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Russian seaborne diesel exports fell in April, data shows
According to LSEG and market sources, the number of Russian diesel and gasoil seaborne exports decreased in April due to refineries performing seasonal maintenance. The industry also held back supplies for the expected increase in domestic demand over the summer months. Calculations based on LSEG data and other market sources showed that the total diesel and gasoil exported from Russian ports dropped to about 3.3 millions metric tons in March, a 10% drop. Shipping data shows that in April, the two main importers of Russian gasoil and diesel were Turkey and Brazil. Last month, diesel and gasoil exported from Russian ports reached 1.12 million tonnes, an increase of 6% over March. However, loadings to Brazil dropped by a third, from 1.0 to 0.66 millions tons. Shipping data revealed that Russia's April exports of diesel and gasoil to African countries dropped by 20% compared to the previous month, totaling about 0.75 millions tons. The top importers were Libya, Senegal Tunisia, and Ghana. The traders said that cargoes are piling up near the cypriot port of Limassol due to increased ship-to-ship transfer to avoid tougher Western sanctions on fuel loaded into Russian ports. Data showed that in April, more than 0,42 million tonnes of diesel remained there awaiting discharge or orders to other destinations. The destination of vessels carrying about 150,000 tonnes of diesel loaded in Russian ports is marked "for orders", which means that their discharge points have not been declared or are not known. (Reporting and editing by Barbara Lewis; Reporting by In Moscow)
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Copper up on the temporary US-China Trade truce
The price of copper rose on Tuesday, after the United States announced it would reduce some tariffs for imports from China. China's inventories had dropped dramatically, but gains were limited by caution on the market. As of 0940 GMT, the benchmark copper price on London Metal Exchange had increased by 0.3% to $9,544 per metric tonne. The United States announced on Monday that it would cut the "de minimis tariff" on low-value products imported from China. This will further de-escalate a trade conflict between the two world's largest economies. The order follows the announcement by Beijing and Washington of a temporary truce after weekend talks. Both sides agreed to remove most of the tariffs placed on each other's products since early April. Ewa Mnthey, commodities analyst at ING, said that despite the optimism there are still reasons to be cautious. The U.S. China talks are just getting started. Manthey said that tariffs are still significant and could affect raw material consumption. A continued dollar rally may also be a barrier to metal prices. The dollar has maintained its gains and is still near the highs of one month. The dollar's strength makes metals more expensive for holders of other currencies. Citi stated in a report that copper prices could "remain resilient" in the next few weeks between $9,000 and $10,000 due to a tightening in China's copper indicators, until demand-related tariff shocks materialise. The Shanghai Futures Exchange (SHFE), which monitors copper stocks in warehouses, Last week, the weight of coal was 80,705 tonnes, down 70% from the end February. Stocks in COMEX owned warehouses The highest level since 2018. The United States is seeing a rise in metal imports due to a Washington investigation that could result in new copper tariffs. Aluminium fell by 0.2% at $2,474 per ton. Zinc fell by 0.5% to 2,667. Lead gained 0.8%, to $1,992.5. Nickel fell by 0.1%, to $15,620. Tin fell 0.1%, to $32,550. The market will be watching the U.S. Inflation data on Tuesday to get clues about Federal Reserve's monetary policies.
