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The UK will join the Erasmus+ Student Exchange Scheme
The UK and EU agreed to allow UK students join the popular Erasmus+ student exchange programme on Wednesday, a symbolic but small sign of improved relations after Brexit. The UK contribution to the academic year '2027/28' will be 570 millions pounds ($760million), according to the British government. They also said that this deal includes a 30% discount on the default terms of the current trade agreement with the EU. The statement stated that the two sides had also agreed to "start negotiations" on integration of electricity markets, and set a deadline for finalising a food and drink trade agreement and linking carbon markets next year. Since he was first elected, Prime Minister Keir Starmer sought to strengthen ties with the EU. In May, the two sides agreed on the most significant reset of defence and trading ties since 2020 when the UK will leave the EU. Starmer has tried to differentiate his approach from previous Conservative governments' often tense relationships with the EU during Brexit negotiations. Nick Thomas-Symonds, Minister for EU Relations, said that the Erasmus+ agreement was "a big win" for our youth. He said: "We have focused on public priorities and secured an agreement that puts 'opportunity first. The government has said that more than 100,000 people could benefit in the UK in the first year. It has been a long-standing EU demand that the UK return to the Erasmus+ programme, which allows EU students to study abroad for up to one year in another EU country. The UK had previously withdrawn from the programme after Brexit. Reporting by Catarina demony and Muvija M. Editing by Paul Sandle.
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Namibian tax revenues boosted by gold and uranium after diamond prices plunge
The?mining?chamber of Namibia said that for the first time in history, Namibia's diamond revenues were exceeded by other minerals. Record gold prices and increased uranium production helped to offset the effect?of low gem?prices. Namibia has always relied on diamond income to boost its state coffers. It accounts for around 30% of Namibia's export earnings. The natural diamond industry has seen a decline in prices since mid-2022. This is mainly due to the growing popularity of laboratory-grown gems. According to the tax collector, the revenue generated by diamonds fell 79% from the previous year in the six-month period ending September. In its October report, which was published late Tuesday, the Chamber of Mines in Namibia stated that non-diamond mining revenues had surpassed diamond revenue for the first. This reflects a "structural shift" towards a more resilient and diversified mining revenue base. In the last financial year, tax revenue from other mineral deposits, mostly uranium, gold and copper, increased to 2,87 billion Namibian Dollars ($171.09 millions), almost twice the initial budget estimate. The current financial year is expected to see a further increase to N$3.54billion. The non-diamond royalties also exceeded expectations. They increased from N$747.8 million to N$1.03billion in the previous financial year, and are continuing this trend?in the current fiscal year. Namibia's gold mines Navachab and B2Gold Otjikoto Mine benefited from the bullion?rally which sent spot prices up to $4,380 an ounce in October. This is about 60% higher than a year ago. In the first 10 months 2025, production of uranium (which is used in nuclear technology) was up by 22% on an annual basis. Namibia is the third largest uranium producer in the world, behind Kazakhstan and Canada.
