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Copper prices rise on hope of an end to the US government shutdown
Copper prices rose on Monday as a result of the optimism that the U.S. Government shutdown will end soon, and data indicating a reduction in deflation in China's top metal consumer. By 1015 GMT, the benchmark three-month price of copper at the London Metal Exchange was up 1% to $10.822 per ton. LME copper is up 23% this year. It reached a record high of $11,200 in October. The U.S. Senate moved on Sunday to pass a bill aimed at reopening federal government. "The prospect of U.S. government opening again, that sends a bit of a cheery sign and a risk-on feeling through the markets." "Industrial metals also feel the impact," said Ole Hansen. He is head of commodity strategy at Saxo Bank, Copenhagen. He added that a government reopening would also increase the calls for lowering U.S. rates in light of weak economic data. Would a short-term cut be sufficient to offset the risk of growth? The industrial metals sector must answer this question. The Shanghai Futures Exchange's most traded copper contract closed the daytime trading at 86480 yuan (12,140.95 USD) per ton, up 0.6%. Prices were also supported by data that showed the deflation of Chinese producer prices in October, in the second largest economy in world. Consumer prices returned to positive territory. According to Friday's SHFE weekly stock report, copper inventories in SHFE registered warehouses decreased 1% compared to a week earlier, which analysts believe indicates a recovery in the demand for copper. Copper demand has been resilient. Although buyers were cautious during high prices, they have increased their purchasing orders as prices decreased," said analysts at Chinese broker GF Futures in a report. The LME aluminium price rose 1.6%, to $2.893.50 per ton. Zinc gained 1.4%, to $3.099; lead gained 0.8%, to $2.062.50; nickel increased 0.8%, to $15.180, and tin advanced 0.9%, to $36,125. ($1 = 7.1230 Chinese Yuan Renminbi)
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Bulgaria increases security at Lukoil Refinery in anticipation of planned takeover by the state
Premier Rosen Zhelyazkov announced on Monday that Bulgarian authorities were conducting inspections at the Russian oil giant Lukoil’s Burgas refinery and taking security measures to protect critical infrastructure. The government is preparing to take control of the site. Last week, Bulgaria made legal changes that allowed it to buy the refinery from the U.S. and sell it on to a new buyer to protect the plant against sanctions. Zhelyazkov stated on Monday that these measures include inspections, and the preparation of military police. They are preventive, and aim to preserve critical infrastructure including oil refinery, and other facilities. The Council of Ministers released a statement on Sunday saying that the state security agency, ministry of interior and ministry of defence had taken additional security measures "in the vicinity of Lukoil sites - critical infrastructure elements in Bulgaria". The statement stated that the Ministry of Defence had redeployed a system to combat drones in the Burgas region. The inspection of strategic facilities is conducted to ensure compliance with security and plan measures. The statement said "military teams are also ready and waiting to assist the Ministry of Interior." Nova TV in Bulgaria reported that vehicles entering the country are thoroughly checked for explosives and other devices. A special manager may be appointed under the new law to supervise the sale of Burgas Refinery. Lukoil would not be able to appeal or vote on the decision. Last month, the U.S. imposed sanctions against Lukoil and Rosneft -- Russia's largest oil companies -- over Moscow's conflict in Ukraine. This has complicated their operations. (Reporting and writing by Georgi Slavov, Additional reporting in London by Robert Harvey; Editing and proofreading by Louise Heavens).
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RHI Magnesita shares in London surge on strong margins, according to forecast
RHI Magnesita's London-listed shares jumped by 20% on Monday, after the refractory product supplier reported robust profits and reaffirmed their full-year outlook despite a difficult steel market. The company reported that adjusted earnings before interest tax and amortization were 136 million euro ($158.6 millions) for the period July-October, with a margin of 12.7%, which was ahead of the first halves despite a seasonally lower third quarter. RHI Magnesita shares, listed in London, were the top gainers on the FTSE Mid-Cap index at 0926 GMT. They traded up 15.8%, to 2,310 pences, and are on track to have their best day since 2023. Overcapacity in China has led to intense price competition and low volumes in the steel sector, which represents nearly 70% of Austria's company's revenues. Materials such as refractory and heat-resistant are vital for the production of steel, cement and glass. In a press release, it stated that "Steel volume for the period was weak and broadly in line with the full-year guidance. This reflects a subdued, but stable, overall demand with only a modest improvement when compared to the previous half." The majority of the gains in margins were due to cost-saving measures, such as the closure of two German plants. In addition, the company pushed for modest price increases, since customers preferred local supplies over Chinese imports. RHI Magnesita has maintained its outlook for full-year adjusted EBITA of 370 to 390 millions euros. It expects to maintain pricing benefits through the first half 2026. However, it warns that a rapid normalization of demand is not expected. The company reported that while increased production in the U.S. reduced its overall tariff exposure, it faced new challenges from the levies on raw material and finished goods imported to Brazil. The company stated that the local-for-local U.S. production increased to 65 percent in 2025, and it is expected to surpass 75 percent in the second half 2026.
