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The "boom" of Trump's factories is seen in two different ways by a town in Indiana
John Axelberg's best customer recently asked him to invest $800,000.00 to double the production of tubular frames his factory produces for large-scale solar farms. He said no Axelberg’s small metal-forming business's solar division fueled the company's 30% revenue increase last year, thanks to tax incentives from the Inflation Reduction Act, passed by President Joe Biden. However, the rest of the industries Axelberg serves, including heavy trucks and farm equipment, were collectively down 20%. He is also concerned about solar. Donald Trump has said that his policies will unleash a new American manufacturing boom. In industrial communities like South Bend, however, the reality is nuanced. Government policies boost some sectors, while obscuring the outlook for other industries. Many manufacturers are left navigating a patchwork of incentives, tariffs, and changing signals from Washington. Recent polls have revealed that Trump's economic stewardship has become a major political issue for both him and Republicans, with the midterm elections less than seven months away. Only 29% of respondents to a /Ipsos survey approve of Trump's economic leadership. This is the lowest approval rating for either of Trump’s administrations, and also lower than that of Biden, his Democratic predecessor. Axelberg's costs are higher for metals and imported parts because of tariffs. Meanwhile, the current administration has halted the construction of solar farms in federal land. "I don't have any confidence that he will not pass another executive order to start coming after (solar credits) we've already received and claw them back," stated the CEO of General Stamping & Metalworks. A family-owned company with $130 million in sales, General Stamping & Metalworks has been bending steel since 1922. Pierre Yared is the acting chair of President Trump’s Council of Economic Advisers. He pointed out that improved manufacturing productivity and increased investment in new equipment and plant are early signs of success for Trump’s policies. Yared stated that it would take some time for the President's policy to fully manifest. MANUFACTURING RENEWAL ELUSIVE South Bend is a prime example of the stark contrast between a few niches that are booming and the lingering malaise within manufacturing. This once-thriving industrial center has struggled to recover its economic footing for the past six decades since the 1964 closure of Studebaker’s sprawling auto factory. There are many established manufacturers in South Bend who are struggling to stay afloat or facing erosion of key sectors. This includes businesses that boomed under the previous administration, such as "electric vehicles". Michael Hicks is an economist who studies manufacturing at Ball State University. He said that "there's not evidence of a manufacturing revival." It appears that the manufacturing sector has declined over the past 10 to 11 month. Defense is a business that's doing well. AM General, which is based in this city, built a brand new factory to service a U.S. $8.7 billion defense contract for a new generation military vehicle. Cleveland-Cliffs is a steel processing company that has benefited from tariffs which have increased domestic steel prices. In a press release released last February, CEO Lourenco Goncalves stated that taxes would bring "a new golden age and a manufacturing revolution that will make America stronger again." Amazon is building a $11 billion datacenter that will eventually include 30 buildings, just up the road from the?steel?plant. Although data centers are not manufacturing plants, they require a large amount of raw materials and machinery that is used to fuel other goods producers. Once they're built, data centers don't generate many permanent jobs. According to the Federal Reserve the Federal Reserve estimates that the spending on data centers was more than half a billion dollars in 2013. The Federal Reserve expects the expenditure to "increase drastically" until 2030. A joint venture between GM and Samsung, worth $3.5 billion, is currently being built to produce electric car batteries. According to Jeff Rea, CEO of South Bend Regional Chamber, the data center craze has caused a backlash that's made the land prices near the new developments "nutso". The shortage of skilled labor and other big changes have led to higher taxes and utility costs for many longtime producers. Trump's anti EV campaign is a major obstacle for the GM plant. The automaker has said that construction has been slowed and it no longer has an opening date. Stuart Fowle said, "current market conditions allow us to plan for future needs and observe EV demand." On its website, the White House maintains a list of U.S. manufacturing and innovation investments. This includes Apple's $600 billion investment into factories and workforce development, and Meta's plan of spending the same amount in 2028 for AI technology and infrastructure. Yet, South