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Handelsblatt reports that the EU is planning tariffs between 25% and 50% on Chinese steel products.
Handelsblatt, a German business newspaper, reported that senior officials at the European Commission had told them they planned to impose tariffs between 25% and 50% on Chinese steel products and other related products within the next few week. The European Commission has not yet commented. Ursula von der Leyen, the President of the European Commission, had stated earlier in this month that it would be proposing a new way to limit steel imports for domestic producers to protect them. Global overcapacity is straining margins. It also makes it difficult for Europe's Steel Industry to invest into decarbonisation. She said the Commission would be proposing a long-term, new trade instrument that would replace the steel safeguards. According to global trade rules the EU cannot extend existing steel safeguards past mid-2026. Analysts predict that China's exports of steel will reach a record high in this year. They are forecast to rise between 4% to 9%, to 115 to 120 million tons. China produces more than half the steel in the world. The country is looking for new markets as a result of a long-term property slump that has dampened consumption on its domestic market. China Trade Remedies Information estimates that 54 tariffs or other trade barriers will be imposed on Chinese steel starting in 2024. Analysts believe more exports of Chinese steel will lead to further restrictions. Tariffs of up to 50% on steel imports from the United States also affect European producers. After a series of warnings from the industry about shortages, and the potential for smelter closures, the European Union began monitoring scrap metal imports and exports in late July. Scrap metal is an important input for EU smelters, and is also a key component of their efforts to reduce carbon dioxide emissions. (Reporting from Frankfurt by Christoph Steitz and Katha Kali in Bengalur; Editing by Nick Zieminski, Krishna Chandra Eluri).
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IAEA says drone detonated near Ukraine's South Ukraine nuclear plant
The International Atomic Energy Agency announced in a Thursday statement that a drone had been downed overnight and detonated around 800 metres (875 yards). This was about 875 meters from the South Ukraine nuclear plant of Ukraine. The IAEA stated that there were no reports of injuries. In a statement released by Rafael Grossi as Director General of the agency, the agency said that its team at the site, which monitors the plant, was informed 22 drones had been observed in the monitoring zone. This occurred late Wednesday night and early Thursday morning. Some drones flew as close as 500 meters. Grossi reported that monitors heard gunfire, explosions and a four-metre square crater at around 1 a.m. They later visited the location where the drone had landed and found a similar crater. Grossi wrote: "Around the area of impact, vehicles were damaged by shrapnel. Nearby metal structures were also hit. The power line that fell was also not connected to the facility. He wrote: "Again, drones fly too close to nuclear plants, putting their safety at risk." "Luckily, the South Ukraine Nuclear Power Plant was not damaged by last night's accident. "Next time, we might not be as lucky." Ukraine has four nuclear reactors and reported occasional incidents relating to its 3-1/2-year war at South Ukraine, Rivne, and Khmelnitskyi Stations. Russia and Ukraine accuse one another of compromising nuclear security at the Zaporizhzhia Station, which was seized by Russian forces in the early weeks of the conflict. Grossi attended a nuclear energy forum in Moscow. In a post on the X platform for social media, he described his meeting with Kremlin Leader Vladimir Putin as being "important and timely". He added that the meeting was dedicated to "nuclear safety, security, and non-proliferation challenges" as well as nuclear energy and non-proliferation. The governor of Russia’s western Kursk Region reported earlier that day that a Ukrainian drone had attempted to attack Kursk-2, a nuclear power plant under construction in Kurchatov. Alexander Khinshtein stated that the drone crashed into a building at the construction site. He added that no injuries were reported and the station is still operating normally. In its latest report on Ukrainian nuclear power stations, the IAEA said that the Zaporizhzhia plant in Russian hands had been without electricity for over 48 hours following the collapse of the external power lines that supplied the station for the 10th consecutive time during the conflict. These lines provide electricity that is vital for cooling the fuel in its reactors and preventing a melting down. Emergency diesel generators were in operation. Reporting by Surbhi Misra, Bengaluru. Editing by Ron Popeski & Lincoln Feast.
