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Japan's Sojitz imports heavy rare Earths from Australia
Japan's Sojitz said that it has started importing rare earths heavy from Australia's Lynas. This is the first import of this kind produced using Australian ore, which was separated and refined in Malaysia. This move is intended to ensure that Japan can obtain key materials used in electric vehicles and solar panel production from other sources than China. Japan, the United States and their allies are working to create supply chains outside China as Beijing tightens its export controls on key minerals. In a statement issued on Wednesday, Sojitz stated that "we will continue to promote diversification of rare earth supply chains and contribute to a steady supply of critical materials." However, he declined to reveal import volumes or price. This week, U.S. president Donald Trump and Japan prime minister Sanae Takaichi have signed a framework to ensure the supply of rare earths and critical minerals through mining and processing. Since 2011, Sojitz has invested in and financed Lynas, which signed an exclusive deal with Sojitz for the Japanese market for light rare Earths. It secured supplies in 2023 of the heavy rare Earths dysprosium (used for neodymium) and terbium (used for neodymium magnetics). (Reporting and editing by Clarence Fernandez; Yuka Obayashi)
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BHP and POSCO Sign Deal to Advance Hydrogen-Based Low Emission Iron
BHP, world's largest miner, and South Korean Steelmaker POSCO announced on Thursday they had signed an agreement for the advancement of the production "near-zero emissions" iron. This is a major step towards manufacturing green steel. Iron will be produced in a demonstration facility at POSCO’s steelworks, located on the port side of South Korea’s city of Pohang. The process is based on hydrogen and uses an electric smelting oven. Construction will begin shortly, with the commissioning scheduled for 2028. The plant is expected to be able to produce 300,000 tons of molten metal per year. According to the International Energy Agency, a ton of steel produced in a blast-furnace, which is responsible for most of the world's production of steel, emits around 2.3 tonnes of carbon dioxide. The sector also accounts for about 8% of global emission. When crude steel is produced without scrap, and emits 0.4 tons or less of carbon per ton of crude steel, it is classified as "near-zero emissions". Australia's iron ores are typically too low-grade to produce green steel without a further processing step. This could make them less competitive with a future of lower carbon emissions than higher grade ore produced in Brazil.
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WGC reports that India's gold demand surged above $10 billion during the third quarter of this year.
The World Gold Council reported on Thursday that rising gold prices have prompted Indian investors to purchase bars and coins. Record purchases of $10 billion were made in the third quarter, bringing their share of the total consumption up to a record high. Sachin Jain is the CEO of WGC India. He said that gold has become a popular asset, as investors are diversifying their portfolios and increasing allocations. He said: "We think investors' interest will grow and continue to grow in the next quarters." The WGC reported that investment demand in the second largest gold consumer in the world jumped by 20% on an annual basis in the September quarter, to 91.6 tons or $60.7 billion in value terms. The overall gold consumption fell by 16%, to 209.4 tonnes, as jewellery demand dropped 31%, to 117.7 tonnes, due to record high prices. Gold prices in India, which reached a record of 132,294 rupies per 10 grams this month, are up 56% since 2025, after a rise of 21% last year. The WGC reported that investment demand represented 40% of the total gold consumption during the first nine months 2025. This is the highest ever recorded. Jain said that physical gold-backed exchange-traded fund are also gaining in popularity amid the rally. The Association of Mutual Funds in India's (AMFI) data showed that gold ETFs attracted record monthly inflows of Rs 83.63 Billion in September. Jain said that the demand for the December quarter will be higher than the September quarter due to the festivals and wedding season. Jain stated that despite the seasonal recovery in gold demand, it could be between 600-700 metric tons by 2025, which would be the lowest level since 2020 and below last year's 828.8 tons. (Reporting and editing by Nivedita Battacharjee; Editing by Rajendra J. Jadhav)
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Gold prices rise as the dollar falls and Fed rate cuts buoy appeal
Gold prices rose Thursday on the back of a weaker dollar and a rate cut by the U.S. Federal Reserve. However, signs of progress in U.S. China trade negotiations kept gains in check. As of 0529 GMT, spot gold was up by 0.6% to $3,953.04 an ounce. U.S. Gold Futures for December Delivery fell 0.9% to $3964.50 an ounce. The dollar index dropped 0.2%, after reaching a two-week peak against its rivals during the previous session. This made gold cheaper for holders of other currencies. "There is no catalyst other than a little technical bounce. This week, gold has been under pressure. The U.S. China trade deal is a negative for geopolitics and trade, according to Capital.com analyst Kyle Rodda. Gold is also negatively affected by the Federal Reserve's hawkish stance and the decline in odds of another rate reduction in December. This dynamic could cause gold to continue its decline. "Gold is on the rise in the long term." The U.S. Central Bank cut interest rates for the second consecutive time by a quarter percentage point, bringing