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Iron ore at a one-week high, supported by improved spot market liquidity
The price of iron ore futures rose to a new high on Wednesday. This was due to the accelerated buying in the spot market, as steelmakers from the top consumer -China began stocking up feedstocks for consumption over the Lunar New Year holidays in February. The daytime trading price of the most traded iron ore contract at China's Dalian Commodity Exchange was 768 yuan (109.02 dollars) per metric ton. This is its highest level since December 11. As of 0751 GMT the benchmark January iron ore was up by 0.98%?at $103.55 per ton. This is the highest price since December 5. Analysts said that improved liquidity in the spot market has lifted sentiment. Mysteel, a consultancy, reported that iron ore transactions in portside and seaborne markets rose by respectively 18.2% and 76.28% on Tuesday. There is less pressure to cut further in December in order to meet a national goal set earlier this year, as the?crude-steel output for the first 11-months of the year was down by 4% on an annual basis. Beijing announced in March that it would restructure its massive steel industry by cutting output. After Chinese property developer Vanke sweetened its bond extension proposal to avoid debt default, the price of the key steelmaking ingredient also rose. Prices of seaborne iron ore Goldman Sachs predicted $95 for the fourth quarter. Coking - The price of coal and coke (other steelmaking ingredients) rose by 0.33% and 1.93 percent, respectively. The Shanghai Futures Exchange saw a majority of steel benchmarks rise. Rebar was up by 0.1%. Hot-rolled coil increased by 0.03%. Stainless steel gained 0.2%. Wire rod dropped 1.94%. ($1 = 7,0449 Chinese Yuan) (Reporting and editing by Subhranshu Dhaniwala and Mrigank Dahniwala; Reporting by Amy Lv, Lewis Jackson)
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China's palladium and platinum prices are rising on a surge in buying interest
The price of platinum futures at China's Guangzhou Futures Exchange increased for the fourth consecutive session, reaching a price ceiling on Wednesday. This was fueled by a growing demand for the precious metal after the record-breaking performance?of silver and gold. Platinum contracts for delivery in August, June, October, and December all reached the maximum. The June contract, the most active contract since its inception, soared 7% to $527.55 ($74.88), the highest price per gram. Palladium futures also surged, with the June contract, the most active, hitting the price ceiling with a 7% increase to 455,15 yuan a gram. This is the highest level since the establishment of the contract. Guangzhou's bourse started trading platinum and palladium futures contracts on November 27 as part of Beijing’s efforts to?increase its international pricing influence. Morgan Stanley analysts forecasted a structural deficit for platinum. They also predicted that lease rates would remain high, and they expected industrial demand to recover into 2026. The analysts predicted a small palladium market deficit in 2026 and warned that the longer-term "fundamentals" of the metal are weak. The rise in gold and silver prices is a result of a combination of factors, including growing geopolitical unrest, central bank purchases and increased bets on U.S. Federal Reserve rate cuts. Analysts have reported that some investors are now interested in buying the two metals of the platinum group. The Guangzhou Exchange's open interest in the palladium and platinum futures that were most traded on Wednesday jumped by 26% and 33%, respectively. Open interest is the number of option contracts that are yet to be settled by buyers and sellers. It's a measure of investor participation in a particular market. $1 = 7.0457 Chinese Yuan Renminbi (Reporting and editing by Amy Lv, Lewis Jackson)
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Minister: South Korea will benefit from the plan of Korea Zinc to build a US smelter
South Korea's Industry Minister said on Wednesday that Korea Zinc’s plan to build a U.S. Smelter will help develop supply chains for essential minerals. Seoul may also discuss the possibility of receiving support from an U.S. Investment Fund. Korea Zinc announced on Monday a plan for a critical minerals refinery worth $7,4 billion in Tennessee. The project will be financed primarily by Washington. Kim Jung-kwan, Industry Minister, said at a 'press conference that he viewed the decision as a positive one for Korea Zinc despite its financial burden. Kim stated that "we concluded that those plans from Korea Zinc?will help us build stable supply chains for rare Earths." He said that he would need to talk to the U.S. about whether the $350 billion investment package Seoul made in U.S. strategic sectors under the recent trade agreement could be used to fund the Korea Zinc Project. Two major shareholders in Korea Zinc A?South Korean Court this week blocked the company's plans to issue new shares. Young Poong, MBK Partners and other private equity firms said that they weren't 'opposed to a U.S. smelter in general but opposed the proposed issuance new shares valued at $1.9 bn to a joint-venture backed by U.S. strategic investors and the U.S. Government. The investors would receive 10% of Korea Zinc. Reporting by Heejin Jin, Hyunjoo Ji Editing by Ed Davies
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EU will increase carbon tax on imports with high emissions and crackdown on those who try to avoid it