Bend's factory jobs have been declining since the end 2020, with over 1,000 employees losing their jobs, including 265 since President Trump's election. This pattern is repeated across the nation. According to the Bureau of Labor Statistics, manufacturing jobs in the United States have decreased by 100,000 since Trump was inaugurated. What is 'WHIMS of a King'? There are certainly big projects in the works across the industrial heartland. The boom started during the Biden administration. This included massive new investments like those made by GM and Samsung in electric car and batteries projects and semiconductor plants. According to the Bureau of Labor Statistics (BLS), total construction spending for manufacturing plants increased from $5.9billion in February 2021, to a high of $20.8billion in October 2024. However, it fell to $17billion by December 2025. Jon Ferguson, the CFO at Master Roll Manufacturing (which operates an office that looks out over Amazon's massive datacenter outside South Bend) said, "I'm not sure if I would call it a resurgence." Ferguson, CFO of Master Roll Manufacturing, said that sales were steady and not booming, despite the fact that they make and refurbish steel processing equipment. It's a problem to have so many developments nearby. He said that the surge in land values has increased property taxes and that?electricity costs and water prices have also increased. He said that while it's great to see land prices rise, it's not very meaningful if the owners aren't looking to sell. He said that "a lot of companies are unhappy with the way (the data centre boom) is falling apart." Some companies have struggled to find workers with the skills to install new production lines or repair existing ones at their facilities because so much of their labor has gone to construction. Daniel Adams, CEO at Manufacturing Technology Inc. sees the same mixed bag of manufacturers. His great-grandfather founded the business in 1926 as a tool shop. The company has since carved out a niche in friction weld, a technique used to manufacture everything from golf putters and jet engines. Since Trump's election, he said, it has become apparent that EVs will be less important. This has affected his auto-related businesses. He said that auto companies and suppliers are putting off investments. Adams stated that his aerospace customers are doing well, but this is not enough to propel the entire business forward. Adams says that bringing new industry to the area will benefit his business over the long-term, but it can cause tensions with other local businesses in the short term. For example, there are issues with labor. He said that people go to the "shiny place" and make an extra two dollars per hour. Axelberg, the CEO of General Stamping & Metalworks remains cautious. He had 25 acres next to his plant which he intended to use for finishing and assembly. He has put that on hold because he is no longer confident in the current economic climate. He said, "It almost seems like there's no policy." "It is like the whims and caprices of a monarch."
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Venezuela's Maduro to return in US Court in dispute over legal costs
On Thursday, the ousted Venezuelan president?Nicolas Maduro will return to Manhattan court where he'll argue that drug trafficking charges against him should be dismissed - more than two months after his wife and he were?captured by a surprise U.S. Military raid in Caracas. Maduro, his wife Cilia Flores and the Venezuelan government are embroiled in an argument over U.S. Sanctions that prevent them from paying for their legal defense. Maduro and Flores have both pleaded no contest to a number of charges, including conspiracy against narcoterrorism. They are currently being held in Brooklyn, awaiting trial. They asked U.S. district judge Alvin Hellerstein for dismissal of the charges. Their inability to rely upon Venezuelan public funding interferes with their right to choose an attorney under the Sixth Amendment?of the U.S. Constitution. According to their lawyers, Maduro and Flores are unable to afford their own legal fees. Barry Pollack, Maduro’s lawyer who previously represented Julian Assange of WikiLeaks, said that he would withdraw from the case, if Hellerstein did not dismiss the charges, and if the Venezuelan government could not pay his fees. Uncertain was?how Pollack charges Maduro for services. Pollack didn't respond to an inquiry for comment. U.S. Special Forces 'captured Maduro & Flores during a'surprise raid on their Caracas home on January 3, and flew them back to New York for drug trafficking charges. This operation is detailed in an examination of the covert missions and its geopolitical repercussions. The hearing was set to start at 11 am EDT (1500 GMT). A helicopter took them to Manhattan from the jail for their January court appearance. Maduro, and his wife who will be also in court, claim that Venezuelan law and custom dictates the government pays for the expenses of both the President and the first lady. The prosecutors