benchmark overnight rates to a range of target 3.75%-4.00%. Fed Chair Jerome Powell stated that officials are still struggling to come up with a consensus on what the future holds for monetary policies and that the financial markets shouldn't assume another rate reduction will occur at the end the year. Gold that does not yield is a good investment in low-interest rate environments and economic uncertainty. In the meantime, U.S. president Donald Trump announced that he had reached a deal with China to reduce tariffs in exchange for Beijing continuing U.S. soy bean purchases, maintaining rare earth exports and crackingdown on illicit fentanyl trade. Trump's remarks following face-to-face meetings with Chinese President Xi Jinping, in the South Korean town of Busan, marked a conclusion to his whirlwind Asia tour, during which he touted the trade gains he had made with South Korea and Japan, as well as Southeast Asian countries. Silver spot fell 0.2% at $47.48 an ounce. Platinum rose 0.6% to $1.595.20, and palladium increased 0.9% to $1.413.43. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)
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CORRECTED - Russia prepares to seize strategic Ukrainian city Pokrovsk
According to Russian military blogs, Russian forces are on the verge of taking Pokrovsk in eastern Ukraine after a pincer-like movement encircled the city while small groups highly mobile Russian units entered the city. What is POKROVSK? Pokrovsk, a hub for road and rail in Ukraine's eastern Donetsk Region, had a population of around 60,000 before the war. The majority of people have fled. All children have been evacuated, and there are few civilians left. The road is a major one used by the Ukrainian army. The only coking coal mine in Ukraine, which was used to make steel, is located about six miles (10 kilometers) west of Pokrovsk. Metinvest, a Ukrainian steelmaker, announced in January that it had suspended mining activities there. The largest and oldest technical university of the region, Pokrovsk's, has been damaged by shelling. It now stands abandoned. Why does Russia want Pokrovsk? Russia wants the entire Donbas region which includes Luhansk & Donetsk Provinces. Ukraine still controls 10% of Donbas, which is an area of approximately 5,000 square kilometers (1,930 sq mi) in western Donetsk. The Russian president Vladimir Putin claims that Donbas now belongs to Russia, but Kyiv as well as the West reject Moscow’s seizure of territory. Capturing Pokrovsk (dubbed by Russian media "the gateway to Donetsk") and Kostiantynivka, to its northeast, which Russian forces are trying to envelop would give Moscow a base to drive north to the two largest remaining Ukrainian-controlled Donetsk cities - Kramatorsk & Sloviansk. Why has it taken so long? Russia has been threatening Pokrovsk since more than a decade, but its military has used a different strategy. Instead of the frontal attacks that were so famously employed in Bakhmut by Russia's military, they have adopted a new tactic. Russian forces used pincer movements to nearly completely encircle Pokrovsk, and then harassed Ukrainian forces with small units and drones in order to disrupt logistics and create chaos at their rear. In essence, Russia's tactic carved out what Russian military blogs called a gray zone of ambiguity from the city. This was a place where neither side could control it but that was very difficult to defend. It may take time to clear Pokrovsk as well as the nearby Myrnohrad, which will delay Russia's official announcement. The Russian offensive on Pokrovsk was also delayed by the Ukraine's incursion in the Kursk region last year. What is happening now? Ukraine has been rushing to reinforce positions in the city. "There are fierce battles in the city, and at the entrances to the city..." Logistics is difficult. "We must continue to destroy occupiers," said President Volodymyr Zelenskiy on Sunday. Valery Gerasimov (Chief of the General Staff) told Putin that Russia had stopped a large number Ukrainian soldiers from entering the area. Russian bloggers claimed that Ukraine's top units had left the area. The pro-Ukrainian war blogger DeepState said that Russian forces continued to infiltrate into the city. DeepState stated that "the situation in Pokrovsk has reached a critical point and is continuing to deteriorate at a rate where it could be too late for redress." Due to restrictions on reporting in the war zone, it was impossible to verify any battlefield reports. What is Russia doing along the rest of the front? The Russian military claims to have control over more than 19% (116,000 square kilometers) of Ukraine. Gerasimov said to Putin that Russian forces are also advancing into the Dnipropetrovsk region of Ukraine and Zaporizhzhia and they threaten Kupiansk, which is located in Kharkiv's region. The Russian advance towards Zaporizhzhia indicates that Moscow's current plan includes taking over the entire region. Moscow considers Crimea, Luhansk Donetsk Zaporizhzhia Kherson and Zaporizhzhia to be subjects of the Russian Federation. Kyiv claims they are all part Ukraine. The majority of countries do not recognize the area as being part of Russia, but Syria and Nicaragua have recognized Moscow's annexation. In 2014, the United Nations General Assembly declared that the annexation was illegal and recognized Crimea as part Ukraine. Putin accused the West for having double standards, accusing them of recognising Kosovo in 2008 as an independent state against Serbia's will but refusing to recognize Crimea. Russia opposes the independence of Kosovo. (Reporting and editing by Gareth Jones, Guy Faulconbridge)
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Trump says the issue is'settled,' after China agreed to a one-year deal on rare earths exports.
