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Sibanye Stillwater's request for US tariffs on Russian palladium could add to price volatility
Sibanye Stillwater asked the United States for consideration of imposing a tax on Russian imports in order to ensure the viability of U.S. palladium supplies in the long term. This could lead to an increase in the volatility of palladium prices. The petition filed by Johannesburg's Sibanye Stillwater adds yet another layer of uncertainty for prospects in platinum group metals after a rally that has occurred in prices this year, due to lower production in South Africa in the first half and low liquidity on the spot market. In a July 31 statement posted on the website of Sibanye Stillwater, Chief Executive Neal Froneman stated that "we believe that Russian imports of palladium are being sold at below market prices because of various factors. This will begin primarily following the Russian invasion in Ukraine in 2022." "Obtaining relief for dumped and subsided Russian imports will allow Sibanye Stillwater, its employees and the U.S. PGM Industry to compete on more equal terms," he said. The petition will likely be decided within the next 13 months. Nornickel of Russia, the largest palladium miner in the world with a 40% market share, declined to make any comment. Sibanye Stillwater, a South African company with production assets in the United States and South Africa, lost $500 million on its U.S. Palladium assets last year due to low prices. The palladium spot price is up 31% this year. Analysts predicted in a July poll that palladium would be rising in 2025, for the first time since 2004. This was aided in part by the platinum rally. Analysts at Heraeus stated that "although placing duties on Russian Metal would not necessarily affect the market balance of Palladium, it may result in a rerouting of physical metal flows around the world, resulting in price volatility." According to Trade Data Monitor, the United States' top palladium suppliers are Russia and South Africa. China is Russia's second biggest buyer after the United States. According to Heraeus, Russian palladium exports to the U.S. grew by 42% on an annual basis to reach more than 500,000 ounces between January and May. PGMs are widely used to clean exhausts on gasoline vehicles. They have avoided the U.S. sanctions against Russian companies for the Ukraine War and any import tariffs announced in recent months by President Donald Trump. Reporting by Polina Devitt. Mark Potter edited the article.
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India's largest refiner purchases Middle East and US crudes as Trump criticizes Russian purchases
Four trade sources reported on Monday that Indian Oil Corp had purchased 7 million barrels from the United States and Canada, as well as the Middle East. This comes at a time when U.S. president Donald Trump is intensifying his criticism of India over its purchases Russian oil. India is the largest buyer of crude oil by sea from Russia. Russia is currently under Western sanctions due to its involvement in Ukraine. Reports last week said that its main refiners stopped buying Russian oil as discounts from other suppliers shrank. Trump had threatened to impose hefty tariffs for imports of countries who make such purchases. Indian government officials denied that any policy changes had taken place. Trump announced on Truth Social that he would increase the import tax on Indian goods. He accused the country of buying huge amounts of Russian crude oil and then "selling it on the Open Market at big profits" for the majority of the oil purchased. India imported approximately 1.75 million barrels of Russian oil per day from January to June, an increase of 1% over the previous year, according to trade sources. The sources confirmed that IOC, India’s largest refiner purchased crude oil via an auction from the United States and Canada for arrival in September. The sources declined to give their names because they weren't authorized to speak to media. Sources said that the refiner purchased 4.5 million barrels U.S. crude oil, 500,000 barrels Western Canadian Select (WCS), and two million barrels Das oil produced in Abu Dhabi. Two sources stated that the higher than normal purchases were partly made to replace Russian barrels. Last week, it was reported that Indian refiners IOC, Hindustan Petroleum Corp, Bharat Petroleum Corp, and Mangalore Refinery Petrochemical Ltd had not purchased Russian crude for the last few weeks. Indian companies don't comment on oil purchases The sources stated that in the IOC tender, which closed on Friday evening, P66, Equinor and Mercuria would each ship one million barrels U.S. West Texas Intermediate Midland Crude, while Mercuria would ship two million barrels. Vitol is to deliver 1,000,000 barrels each of WTI Midland, WCS and WCS. Trafigura is delivering 2 million barrels Das. The prices of the deals are not available immediately. The Trump administration imposed a 25% tariff on Indian imports after New Delhi failed to agree on a trade agreement. Reporting by Florence Tan in Singapore, Siyi in New Delhi and Nidhi in New Delhi. Editing by Kate Mayberry & Emelia Sithole Matarise.
