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Official: US panel split over Nippon Steel bid but sees path forward
The White House said that a national security panel had divided opinions on its recommendation to Donald Trump regarding Nippon Steel’s bid to acquire U.S. Steel. However, most members of the panel believe that any security concerns posed by this deal can be addressed. According to an executive order Trump signed last month, the Committee on Foreign Investment in the U.S. on Tuesday submitted a report on the implications of the merger for national security. The document was submitted by Nippon Steel after it increased its investment pledge in U.S. Steel from $14 billion to $14 trillion in a desperate bid to get approval. The White House official stated in a press release that "we've received the reports and the President will examine the recommendations of each agencies to determine if further action is needed on this issue." The CFIUS agencies did not agree on their recommendations, but the majority believed that any risks could be mitigated through mitigation," said the person, who declined to be identified because the matter wasn't public. Tadashi Imai, president of Nippon Steel, told reporters in Tokyo that talks with the U.S. Government about the merger were in their final stages. He declined to give any details, but said the company was awaiting Trump's decisions. "Through the investment we make and the transfer of technology that is the most advanced, U.S. Steel can maintain its competitiveness on a medium-to-long term." I hope Trump approves this deal," said Imai. U.S. Steel has not responded to a comment request. The recommendation is in line with the executive order that was signed by Trump last week, and which instructed CFIUS to determine whether the measures proposed by companies would mitigate the national security threats previously identified by CFIUS. In the April directive, it was also requested that a statement be made describing each agency's position as a CFIUS member as well as its reasons. Trump has 15 days from now to decide on the fate of this transaction. However, the timeline may slip. In January, after a CFIUS review of the previous deal, Joe Biden, then President of the United States blocked it on grounds related to national security. Companies sued claiming they had not received a fair review. The Biden White House rejected this view. This week, it was reported that Nippon Steel had said it would invest up to $4 billion dollars in a new mill if the merger were approved. (Reporting and additional reporting by Yuka Obaashi in Tokyo, editing by Leslie Adler David Gregorio, David Evans).
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Sibanye: 289 trapped workers in South African goldmine
Sibanye Stillwater, a South African company, said that on Friday it was working to rescue the 289 trapped mine workers at its Kloof gold mine in Johannesburg. It said that the workers were safe, and had gathered in a central location at the mine's underground assembly point. The mine is one of the deepest of the company, located about 60 km west of Johannesburg. The company did not give any details, but a spokesperson for Sibanye confirmed that the incident occurred in Kloof 7's shaft. He added that all of the miners had been accounted for, and the company provided them with food. The spokesperson said that safety procedures and an inspection of the shaft are currently underway, after which miners will be lifted to the surface. The spokesperson stated that they expect the situation will be resolved today by midday. South Africa has some of the deepest and oldest mines in the world. This year has seen a significant increase in the number of people who are able to access public transportation. 78 bodies have been pulled After months of attempting to curb illegal mining, police have cut off the food and water supply from an illegal mine. Sibanye, based in Johannesburg, is one of only a handful of South African gold miners who are able to squeeze profits out the region's deposits. The Kloof 7 shaft is mined at a depth of 3,200 meters. Two other shafts are also operated by the Kloof mine. It accounts for 14% Sibanye’s total gold production. The National Union of Mineworkers, or NUM, had earlier confirmed that it received reports of this incident. It said it occurred at approximately 1000 pm (0800 GMT) on the Thursday. Reporting by Felix Njini, Johannesburg; Writing by Bhargavacharya; Editing and proofreading by Bate Felix & Joe Bavier
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Kazakhstan's oil production is expected to exceed plans in this year, reports TASS
