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Shanghai metals fall as Israel-Iran tensions and mixed China data weigh
The Shanghai Futures Exchange saw most metals trade lower on Monday as mixed Chinese economic data reinforced investor caution. Escalating tensions between Israel, Iran and other countries also weighed on investor sentiment. As of 0224 GMT the SHFE's most-traded contract for copper was unchanged at 78.390 yuan per metric ton ($10,910.69), while zinc dropped 0.8% to 21.780 yuan. Aluminum fell 0.2% to 20,375 yuan and nickel was down 0.6% at 119,370. Lead also declined 0.3%. Tin edged up 0.2% to 264,820. Metals analysts at a Beijing futures company said that the conflict has created a new level of uncertainty in global geopolitics. This has led to concern about metals consumption. China's May industrial production missed forecasts, despite retail sales exceeding expectations. New home prices continued to fall in May, despite the continuing weakness of the property market. In early Asian trading, the dollar rose by 0.25 percent. Its gains were extended with an additional 0.2% increase. The greenback price of commodities increases when purchased in other currencies. The London Metal Exchange's three-month copper price rose 0.1% per metric tonne to $9,655.5 by 0224 GMT. Aluminium fell by the most, 0.6%, to $2488, while lead fell by 0.1%, to $1,989; zinc dropped by 0.1%, to $2620; and nickel fell by 0.1%, to $15,110. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0630 India WPI inflation YY may 1100 EU Reserve Assets total May
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Gold prices near two-month highs as Middle East conflict increases demand for safe havens
Gold rose on Monday for the fourth consecutive session, reaching a high of nearly two months, after intensified clashes over the weekend between Israel and Iran stoked fears about a wider regional conflict. This pushed investors to safe-haven investments. As of 0246 GMT spot gold rose 0.3% to $3442.09 per ounce after reaching its highest level since the 22nd April earlier in session. U.S. Gold Futures rose 0.3% to $3.461.90. The demand for safe-haven gold is being boosted by the rising political risk premium due to the Iran/Israel conflict, said Kelvin Woong, senior analyst at OANDA, Asia Pacific. We have a break over $3,400 and the short-term uptrend is intact. We see a resistance level of $3,500, and there is a possibility that if we break above $3,500, a new high will be set. Israel and Iran launched new attacks on Sunday. Both militaries warned civilians to be cautious against future strikes. Donald Trump, the U.S. president, said that he hoped Israel and Iran could broker a deal. However, he said that sometimes countries must fight it out before they can reach an agreement. In times of geopolitical or economic uncertainty, gold is often considered to be a safe haven. This week, investors will be watching a host of central banks make monetary policy decisions. The U.S. Federal Reserve is the focus on Wednesday. Markets are waiting for signs of possible rate cuts. The U.S. Central Bank is expected to maintain interest rates at current levels. The markets are predicting two rate cuts before the end of the year, starting possibly in September. This is boosted by the tame data on inflation last week. Palladium rose 1.3% to $1,000.96, while platinum gained 0.4%. (Reporting and editing by Rashmi aich in Bengaluru, Anmol Choubey from Bengaluru)
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G7 needs to raise pressure on Russia, von der Leyen says
Ursula von der Leyen, President of the European Commission, said that more pressure should be applied to Russia in order to secure a ceasefire. She urged G7 nations intensify sanctions to achieve this goal. The leaders of the largest industrial countries are meeting in Canada’s Rockies, along with European nations. They want to keep the conflict in Ukraine on the minds of U.S. president Donald Trump, despite the fighting between Israel and Iran taking place in the Middle East. The European Union has decided to adopt new sanctions against Russia. However, they have not been able to convince Trump, who is reluctant to put pressure on Russian President Vladimir Putin, to implement new U.S. sanctions. "We need to put more pressure on Russia in order to achieve a ceasefire and bring Russia to the table for negotiations and end this war. Sanctions are crucial to this end," von der Leyen said at a press conference on Sunday, before Britain, Canada France Germany Italy, Japan, and the United States began their Monday talks. "Last Monday, we presented a package of 18 sanctions." I will invite the G7 to join me in this endeavor. The Middle East has become the focus of global attention. Israel's strikes on Iran have increased the risk of escalation to a wider regional conflict. The subsequent spike in oil prices has increased concerns about the global economy. Von der Leyen stated that during their Saturday talks, she and Trump had agreed on the importance of market stability for like-minded nations. This was particularly true in the case of the energy markets. She said, "We will be very attentive to the impact of the international energy market." She said that she would prefer a negotiated trade solution with the Trump Administration ahead of the July 9 deadline. However, the bloc is preparing contingencies if no agreement can be reached. Von der Leyen spoke earlier Sunday with Benjamin Netanyahu, the Israeli Prime Minister. She reaffirmed Israel's right of self-defense, but insisted that the diplomatic solution would be the best long-term option to deal with Iran's nuclear program. She said, "Iran has always been the main source of instability in the region, and it's very clear that Iran will never possess a nuclear weapon." The recent events have highlighted the growing interconnections between conflicts in Europe and the Middle East. "The same Iranian-designed and manufactured drones and missiles are randomly hitting cities in Ukraine or Israel." (Reporting and editing by John Irish, Kim Coghill, and Shri Navaratnam).