EU pushes forward with carbon border tax despite opposition Draft plans to expand levy to include imported washing machines, car parts The first of its kind CO2 policy will be implemented in January By Kate Abnett BRUSSELS - According to draft proposals from the European Commission, which are due for publication on Wednesday, the 'European Union' will extend its carbon border levy – a fee levied on imports of goods with high emissions – to include car parts and washer machines. The proposals aim to close loopholes, that could be used by foreign firms to avoid the fee. This is currently in the pilot phase and costs will begin to be imposed from January. The EU's Carbon Border Tariff - the first of its kind in the world - will charge fees for the CO2 emissions from imported goods, including steel, aluminum, cement, and fertilisers. CBAM is a policy designed to protect European industries from cheaper imports coming from countries that have weaker climate regulations. It has, however, angered trading partners such as China, India and South Africa who claim that it unfairly penalises the economies of their countries. EU SEEKS WORKAROUNDS TO AVOID Draft EU legal proposals, seen by?by?on Tuesday, showed that the bloc would double down on carbon border fees: expanding them to cover downstream products which use a large share of steel and aluminum, such as construction products, components for power grids and machinery. Leon de Graaf is the acting president of "Business for CBAM Coalition", a group of?companies, industry groups and other stakeholders. He welcomed the 'EU plans which he described as focusing on "products with the greatest risk of carbon leaked" - that is, the risk that manufacturing companies will relocate overseas to avoid Europe’s strict climate policies. The EU will also take action against foreign companies who are found to be underreporting emissions in order to avoid the tax. According to sources familiarized with the plans which could still be changed before publication, in this scenario the EU would impose "default values" for emissions on the products of that country. This is to alleviate concerns from EU officials about foreign companies, especially those in China, strategically adjusting by sending low-carbon products into Europe while continuing to produce high-carbon goods in other markets. They could avoid the EU levies without making their production more 'green'. Un spokesperson for the Commission declined to comment on these draft plans. CBAM will begin charging importers for emissions associated with their imports in 2026. Companies will have until September 2027 to purchase and surrender CBAM certification to the EU. China, India, and Brazil have all developed or expanded their carbon pricing systems since Brussels announced its carbon border levy for 2021. "They have changed their behaviour." Totis Kotsonis is a partner with Pinsent Masons and specializes in trade issues. Brussels plans to use 25 percent of the revenue generated by the border tax to compensate European manufacturers who face higher costs due to the carbon border tax. The support would be limited to those industries that invest in low-carbon manufacturing. (Reporting and editing by Frances Kerry, Kate Abnett)
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The final hurdle to BoE's verdict is the MORNING BID EUROPE - UK inflation
Rae Wee gives us a look at what the European and global markets will be like tomorrow. The Bank of England will announce its rate decision on Thursday, which is expected to be a razor-thin vote. The expectation is that 'the headline and core consumer price indexes will have decreased on a month-to-month basis. This would allow policymakers to feel more comfortable about lowering rates on Thursday. In October, headline inflation eased to 3.6% annually - still far above the BoE target of 2% but its first decline since May. The UK's high inflation rate has divided policymakers on the issue of whether inflation or job losses are the greatest threat to the economy. The data released on Tuesday shows that the unemployment rate in Britain has reached its highest level since the beginning of 2021, and the private sector's pay growth is at its lowest in five years. Even though markets are convinced that the BoE will reduce rates this week, a major surprise in the inflation data on Wednesday is more likely to affect policymakers' future rate outlook. Investors will scrutinise the data to see if and when another cut is likely. Oil prices rose on Wednesday, after U.S. president Donald Trump ordered a "total and complete" ban on all oil tankers sanctioned by the U.S. entering or leaving Venezuela. This sparked new geopolitical tensions in a period of concern over demand. This is the latest move by Washington to put pressure on Nicolas Maduro’s government and target its main source for income. Stocks were in a lurch on the broader market as the long-awaited U.S. jobs report was not greeted with much enthusiasm. The focus is now on the rate decisions of the BoE, the European Central Bank, and the Bank of Japan, which will be announced later this week. In China, the story was a tale of diverging fortunes. Shares of AI chipmaker MetaX integrated?Circuits surged 700% on their debut on the market, with investors eagerly attempting to profit from a government initiative to reduce reliance upon AI chips made in?U.S. majors. Property developer China Vanke wants to extend grace period of a 2 billion Yuan ($283.6 Million) bond payment from five trading days to 30, underlining the persistent challenges facing the country's struggling property sector. The following are key developments that may influence the markets on Wednesday. UK inflation rate (November) Fed's Waller Williams and Bostic talk