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Russian rouble gains against the dollar as US sanctions are in focus
On Monday, the Russian rouble was slightly higher against the U.S. Dollar and flat against the Chinese yuan. This is because Steve Witkoff, the special envoy of U.S. president Donald Trump to Russia will be visiting this week. Washington may impose new sanctions. LSEG compiled data based on OTC quotes that showed the rouble up 0.1% at 79.92 per dollar as of 1420 GMT. It was unchanged at 11.06 versus the yuan. The most traded currency in Russia. In a research report, analysts at the Bank of Saint Petersburg stated that the exchange rate could remain between 11.00 and 11.20 roubles to the yuan pending the disclosure of details of U.S. sanction. Trump said that he would impose new sanctions against Moscow and the countries who buy its energy exports, China and India being the two biggest. This is unless Russia makes progress towards a peaceful settlement in Ukraine by 8 August. According to a survey of 14 analysts conducted last week, the rouble will weaken by 20% to $100 against the dollar over the next year. (Reporting and editing by Mark Potter.)
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Gold Fields anticipates a bumper profit as the gold price and volumes surge
Gold Fields South Africa expects to see its half-year profits rise by up to 236% on Monday. This is due to higher gold production as well as record high bullion price. Gold Fields, in a trading update said that its headline earnings per common share will be between $1.09 to $1.21 for the six-month period ending June 30 compared to $0.36 last year. The spot gold rate is up by more than 30% on a year-on-year basis. It peaked at $3,500 an ounce in April before dropping to its current level of around $3,356.91. Prices of bullion are expected to rise due to a strong investment demand, based on the growth in the U.S. and inflation-related concerns, central bank purchases, and resilient jewellery demand. Gold Fields reported that its gold production increased by 24% to 1.136 millions ounces in the first six months, up from 918,000 previously. Gold Fields' Salaries Norte Mine in Chile has seen a smoother ramp-up this year after a rough winter in 2013. Gold Fields anticipates producing between 2,25 and 2,45 million ounces during the entire year. The company is scheduled to release its financial results for the first half of the year on August 22. Nelson Banya, David Holmes and David Holmes are the reporters.
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Energy tech company Lummus files confidentially for US IPO amid Trump’s domestic push
Lummus Technology, a provider of energy solutions, announced on Monday that it had filed confidentially for an initial public offer in the United States. This is part of President Donald Trump's strategy to increase domestic energy production. The U.S. IPO Market, which started the year sluggishly is now showing signs of a steady recovery after recent listings have attracted strong investor interest. Trump's promise to increase U.S. production of energy during his campaign for president, coupled with his signing of "Big Beautiful Bill", has further cemented the dominance of gas and oil in the energy mix of the United States. The Chatterjee Group and Rhone capital acquired Lummus Technology in 2020 from McDermott International for $2.73 billion. Black Rock Coffee Bar, BitGo and other crypto custody startups filed confidentially for an IPO in the U.S. during July. They joined a growing list of companies looking to capitalize on strong market momentum. Companies can keep their financial and strategic data private, while engaging with regulators to assess investor interest and engaging in discussions. Lummus Technology, founded in Houston, Texas in 1907, offers process technologies, digitalization tools, and lifecycle services to the petrochemicals and refining industries, as well as gas processing, sustainable energy, and gas processing. Terms of the offer were not disclosed. (Reporting and editing by Vijay Kishore in Bengaluru, Prakhar Srivastava from Bengaluru)
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UAE summer temperatures surge near record highs after hottest ever spring
According to the National Centre of Meteorology, the United Arab Emirates will experience a record-breaking summer this year after a scorching spring. Temperatures reached near-record highs in early August. Extreme heat is a global trend. Temperatures continue to rise. The global temperature was 1.5 degrees Celsius higher than pre-industrial levels last year, which is the highest ever recorded. NCM reported that the temperature spike followed the UAE's warmest April and May in history. The NCM reported that on August 1, Sweihan, a desert town in Saudi Arabia, reached a temperature of 51.8 C (125.2 Fahrenheit), which is the highest it has been since 2021. The temperature was only a few degrees below the UAE record of 52.1 C (124.8 F), also set in Sweihan, in July 2002. The inland areas experienced temperatures of over 50 C on a daily basis in June and in July. Seaside cities like Dubai and Abu Dhabi, however, consistently recorded highs around the mid-40s. The NCM predicts that temperatures will remain higher than normal for the remainder of summer, with August temperatures forecasted to be 0.25 C - 0.5 C higher than average. Construction and agriculture workers, for example, are often not able to take the precautions that residents of the NCM have been warned about. "We complain while sitting in air conditioning... They (outdoor workers) work actually 24/7 in this hot weather," said Yasir Shahad, an Australian visitor.
