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Zinc reaches peak in 4 months as LME availability declines
The London Metal Exchange reported that more than half the stocks stored in their approved warehouses were marked for removal. Benchmark zinc traded on the LME 0.7% higher, at $2,838 per metric ton. It had previously reached $2,876 per ton, its highest level since March 28. The total stocks of zinc at the LME are 118,225 tonnes . Metal earmarked at 50% or cancelled warrants suggest that another 59.900 tons are waiting to be unloaded. Traders say that there are concerns about how much zinc will be removed from the LME's warehouses, as most of it is stored in Singapore. Rent deals are agreements that allow warehouses registered on the LME to share their fees or rental revenue with companies who deliver metal. Natalie Scott-Gray is a senior metals analyst with StoneX. She said: "It's unclear whether this latest volatility in stocks was driven by pure physical demands or market players who benefited from rent deals." If we don't see the same quantity of material return to the market in the next 3 to 4 weeks, we can assume this latest order will at least partially satisfy the physical consumption needs in Europe. The focus is also on large holdings of 0#LMEWHI> zinc warrants, which are title documents that confer ownership. Additional cancellations will add to the tightness that has been created. Premium for the LME Cash Contract over the Three-Month Forward. The announcement by China that the construction of what is expected to be the largest hydropower project in the world, located on the eastern edge of the Tibetan Plateau at a cost estimated at at least $170 billion has begun, traders reported, provided a boost to zinc. The plans of China, the world's largest consumer, to stabilize growth in the sectors of machinery, automobiles, and electrical equipment, have helped industrial metals grow. Lead fell 0.3% and aluminium rose 0.5%. Tin was up 0.9% to $33,750. Nickel climbed 1.4% to $16,430 per ton. (Reporting and editing by Jan Harvey, Louise Heavens and Pratima Dasai)
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Bessent: US will not rush trade deals before August deadline. We will speak with China.
Scott Bessent, U.S. Treasury secretary, said that the Trump administration was more concerned about the quality of trade deals than their timing. The deadline to secure a deal by August 1 or face steep tariffs is approaching. Bessent said in an interview with CNBC that "we're not going rush to do deals just for the sake doing them." Bessent responded that the decision would be made by Donald Trump, U.S. president. "We'll wait and see what the President wants to do." "But again, if somehow we boomerang to the August 1, tariff, I'd think that a high tariff level would put more pressure on these countries to come up with better agreements," said he. Bessent stated that "talks will be held in the very near term" about China. "I believe trade is on a good track and I think we can now start to talk about other issues." He said that the Chinese are "very large purchasers" of Iranian and Russian oil which has been sanctioned. We could also talk about the elephant in the living room, namely the great rebalancing the Chinese must do. Bessent said to CNBC that he would encourage Europe, if they implement secondary tariffs against Russia, to follow suit. Bessent stated that the administration's focus on Japan was not its internal politics, but rather the best possible deal for Americans. Reporting by Susan Heavey, Andrea Shalal and Bernadettebaum.
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Saudi Arabian crude exports reached a three-month high during May
Data from the Joint Organizations Data Initiative showed that Saudi Arabian crude oil exports rose in May to their highest level in three months. Crude oil exports by the world's biggest oil exporter increased to 6.191 millions barrels per day from 6.166 in April. Saudi Arabia's crude production for May increased to 9.184 million barrels per day (bpd) from 9.005 in April. The data revealed that the crude throughput of Saudi refineries was 2.721 millions bpd. This is up by 0.017 million from April's figure of 2.704million bpd. Direct crude burning also increased, rising 112,000 bpd. JODI publishes monthly export data from Saudi Arabia and other OPEC members. OPEC+, a group that includes OPEC, Russia and other allies, agreed this month to increase production by 548,000 bpd for August. This was the first time since oil prices soared and then fell after Israeli and U.S. attack on Iran, they had increased output. Five sources with knowledge of the discussions have said that OPEC+ will likely approve a new increase for September at its meeting on August 3. OPEC+ started to unwind the cuts of 2,17 million bpd with a boost in April of 138,000 bpd. This was followed by more increases in May and June despite falling prices. Saudi Arabia's Energy Ministry said that the country had met its voluntary OPEC+ production target. It also stated that Saudi Arabian crude oil supply was 9.352 millions bpd in June, which is in line with agreed quota. (Reporting by Anushree Mukherjee in Bengaluru Editing by David Goodman)
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Zinc reaches peak in 4 months as LME availability declines