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Swedish industrial giants invest 400 million SEK in new nuclear energy
A group of large Swedish companies signed an agreement with the utility Vattenfall, to invest 42.5 million Swedish crowns (400 million Swedish crowns) in the development of small nuclear modular reactors in Sweden. Industrikraft is a group of 17 industrial firms, including SKF and Volvo AB, that invests in Videberg Kraft. The company was set up to help facilitate the construction of new nuclear energy in Sweden. Industrikraft said that it would also buy a 20% stake later in Videberg Kraft in a Monday joint statement. Vattenfall plans to build small modular units at its existing Ringhals facility in Varo (southwest Sweden) to produce a total of 1,500 MW. Vattenfall CEO Anna Borg stated in a statement that "the commitment of these companies, and their willingness share ownership of the Varo Peninsula project is a sign there will be a demand for newly produced fossil-free energy." A commission found that Sweden plans to build up to 12 nuclear reactors in total by 2045. This could cost as much as 400 billion Swedish crowns (about $39 billion), and the government has offered to share the risks. $1 = 9.4155 Swedish Crowns (Reporting and editing by Conor Humphries).
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Newcleo, an Italian SMR company, is looking to build up to 20 reactors in the US
Italian small-modular-reactor startup Newcleo is considering developing 20 reactors worth an estimated 16 billion euros ($19 billion) in the United States, not in Britain as previously planned, as recent policy changes opened opportunity for investment, CEO Stefano Buono told . In May, U.S. president Donald Trump signed an Executive Order to increase domestic nuclear production through a reduction in regulations and the fast-tracking of new licenses. Hyperscalers - large data centres developers like Microsoft - invest in nuclear energy to ensure a stable supply for the energy intensive centres. This is in contrast to the slow pace of development in Europe where it can take up to three times as long for approvals. Buono said that there are many tools available to encourage investment in the U.S. Newcleo also competes in an auction to develop fuel production within the United States. Buono stated that the company, which has recently relocated its headquarters from Britain to France, is considering moving its deployment programme of twenty reactors to the U.S. Each reactor will cost an estimated 800 million euros in investment. A spokesperson for the company stated that no investment decision had been finalized and that there were still many steps to be taken before one was made. ($1 = 0.8575 euro) (Reporting and editing by Emelia Sithole Matarise; Forrest Crellin)
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The Foreign Ministry reports that IAEA inspectors have visited Iranian nuclear sites in the last week.
Iran's Foreign Ministry spokesperson told state media on Monday that inspectors from the U.N. nuclear monitor IAEA had visited Iranian nuclear sites in the past week. This comes a week after IAEA officials urged Iran to “seriously enhance” its cooperation. The IAEA conducted about 12 inspections in Iran after hostilities began with Israel in late June. However, last week, it was revealed that the agency had not been granted access to certain nuclear facilities, such as Fordow Natanz, and Isfahan which were bombed in part by the United States. Esmaeil baghaei, without naming the other facilities, said: "As we remain members of the NPT, we will adhere to our commitments. Just last week, IAEA inspections visited several nuclear sites, including the Tehran Research Reactor." Rafael Grossi, the head of the International Atomic Energy Agency (IAEA), said that Iran should "seriously" improve its cooperation with United Nations inspectors in order to avoid escalating tensions with Western countries. Iranian officials blamed the IAEA, saying that it provided a justification to Israel for its bombing of a 12-day conflict in June. The war began a day after the IAEA's board voted against declaring Iran in breach of the Nuclear Non-Proliferation Treaty. Baghaei made his comments Monday in response to Grossi, who said last week that Iran could not say "I remain within non-proliferation treaty" and then fail to comply with its obligations. Reporting by Elwely Elwelly, Editing by Alison Williams and Alexandra Hudson
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China gives conditional approval to Codelco-SQM joint venture
