures are stronger. The palm ringgit's trade currency, the U.S. Dollar, fell by 0.71%, making the commodity more affordable for buyers who hold foreign currencies. According to Wang Tao, technical analyst, palm oil could test support at 3,702 Ringgit. A break below this level would open the door for a move towards the range of 3,638-3662 Ringgit.
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India's PNB CEO targets record-low bad loans ratio by increasing debt recovery, he says
Ashok Chandra, the CEO of Punjab National Bank, India's second largest state-run bank by assets, said that the bank aims to recover a higher percentage of soured loans in 2018. This will lead to a gross bad loan ratio record low, which is a key asset-quality metric. Chandra, a New Delhi-based banker, said in an interview that the lender aims to recover bad loans worth 160 billion rupees (1,89 billion dollars) in this financial year. This is an increase of 11 times over the 14,36 billion rupees recovered by 2024-25. He said that 60 billion rupees would come from the loan accounts previously written off. This would lower the gross non-performing assets (NPAs) ratio of PNB to less than 3% at the end 2025-2026. That would be its lowest ever. The gross NPA ratio has improved from 4.09% to 3.95% by the end March. This is a far cry compared to a gross non-performing loan ratio of 14.33% following the COVID-19 pandemic in 2011 after a crippling corporate bad loan cycle. PNB announced a nearly-52% increase in its net profit for the quarter January-March, partly due to the fact that it had set aside less money for bad loan reserves. The domestic loan growth rate was 13.1% while the deposit growth rate was 13.3%. Chandra stated that PNB anticipates its loan book will grow by 11%-12% in the fiscal year which began in April and that deposits will increase by 9%-10%. He added that the company has a corporate lending book of 1,35 trillion rupees, and that it expects to see a growth in loans for medium and small businesses between 16%-17%. Chandra explained that the PNB's costs of funds would remain high for several quarters because the rate cuts of the central banks usually take time to be felt. Chandra stated that PNB has been in contact with other lenders of Bhushan Power and Steel, to determine the next steps after the Supreme Court ruled against JSW Steel’s four-year old buyout of Bhushan Power and Steel. As part of this resolution, PNB received approximately 30 billion rupees. All options will be considered to determine the best way forward. $1 = 84.6780 Indian Rupees (Reporting and editing by Savio Da Souza; Siddhi Nyak)
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CORRECTED - Indian strike on Pakistan is the worst fighting between neighbors in more than 2 decades
Two weeks after an attack that killed 26 people in India, the US announced on Wednesday it had destroyed nine sites in Pakistan which it called "terrorist facilities". New Delhi has blamed Islamabad in Kashmir. Islamabad claims that six locations and eight people were killed. As nuclear-armed adversaries who have fought in three wars before, кслуативне intensifier Here is a timeline of major military events in Kashmir. The following are some of the diplomatic terms used by Escalations in their Troubled Relationship since 1999 May-July 1999: India and Pakistan are engaged in an undeclared conflict over the Kargil region of Kashmir, after Pakistani-backed irregulars took control of Indian posts along the Line of Control or ceasefire line. India pushes back after intense fighting. The U.S. forces Pakistan to withdraw. December 2001 Nine people were killed by heavily armed attackers who attacked the Indian parliament in New Delhi. India accuses the islamist groups Jaish-e-Mohammed (based in Pakistan) and Lashkar-e-Taiba. Both countries are on the verge of a third war. November 2008 Ten heavily armed assailants target landmarks in Mumbai, including two luxurious hotels, a Jewish center and the main station. They kill 166 people. India suspends all dialogue with Pakistan. It resumes them briefly, years later, under a structured process of peace. January 2016 The attackers disguised as Indian Air Force soldiers stormed an Indian Air Force Base near the Pakistani border. They exchanged fire with Indian forces, who were backed by helicopters and tanks, for over 15 hours, before taking back the compound. The attack results in the death of all five attackers and at least 2 guards. India claims the attackers were from Pakistan while Pakistani officials condemned the raid. The peace talks that briefly resumed in 2015 have stalled again. September 2016 An attack on a base of the Indian army in Uri, Indian Kashmir, has resulted in 18 Indian soldiers being killed. India accuses Pakistan of the attack, and launches "surgical strikes" on the launch pads it believes to be terrorists across the LoC. Pakistan denies any incursion on its territory. February 2019 In Kashmir, a suicide bomber killed 40 paramilitary Indian police. India launches air strikes on Balakot in Pakistan. Pakistan shoots down a plane from India. India claims that it shot down a Pakistani plane, but this has not been confirmed. After international pressure, the standoff has de-escalated. August 2019 India has revoked the special status of Kashmir, removing a provision in its constitution that permitted Jammu-Kashmir to create its own laws. Pakistan suspends trade and downgrades diplomatic relations with Pakistan. April 2025 26 men were killed by islamist attackers who targeted Hindu tourists in Indian Kashmir. India accuses groups backed by Pakistan; Pakistan denies any involvement and demands a neutral investigation. India suspends its 1960 Indus Waters treaty, which regulates water sharing from the Indus River and its tributaries. Pakistan suspends all commerce with India, including trade through third countries. India has revoked most of the visas granted to Pakistani citizens. (Complied and edited by YP Rajesh, Raju Gopalakrishnan and Surbhi Misra)
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Heidelberg Materials' Q1 results beat expectations due to strong Africa business
Heidelberg Materials, the second largest cement manufacturer in the world, reported sales and profits that exceeded expectations for its first quarter. The company also confirmed its outlook citing strong growth across Africa. The first-quarter results from current operations of the company rose 1.3%, to 235 millions euros ($266million), exceeding the average polled forecast by the group. Dominik Von Achten, CEO of the company, said that despite the political and economic uncertainty as well as the difficult weather conditions in certain regions, the 2025 financial period started off very positively. Holcim, a larger competitor, cited a strong North African business as one of its drivers for better than expected first-quarter earnings late last month. Heidelberg Materials still expects RCO of between 3.25 and 3.55 billion euro in 2025, as opposed to a consensus estimate of 3.44 billion. It said that the company's North American RCO, which accounted for nearly two-thirds of its first-quarter sales, had dropped by almost two-thirds.