The London Metal Exchange reported that more than half the stocks stored in their approved warehouses were marked for removal. Benchmark zinc prices on the LME were up 1.2% to $2,851 per metric ton by 1030 GMT. They had earlier reached $2,876 per ton, their highest level since March 28. The total stocks of zinc at the LME are 118,225 tonnes . Metal earmarked at 50% or cancelled warrants suggest that another 59.900 tons are waiting to be loaded. Traders say that there are concerns about how much zinc will be removed from the LME's warehouses, as most of it is stored in Singapore. Rent deals are agreements that allow warehouses registered on the LME to share their fees or rental revenue with companies who deliver metal. Natalie Scott-Gray is a senior metals analyst with StoneX. She said: "It's unclear whether this latest volatility in stocks was driven by pure physical demands or market players who benefited from rent deals." If we don't see the same quantity of material return to the market in the next 3 to 4 weeks, we can assume this latest order will at least partially satisfy the physical consumption needs in Europe. The focus is also on large holdings of 0#LMEWHI> zinc warrants, which are title documents that confer ownership. Additional cancellations will add to the tightness that has already created a small Premium for the LME Cash Contract over the Three-Month Forward. The announcement by China that the construction of what is expected to be the largest hydropower project in the world, located on the eastern edge of the Tibetan Plateau at a cost estimated at at least $170 billion has begun, traders reported, provided a boost to zinc. The plans of China, the world's largest consumer, to stabilize growth in the sectors of machinery, automobiles, and electrical equipment, have helped industrial metals grow. Lead fell 0.1%, copper rose 0.7%, aluminium 0.5%, nickel 1.1%, and tin 0.8%. (Reporting and editing by Jan Harvey; Reporting by Pratima Dasai)
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AVZ Minerals claims that the Congo deal with KoBold violates arbitration order
AVZ Minerals, based in Australia, holds a major stake in the contested Manono Lithium Project in the Democratic Republic of Congo. On Monday, AVZ Minerals said that a new agreement between Kinshasa, and U.S. backed KoBold Metals, to develop a part of the project, violates an existing international arbitral order. The DRC Government announced on July 18, that it had signed a joint development agreement with KoBold for the southern section Manono Lithium and Tin Deposit, one of world's biggest untapped sources of battery metal. The agreement commits Congolese Government to support KoBold’s plan to purchase and develop Roche Dure Deposit at Manono. This effectively positions the Californian firm as Kinshasa’s preferred partner in order to unlock the project. AVZ's stake in the Manono Project is held by its subsidiary Dathcom Mining. The dispute is being arbitrated with Congo at the International Centre for Settlement of Investment Disputes due to the government not granting a mining license. The company claimed that Congo's agreement with KoBold Metals was in violation of interim orders issued by ICSID's tribunal on January 20, 2024. These required Congo to acknowledge Dathcom as holder the disputed mining licence and to protect AVZ rights during the proceedings. KoBold Metals and the Congolese authorities did not respond immediately to comments. The company stated that "On 18th July 2025 (AVZ) notified the ICSID Tribunal about the KoBold Agreement which is a violation (of their orders)." AVZ, which is not a part of the KoBold deal, said that it was open to a "constructive dialog" with all parties, including KoBold to find a commercial solution that respected its contractual and legal rights. Maxwell Akalaare Adombila, Maxwell Akalaare Adombila and Jan Harvey contributed to this report.
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What are the main recommendations for reforming UK’s water sector
A report published on Monday detailed a plan for overhauling Britain's water industry, aiming to protect consumers, investors and the environment. After releasing sewage levels that were unprecedented into rivers and lakes in England and Wales, the privatised water industry sparked widespread outrage. The Labour government promised major reforms after it was elected. Here are some of the highlights from the 88 recommendations made by the Independent Water Commission in the report: SINGLE WATER RULATOR The report recommends that a single regulator for water in England, and another in Wales replace the fragmented regulatory systems. The report stated that this would simplify oversight, close regulatory holes, and boost investor trust as the sector faces significant challenges due to climate change and population increase. OWNERSHIP OVERVIEW The Commission recommended tighter control over water company ownership, governance and investor priorities. It also suggested that the regulator be able to block ownership changes if it felt investors were not prioritizing the long-term interest of the company or its customers. It was recommended that regulators set "minimum" capital requirements to make companies less dependent on debt, and more financially resilient. ECONOMIC REGULATION