China's market regulator announced on Monday it had granted conditional approval to a joint venture between Chilean state-run copper company Codelco and local producer SQM in the lithium sector. China's State Administration for Market Regulation stated that the decision was taken after the regulator sought input from government agencies, industry associations and downstream consumers. The regulator said that both sides must make their best efforts in the event of major supply changes to ensure the continued supply of lithium products to Chinese clients. Codelco planned to create a joint-venture for lithium production on the Atacama Salt Flats as part of President Gabriel Boric’s plan to expand lithium production and increase state control. The Chilean competition regulator approved the deal. This decision joins those made in other countries such as the European Union (EU), Brazil, Japan and South Korea. China's regulator is still deciding on the market. Alvaro Garcia, the newly appointed Economy minister of Chile, said in August that he expects Codelco to sign a significant lithium partnership agreement with SQM before 2026 when the current administration leaves office. Joint ventures are often met with opposition from lawmakers and lawsuits by Tianqi of China, which is a major shareholder in SQM. Reporting by Amy Lv and Ethan Wang; Editing and production by Jacqueline Wong, Kate Mayberry, and Joe Cash
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Gold reaches two-week highs as US data weakens and rate cuts are expected
Gold prices rose by 2% Monday, reaching their highest level for two weeks. Weak U.S. data increased expectations of a Federal Reserve rate reduction next month. A weaker dollar also helped to support gold. Gold spot rose 2% by 839 GMT to $4,079.49 an ounce, its highest level since October 27. U.S. Gold Futures for December Delivery rose 1.9% to $ 4,087.80 an ounce. Gold is now more affordable to overseas buyers due to the drop in the dollar index. The dollar index is the focus of attention due to the lackluster data. Jigar Trivedi said, "Safe-haven purchases have also increased because of geopolitical tensions and the ongoing trade war." Last week, data showed that the U.S. economy lost jobs in October. These losses were in the retail and government sectors. Businesses cutting costs and adopting AI also contributed to the surge of announced layoffs. A survey released on Friday revealed that the U.S. consumer's sentiment dropped to its lowest level for nearly three-and-a half years early in November due to concerns over the economic impact of the longest government shutdown ever. The U.S. Senate passed a bill on Sunday that would reopen federal government offices and end the shutdown of 40 days. In an interview broadcast on Sunday, White House economist Kevin Hassett warned that the U.S. economy could experience a negative fourth-quarter growth if the government shutdown continues. The market participants see a 66% chance that the Fed will cut rates in December. Gold tends to do well when interest rates are low and there is economic uncertainty. Trivedi stated that "it's an overall win for gold, and the undertone of bullishness is strong... we could see levels near $4,120-4,130 in the future." The price of spot silver increased 3.3%, to $49.91 an ounce. This is the highest level since October 21. Platinum rose 2%, to $1.576.25, and palladium rose 1.7%, to $1.403.63. (Reporting and editing by Emelia Sithole Matarise in Bengaluru)
Gold reaches two-week highs as US data weakens and rate cuts are expected
Gold prices rose by 2% Monday, reaching their highest level for two weeks. Weak U.S. data increased expectations of a Federal Reserve rate reduction next month. A weaker dollar also helped to support gold.
Gold spot rose 2%, to $4,078.45 an ounce, by 0956 GMT. This was its highest level since October 27. U.S. Gold Futures for December Delivery rose 1.9%, to $4.087.10 an ounce.
Gold is now more affordable to overseas buyers due to the drop in the dollar index.
Jigar Trivedi is a senior research analyst with Reliance Securities. He said, "There are concerns about the U.S. economic situation because of the weak numbers, and that the dollar index remains the main focus."
Trivedi said that the bullion market has also benefited from safe-haven purchases due to geopolitical tensions and the ongoing trade war.
Last week, data showed that the U.S. economy lost jobs in October. These losses were in the retail and government sectors.
A survey released on Friday showed that the U.S. consumer confidence fell to its lowest point in almost 3-1/2 years early in November due to concerns over the economic impact of the longest government shutdown ever.
The U.S. Senate passed a bill on Sunday that would reopen federal government offices and end the shutdown of 40 days.
In an interview broadcast on Sunday, White House economist Kevin Hassett warned that the U.S. economy could experience a negative fourth-quarter growth if the government shutdown continues.
The market participants see a 66% chance that the Fed will cut rates in December.
Gold is a non-interest bearing asset that benefits from low rates and economic uncertainty.
Saxo Bank stated in a report that "while we maintain gold could reach $5,000 within the next year and silver at $65, we're more cautious when calling for an instant return to highs."
Palladium rose by 1.4% and platinum gained 1.6%. (Reporting and editing by Emelia Sithole Matarise in Bengaluru)
(source: Reuters)