Erlan Akkenzhenov, the Energy Minister, was quoted saying that Kazakhstan's oil production will probably exceed its original plans of 96.2 millions tons for 2024 due to expansion in the Chevron-led Tengiz Field, despite pressure from OPEC+. Kazakhstan has cited the rising production at Tengiz as the reason it has consistently exceeded quotas established by OPEC+. OPEC+ is made up of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Kazakhstan and Russia. The Russian state-run news agency TASS reported that Akkenzhenov said in a podcast on Thursday night that the expansion of Tengiz was brought forward earlier than planned this year. This increased production by 25%. He said that "we will probably end the year higher than" the planned production of 96.2 millions tons, which is equal to about 2 million barrels per daily (bpd). A request for a comment from the Kazakh Energy Ministry was not responded to immediately. The energy ministry of Kazakhstan has stated repeatedly that it is committed the OPEC+ accord. Kazakhstan's OPEC+ quota rose from 1.473 to 1.486 millions bpd under the latest OPEC+ deal. Western oil companies, such as Shell, TotalEnergies, Eni, ExxonMobil, and Chevron are involved in oil projects in Kazakhstan. (Reporting and editing by Mark Trevelyan; Vladimir Soldatkin)
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Taliban talks with Russia and China about trade in local currency
Afghanistan's acting Commerce Minister said that the Taliban administration has advanced discussions with Russia to allow banks from both sanction-hit economies, Russia and Afghanistan, to settle trade transactions in local currency worth hundreds of millions in dollars. Haji Nooruddin, Azizi's minister, said on Thursday that the Afghan government had made similar offers to China. He said that discussions had taken place with the Chinese Embassy in Kabul. Azizi stated that technical teams in both countries were working on the proposal with Russia. As Moscow looks to use national currencies as a way to move away from the dollar, and Afghanistan is seeing a sharp drop in U.S. dollars entering the country as a result of aid cuts, the move makes sense. "We are engaged in specialist discussions about this issue, taking into account the regional and global perspectives on economics, sanctions and the current challenges Afghanistan faces, as well those that Russia is facing. "Technical discussions are under way," Azizi stated in an interview in his Kabul office. Requests for comments from the Chinese Foreign Ministry and Russian Central Bank were not immediately responded to. Azizi said that bilateral trade between Russia Afghanistan is currently at around $300 million, and this will likely grow as both sides increase investment. He said that his administration expects Afghanistan to purchase more plastics and petroleum products from Russia. Azizi stated, "I'm confident that this option is very good...we can use it for the benefit and interest of our people and country." He said that Afghanistan did around $1 billion worth of trade with China every year. A working team consisting of the (Afghanistan) Ministry of Commerce, the Chinese Embassy which is the authorized body that represents China in economic programs has been formed and talks are currently ongoing. Afghanistan's financial system has been cut off from global banking due to sanctions imposed on certain leaders of the Taliban government, which took control of the country after foreign forces left in 2021. In recent years, the US dollar's dominance as the dominant currency in the world has been questioned again due to the conflict with China and the fallout of the Russian war in Ukraine. In December, Russian president Vladimir Putin questioned whether it was necessary to keep state reserves in foreign currency, as they could be easily confiscated for political purposes. He said that domestic investments of such reserves were more attractive. Dollars have dominated commodity trading and Washington has been able to restrict market access to producers from Russia, Venezuela and Iran. Since 2022, Afghanistan has imported gas and oil from Russia. This is the first significant economic agreement since the Taliban returned to the power after 20 years of fighting against U.S. led forces. The United States has cut billions of dollars from aid to Afghanistan this year, and as a result, far fewer dollars are being flown into the country in cash to fund humanitarian operations. The Afghani currency, according to economists and development agencies, has remained relatively stable so far but could face future challenges. Azizi stated that his administration would not run out of U.S. Dollars in Afghanistan due to the stability of its currency and efforts made by the government to increase international investment, including through the Afghan diaspora. Mohammad Yunus Yawar reported from Kabul, and Charlotte Greenfield from Islamabad. Additional reporting was provided by Antoni Sladoski and Elena Fabrichnaya. Editing was done by Raju Gopikrishnan.