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Silver reaches $65 for the first time, gold increases as US unemployment rate rises
On Wednesday, silver jumped above the $65 per ounce mark?for the first time. Gold edged up after a?U.S. The jobs data revealed a softening of the labour market. This rekindled expectations for further rate cuts in 2019. It also boosted demand for precious metals. Silver spot was up by 3.2% to $65.80 per ounce, after reaching a session high of $65.99. Gold prices at the spot price rose by?0.5%, to $4322.93 per ounce as of 0407 GMT. U.S. Gold Futures rose 0.5% to $4.352.60. Kunal Shah is the head of research at Nirmal Bang Commodities. He said: "There's a major short squeeze (so, speculative trading) in silver...and we don't see the supply side reacting?the right way after the U.S. included silver on the critical minerals list." Shah noted that the current trend could push the price of silver to $70.00 in the short term. The rally came after U.S. data showed that the unemployment rate increased to 4.6% in December, exceeding a polled forecast of 4.4%. GoldSilver Central MD Brian Lan stated that the unemployment data had definitely helped precious metals, and weakened the dollar. This has led investors to seek out other asset classes with higher returns in order to hedge against risk. Investors are now awaiting the U.S. Consumer Price Index on Thursday, and the Personal Consumption Expenditures -index, Federal Reserve's preferred measure of inflation, on Friday. The Fed announced its final quarter-point cut in rates last week. Chair Jerome Powell’s comments were perceived to be less hawkish that expected. The traders still expect two 25-basis-point cuts each in 2026. In low-interest rate environments, non-yielding investments?such as bullion? tend to perform well. Palladium, which had been at a record high for two months, fell 0.8% after a 2.1% increase to $1,591.0. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich, Ronojoy Mazumdar and Subhranshu Sahu)
Russell: China's steel production will slump to a 7-year-low as iron ore exports reach record levels.
China's steel output in November was its weakest in almost two years, and it will ensure that the world's largest producer of metal will post the lowest annual production since 2018.
Imports of iron ore, steel's key raw material, are expected to reach a new record in 2025. This will surpass the previous all-time high of 1,24 billion metric tonnes set in 2024.
Iron ore stocks were restocked amid low seaborne prices, and there was optimism that Beijing’s stimulus measures would eventually increase steel demand.
While the iron ore sector may be experiencing a positive sentiment, it is still facing the reality of a weakening demand for steel in the important property construction sector as well as in manufacturing.
According to data released by the Chinese government on December 15, China's steel output fell to 69.87 millions tons in November. This is a?10.9% drop from the same period a year ago.
It was the sixth consecutive month of declines and the lowest output since December 2023.
The steel production for the first 11 month of this year was 891.67 millions tons, a 4% decrease from the same period in 2024.
If the December steel production is at the same level as November's, then total 2025 production will be around 964 million tonnes.
This would be the lowest production since 2018, when 928.3 millions tons were produced. It would also represent a drop of approximately 4% from 1.005 billion tonnes in 2024.
Steel prices are largely reflecting the weakening of production. On Tuesday, Shanghai Exchange rebar contract ended at $3,081 ($437) a ton. This is down 10.1% from the previous close of $3.429 on July 30 when the current downward trend began.
IRON STRENGTH
The price of iron ore has taken a different path. Singapore Exchange contracts have been rising since July 1, when they hit a low of $93.35 per ton, a 10-month-low.
The price of a ton closed at $106.25 on Tuesday. This is a slight drop from the previous high close for this year, which was $107.90 in December.
Prices have risen in tandem with the strength of imports during the second half. November arrivals were 110.54 millions tons, an 8.5% increase from a year ago.
Iron ore imports for the first 11 months were up by 1.4%, to 1,139 billion tons. This means that they need to surpass 98 million tonnes in December to beat the record of 1.237 billion tons set in 2024.
The analysts at Kpler estimate that China's iron ore imports in December will be around 121,000,000 tons.
How long will iron ore imports outperform steel production?
It depends on the amount of inventory that Chinese steel mills are willing to increase. They have seen their stockpiles rise in recent weeks.
SteelHome monitors stockpiles in Chinese ports
The price of corn has risen by 10.5% since the 18-month-low of 130.1 millions tons in early august, and is now approaching the 27-month high of 151.8 from July last year.
Iron ore imports are likely to be reduced in the next few months, as inventories have a limited capacity for growth.
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These are the views of a columnist who writes for.
(source: Reuters)