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Russell: Iron ore is a very different story from the China tariffs pain narrative
The United States has imposed massive tariffs on Chinese goods, and the Chinese economy faces a huge blow. However, the commodity that is most vulnerable is not affected. China is most exposed to iron ore, as it buys over 70% of the seaborne volume, which is used to make just under half of the global steel. Iron ore prices have remained relatively stable since U.S. president Donald Trump began his trade war with China. The United States now imposes tariffs of up to 145% on China, its biggest trading partner. On Wednesday, iron ore contracts on the Singapore Exchange closed at $99.35 per metric ton. This is after they had risen from a low of $96.20 per metric ton that was reached on May 1. Since October, the price has traded in a relatively small range. The high was $110.55 at the beginning of that month, and the low was at the beginning of May. China's iron ore imports have also slowed slightly. Customs data shows that first quarter arrivals were down 7.8% compared to the same period last year, at 285.31 millions tons. While this figure may seem low, it is largely due to weather conditions in Australia that cut off shipments by China's largest supplier. China's port stocks are a clear indication of the supply disruption SteelHome data shows that they dropped to a 14 month low of 133.8 millions tons during the week ending April 25. Stockpiles reached 147.5 million tonnes in mid-February. This shows that steel mills are using their inventories to continue production during the period when supply from Australia is disrupted. Analysts Kpler expect China's imports to have recovered from March, when they recorded 93.97 millions tons. China's steel production is also holding steady, with March's total of 92.84 millions tons representing a 10-month-high and a 4.6% increase from the same period in 2024. Overall, the iron ore market has been relatively stable this year. Any import weakness can be attributed to disruptions in supply. China's demand is also fairly steady. Iron ore imports should also be expected to continue beyond April if China's stocks are to reflect the normal seasonal build-up leading into the summer steel peak in the north. DEMAND FOR STEEL If there is such concern over the negative impact on China of U.S. Tariffs, then why are iron ore, and steel, holding up? Are they about to decline in price? Answer: A large part of China's demand for steel is found in industries less exposed to international trade. Property and infrastructure are the two largest steel-consuming industries, accounting for almost 60% of total demand. The property market has been struggling in recent years. However, early signs suggest that Beijing's stimulus measures are beginning to stabilize it. Machines, automobiles and household appliances are the trade-exposed segments of steel demand, accounting for almost a third. Even here, China's exports are not primarily destined for the United States. Instead, the majority of vehicles and machinery is shipped to Asia, Europe and South America. The United States is more exposed in the manufacturing of toys, clothing, and other items that do not use much steel, but rely more on chemicals, plastics, and rubber. The official purchasing managers' (PMI), which measures the level of activity in the private sector, fell to 49.0 in April from 50.5 in march. Beijing's recent stimulus measures were likely also influenced by the PMI slump, as they announced on Wednesday a reduction in interest rates and an increase in liquidity. It's clear that some parts of China are feeling the pain from the tariffs, but other parts are doing well. Beijing's message is geared towards positives, but the U.S. administration is more likely to hear the story of pain. These are the views of the columnist, an author for.
