Latest News
-
Weaker dollar, improved risk appetite drive copper prices up
The prices of copper and other base materials rose on Friday, supported by the weaker dollar as well as an improved outlook for global consumption amid eased trade tensions. By 1003 GMT, the benchmark three-month copper price on London Metal Exchange (LME), had increased by 0.8% to $9.573.50 per metric ton. The metal, which is dependent on growth, has risen 5% this month. This is due to the 90-day truce in tariffs that Washington and Beijing agreed upon earlier this month. It was intended to stop their trade war and reduce the majority of duties they had imposed on each other's products since April. "We're in a situation where the U.S. is performing unexpectedly well. Trade tensions are easing, and recent macro-data in China were pretty good," said Dan Smith. "All of this will help to increase the risk appetite for base metals at least for now." The dollar is on its way to its first weekly decline against a variety of currencies in the last five weeks, which will provide further support. The dollar's weakness makes metals priced in dollars more appealing to buyers who use other currencies. The onshore yuan ended the domestic session as its strongest since November, supporting the import power of top metals consumer China. Shanghai Futures Exchange monitors copper inventories in warehouses Stocks in LME-registered storages fell by 9% this week to 98.671 tonnes COMEX warehouses continue to be flooded with goods, causing a 9% drop in stock. . COMEX inventories rose 3% this week to 174 607 units. The spread between cash and the three-month contract of copper in the LME system The price of the product remains high, which indicates that the supply is tightening due to the withdrawals from stocks. Backwardation was last $16 per tonne. Smith said that it is a healthy price, indicating there is not a major squeeze when compared with $49, the highest level in two-and-a half years, which was reached in early May. Lead and tin both gained 0.9%, to $1,987 each, while zinc added 0.2%, to $2.701,50. (Reporting and editing by Frances Kerry; Polina Devitt)
-
EU watchdog investigates Commission's relaxation of green rules
After receiving a complaint from campaigners who accused the EU executive of weakening sustainability laws without consulting the public, the EU Ombudswoman announced on Friday that she had opened an investigation into the way the European Commission developed its recent proposals for simplifying sustainability laws. The Commission, in February, proposed a set of legal changes, dubbed the "simplification Omnibus", that would exempt thousands smaller European companies from EU sustainability reporting requirements and reduce the obligations placed on larger firms to monitor their supply chains and check for human rights or environmental issues. In a statement, Ombudswoman Teresa Anjinho stated that "the decision to open an investigation follows a complaint from eight civil society organizations who argue the Commission violated its Better Regulation Guidelines by failing to explain why it failed to carry out a consultation with the public or conduct an impact assessment of the draft legislation." An independent watchdog, the European Ombudsman was established in 1995. It investigates maladministration within EU institutions. Anjinho assumed her position in February, replacing Emily O'Reilly who held the first female post. Anjinho has said that she has asked a number of questions to the Commission, including why there has not been a public consultative process. She has also requested more information about the companies and stakeholders who have been invited to the Commission for a meeting to discuss this issue. The complainants accuse the Commission of consulting with industry lobbyists at closed-door meetings prior to publishing its proposal. A spokesperson for the European Commission did not respond immediately to a comment request. After European industries complained about the burdensome EU regulations, the Commission proposed a change to the sustainability laws. This was in response to President Donald Trump's rollback of regulation and tariffs on imported goods. (Reporting and editing by Benoit van Overstraeten, Kate Abnett)
-
Minister: Pakistan will offer concessions to US mining firms in tariff talks on investment
Pakistan will offer concessions to U.S. firms to invest in the country's mining sector, its Commerce Minister said. Islamabad is seeking to take advantage of Trump's desire to boost trade with South Asia. Washington announced tariffs on other countries last month that could impose a 29% tariff on Pakistani exports. This is due to a $3 Billion trade surplus. The tariffs were then suspended for 90-days to allow negotiations. Jam Kamal, Pakistan's Minister of Commerce, said that Islamabad would offer U.S. companies the opportunity to invest in mining in Pakistan's Balochistan Province through joint ventures and concessions such as lease grants. The Minister said this would be in addition of efforts to increase imports, especially cotton and edible oil, which is currently in short-supply in Pakistan. In the next few weeks, Pakistan will make its concessions to U.S. officials in talks on tariffs. Kamal didn't give any further details on the mines, or their bidding process. In an interview conducted on Thursday, he stated that "there is untapped potential" for U.S. firms in Pakistan. This includes mining machines and hydrocarbon ventures. The project director of Pakistan's Reko Diq gold and copper mining project in Balochistan said last month that the project is seeking up to $2 billion, including $500-$1 billion from the U.S. Export-Import Bank. Term sheets are expected to be issued by the beginning of the third quarter this year. Over its lifetime, the mine could generate free cash flows of $70 billion and operating cash flows of $90 billion. Donald Trump, the U.S. president, has stated that he is working on "big agreements" with India and Pakistan. This comes after Washington played a key role in brokering the ceasefire agreement between Pakistan and India in early this month. The fighting was the worst in decades between these nuclear-armed neighbors. Kamal stated that the previous U.S. Administration focused more on India. However, Pakistan is now recognized as a serious trading partner. Kamal, the Minister of Finance for Pakistan, said that Pakistan's upcoming federal budget will lower tariffs gradually. He stated that the United States have not identified any trade barriers or sectors of priority. The U.S. Embassy at Islamabad didn't immediately respond to an inquiry for comment.
-
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).
-
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
-
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)
-
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.
-
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)
London copper prices rise as the dollar falls
The copper price in London rose on Friday. Supported by a weaker dollar, the prices are poised to rise for a week, but gains will be limited because of uncertainty surrounding U.S. Tariffs.
As of 0334 GMT, the benchmark copper price on London Metal Exchange (LME), was up by 0.2%, at $9,516 per metric ton. This week, it has risen by 0.7%.
The U.S. Dollar was weak on Friday, and it is expected to record its first weekly decline in five weeks versus the Euro and the Yen. This makes commodities priced in greenbacks more attractive for buyers who use other currencies.
Investors have been forced to seek safe havens because of the weakness of the dollar.
The U.S. has agreed to reduce tariffs on a tit-for -tat basis and implement a 90 day pause in actions. However, it is unclear what will happen after this temporary truce.
Soni Kumari, ANZ Commodity Strategy Director, said that there are still many uncertainties about what will happen following the 90-day truce.
Market will consolidate around the current range of $9,400 to $9,000 per metric tonne. Once we see a slowdown in copper imports to the U.S., prices will drop a little.
Other London metals included aluminium, which was up by 0.2%, at $2,462, zinc, up by 0.2%, lead, up 0.5%, and nickel, up 0.01%, at $15,495. Tin rose 0.3% to $22,475.
The Shanghai Futures Exchange's (SHFE) most-traded contract for copper was down by 0.1% to 77,830 Yuan ($10806.6) a tonne.
SHFE aluminium fell by 0.1%, to 20,170 Yuan per ton. Zinc rose 0.1%, to 22,455 Yuan. Lead was up 0.3%, at 16,830 Yuan. Nickel was 0.7% lower, to 122660 Yuan. Tin was down 0.6%, to 264230 Yuan. ($1 = 7,2021 yuan). (Reporting and editing by Mrigank Dahniwala, Sonia Cheema).
(source: Reuters)