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Nikkei shares rise in Japan as yen weakens, boosting exports
Japan's Nikkei average rose Monday, despite the continuing conflict between Israel and Iran. A weaker yen was a major factor in this rise. The Nikkei rose 0.9% to 38,164.07 at 0155 GMT. Meanwhile, the Topix rose by 0.54%, reaching 2,772.46. Kentaro Hayashi is a senior strategist at Daiwa Securities. He said that investors were less concerned about geopolitical tensions. The market did not see the need for further sell-offs. He added that there is optimism about the end of the conflict with the United States and Russia taking action. Nikkei dropped on Friday, after Israel launched attacks against Iran. Wall Street also ended the day sharply lower. Advantest's 8% gain on Monday was the largest boost for the Nikkei. Advantest, a chip-making equipment manufacturer, is one of Nikkei's largest components. It tends to get bought when markets bet on the Nikkei index going up. Honda Motor and Nissan Motor both rose 3.4% and 1.0% respectively, on the strength of a weaker Japanese yen. Toyota Motor rose 0.4%. The yen dropped at the end the week, as investors purchased safe haven assets such as the U.S. Dollar. The dollar rose 0.17% last week to 144.325 yens. Weaker Japanese currency tends boost exporters' shares, since it increases the value in yen of profits earned overseas when firms repatriate their money to Japan. Nippon Steel's share price rose by 2.4% on Friday after U.S. President Donald Trump approved the $14.9 billion deal for U.S. Steel. Steel makers topped the 33 sub-indices of the Tokyo Stock Exchange (TSE), with a rise of 1.77%. Shipping sector gained 1.66% as a result of expectations that freight rates will rise amid the Middle East conflict. Kawasaki Kisen rose 2.4%. On the TSE prime market, out of more than 1,600 shares traded, 66% were up and 28% down. The remaining 4% were trading at a flat rate. (Reporting and editing by Junko Fujita)
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China May crude steel production rises as demand exceeds expectations
China's crude output of steel in May increased by 0.6% compared to April, as mills increased their operating rates and took advantage of the healthy profit margins generated by exports. Data from the National Bureau of Statistics showed that China, the world's biggest steel producer, produced 86.55 millions metric tons of crude iron last month. This compares to 86.02 in April. Calculations based on data suggest that the average daily production would be 2.79 million tonnes, compared to 2.87 million in April, and 3,000,000 tons in May, 2024. Mysteel, a consultancy, reported that last month around 60% of steel mills made a profit. China produced 431.63 millions tons of crude iron and steel between January and May, a 1.7% decrease year-on-year. Analysts at China International Capital Corporation (CICC), an investment bank, wrote in a Friday note that the total crude steel production this year could fall by 1% compared to last year. An official of the China Iron and Steel Association, a state-backed organization, said that China's output of steel will decline by 4% per year in 2025. He made this statement at a recent industrial event. (Reporting and editing by Amy Lv, Lewis Jackson)
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Hong Kong wants to attract Southeast Asia and Middle East companies for second listings
Hong Kong's chief executive has said that the stock exchange will be attracting listed companies from Southeast Asia and Middle East for second listings, as it looks to improve its global reputation. Bonnie Chan, a spokesperson for Hong Kong Exchanges and Clearing Ltd. (HKEX), said that the number of mainland China listed companies seeking to list in Hong Kong in order to raise capital in order to fund their global expansions is also increasing. Chan, the first woman CEO of HKEX, said that they are now focusing on companies who have already been listed on other markets, but may have outgrown the domestic market. I am beginning to see that my sweet spot is not private companies. Chan stated that the Hong Kong Stock Exchange will open a representative in Riyadh soon, allowing for "an even closer connection" to the Saudi exchange after recent product launches. Chan added that HKEX has been able to "gain a lot of momentum" in its discussions with potential issuers outside Greater