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Shell Indonesia transfers gas station business from Citadel to Sefas JV
Shell Indonesia announced on Friday that it has sold its gas station business ownership to a joint-venture between Citadel Pacific Limited, Sefas Group and Citadel Pacific Limited. The company will retain its lubricant division. Shell has said that the deal will be finalized by the end of next year. It includes 200 gas stations and a fuel terminal in Gresik. The move is part of its strategy to transform the company's portfolio. The company stated in a press release that "after completion, Shell will remain in Indonesia via brand licensing agreements." Citadel Pacific, a private holding company based in the Philippines, has businesses across a variety of industries, including aviation, telecommunications, gas distribution and fuel marketing. According to the statement, Sefas Group, the largest Shell distributor in Indonesia is Shell Lubricants. Citadel Pacific Group and Sefas Group have not responded to comments immediately. Shell has said that Indonesia is a key market for growth in its lubricants division. It owns a plant to blend lubricants oils with a capacity of 300 million litres per year and another plant, which is under construction, will produce grease. (Reporting and editing by Bernadette Cristina and Ananda Terresia)
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Iron ore posted a weekly loss due to a slowdown in Chinese steel demand and property weakness
The price of iron ore futures fell on Friday, and the weekly loss was due to persistent property weakness in China along with a slowdown in demand for steelmaking ingredients. The September contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 1.24% lower at 718 yuan (US$99.73) per metric ton. The contract fell by 1.51% in the last week. As of 0707 GMT the benchmark June iron ore traded on the Singapore Exchange had fallen 0.76% to $98.25 per ton, a loss of 1.81% for this week. A poll shows that the property market in China is likely to continue to be weak this year, with home prices expected to fall by nearly 5%. Prices are also set to stagnate in 2026. Mysteel, a consultancy, said that "the inventories of finished products held by Chinese traders...decreased by 398.500 tonnes in one week" during the week between May 16-22. According to Mysteel, the pace of stock decline has slowed due to a combination of hot and rainy weather in China. Everbright Futures, a broker, stated in a report that on the demand side three new blast-furnaces were reopened and six others were overhauled. Everbright said that the hot metal production, which is typically used to gauge demand for iron ore, fell by 11,700 tonnes month-on-month in May to 2.436 millions tons. Analysts at ANZ say that "supply growth has disappeared as producers remain cautious of the weak demand and are increasing use of scrap steel." This should limit the downward movement of iron ore prices. Coking coal and coke, which are used to make steel, also fell, by a combined 4% and 1.81%. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. The rebar fell by 0.42%. Hot-rolled coils dropped by 0.75%. Wire rods declined 0.15%. Stainless steels fell 0.04%. $1 = 7.1991 Chinese Yuan (Reporting and editing by Mrigank Dahniwala, Eileen Soreng).
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Australian shares finish slightly higher after miners limit bank's gains
Australian shares closed slightly higher on the Friday as investors remained cautious due to concerns about domestic growth and global uncertainty. The S&P/ASX 200 closed 0.2% higher at 8,360.9. The benchmark was mostly unchanged for the week. Caution prevailed after Republican-controlled U.S. House voted by a slim margin to pass U.S. President Donald Trump's proposed tax cut bill that could add $3.8 trillion to America's debt. The domestic economy's outlook was also clouded Thursday by a Purchasing Manager's Index reading that was the lowest in three months. The rate-sensitive financials increased by 0.5%, with the "Big Four" banks of the country ending between 0.1% to 0.9%. The Index has gained 0.4% this week, boosted by the Reserve Bank of Australia’s decision to reduce rates by 25 basis-points. Markets are betting that there will be more easing in the future due to potential global trade tensions impacting the local economy. The probability of a rate cut in July has now been priced at 60%, and a total ease of 65 basis points is expected by the end year. The real estate stocks added 0.8%. The sub-index is up over 1% this week. Michael McCarthy, Moomoo Australia's chief executive officer, says that the cautious approach of large funds after the RBA decision caused some volatility, as short-term investors moved quickly in. However, today's gains reflect a growing confidence in rate-sensitive industries offering defensive income streams. While uranium miner Paladin Energy, Boss Energy, and Deep Yellow all rose by 5.8%, 4.2%, and 1.2%, respectively, following reports that Trump planned to sign executive order supporting the nuclear industry. The benchmark S&P/NZX50 index in New Zealand ended 0.5% lower. It ended 1.5% lower after a three-week streak of gains. A poll indicated that the Reserve Bank of New Zealand will lower its cash rate on May 28 by 25 basis points. Sherin Sunny reports from Bengaluru.