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Prices of oil rise on US-China trade talks
Oil prices rose on Thursday, after dropping more than $1 the previous session. This was due to hopes that a breakthrough would be made in upcoming trade talks between China and the U.S., two of the largest oil consumers in the world. Brent crude futures rose 51 cents or 0.8% to $61.63 per barrel. U.S. West Texas intermediate crude rose 57 Cents or 1%, reaching $58.64 per barrel at 0420 GMT. Tina Teng, an independent analyst, said that optimism around the U.S.-China trade talks at the weekend was a major factor in supporting the recovery of the oil market. "Signs that a trade war was deescalating improved the market sentiment and triggered a recovery in oil prices on an oversold marketplace." Scott Bessent, U.S. Treasury secretary, will meet China's top official in the economy on May 10, for talks about a trade conflict that is disrupting global economic growth. These are the two world's largest economies, and their trade war is likely to reduce crude consumption growth. Donald Trump, the U.S. president, suggested on Wednesday that China initiated trade talks. He added that he would not be willing to lower U.S. tariffs against Chinese goods in order to convince Beijing to negotiate. Bessent stated that the talks will be a beginning, and not an 'advanced discussion'. After the Federal Reserve kept interest rates at their current levels but warned of rising economic uncertainty, weak demand concerns have capped oil prices gains. The Fed has indicated that it will probably hold rates until the tariff effects are clearer. The U.S. Dollar was boosted, adding to the headwinds on the broader commodities markets. Dollar-denominated crude oil becomes more expensive and less desirable for holders of currencies other than the U.S. dollar. Analysts are concerned that the U.S. is not preparing for the summer period of demand. This month, gasoline inventories in the U.S. rose, adding to concerns about a weakening demand. OPEC+ (Organisation of the Petroleum Exporting Countries) and its allies will simultaneously increase their oil production, increasing pressure on the price.
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The London Metals Company ahead of US-China Trade Talks
Metal prices in London rose mainly on Thursday, ahead of the U.S. China trade talks this Saturday. This was after the Federal Reserve warned that rising inflation and labour market risk could fuel economic uncertainty. As of 0344 GMT, the benchmark copper price on London Metal Exchange (LME), rose by 0.5% to $9467 per metric ton. The Fed maintained interest rates on Wednesday. They acknowledged that the risks of inflation and unemployment were higher, which further impacted the U.S. economy amid the effects President Donald Trump’s tariffs. Fed Chair Jerome Powell stated that it's not clear whether the economy will maintain its steady growth pace or falter under rising uncertainty and an upcoming spike in inflation. The New York Times reported that late on Wednesday, Trump's administration would announce a deal with the United Kingdom on Thursday. After months of rising tensions, which pushed tariffs well above 100% between the two world's largest economies, traders have adopted a cautious approach ahead of this weekend's U.S. China meeting scheduled in Switzerland. Both countries will likely discuss the possibility of lowering tariffs on specific products and a broader range of duties. We're all eagerly awaiting any updates or news from the U.S.-China trade talks. Uncertainty about the direction of markets is difficult to predict until we hear more," said a trader. Other London metals saw aluminium rise 0.6% to $2 395 per ton. Zinc added 0.4% at $2 627. Lead fell 0.3% at $1 951. Tin gained 1.0% at $31,965. And nickel rose 0.4% at $15,615 per ton. The Shanghai Futures Exchange's (SHFE) most traded copper contract fell by 0.2%, to 77840 yuan per ton ($10,760.89). SHFE aluminium fell 0.3%, to 19,595 Chinese yuan per ton. Zinc rose 0.2%, to 22,390 Yuan. Lead gained 0.4%, to 16,795 Yuan. Nickel rose 0.2%, to 124330 Yuan. Tin rose 0.4%, to 263,000 Yan. $1 = 7.2336 Chinese Yuan Renminbi (Reporting and editing by Sumana Niandy; Violet Li, Lewis Jackson)
Rio Tinto first gallium extracted in collaboration with Indium
Rio Tinto, a mining giant, announced on Wednesday that it had successfully extracted the first primary gallium in a joint venture with Indium Corp. of the United States. The collaboration aims to produce commercial quantities of this rare metal.
This development coincides with China's restrictions on metal exports to the United States, including gallium, antimony and germanium. These are part of Beijing’s response to Washington’s trade war.
Rio Tinto reported that the first extraction took place at Indium’s R&D facility located in New York. The next phase will assess techniques to enable the production of larger quantities of gallium on a pilot scale.
Rio Tinto predicts that if the miner is successful in bringing production to commercial scale in its refinery located in Quebec, Canada it will produce up to 40 tonnes per year, which would be worth 5%-10% the current global output.
Rio Tinto and Indium Corporation are working to improve the North American supply of gallium, said Rio Tinto executive Jerome Pecresse in a press release.
China is the largest producer of germanium, antimony and gallium. These metals play a niche role in chipmaking, defence and clean energy. However, Beijing's targeting of U.S. supply chain is driving prices up. Reporting by DhanushVigneshbabu in Bengaluru, Editing by Vijay Kishore & Devika Syamnath
(source: Reuters)