The Commission called on a reset in economic regulation, with a "supervisory approach" for tailored supervision and earlier intervention. The Commission also recommended changes to Price Review to attract low-risk, long-term funding and ensure appropriate investment. NEW REGIONAL AUTHORITIES The report recommended creating eight regional water planning agencies in England and a national authority in Wales. The new authorities would be in charge of developing water investment plans and streamlining the existing planning process, as well as directing funding, and ensuring accountability for all sectors who have an impact on water. LONG-TERM National Strategy The Commission has called for the development of a National Water Strategy that covers at least 25-years and includes regular milestones. The strategy should be a guide for water use across sectors and supported by ministerial priority to guide regulations. NATIONAL SOCIAL TARIFF The report recommended that a national social tarif be implemented to provide consistent assistance to low-income consumers who are struggling to pay their bills. This would help reduce regional disparities. STRONGER ENVIRONMENTAL RULATION The report called for stronger environmental regulations, including better monitoring, stricter rules regarding abstraction, sludge and drinking water standards, as well as water supply. The report recommended mandatory water meters, revised tariffs and expanded rainwater harvesting. The report also identified areas where environmental legislation needed to be updated. INFRASTRUCTURE The report demanded reforms to the way water infrastructure is monitored, managed and delivered. This included new requirements that companies map and evaluate their assets. Reporting by Catarina demony. Mark Potter (Editing)
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EU ramps up retaliation as US tariff deal prospects diminish
According to EU diplomats, the European Union is looking at a wider range of countermeasures that could be taken against the United States. This comes as the prospects of an acceptable trade deal with Washington are fading. Diplomats report that a growing number of EU member states, including Germany are considering implementing a wide range of "anti-coercion measures" which would allow the bloc to target U.S. service and other sectors if negotiated deals were not reached. The European Commission (which negotiates trade deals on behalf of 27 member countries) had seemed to be on track for an agreement where the EU would have still faced a 10% U.S. duty on most of its exported goods, but with some concessions. These hopes seem to have been dashed following President Donald Trump’s threat to impose 30% tariffs by August 1 and the talks between EU Trade Commissar Maros SEFCIOVIC and U.S. counterparts last week in Washington. Sefcovic who said that a 30% tariff on transatlantic trade would "practically prevent" it, gave a sobering report to EU envoys about the current situation on Friday. The EU diplomats said that the U.S. counterparts he met with had proposed divergent solutions, including a base rate of well over 10%. Each interlocutor had a different idea. One diplomat stated that no one could tell what (Sefcovic), would work with Trump. The chances of the United States reducing or eliminating their 50% tariffs on aluminum and steel, and 25% on automobiles and auto parts are limited. 'NUCLEAR OPTION' Washington also rejected the EU demand for a'standstill' arrangement whereby no tariffs will be imposed following a deal. Diplomats claim that Trump cannot be restrained on issues of national security. This is the reason for Section 232 investigations into timber, semiconductors, and pharmaceuticals. EU diplomats report that the mood among EU member states has shifted, and that they are now more willing to respond, even though a negotiation solution is still their preferred choice. The EU currently has a package of tariffs that are suspended until the 6th of August. It is on goods worth 24.5 billion dollars (21.5 billion euros) from the United States. The EU still has to decide on another set of countermeasures for 72 billion euro of U.S. imports. The EU has also been discussing the use of its "anti-coercion instrument" (ACI), which allows it to take retaliatory action against third-country countries who put economic pressure on their member states to alter their policies. It would be possible to restrict U.S. investments, or limit U.S. access to financial services or public procurement markets, if the bloc was more focused on China. France has always backed the ACI. Others have resisted what they see as a nuclear alternative. Trump has threatened to retaliate against other countries who take action against the United States. Ursula von der Leyen, President of the European Commission, said last week that ACI was designed for situations beyond normal. She added: "We're not there yet." It would require a majority of 15 EU countries, which represents 65% of its population, to be able to use it. Diplomats in the EU say that it would only do this if it felt confident about passing it. However, there are signs of increasing support, including Germany, who has said it should be taken into consideration. Reporting by Philip Blenkinsop, Andrew Gray and Andrew Heavens; editing by Andrew Heavens.