China has agreed to continue exporting rare earths to the rest of the world for a year as part of an agreement signed by President Donald Trump on Thursday, shortly after his meeting with his counterpart Xi Jinping. Trump said that the agreement would "settlement" the matter. He did not provide many details, except to say it was likely to be extended. China has not yet commented on the agreement reached by both leaders during their nearly two-hour long talks. Trump told reporters aboard Air Force One that "all of the rare-earth issue has been resolved." "And this is for the entire world, globally, you could say that this was not only a U.S. situation. situation." There is no roadblock on rare earth. This will hopefully be a thing of the past for a while." Rare earths are 17 tiny elements that play vital roles in planes, cars and weapons. They have emerged out of obscurity as China's greatest source of leverage during its trade war against the United States. Export controls implemented in April led to widespread shortages abroad, particularly for magnets. Some automakers were forced to halt production until exports recovered following agreements between Beijing, Washington, and the European Union. China increased these controls again in October. The total number of restricted elements was reduced to 12, and the processing equipment added. It is not clear whether the agreement that Trump discussed covers all of China's controls on rare earth exports or only the October extension. Jamieson Greer of the U.S. trade representative, who was also on board the plane, stated that China will not impose its proposed controls on rare earths after an agreement between the two presidents. He didn't comment on the controls already in place. Reporting by Lewis Jackson, Beijing; editing by Lincoln Feast
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The 'amazing' Trump Xi meeting calms tensions
Ankur Banerjee gives us a look at what the future holds for European and global markets Investors can only think of a handshake between Donald Trump, Xi Jinping and the Bank of Japan. They also have to consider Jerome Powell of the Federal Reserve's cautious tone. The markets will welcome the optimism expressed by the U.S. President and his counterpart in China. Trump claimed to have struck a deal with China that would reduce tariffs in exchange for Beijing continuing U.S. purchases of soybeans, maintaining rare earth exports and crackingdown on illicit fentanyl trade. China has not yet responded. Trump called his meeting with Xi "amazing", stating that "on a 1-10 scale, the meeting with Xi is 12." The markets didn't really know what to think, and stocks have been choppy. Markets are waiting for more details on the agreement between two of the world's largest economies. Stocks around the world reached record highs as signs of trade tensions eased. Chinese stocks also held close to a decade-high. This sets up a busy European schedule, with earnings due from Volkswagen, Puma, and many French banks, as well as inflation and economic data for the region. The Bank of Japan kept rates unchanged but reiterated its commitment to increase borrowing costs if economic growth is in line with their projections. This has shifted investor attention to the possibility of a rise as early as December. Powell was the star of the show on Wednesday, when the Fed cut rates in line with expectations. Powell said that a policy split within the U.S. Central Bank and the lack of data from the federal government may prevent another rate cut this year. The following are key developments that may influence the markets on Thursday. Economic events: Germany October inflation data; GDP data for the eurozone, Germany and France
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Russell: Imports of thermal coal from Asia are easing as prices increase after a 4-year low.