China. Hong Kong Exchange, the preferred venue for Chinese firms looking to raise capital offshore, is trying to attract IPO-seekers from other countries as part of their ambition to become a worldwide capital raising platform. Chan's efforts have met with limited success, but they come in the context of increased capital flows into non-U.S. market as U.S. president Donald Trump's policy clouds investors' appetite for dollars-denominated investments. HKEX has seen its outlook improve after reporting record profits in the first quarter, largely due to a surge in Chinese listings and follow-on shares offerings, including CATL, a battery manufacturer for electric vehicles, which raised $5.3 billion in IPOs last month. According to LSEG, Hong Kong is the world's top listing destination by volume. A total of 31 companies raised $10 billion in this year. Another $26 billion was raised through follow-on shares. INVESTOR INTEREST Beijing is stepping up its efforts to boost its private enterprises, and to revive its economy. This will continue to be a major factor in the momentum. Chan, a Hong Kong-based investor, said that more than 20 mainland China listed companies had applied to raise capital by issuing shares in Hong Kong, and another 20 had announced similar plans. The Hang Seng Index is up almost 19% this year. HKEX has a pipeline of 160 companies, up from 80 at the end of December 2024. Chan stated that investors are once again focusing on this region of the globe when assessing investment opportunities and fundraising venues. She said that the demand from U.S. shareholders for recent Hong Kong listings had increased dramatically. "That is a good sign that investors from different markets are showing renewed interest." Last month, citing reliable sources, it was reported that fast fashion online retailer Shein is working on a Hong Kong listing after its London IPO failed to get the go-ahead from Chinese regulators. Chan refused to comment on Shein’s Hong Kong listing plan. (Reporting and editing by Selena Li, Sumeet chatterjee, Kim Coghill).
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Fears of supply disruption are driving up oil prices as a result of the Israel-Iran conflict
Early Asian trade on Monday saw oil prices rise after Israel and Iran launched new attacks on Sunday. This heightened fears of escalating conflict that could lead to a wider regional conflict, and disrupt Middle East oil exports. Brent crude futures rose $1.70 or 2.3% to $75.93 per barrel at 2253 GMT. U.S. West Texas Intermediate futures gained $2.02 or 2.2% to $74.60. They were up more than $4 in the earlier part of the session. Both benchmarks closed 7% higher Friday after a session that saw them surge more than 13% to their highest level since January. Both militaries warned that the latest strikes between Israel, Iran and Syria resulted in civilian deaths and increased fears of a wider regional conflict. Recent developments have raised concerns over disruptions in the Strait of Hormuz A vital shipping passage. a fifth The strait is responsible for about 18-19 million barrels of oil per day, including fuel, condensate, and oil. Donald Trump, the U.S. president, said Sunday that he hoped Israel and Iran could broker a deal. Stop the violence But sometimes, he said, countries must fight it out before they can work together. Trump stated that the U.S. would continue to support Israel, but refused to reveal if he had asked the U.S. allie to pause their strikes against Iran. Friedrich Merz, the German Chancellor, said that he was hopeful for a resolution to the conflict at the Group of Seven Leaders meeting in Canada this Sunday. An official who was briefed about the communications said that Iran had told Qatar and Oman it would not be open to negotiations for a ceasefire as long as Israel is attacking. The two enemies launched new attacks on Sunday and raised fears of an even wider conflict. Iran is a member of the Organization of Petroleum Exporting Countries and currently exports over 2 million barrels of fuel and oil per day. Analysts and OPEC observers say that the spare capacity of OPEC, its allies and Russia to pump more crude oil to offset disruptions is about equal to Iran's production. (Reporting and editing by Matthew Lewis in Tokyo, and Paul Simao.)
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US officials claim that Trump vetoed Israel's plan to kill Iran’s supreme leader.
