Latest News
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Lucid misses its first-quarter vehicle deliveries estimates due to supplier disruptions
Lucid 'Group missed Friday its expectations for the first quarter vehicle deliveries, hurt by an unauthorized supplier and a temporary sales halt. The company was unable to meet the demand for its luxury electric SUV Lucid Gravity during the third quarter because of a quality issue with the second-row seat. The company reported that it delivered 3,093 vehicles in the March 31st quarter. Visible Alpha analysts had predicted Lucid would produce 5,967 cars and deliver 5,237. Lucid's Chief Executive Marc Winterhoff said that deliveries were especially affected in February when they paused for a few minutes to "reverse the changes and inspect already produced vehicles." Lucid recalled 4,476 'Gravity SUVs' built between December 2024 and February 2020 earlier this week due to seatbelt welds not meeting safety standards. The shortfall highlights the gap between Lucid's ability to produce cars and its production capacity, which has plagued Lucid as well as other EV startups when demand falls. Winterhoff acknowledged that supply challenges are still a concern. The company's forecast to?produce 25,000?to 27,000? vehicles this year was conservative, suggesting a growth of up to 50%. It maintained this forecast on Friday. By 2025, the production will have nearly doubled. Lucid has also been battling a chip shortage, uncertain supplies and an October fire at an aluminum supplier.
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NYT: Musk wants SpaceX IPO banks buying Grok AI subscriptions
The New York Times reported that Elon Musk was requiring banks and advisers who are working on 'SpaceX's IPO to buy subscriptions to Grok, Elon Musk's artificial intelligence chatbot. The report stated that some banks had agreed to spend up to tens or even hundreds of millions of dollars per year on the chatbot, and they have already begun integrating it with their IT systems. This week, it was reported that Morgan Stanley, Goldman Sachs JPMorgan Chase, Bank of America, and Citigroup are the active bookrunners or 'lead banks' managing a deal. Musk and SpaceX have not responded to requests for comment. JPMorgan Chase declined to comment. Goldman Sachs also declined. Citigroup, Bank of America and Citigroup did not respond. Morgan Stanley did not respond immediately to our queries. Bloomberg News reported a day before that the Starbase rocket maker in Texas had boosted its target valuation for an initial public offering above $2 trillion. This could be the largest stock market listing ever. The company hopes to raise $75 billion, which is a record amount. This would be a far cry from previous mega-IPOs like 'Saudi Aramco 2019 or Alibaba 2014'. (Reporting and editing by Bill Berkrot, Mark Porter, and Savyata Mihsra from Bengaluru)
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Afghanistan earthquake 5.9 causes eight deaths
The National Disaster Management Authority reported that eight people died and one child was injured when a house in Kabul collapsed following the earthquake in Afghanistan. The German Research Centre for Geosciences, GFZ, reported that an earthquake measuring?5.9 magnitude struck Afghanistan's Hindu Kush on Friday. GFZ said that the quake was at a depth 177 km (110 mi). Witnesses reported feeling strong tremors in the Indian capital New Delhi and Kabul, Afghanistan's capital. Afghanistan is surrounded by rugged mountains and therefore prone to natural disasters. The most deadly are its earthquakes, which kill?about 560 people a year on average. The 6.3-magnitude earthquake that struck the country in November killed at least 27 people and destroyed hundreds of homes. Mohammad Yunus 'Yawar, reporting from Kabul; Akanksha 'Kushi, writing in Bengaluru; Kanjyik 'Ghosh, in Barcelona; Kevin Liffey and Emelia Sithole Matarise editing.