Open Interest (ROI), your indispensable source of global financial commentary, is Open Interest. The prices of seaborne thermal coal have been recovering modestly from their four-year lows in Asia, but this is at the cost of volume as major importers reduce demand. According to analysts DBX Commodities, China, India and South Korea are on course for lower coal arrivals in September than October. The prices of the main Australian and Indonesian grades have been rising since early June after a downward trend that began in October 2023. The lower prices in July and August did increase import demand, but the higher prices are now causing buyers to pull back. DBX estimates that China imported 28.17 millions metric tons of seaborne thermal coke in October. This is down from 28.43 in September, and below the 33.53 in October last year. India, the second largest coal importer in the world, is expected to import 13,35 million tons in October. This is down from the 13.76 million tons imported in September, and also below the 13.82 millions from last October. DBX predicts that Japan, ranked third in the world, will import 9.52 millions tons in October. This is down from 10.44 in September and 9.94 in 2024. South Korea is the fourth largest coal importer in the world. It expects to receive 6.45 million tonnes of coal in October. This is down from the 8.19 million tons that arrived in September but an increase from the 5.92 millions in October last year. It is not surprising that October's lower imports reflect the increased prices from July. PRICE RECOVERY The Australian coal price with a 5,500 kilocalories-per-kilogram (kcal/kg) energy content, a grade that is popular in China and India was $76.34 per ton by the commodity price reporting agency Argus in the week ending October 20. The price has increased by 16% from the low of $65.72 set in early June, and now stands at its highest level since the week ending March 3. Argus assessed Indonesian coal, with an energy content 4,200 kcal/kg at $45.26 a tonne in the seven-day period ending October 20. This is 12% higher than its low point of $40.45 for the week of July 4. GlobalCOAL assessed the price for 6,000 kcal/kg of fuel at Newcastle Port at $105.34 per ton on Tuesday, an increase from $103.74 last week. Newcastle's price, however, has remained largely unchanged in recent weeks in a small range of around $104 per ton. The lower imports to Japan and South Korea is more likely due to a weaker demand during the shoulder season, between the peak of northern summer and winter. Recent trends in the import and price of Asian seaborne thermal coke show that the market is divided between buyers who are more sensitive to prices, such as China and India and those who are more seasonal-driven, such as Japan or South Korea. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist who writes for.
STOXX reaches record levels after French stock market turmoil
European shares reached record highs Wednesday, boosted by gains in French, Spanish and other stocks. Steelmakers also rallied following the EU's announcement of plans to reduce steel import quotas.
The pan-European STOXX 600 closed at its highest level since 2007, with a 0.8% gain, while French stocks rose 1.1%, and Spanish stocks reached their highest mark in 2007.
The DAX in Germany closed at a three-month high.
The STOXX 600 was boosted by banks, which added over 1%. British lender Lloyds rose after the UK's financial watchdog proposed a smaller-than-expected compensation package over motor finance mis-selling, easing investor concerns.
Societe Generale, BPER Banca and Italy's BPER Banca have also joined in the rally. This has led to broad gains for the sector.
Steelmakers Surging
After the European Commission proposed slashing the tariff-free import quotas of steel by almost half, shares of ArcelorMittal and Aperam rose between 4% and 7%. The basic resources index increased by 1.9%.
BMW, on the other hand, fell 8.2% as the automaker lowered its earnings forecast for 2025 due to a change in U.S. Tariff assumptions and a weaker than expected growth in the Chinese Market.
Mercedes' rival, BMW, fell 2.9% while the auto index as a whole declined 2.1%.
France's political instability remained at the forefront as the caretaker
Prime Minister Sebastien Lecornu
The government struck a cautiously positive tone and suggested that a budget agreement could be reached before the end of the year, potentially averting an election.
After a week of market turmoil, following Lecornu’s abrupt resignation, French mid-caps gained 0.7%.
The French benchmark is one of Europe's laggards by 2025. It has only gained 9% in the past year, lagging behind double-digit gains on most major exchanges.
The general opinion among clients is that new legislative elections will be held in the next week. However, there are few chances of France's deficit falling below 3% of GDP by 2030. There is also little hope for relief on the French bond markets for the time being, said Olivier Korber.
The technology stocks declined 0.6%. Chip-related companies ASML, ASMI and Applied Materials led the declines. This was after U.S. legislators called for wider bans on sales to China of chipmaking equipment.
The German economy ministry raised its growth forecast for 2025 on Wednesday. It now expects a modest expansion of 0.2%, up from a zero. They cited signs of a gradual improvement.
Puma, among other stocks rose 6.8% as BofA Global Research upgraded its rating of the German sportswear company to "neutral", from "underperform".
Umicore rose 5.5% after the Belgian Metal Recycling Group said it plans on selling its permanent gold inventory for around 410 million euro ($476 millions).
Unite Group dropped 10.7% following the British student accommodation developer's report of softer rental growth for the third quarter. (Reporting from Shashwat Chakrabarty and Pranav Kashyap, in Bengaluru; and Amir Orusov, in Gdansk. Editing by Saumyadebchakrabarty and Sonia Cheema.
(source: Reuters)