Two U.S. officials said on Sunday that President Donald Trump had vetoed a plan by Israel to kill Iran's supreme leader Ayatollah Ayatollah Khamenei in the recent days. "Have Iranians yet killed an American? No. We're not going to go after them until they change," said a source, a senior U.S. government official. Under condition of anonymity the officials said that top U.S. officials were in constant communication with Israeli officials since Israel launched an attack on Iran to stop its nuclear program. The Israelis claimed that they reported to Trump that they had the opportunity to kill Iran's top leader. But Trump dismissed the plan. Officials refused to confirm whether Trump delivered the message himself. Trump and Benjamin Netanyahu, the Israeli prime minister, have been in regular contact. In an interview with Fox News Channel’s “Special Report with Bret Baier” on Sunday, Netanyahu said, "There are so many false stories of conversations that have never taken place, and I won't get into that." "But I'm sure that we will do it," Netanyahu said. "I think that the United States know what is best for the United States," Netanyahu stated. Trump has expressed hope that U.S. and Iranian negotiations on Tehran's nuclear programme will resume. The strikes forced the cancellation of talks scheduled for Oman on Sunday. Trump said on Friday "We knew everything" About the Israeli strikes
US Export-Import Bank to consider $120 million loan for Greenland Rare Earths Project
Critical Metals Corp. has received a letter expressing interest from the U.S. Export-Import Bank for a loan of up to $120,000,000 to fund its Tanbreez Rare Earths Mine in Greenland. This would be the first investment by the Trump Administration in a mining venture overseas. If approved, the loan would increase U.S. accessibility to minerals that are increasingly important in global trade, and reduce the country's dependence on the market leader China. The loan comes as President Donald Trump publicly mused about acquiring Danish island territory earlier this year, an offer that was repeatedly rejected.
A letter from Critical Metals, New York, on June 12, reviewed by showed that the company had met the initial requirements for applying for the $120,000,000 EXIM loan. If approved, the company would be able to repay the loan over a period of 15 years, which is longer than it would likely have been if the financing was private.
According to the letter, to qualify for a loan the project must be "well capitalized with enough equity from strategic investors".
EXIM, the U.S. export credit agency, stated in the letter Critical Metals qualified for a loan designed to help companies compete with China. Tanbreez is estimated to cost $290m and EXIM funds will be used to finance technical work to get the mine into initial production by 2026. Once the mine is fully operational, it will produce 85,000 tons of rare earths and two minor metals per year.
Tony Sage, CEO of the company, said that this funding package would unlock significant value to our project and stakeholders.
EXIM representatives were not available for comment immediately. Washington has taken a number of actions to support the Tanbreez deposit, and the Greenland mining industry. In January, it was reported that the administration of former president Joe Biden had successfully lobbied Tanbreez Mining to not sell to a Chinese investor and instead sell Critical Metals. Biden officials visited Nuuk in November last year to try and attract more private investment on the island. Trump sent Vice-President JD Vance on the island in March.
In recent years, the island's mining industry has grown slowly due to a lack of investor interest, bureaucratic issues and environmental concerns. Only two small mines currently operate. Rare earths are used in high-tech industries, from electric vehicles to rocket systems. They have powerful magnetic properties. The West is trying to reduce its dependence on China, which controls almost all of the extraction and processing. Beijing instilled export restrictions on rare Earths in April as part of the trade dispute with Trump. In early April, the two countries reached a truce. However, Beijing's control over the sector has increased the West's dependence on the metal and caused a global search for new supplies. Critical Metals will still need to build a facility or locate an existing one with extra capacity despite the potential loan. The company stated that it aims to process material in the U.S. with the EXIM Loan.
Critical Metals applied to the U.S. Department of Defense for funding last year in order to build a processing plant. However, the review process was halted before Trump's inauguration.
Critical Metals has said that it will consider offtake agreements, royalties streams, and funding from U.S. government agencies to meet the additional funding needs of the EXIM Loan.
Critical Metals announced earlier this year it had held talks about supply with Lockheed Martin, among other defense contractors.
Cantor Fitzgerald is Critical Metals' 10th largest investor. Howard Lutnick was the former head of Cantor Fitzgerald before he became secretary of U.S. Commerce Department in Trump's Cabinet. Sage said in January that he never met Lutnick or spoke to him, but acknowledged Cantor’s investment as a positive. EXIM extended last year a letter to Perpetua Resources expressing interest in a loan of up to $1.8billion for its antimony mine and gold mine located in Idaho. Reporting by Ernest Scheyder, editing by Veronica Brown & Chizu Nomiyama
(source: Reuters)