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Emirates Global Aluminium estimates that full recovery of production from the attack could take up to a year
The UAE-based company Emirates Global Aluminium said that it could take up to a full year to fully restore primary aluminium production in its Al Taweelah Smelter, which was damaged by an Iranian attack late last month. In a press release, Al Taweelah said that the facilities were evacuated to the fullest extent and put into emergency shutdown following the attacks of March 28 on the Khalifa Economic Zone Abu Dhabi. EGA stated that to resume operations, it must repair the infrastructure and restore each reduction?cell. Early indications suggest that it could take up to a year for the primary aluminium industry to fully recover. PARTICULAR OPERATIONS EGA stated that the Al Taweelah refining plant, which produces alumina (the raw ingredient of aluminium), and the Al Taweelah Recycling Plant could restart some production sooner, "depending?on?the final?assessment of the site damages". The conflict in the Middle East has caused the price of aluminum to rise the most in almost two years. Benchmark three-month aluminum on the London Metal Exchange rose?10.4% in the last month, and reached its highest level in almost four years -- $3,546.50 a metric ton -- on March 12. The London Metal Exchange's benchmark three-month aluminium reached its highest level in nearly four years - $3,546.50 per metric ton - on March 12. Al Taweelah Aluminium Smelter of EGA will produce 1.6 million tonnes of cast metal in 2025. Al Taweelah is also home to an alumina refinery, which produced 2.4 millions tons of aluminium last year. Hatem Maher (Reporting) Tomasz Janovski and Barbara Lewis (Editing)
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Meloni, Italy's Meloni, visits Saudi Arabia, Qatar, and the UAE amid Gulf tensions and energy concerns
A government official confirmed that Italian Prime Minister Giorgia meloni traveled to Saudi Arabia on Friday for a previously undisclosed trip. The trip will include meetings in Qatar, the United Arab Emirates and other countries. Officials said that the two-day trip was to show support for Gulf countries facing Iranian attacks, and also to protect Italy's energy supply. This is the first visit by an EU leader to Saudi Arabia since the conflict that was started by the United States and Israel in February. It also comes at a moment when there are growing concerns about the security of the?oil & gas 'flows. Qatari liquefied gas covered about 10% of Italy’s total gas consumption before the war. Middle East oil made up around 12% last year of Italy’s total oil imports. Italy received a notification last week that its Gulf supplier would be halting LNG deliveries due to the near-closure?of the Strait?of Hormuz. They will not ship 10 cargoes?between?April and?mid June. QatarEnergy CEO and State Minister for Energy Affairs, QatarEnergy, told?that Iranian attacks had also crippled 17% of Qatar’s LNG export capability. Last month, QatarEnergy's?CEO and state minister for energy affairs told?ajungiaparatulletzten??letztenbackbackééletzten Two sources with knowledge of the situation said on Thursday that Italy would begin to receive liquefied natural gas (LNG), from the Golden Pass LNG facility in the United States, from June. (Reporting and writing by Giuseppe Fonte, Crispian Balmer and Gavin Jones).
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FAO: If the Iran war continues, food prices will continue to rise around the world
The United Nations Food and Agriculture Organization reported on Friday that world food prices rose in March, reaching their highest level since last September. They could rise even more if the Middle East conflict continues to push up energy costs. In a recent statement, FAO Chief Economicist Maximo Toreros said that the price rises have been modest. They are mainly due to higher oil prices. He said that if a conflict continues for more than 40 days, and input costs are high, farmers can reduce their inputs, plant fewer crops, or switch to less intensive fertiliser crops. He added that "these choices will impact future yields, and shape our food supplies and commodity prices throughout the remainder of this year and the following years." FAO Food Price Index (which measures changes in global traded food commodities) rose 2.4% over its revised February level. The index is now 1% higher than it was a year ago. However, the value of the index has dropped by nearly 20% from its March 2022 high, which occurred after the beginning of the Ukraine war. Fertilizer costs could lead to reduced planting The index of cereal prices increased by 1.5% compared to the previous month. This was mainly due to a 4.3% rise in international wheat due to deteriorating crop prospects in America and lower plantings expected in Australia because of higher fertiliser costs. The global maize price edged upwards as the?ample supply of maize in the world offset concerns about fertiliser prices and indirect support from higher ethanol demand prospects related to higher energy costs. Due to the timing of harvest and weaker import demand, rice prices fell 3.0%. Vegetable oil price increases are now at 5.1% for the third month in a row. The higher quotations for palm, soya, sunflower and rapeseed oils reflected the impact on rising global energy costs and expectations of stronger demand. Palm oil prices have reached their highest levels since mid-2022. Sugar prices?jumped 7.2% to their highest level since October 2025 in March, due to higher crude oil prices. Brazil, the largest sugar exporter in the world, is expected use more sugarcane for ethanol production. The price of meat increased by 1.0% in Brazil and Europe, with pig prices rising in the EU. In a separate document, the FAO raised slightly its estimate of the global cereal production forecast for 2025 to a record 3,036 billion metric tonnes. This would mean a 5.8% increase year-on-year. (Reporting and editing by Tomasz Janowski and Barbara Lewis.)