argue that since the U.S. does not recognize Maduro's legitimacy as Venezuelan president, he and Flores cannot expect the U.S. to "allow Venezuela" to pay for their legal fees. Prosecutors say that if Maduro or Flores cannot afford to hire their own lawyers, they can be assigned a public defender. Maduro is facing four felony charges, including narcoterrorism conspiracies that criminalize drug trafficking in order to finance what the United States considers terrorist activities. A?analysis? of court records revealed that the statute is rarely tested in trial and two of three convictions were overturned due to issues relating to witness credibility. During Donald Trump's first term as president, he increased sanctions against Venezuela due to allegations that Maduro was corrupt and his government undermined?democratic institution. Washington called Maduro’s 2018 reelection fraud. Maduro dismissed 'these accusations', along with the allegations that he was involved in?drug-trafficking, as justifications pretextual for what he said was a U.S. wish to seize control over South America's vast OPEC oil reserves. Since Delcy Rodriquez, Maduro’s former vice-president, was appointed interim president following his capture, relations between Caracas, Washington, and Venezuela have improved. (Reporting and editing by Noeleen Walder and Howard Goller in New York)
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China calls for peace talks on Iran war
China on Thursday called for parties to the conflict in the Middle East to "create conditions" to begin "truly meaningful and sincere peace talks". Lin Jian said, "The pressing issue is to actively promote peace talks, seize this opportunity for peace, and promote the cessation the war," at a regular press briefing, when asked whether China knew of any ongoing discussions between Iran and the United States. His remarks come after China's Foreign Minister Wang Yi stated on Wednesday that "a glimmer hope for peace" was evident in the wake signals regarding negotiations between the U.S. Iran. Iran denied earlier in the week that it was in talks with the U.S. President Donald Trump had delayed his threat to bomb Iran’s power grid citing what he called 'productive talks' with unidentified Iranian official. Iran's Foreign Minister said on Wednesday that the country is reviewing a U.S. plan to end the conflict but has no intention of having talks. China's Foreign Ministry did not reveal if they were aware of any talks between Washington and Tehran, but Wang expressed cautious confidence in a Wednesday phone call with the Egyptian counterpart. According to a summary released by his ministry, Wang stated that "the situation in the Middle East is changing rapidly. Both the U.S. Wang said that as long as the talks are started, there's a chance for peace. The Chinese Ministry reported that Wang also spoke with Iran's Abbas Araqchi, the Foreign Minister, on Tuesday. Wang called for "all parties to seize every chance and window for peace and begin a process of peace talks as quickly as possible." Reporting by Mei Mei Chu, Writing by Xiuhao chen and Liz Lee, Editing by Muralikumar Anantharaman & Edwina Gibbs
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Copper prices ease as increasing inventories overshadow Mideast ceasefire hope
Prices of copper fell 'on Thursday due to rising stocks, and the waning appetite for the metal by top consumer China after a short dip in purchasing. Investors were waiting on clarity regarding the possibility of a 'ceasefire' in the Middle East. Benchmark three-month Copper on the London Metal Exchange fell by 1.21% at $12,173 a metric ton as of 0711 GMT. The previous day's support came from a weaker dollar. The Shanghai Futures Exchange's most traded copper contract, which had reached its highest level since March 19, at 96.590 yuan per ton ($13,991.05), ended the daytime trading session up by 0.17%, at 95.350 yuan. Stocks in LME-approved storage facilities pushed down the price of?red metal, used in construction and power. On Wednesday, the number of tonne-miles reached an eight-year record high. This is a 153% increase since the beginning of the year. After a period of dip-buying, traders said that some Chinese consumers had restocked after earlier declines. Investors are also closely watching developments in the Middle East where the conflict has disrupted energy markets and threatened the global economy. U.S. president Donald Trump stated that Iran is 'desperate' to reach a settlement to end the fighting. This contradicted the Iranian Foreign Minister who claimed his country was reviewing the U.S. offer but did not intend to hold a conciliation to end the conflict. Aluminium, nickel, and lead are among the other LME metals that have fallen. Other SHFE metals saw aluminium fall?0.52%. Lead retreated by 0.27%. Tin fell by 0.98%. Zinc gained 0.48%. SHFE nickel rose 0.41% after Nickel Industries, a company based in Australia, announced?on Friday that it had suspended operations at its Hengjaya Mine in Indonesia following an accident this week.