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Vucic, Serbian President, says he still wants to be a part of the EU despite his visit to Moscow
Aleksandar Vucic, the president of Serbia, said that his country is committed to joining the European Union. He also wants to accelerate its application for membership. Vucic visited Russia for a celebration of the 80th Anniversary of World War II Victory on May 8-9. There, he also met with Vladimir Putin, the leader of Russia and Chinese President Xi Jinping. Vucic, who met Antonio Costa, President of the European Council on Tuesday, said that Belgrade wanted to accelerate its European Integration and open more negotiations with the bloc. "The atmosphere in the EU is not great, as I was convinced by my trip to Moscow. But... "I believe that Europe will be able to understand merit-based progress," said he. Russia has been Serbia's main natural gas supplier and historical Orthodox Christian allie. Gazprom, as well as Gazpromneft, are also the owners of Serbian oil company NIS. Moscow supports Belgrade's opposition to Kosovo, the former southern province of Serbia. Vucic, who was plagued by months of anticorruption protests by students, promised that the government will work to introduce the reforms necessary for joining the EU. Serbia must eliminate corruption, reform its judiciary and media laws, mend its ties with Kosovo, and align its policies with the EU, including imposing sanction against Russia for its invasion of Ukraine. Costa, through an interpreter, said: "An important element of our foreign and security policies is the condemnation of Russia’s brutal invasion in Ukraine and the support of Ukraine to achieve a just and sustainable peace." Officials from the European Union have repeatedly asked presidents of countries aspiring to become members, including Vucic to avoid Moscow's World War Two Victory Celebrations. Costa said that he was "glad to hear" the EU membership is Serbia's top priority. Costa said he was "glad to hear" that EU membership remains Serbia's top priority. Serbia, Montenegro and North Macedonia have all been granted the status of EU candidate countries, but Kosovo is still lagging behind. (Reporting and editing by Ros Russell; Aleksandar Vasovic)
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Gold gains some ground as the dollar weakens and trade optimism fades
Gold prices rose Tuesday, as the dollar slipped lower and initial optimism about a trade truce with China faded. Investors were also looking forward to the U.S. data on inflation due later that day. As of 0639 GMT, spot gold was up 0.6% to $3,254.39 per ounce. U.S. Gold Futures rose 1% to $3,258.70. After a steep rise in the prior session, the dollar index fell 0.2%. Gold becomes cheaper for holders of other currencies when the dollar weakens. "The uncertainty surrounding the trade tariffs remains in the marketplace...the stock market is taking some time to rest after a massive rally, and we are now seeing a slight decline of the US dollar," said Carlo Alberto De Casa. The U.S. announced on Monday that it would reduce tariffs by 30% on Chinese imports and the Chinese tariffs will drop to 10% on U.S. Imports from 125%. This led to a rise in global stocks. Last month, the U.S. imposed tariffs of equal value on China. This triggered a trade conflict. Traders are now awaiting the U.S. Consumer Price Index for new signals on the Federal Reserve’s monetary policy path. Markets expect a Fed rate cut of 55 basis points this year, beginning in September. Tim Waterer, Chief Market Analyst at KCM Trade, said that if the US Dollar loses momentum due to a negative inflation report then gold could make gains. In a low interest rate environment, gold, which is traditionally considered to be a safe haven during periods of economic and political uncertainty, thrives. According to Wang Tao, technical analyst, on the technical front spot gold could retest the support level of $3,206 an ounce. A break below this mark would open the door for $3,135. The price of palladium rose 0.6% to $950.95. Platinum was up 1.2% at $987.85. (Reporting and editing by Janane Vekatraman in Bengaluru)
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GAIL (India's) quarterly profit drops more than expected due to lower gas margins and cost pressures
Gas distributor GAIL India posted a larger-than-expected drop in quarterly profits on Tuesday. This was mainly due to lower gas marketing margins, and higher costs. GAIL, India’s largest natural gas distributor based on market share, reported a net profit after taxes of 20.49 billion Rupees ($240.1 millions) for the three-month period ended March 31, a decline of 5.9%. According to data compiled and analyzed by LSEG, analysts had predicted that profit would fall on average 3.1%, to 21.13 billion Rupees. Gas marketing, which accounts for the majority of revenue generated by the company through wholesale trading and distribution of natural gas, saw a 11% increase in revenue to 316.03 trillion rupees. Analysts noted lower trading margins in the third quarter, as GAIL switched from short-term sales to long-term contracts with city gas distribution companies. They added that LPG margins were also lower due to the reduced availability of feedstock regulated by government. The company's overall costs increased 11.4% as a result of rising costs in the liquefied hydrocarbon and liquefied petrol gas businesses. GAIL's revenue from its natural-gas transmission segment, where it holds 70% of the market in the country fell by 2.6%. The company's operating revenue increased by 10.4%, to 357.07 billion Rupees. GAIL shares fell by 1.8% following the results. (Reporting and editing by Sherry Phillips in Bengaluru, Janane Venkatraman, and Yagnoseni das in Bengaluru)
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Former CNPC Chairman Sentenced to 13 Years in Prison for Bribery
State-run CCTV reported that Wang Yilin was sentenced on Tuesday to 13 years of prison for bribery, and fined $316,667. In July 2024, state media reported that Wang, who had retired from CNPC 2020, was expelled from China’s ruling Communist Party due to discipline violations. According to the report, he was being investigated for accepting illegally high-value assets as well as using his position to assist others in obtaining benefits from project contracts. CNPC (parent company of PetroChina listed on the stock exchange) did not respond immediately to a comment request. In a press release last year, the company stated that it strongly supported Wang's expulsion. It said this showed the organization's "zero tolerance" stance against corruption. Wang, who was previously chairman of CNPC, headed China National Offshore Oil Corp., also known as CNOOC. CNOOC is the parent company of CNOOC Ltd., a listed company.