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Morocco will stop fewer illegal migrants in 2025 due to route changes
Morocco will prevent?6.4% less attempts by illegal migrants to reach?Europe in 2020 compared to the previous year. The interior ministry announced this on Thursday. It added that people are using different routes, and the problem is not going away. The ministry responded to questions via email that in addition to stopping 73,640 attempts at illegal migration, they also dismantled over 300 migrant smuggling networks. The Sahel region of Africa has been ravaged by conflict for years. High unemployment, and the impact of climate change in farming communities is also a factor that drives migrants to Europe. Morocco has long been a major starting point for African migrants who are trying to reach Europe through the Mediterranean or Atlantic routes or by climbing fences around the Spanish enclaves in northern Morocco, Ceuta or Melilla. The level of cooperation with Spain has increased Since 2022, Morocco and Spain have strengthened their cooperation in the area of undocumented immigration. This follows the resolution of a previous diplomatic dispute. A senior official from the directorate of migration and border controls said that following tightened controls migrants have 'begun to use other departure points in West Africa, and parts of the southern Mediterranean. The marked drop in interceptions indicates a gradual decrease in irregular migration flows, reflecting a steady 'drying out' of the migration routes transiting through Morocco," he stated. The ministry reported that Morocco saved 13,595 migrants from drowning at sea by 2025. Meanwhile, 4,372 irregular migrants participated in voluntary return programs to their countries of origin. The official stated that voluntary returns are a reflection of Morocco's "human centered approach" to migration management, which "strikes an balance between firmness & responsibility". (Reporting and editing by Barbara Lewis; Ahmed El Jechtimi)
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The PM's Office says that the UK will deploy Rapid Sentry air defense system to Kuwait.
The office of Prime Minister Keir Sterne announced on Friday that Britain is sending its Rapid Sentry air defence system to Kuwait in order to protect British and Kuwaiti interest in the Gulf. This follows an Iranian drone attack on a Kuwaiti petroleum facility overnight. Starmer and Kuwait's Crown prince Sabah al Khalid?al Sabah discussed the deployment in a phone call on Friday morning. A spokesperson for Downing Street confirmed this. The spokesperson stated that "the Prime Minister started by condemning the reckless drone attack overnight on a Kuwaiti oil refinery." "He reaffirmed that the UK stands by Kuwait and our Gulf allies." The spokesperson stated that the leaders discussed the deployment to Kuwait of the UK air defence system, designed to shoot down low-flying drones, and other aerial threats. This would protect Kuwaiti?personnel? and?interests? in the region while avoiding an escalation to a larger conflict. Starmer and 'the crown prince' also discussed a 'disruption of global shipping through Strait of Hormuz. They welcomed a meeting on Thursday, chaired by British Yvette Cooper to develop a plan for reopening the crucial shipping route. (Reporting and editing by Tomasz janowski)
Andy Home: US aluminium consumers are paying the rising cost of tariffs.
The price of physical aluminium in the United States is now 68% higher than that on the London Metal Exchange.
It is obvious that this is a direct result of President Donald Trump increasing import tariffs in March from 10% to 25 % and then again in June to 50 %.
The "all-in price" of aluminum is now above $5,000 per metric tonne, due to the additional $560 that the physical delivery premium in the Midwest U.S. adds to the implied tariff costs.
Metals are in short supply across many industries, from construction to packaging and automotive.
On paper, the record-high premium for U.S. deliveries should bring in much needed supply. However, in reality, the situation may not be as simple.