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Tesla calls on Trump administration to maintain vehicle emission rules
Tesla, a manufacturer of electric vehicles, urged the Trump Administration not to repeal the vehicle emission standards or the longstanding U.S. conclusion that greenhouse gas emissions are harmful to human health. Tesla stated in comments published on Thursday that the Environmental Protection Agency proposal to repeal standards would "give a pass to all engine and vehicle manufactures for measurement, control and reporting of GHG emission for any highway vehicle and engine." Earlier this year, a group of automakers including General Motors, Toyota, Volkswagen, and almost all others asked the EPA for a rollback on its aggressive vehicle emission limits, which are intended to force the industry into building a growing number of electric cars. Tesla could lose billions in regulatory credits over the next few years due to the Trump administration's decision to dismantle green vehicle regulations. Tesla reported that it earned $2.8 billion last year from regulatory credits from the sale of zero-emission EVs and sold those credits to automakers who were trying to meet vehicle emission targets. At an Ohio Republican Senator Bernie Moreno's hearing in July, he said that the costs paid by automakers to Tesla in order to comply with regulations were "outrageous". Tesla stated that the EPA's proposal "undermines this program and diminishes performance-based incentives for electric vehicle manufacturers under the standards. It also creates an unfair playing field - reducing investment in vehicle innovations." Tesla has begun spending $25 per vehicle on environmentally friendly air conditioning in 2019. Tesla stated that "this investment amounted to millions of dollars when multiplied by the millions of vehicles manufactured for North America from this time." Elon Musk, the CEO of Tesla, was an adviser to U.S. president Donald Trump before their public spat earlier this year. Trump said Musk was against a budget bill because it removed consumer tax credits on electric vehicles. These will expire on September 30, according to Musk. The administration informed automakers in July that they would not be fined for failing to meet fuel-efficiency rules going back to 2022. In June, Trump signed a resolution under the Congressional Review Act that disapproved of California's historic plan to stop the sale of gasoline only vehicles by 2035.
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Data dampens hopes for policy easing as stocks fall and yields rise
Investors worried that the Federal Reserve would be more cautious in cutting interest rates after Thursday's surprising strong economic data. U.S. Treasury rates rose after the Bureau of Economic Analysis of the Commerce Department said that the U.S. economic growth was faster than initially thought in the second-quarter, thanks to a drop in imports and an increase in consumer spending. The second quarter gross domestic products increased at a rate of 3.8% annualized, compared to initial reports that it would be 3.3%. New orders for U.S. manufactured capital goods increased unexpectedly in August. However, a decline in the shipments of those goods suggests a modest pace of growth of business expenditure on equipment in this quarter. The Labor Department reported on Thursday that new claims for unemployment benefits dropped by 14,000, to 218,000 seasonally-adjusted for the week ending September 20. The economists polled had predicted 235,000 claims for this latest week. Matt Stucky is the chief portfolio manager of equities for Northwestern Mutual Wealth Management Company. He said, "If you want to continue fueling equities higher and wider than what we have seen in the past couple of years, then you need the Fed to ease and ease materially until 2026." Austan Goolsbee, the president of the Fed Bank of Chicago, said on Thursday that he supports the interest rate cut last week because the labor markets are cooling. However, he is not keen to do much more policy easing as long as inflation is moving in the wrong direction and is above the target. Stephen Miran, the Fed governor, said in Fox Business' Mornings with Maria that high interest rates are making the U.S. more susceptible to shocks. This is due to unfounded concerns about inflation among Federal Reserve policymakers. Mary Daly, president of the San Francisco Federal Reserve Bank, said that she "fully supports" the Fed's decision to reduce its policy rate by a quarter point last week. She also expects more reductions in the future. She said that it was difficult to predict the timing of these cuts. After the data and commentary, Wall Street indexes fell to their lowest levels in a week. At 02:41 pm, the Dow Jones Industrial Average dropped 146.95, or 0.32 percent, to 45,975.28, while the S&P500 fell 32.12, or 0.48 percent, to 6,605.85. The Nasdaq Composite also fell 114.50, or 0.51 percent, to 22,383.34. MSCI's global stock index fell 6.30 points or 0.64% to 973.11, after reaching its lowest level since Sept. 11. Investors focused on the Fed's comments. Earlier, the pan-European STOXX 600 Index closed down by 0.66%. It had touched its lowest level since September 5. Med-tech stocks were