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ASIA GOLD - High prices dampen Indian demand for gold, but China premiums remain firm
The physical gold demand in India this week was subdued, as a rise in global prices, a weaker rupee and retail purchases were limited. Premiums in the top consumer China remained stable. This week, Indian dealers offered a discount Last week, the discount was up to $34, but this week it's up to $49 per ounce. Last week, prices were falling and buyers began to buy. Now that the prices have rebounded, buyers are stepping back from the market again", a jeweller in New Delhi said. On Friday, domestic gold prices traded at around 95,900 rupies per 10 grams after reaching a low of 90 890 rupies last week. The rupee dropped to 86.10 per dollar on Thursday. This was its lowest level for more than a week. Jewelers do not want to build inventory at these prices because retail demand is low. A Mumbai-based dealer of bullion with a private banking firm said that they were getting old jewellery for the new. As of Friday morning, 0526 GMT, spot gold was trading at $3,320.37 and was on track for its largest weekly gain in over a month. Prices reached $3,120.14, their lowest since April 10. Dealers in China, the world's largest gold consumer, charged premiums between $16 and $30 per ounce above the global benchmark spot rate. This compares to premiums ranging from $9 to $50 last week. "Chinese Investors seem to have not been spooked" by the gold price reversal, which shows a high degree of conviction. This was stated by Ross Norman an independent analyst. Peter Fung of Wing Fung Precious Metals, the head of trading, predicted that physical demand for gold will remain high in China over the medium and long term. In Hong Kong, gold Dealers in Singapore sold it at a premium of $2. Gold sold at a premium up to $2.50 over the benchmark global price. In Japan, bullion The price was $1 more than the flat rate. (Reporting and editing by Eileen Soreng in Mumbai, Rajendra Jadhav from Bengaluru)
Dollar strength and slowing Chinese steel production are causing a decline in iron ore prices
The price of iron ore futures eased on Friday, and the prices were expected to decline modestly for the week due to a stronger dollar and a slowdown in demand for steelmaking materials from China, which is regarded as he biggest consumer.
As of 0301 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange fell by 0.28% to $725 yuan (US$100.67) per metric ton.
This week, the contract has fallen by 0.55%.
The benchmark June ore price on the Singapore Exchange fell 0.2% to $98.8 per tonne, and has lost 1.26% this week.
Mysteel, a consultancy, said that "the inventories of finished products held by Chinese traders...decreased by 398.500 tonnes in one week" during the week between May 16-22.
According to Mysteel, the pace of stock decline has slowed due to a combination of rains and heat in China.
Everbright Futures, a broker, stated in a report that on the demand side three new blast-furnaces were reopened and six others were refurbished.
Everbright said that the hot metal production, which is typically used to gauge demand for iron ore, fell by 11,700 tonnes month-on-month in May to 2.436 millions tons.
Analysts at ANZ say that "supply growth has disappeared as producers remain cautious of the weak demand and are increasing use of scrap steel."
This should limit the downward movement of iron ore prices.
The stronger dollar also pushed up prices. After three days of losses the dollar gained strength on Thursday, making assets denominated in dollars less affordable for holders of other currencies.
Coking coal and coke, which are both steelmaking ingredients, were down by 2.87% and 1.31 %, respectively.
The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell by 0.1%, while hot-rolled coil, wire rod, and wire rod all declined around 0.2%. Stainless steel rose 0.27%. ($1 = 7,2016 Chinese Yuan) (Reporting and editing by Eileen Soreng; Michele Pek)
(source: Reuters)