Imports down, Stocks shrink
After a long period of decline, which saw only four smelters operating, tariffs were intended to stimulate the domestic primary aluminum production.
Century Aluminum has only restarted 50,000 tons at its Mt. Holly plant located in South Carolina. By June, the smelter should be back to its full capacity.
Even if they are able to compete with Big Tech in the long-term for power supplies, there are still several years before these projects can produce their first metal.
The U.S. is still dependent on primary metal imports, which are falling. Volumes fell by 14% between 2024 and the first 10 month of 2025.
Around May of last year, Canada, historically, the biggest supplier to the U.S. Market, began?diverting its shipments to Europe.
According to World Bureau of Metal Statistics, between May and October, the Netherlands exported 225,000 tons of metal, Italy 89,000 tons, and Poland 29,000 tons.
The U.S. primary metal stocks have been declining.
According to Harbor Aluminum and Wittsend Commodity Advisors, the?short period between tariff increases didn't permit much preemptive inventory building. In-country inventories have shrunk, from 750,000 tones at the beginning of 2025, to below 300,000.
The increased U.S. premium should be a warning sign that the country is in need of more aluminum.
Cross-Atlantic Competition
However, the problem for U.S. purchasers is that Europe also lacks aluminium. The European duty-paid premiums over LME cash have risen from less than $200 per ton in June to more than $340 per ton.
Triple supply cuts are putting pressure on the region.
South32's decision, due to high electricity prices, to mothball?Mozal Aluminium Smelter in Mozambique removes an important supplier for the European market.
A second supplier, the Grundartangi Smelter in Iceland owned by Century Aluminum, reduced production by two thirds due to an?equipment breakdown' in late October. The recovery will take approximately 11-12 months.
In line with the 16th package of sanctions from the European Union, all imports of Russian metal will be stopped this year. The European Union granted European buyers a grace period of one year to phase out the imports. This grace period expires on next month.
Carbon Border Adjustment (CBAM) is also a factor that has contributed to the rise in local premiums. This mechanism, which was implemented this month by Europe, raises import prices for products with a higher carbon footprint.
CAPPED SUPPLY
Traders used to simply buy up LME stock and ship them to the United States in order to profit from premium spikes.
However, Russian metal is a large part of LME tonnage registered, 58% at the end of December. It cannot be imported into the U.S. due to sanctions.
There is also much less aluminum in LME's warehouses today than there was in the past when the global market exhibited a persistent oversupply.
The total LME stock, both registered and stored in shadows off-warrant, was 669,000 tonnes at the end of 2025, down 331,000 tons from the beginning of the year.
This speaks to structural changes that are taking place in the global marketplace.
Chinese operators have now reached or are very near the maximum output mandated by the government.
According to the International Aluminium Institute, Chinese production growth has slowed down from 4% in 2024 to only 2% last Year.
Yet, smelter margins are highly profitable. The price of aluminium has been increasing, but the price of alumina, an intermediate product has plummeted. This is the kind of combination that once would have triggered a rush to restart and build new capacity, but no longer.
China imports more and more primary metal. The volume of metals imported by China increased 19% on an annual basis in the first eleven months of 2025. A large portion of the inbound volume came from Russia. Due to sanctions, Russia has shifted away from Western buyers.
China's semi-manufactured products exports fell by 11% during the same time period. This is due to the end of the tax exemption on outbound shipments, which will take place in December 2024.
Global markets are tightening. This process is complicated by the simultaneous fragmentation of prices between regions.
FLOW-THROUGH
If the impact of tariffs on U.S. prices were to be isolated, physical arbitrage would quickly resolve it.
But it isn't. The physical aluminium industry is a complex one, and there are many moving parts. Right now they are all working together to reduce supply.
It is not good news for consumers that the price of aluminum in the U.S. has increased.
The Trump administration’s August extension of tariffs of 50% to a broad spectrum of aluminum products has kept midstream processing companies onside, but also serves to accelerate the transfer of higher primary metal prices to the ultimate purchaser.
Imports must pick up quickly or U.S. consumer will be in for a surprise.
Andy Home is an author and columnist. These opinions are Andy Home's. Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
(source: Reuters)