under pressure following news that the U.S. opened new import-related investigations. In government bonds, U.S. Treasury yields rose on Thursday following stronger-than-expected second-quarter economic data that could strengthen the case for a rates pause from the Fed at its October meeting. Molly Brooks is the U.S. Rates Strategist at TD Securities. She said that the rise in yields on two-year and 10-year Treasury notes was more a reaction to the surprise of the GDP. "But I still think that markets are biased towards a future slowdown of data." The yield on the benchmark 10-year note rose by 3 basis points, to 4.178% from 4.147% at late Wednesday. Meanwhile, the 30-year bond's yield dropped 0.4 basis point to 4.7536%. The yield on the 2-year bond, which moves typically in line with expectations of interest rates for the Federal Reserve (Federal Reserve), rose by 6.7 basis points, to 3.666% from 3.598%. The dollar rose against the euro and the yen, on the back of signs that the U.S. economic growth was faster than expected in the second quarter. This could have a restraining effect on Fed rate easing. The dollar index (which measures the greenback in relation to a basket of currencies, including the yen, euro and others) rose by 0.72%, reaching 98.54. The euro fell 0.71% to $1.1654, and the dollar gained 0.64% against the Japanese yen. The pound fell 0.83%, to $1.3332. The dollar gained 0.67% against the Swiss Franc after the Swiss National Bank kept interest rates at zero Thursday, its first pause in the past 2023. The oil price recovered earlier losses and settled near the seven-week high of Wednesday, while economic data dampened optimism about rate cuts. Brent crude closed at $69.42 a barrel, an increase of 0.16% or 11 cents for the day. U.S. Crude settled at $64.98 per barrel down by 0.02% or 1 cent. Gold, the safe-haven asset, recovered from its early session losses but was still well below Wednesday's high. Spot gold increased by 0.56%, to $3756.93 per ounce. U.S. Gold Futures rose 0.06%, to $3.734.20 per ounce. Bitcoin, the most popular cryptocurrency, fell by 3.47%, to $109 656.05, after reaching its lowest level since September.
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Petrobras failed a part of the test required to get a license to drill at Foz do Amazonas
Petrobras failed a part of the test required to get a drilling license in the Foz do Amazonas Basin, Brazil's Environmental Agency wrote in its report made public on Wednesday. The agency Ibama said that Petrobras had passed the broad test. However, the technical report required the firm to resubmit their animal-rescue plans, listing this as a step necessary for its bids to drill in an ecologically sensitive area. Ibama wrote that the plan "is not capable of ensuring adequate actions for animal care." Petrobras and Ibama didn't immediately respond to requests for comments. Petrobras had previously stated that it would submit the emergency response plan again by Friday. Petrobras' high-ranking executive said that despite the obstacle, the granting the license was "inevitable" and asked not to be identified in order to discuss sensitive issues. Petrobras considers the area where it plans to drill off the coast of Amapa in the Amazonian State as its most promising oil frontier. It shares geology with Exxon Mobil's nearby Guyana fields, which are developing large fields. According to the report, Petrobras had to move toys in place of animals at night in order to meet a deadline of 24 hours to get them to a vet center. A Petrobras boat got tangled up in a net of fishing during the trip. Another time, a boat got stuck on a sandbank. Ibama said that there was also a close call with another vessel. Ibama's staffers noted that pilots of aircraft lacked the proper safety equipment to protect themselves from toxic substances that can vaporize when animals are contaminated with oil.
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Niger wants to build nuclear reactors with Russia
Ousmane Abarchi, the mining minister of Niger, said that Niger is interested in building two nuclear reactors with a combined power of 2,000 megawatts. Abarchi stated that Niger also proposed to work with Russia on developing uranium resources in the west African nation. He said, via a translator, at a Moscow nuclear forum: "Please let's jointly develop our uranium reserves." Alexei Likhachev, the Rosatom chief, described the proposals as being "extremely intriguing". Niger is one of a number of African nations with whom Russia has developed close ties. This includes in the security area. According to the World Nuclear Association (WNA), Niger will be the eighth largest producer in terms of uranium mined by 2024. Abarchi stated that the nuclear plants proposed would be developed by the U.N. nuclear watchdog International Atomic Energy Agency. "Yes, this is important to us. "This is important for the entire African region," he said. Egypt is currently building reactors to replace the South African nuclear power plant. Other countries, such as Ghana, Algeria and Ethiopia, Kenya, Morocco Nigeria, Rwanda, Sudan, have also proposed building nuclear power plants. (Reporting from Anastasia Lyurchikova in Moscow, writing by Mark Trevelyan and editing by Ed Osmond.