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Two people killed and widespread damage caused by Russian attacks in Ukraine
The Russians attacked Ukraine overnight with hundreds of drones and missiles, killing two and injuring 15, causing fires and damage to several areas of the country. Ukrainian President Volodymyr Zelenskiy confirmed this on Monday. The night sky was lit up by explosions and drone engines were heard throughout Kyiv. Ukraine's airforce said that 426 drones had been launched along with 24 missiles. 23 drones hit their targets across Ukraine. Zelenskiy, a Telegram user, wrote: "Russian attacks are always against the humanity. A kindergarten in Kyiv was burned along with residential buildings and civilian infrastructure." Russian media reported that Ukraine also conducted drone attacks. This caused chaos at airports in Moscow where thousands of passengers were forced to wait in long queues, or sleep on the ground, after their flights had been cancelled or delayed. The Russian defence ministry reported that it has shot down 117 Ukrainian drones over night, including 30 in the Moscow area. Nearly three-and-a half years after Russia's full scale invasion began, the war in Ukraine is still going on. Efforts led by U.S. president Donald Trump to achieve a ceasefire have been unsuccessful. Zelenskiy stated on Saturday that he wants to speed up the ceasefire negotiations, and Kyiv has proposed new talks for next week. Dmitry Peskov, Kremlin spokesperson, said in comments broadcast on Russian state television Sunday that President Vladimir Putin is ready to move toward a peaceful settlement but that Moscow’s main goal remains to achieve its objectives. Trump is increasingly frustrated by Putin. Last week, he announced a series of weapon supplies to Ukraine including Patriot surface-to air missile systems. Last week, the European Union approved additional sanctions against Russia. These included measures designed to further damage Russia's oil and energy industries. Zelenskiy, who spoke on Monday, said that only real pressure against Russia could stop the aggression. 'UNBELIEVABLE WAR' Putin has not yet accepted a proposal by Trump for a ceasefire that was swiftly endorsed in Kyiv. After seeing the damage caused to Kyiv by Russian airstrikes, French Foreign Minister Jean-Noel Barrot stressed the need for increased pressure on Russia. "This is the reason the massive package we adopted on the European level last week is welcomed. It increases pressure against Vladimir Putin and increases the cost for this unimaginable war," said he. Sources said that Putin's conditions include a legally-binding pledge that NATO would not expand eastwards; Ukrainian neutrality, limits to its armed forces and acceptance of Russia’s territorial gains. Zelenskiy said that Ukraine would never recognize Russia's sovereignty in the occupied regions, and that Kyiv retained its sovereign right to decide if it wanted to join NATO. Officials from the city of Kyiv said that in the latest attack, a central metro station, commercial properties, shops, homes and a kindergarten have been damaged. Many people sought shelter in underground stations. Residents of Kyiv stood in a haze amongst shattered windows and scorched walls to survey the damage caused by a drone that hit the lower floors an apartment building. Ivano-Frankivsk's mayor said that his city, located in western Ukraine, had suffered the most intense attack during the war. Four people, including a child, were injured in Ivano-Frankivsk by the state emergency service. Kharkiv's mayor reported that the city, Ukraine's second-largest, had been hit by 12 air strikes over night and an industrial building for civilians caught fire. (Reporting and editing by Stephen Coates and Himani Sarkar, with additional reporting from Valentyn girenko and Olena Harmash; Additional reporting by Max Hunder)
Futures for iron ore hit multi-month highs after mega-dam announcement
Iron ore futures rose to their highest level in almost five months on Sunday, thanks to the announcement that construction will begin on the largest hydropower project in the world and strong steel mill margins.
After hitting a high of 819 Yuan on the intraday, which was the highest since Feb. 26, the most traded September iron ore contract at China's Dalian Commodity Exchange ended daytime trading 2.08% higher, at 809 Yuan ($112.74) per metric ton.
As of 0705 GMT the benchmark August iron ore traded on the Singapore Exchange had risen by 2.81% to $103.6 per ton, reaching a high intraday of $104.8. This was its highest level since February 27.
Li Qiang, Premier of China
The start of construction of what will be the largest hydropower project in the world is expected to create a significant demand for construction grade steel, as part of the country’s push towards renewable energy.
Atilla Winnel, Navigate Commodities' managing director in Singapore said: "The mega-dam announcement has a positive impact on the iron ore and rebar markets."
Atilla said that there is no doubt that the construction of this dam will benefit local steel markets, and may attract construction grade steel from all over China, given that it's 3-4 times larger than Three Gorges Dam.
Three Gorges Dam, currently the largest hydroelectric power plant in the world.
China's benchmark lending rate remained unchanged in response to expectations following slightly better than expected second quarter economic data.
Mysteel Global reported that the rising expectations of macroeconomic stimulus policies also pushed prices up for major steel products.
Mysteel, in a separate report, said that improved margins on sales of steel prompted steel mills ramp up their blast furnace operations. The average capacity utilisation increased by 0.99 percentage point week-on-week between July 11-17.
Coking coal and coke, which are used to make steel, grew by 7.88% each and 5.05% respectively.
The benchmark steel prices on the Shanghai Futures Exchange have gained some ground. Rebar rose by 2.15%; wire rod was up by 2.48%; hot-rolled coils were up 2.2% and stainless steel gained 1.33%. $1 = 7.1756 Chinese yuan renminbi (Reporting and editing by Subhranshu Sahu, Janane Venkatraman).
(source: Reuters)