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Copper prices rise on disruptions in supply after Chile tragedy
Prices of copper rose on Monday, mainly due to supply concerns following a deadly mining accident in Chile, which is the world's largest producer. However, gains were limited by worries about the global economy. In open-outcry official trading, three-month copper at the London Metal Exchange rose 0.6% to $9.685 per metric ton, adding to Friday's modest gains. LME copper is up by a fifth from its low of over 16 months, reached in April. However, it has fallen back from an early July high of more that $10,000. U.S. Comex Copper Futures increased by 0.1% to $4.44 a lb. Last week, Chilean copper giant Codelco stopped mining at its El Teniente Mine after an earthquake and collapse killed six workers. The Mining Minister said on Sunday officials will determine when it is safe to resume operations at the mine which produced 356,000 tonnes of copper last year. Mitsubishi Materials announced on Monday it is considering reducing copper concentrate processing in its Onahama refinery and smelter. Ole Hansen is the head of commodity strategy for Saxo Bank, Copenhagen. The U.S. employment data released on Friday were weaker than anticipated, indicating a rapid deterioration of the labour market. "It shows a trend of tariffs having an effect and we have probably only seen the tip." Hansen stated that this will cause the market to be defensive in the near future. The Shanghai Futures Exchange's most-traded copper contract gained 0.1%, to 78.330 yuan (10,915.70 dollars) per ton. Other metals include LME aluminium, which rose by 0.1% to $2.568 per ton in official activity, while zinc climbed 0.8% to 2.74, nickel grew 0.5% to $16.065, lead was unchanged at $1.972, and tin slipped 0.2% to $33,444. Click here to see the latest news in metals.
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Chemours DuPont Corteva settles New Jersey PFAS Claims for $875 Million
Chemours DuPont Corteva has agreed to pay $875 Million over 25 Years to the State of New Jersey in order to settle environmental claims, including pollution related to PFAS or "forever Chemicals", the companies announced on Monday. In 2023, over $11 billion was settled in lawsuits that accused major chemical companies for polluting U.S. water supplies with toxic PFAS chemicals. Experts predict new federal regulations as well as a growing public awareness about the extent of contamination will lead to more litigation and settlements. PFAS is a chemical class that's used in many products, including non-stick cookware. These substances are often referred to as "forever chemical" because they do not degrade easily in nature or the human body. They have been linked with cancer, hormonal dysfunction, and other diseases. The payments, which have a present value of about $500 million, before taxes, are not expected to begin earlier than January 1, 2020. Chemours is paying half the settlement, DuPont 35.5%, and Corteva the remainder, according to a joint statement. In 2023, three companies reached a settlement with the U.S. State of Ohio in the amount of $110 million for claims related to PFAS. In the same year, 3M paid $10.3 billion in settlements to hundreds of claims alleging that it contaminated public drinking water. Chemours DuPont Corteva also reached a similar agreement with U.S. Water providers for $1.19billion. The settlement announced Monday includes $16.5 million for alleged PFAS contamination that is not related to the operating sites of the companies.
Gold continues to rise on US rate cuts expectations
Gold prices rose Monday for the third consecutive session after economic data from last week fueled expectations that interest rates would be cut by the U.S. Federal Reserve.
As of 0915 am, spot gold was up 0.3% at $3,373.22 an ounce. ET (13.15 GMT), the highest level since 24 July. U.S. Gold Futures rose 0.8% to $3.427.010.
"The odds of a rate reduction in September are now stronger and for a second rate cut in December, even stronger." This, coupled with inflation headwinds, is what I consider to be pretty bullish for the gold price," said Daniel Pavilonis senior market strategist at RJO Futures.
Data released last week showed that U.S. job growth in July was lower than expected, while the nonfarm payrolls for the two previous months were revised down by 258,000 jobs. This suggests a rapid deterioration of the labor market. The Fed's preferred measure of inflation, U.S. data on PCE, rose 0.3% in June, after a 0.2% increase in May, which was revised upwards.
CME FedWatch shows that traders see a 85% chance for a rate cut in September, up from 63% just a week earlier.
Bullion is considered a good hedge against inflation in an environment with low interest rates.
In comments broadcast on Sunday, Trade Representative Jamieson Greer stated that the tariffs imposed by President Donald Trump on scores of nations last week are more likely to remain in place than be reduced as part of ongoing negotiations.
According to an executive order, Trump has set tariffs that include a 35% tax on goods imported from Canada, a 50% duty for Brazil, a 25% duty for India, a 20% rate for Taiwan, and a 39% rate for Switzerland.
Silver spot was up 0.8% to $37.33 an ounce.
Palladium fell 1.9% to a two-week low of $1,184.75, while platinum rose 0.5% to $1322.03.
Pavilonis stated that the palladium price still has some upside. It is likely to rebound, with a downside support of $1,180/oz, and a breakout on the upside at $1230. (Reporting by Sarah Qureshi in Bengaluru; Editing by Sahal Muhammed)
(source: Reuters)