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Russia expects to see an increase in vehicle scrappage fees despite a drop in sales
A document reviewed by shows that the Russian government expects its budget revenue from scrapping fees to increase sharply in this year and the next, despite a steep decline in vehicle sales. The draft budget forecasts scrappage fees revenues of nearly 1.65 trillion Russian roubles (19.71 billion dollars), an increase of 46.7% over the 1.12 trillion roubles expected for 2025. Government has collected only a fraction of this total so far in 2018, at 267 billion Rubels, as of 23 September. However, the government said that future revenue growth will be driven both by an annual indexation of fee rates and a recovery of vehicle production. The Russian Finance Ministry said that revenues from car scrappage will be well below budgeted levels for this year. As a result, state funding may not be available to support some industrial development programs. Analysts and automakers predict that car sales will fall by a quarter around 2025, following a market recovery of two years which began in 2023. The sales in the first eight-months of this year are already down by 23% compared to last year, at 773,264 vehicles. Some Russian automakers have switched to a four day work week due to poor demand. Scrappage fees are imposed on both domestic and imported vehicles. The amount varies depending on the type of vehicle. The Russian industry ministry proposed a new method for calculating scrappage fees starting in November. This could result in further price increases on some expensive cars. As compensation, Russian automakers receive state subsidies. This has led to a rise in car prices and a shrinking of the market.
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Zelenskiy seeks to expand Ukraine's drone sector by wooing US companies
His office reported that President Volodymyr Zelenskiy discussed Ukraine's plans for boosting drone exports and expanding tech partnerships with the top management from a number of U.S. companies. Since the Russian invasion of Ukraine in February 2022 all weapons produced on the Ukrainian production lines are diverted for national defence. "Our country is home to a strong drone industry, and over 300 technology companies." Zelenskiy stated that he believes this will be a new direction in our economy and business in the future. He added, "I believe this year we will only open exports of new technologies to countries we can count on." Zelenskiy's office reported that Zelenskiy had met with representatives of Amazon, Bank of America and Chemours. He also met with Fairfax, GE Vernova. Jacobs, JPMorgan Chase. Lazard. Logistics Plus. Marsh McLennan. TechMet. Westhouse. Some of these companies are already operating or investing in Ukraine. Zelenskiy stated that Kyiv is ready to expand new areas for partnership and investment. UKRAINE'S Drone Output Soars During the war, Ukraine's domestic weapon production and drone output have risen dramatically. Hundreds of companies have manufactured millions of drones which have been tested in the battlefield. Zelenskiy stated that Ukraine plans to establish export platforms throughout the United States, Europe and the Middle East. Kyiv, which is trying to rebuild its economy after the war, has been offering potential investment opportunities to American companies. Ukraine and U.S. International Development Finance Corporation have launched a joint investment fund of $150 million as part of Kyiv’s mineral deal with Washington that was first signed in April. According to Ukrainian officials, Prime Minister Yulia Syrydenko plans to visit the United States by the end of this month for more in-depth talks with U.S. companies. (Reporting and editing by Yuliia Dysa, Olena Harma; Hugh Lawson).
American Lithium increases Peru project investment by 22%, to $847 Million
American Lithium increased its planned investment in the Falchani Lithium project in Peru from $847 million to $222 million on Thursday. The project was relaunched following a favorable ruling by a court that resolved a legal dispute regarding its concessions.
Ulises Solis told reporters that the cost update includes construction of a refining plant at the project's site in Puno, a region in the Andean mountains.
Solis said that it is now aiming to start construction in 2027, and production of battery grade lithium carbonate will begin after 2028.
Relaunched after a
Late August ruling
The top court of Peru confirmed Macusani's Yellowcake ownership of 32 concessions. This was a resolution to a legal challenge brought by Peruvian mining officials in 2018.
Solis told a mining conference that investors were scared of the outcome of a lawsuit.
Solis said that the legal uncertainty is resolved and the company has begun to talk with foreign and Peruvian investors, including those from Germany.
He also said that Peru's Mining Minister will meet with shareholders of the company on October 7, to help advance development of Falchani - the only lithium project in Peru. (Reporting and writing by Marco Aquino, Kyry Madry, Chris Reese).
(source: Reuters)