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France's Orano files a lawsuit against staff detention in Niger
Orano, a French uranium mining company, announced on Tuesday that it had filed a suit with Niger courts for "arbitrary arrests, illegal detentions and unjustly confiscated property" in relation to its staff and assets. The Niger, Mali and Burkina Faso neighbours have increased pressure on foreign mining firms over the last year. They have seized assets and removed permits to ensure that all three Sahel nations assert greater sovereignty over their natural resource. Orano claimed that it was unable to reach its director of mining in Niger Ibrahim Courmo. He had been taken to the headquarters of Niger's external intelligence agency General Directorate of External Documentation and Surveillance. The Niger Government was not available for immediate comment. The company said that the police still prevent access to its subsidiary offices in Niamey, Niger's capital. Nigerien security forces raided Orano subsidiaries Somair and Cominak in Niamey, last week, and confiscated cellphones and other electronic devices from the employees, according to the company. Orano stated that the managing directors of these subsidiaries were held in their offices and interrogated. Orano announced in early December of last year that the Niger military government, which took power in a coup 2023, has taken control of Somair, a mine of which Orano holds about 63%. The government owns the remainder. A mining permit was also issued to the company for its subsidiary Imouraren, which would expire in June 2024. The following month, Canada's GoviEx Uranium also faced similar problems. In recent months, Malian authorities arrested foreign executives and confiscated gold stocks during negotiations with mining firms. Burkina Faso junta promised to seize more industrial mines owned by foreigners last month. Reporting by Anna Peverieri, Forrest Crellin, in Paris and Portia CROWE in Dakar. Editing by Milla Nissi Prussak and Susan Fenton.
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Sources say that the Saudi oil export to China is expected to remain at a record high of one year in June.
Trade sources reported on Tuesday that Saudi Arabia's crude supply to China would remain the same in June, after reaching its highest level in over a year the month before. This follows OPEC+'s decision to increase production. Saudi Aramco, the state oil company, will ship 48 million barrels of crude oil to China in June. This is the same amount as May and the highest since at least 2024. Aramco has not responded to the request for comment regarding its June allocations. Sources say that Sinochem, a Chinese state-owned refiner, and private refiners such as Rongsheng Petrochemical, Hengli Petrochemical, and Sinopec will all lift more Saudi crude this June. However, CNOOC, Aramco, and the joint venture Fujian refinery of Sinopec and CNOOC will be lifting less. Saudi Aramco slashed the price of crude oil for loading to Asian refiners in May to a near four-year low. This coincided with OPEC+’s decision to increase output in May and in June. Aramco last week The slightest of raises As expected, the crude oil price for Asian buyers will be higher in June. Saudi Arabia is China's second largest crude oil supplier after Russia. China imported 145.6 millions barrels of Saudi Arabian crude in the first three months of this year. That's 1.62 million barrels a day. This is up 3.8% compared to the 1.56million bpd it imported in the same time period last year. (Reporting and editing by Louise Heavens, Christian Schmollinger and Florence Tan in Singapore)
Iron ore reaches 2-week high after China-US truce on trade, but caution limits gains
Iron ore futures prices reached a two-week high Tuesday, supported in part by a temporary U.S. China trade agreement. However, caution about a final agreement and a possible slowdown in near-term demand curbed gains.
As of 0245 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 1.56% higher. It was 718 yuan (US$99.82) per metric ton.
The contract reached its highest level since April 24, at 727 Yuan, earlier in the session.
Iron ore benchmark June on the Singapore Exchange fell 0.45%, to $99.55 per ton after reaching its highest level since April 24, at $100.35.
On Monday, the U.S. agreed to reduce tariffs on Chinese imports by 30% over a 90-day period of negotiation. China agreed to lower its duties from 125% down to 10%. This improved investor sentiment, which led to an increase in the number of investors.
Price rally across commodities
The initial excitement faded as the uncertainty of a final agreement between the two countries and the seasonal slowdown in demand led to concerns about a possible slowdown in ore demand over the next few weeks.
Analysts at Shengda Futures wrote in a report that they expect the hot metal production to show signs of a slowdown in mid-to late May.
Analysts at CICC say that the lower hot metal production is expected to coincide when miners increase shipments in order to meet quarterly targets. This will add downward pressure to prices.
The hot metal product is usually used to gauge the demand for iron ore.
On Tuesday, steel benchmarks at the Shanghai Futures Exchange increased. Rebar, hot-rolled coil, wire rod, and stainless steel all gained.
Coking coal and coke, which are both steelmaking ingredients, fell by 0.74% and 0.622% respectively.
(source: Reuters)