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BHP's Jimblebar Iron Ore Stocks in China Hit Near Two-Month Low After Ban Reprieve, Traders Say
According to traders, inventories of BHP's Jimblebar Fines, a kind of?iron ore?, in some Chinese ports?slid down to a two-month-low after steelmakers?rushed to get delivery?during an one-week?ban?reprieve. Four traders familiar with the matter stated that Jimblebar stocks in 15 major Chinese ports dropped 6% from one week to another, reaching 8.9 million tonnes on March 24. This is the lowest level seen since late January. One of the traders stated that this is the steepest weekly drop since March 2025. Sources requested anonymity because they were not authorized to speak with the media. China Mineral Resources Group, the state-run buyer of iron ore, informed domestic steelmakers that they can deliver 'Jimblebar Fines' from ports to plants for a week. This was shortly after CMRG widened its bans on another BHP product, Newman Fines. BHP's Jimblebar Fines began to accumulate after CMRG, the Chinese state-owned steelmaker and trader group, ordered Chinese steelmakers to not?buy BHP Jimblebar Fines while it was in talks with BHP about a 2026 supply agreement. Steelmakers couldn't?take delivery of their Jimblebar fins that were unloaded in?ports. The latest partial ban reprieve excluded traders. CMRG was established in 2022 in order to 'centralise iron-ore purchases in the largest steel-making ingredient consumer in the world and get better terms for miners. According to calculations based upon data provided by traders, despite a sharp drop in inventory, Jimblebar fines inventories at 15 Chinese ports were still 406% above the levels of late September.
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Iron ore is a major concern for supply disruption in Australia
Iron ore futures were higher on Thursday due to a concern over the supply of iron ore from Australia, following the closure of key ports in the Pilbara region because of a cyclone. The most-traded May iron ore contract at China's Dalian Commodity Exchange rose 0.18%, to 817 Yuan ($118.40), per metric ton. As of 0711 GMT, the benchmark April iron ore traded on Singapore Exchange was trading at $107.35 per ton. The operator of the iron ore port said that the key ports were closed on Thursday due to a tropical storm which struck the resource-rich Pilbara region. Pilbara Ports reported that operations were shut down at Ashburton, Cape Preston West?Dampier?and Varanus Island due to strong gales caused by Tropical cyclone Narelle?a system of category 3?as well as storm force winds. Mineral Resources uses the Port of Ashburton for exporting iron ore. Rio Tinto is the largest user of Dampier's port, mainly for exporting iron ore and salt industrial. Port Hedland remains open, which is the largest iron ore exporting point in the world. Iron ore futures gains were limited, however, due to production restrictions at the Chinese iron-ore hub Tangshan. This could lead to a lower demand. Local authorities reported that the city activated an emergency response level-2 for heavy air pollution, on March 25. Mysteel, a consultancy, said in a note that steel mills in Tangshan also face restrictions on scrap trucks entering their facilities. The high energy prices have led to concerns about global inflation and a decline in expectations of U.S. interest rate cuts. Shanghai Metals Market stated in a report that the broader caution increased the risk of price corrections across bulk commodities. Coking coal and coke, which are used to make steel, also fell on Thursday, by 1.13% and 1.18 percent, respectively. The Shanghai Futures Exchange steel benchmarks were mixed. Hot-rolled coils fell 0.45%, while wire rods dropped 0.12%. Stainless steel rose 0.31%. $1 = 6.9006 Yuan (Reporting and editing by Ruth Chai, Sonia Cheema, and Subhranshu Sahu).
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Helen Jewell explains why gold and defense stocks fell as the war broke out.
Investors tend to raise money first, and then ask questions. Investors who are aware of this phenomenon will not have a problem. It's a great opportunity. Gold dropped by nearly 4% in the four days following the first U.S./Israeli strike on Iran. So did European defence stocks. It seems strange. Gold has been historically a safe investment in turbulent times. Conflicts are usually the driving force behind military equipment demand. This is due to investor positioning, or more specifically, crowded trading. Many fund managers will execute a “program trade” to de-risk quickly and mechanically in order to raise money when a market-jolting, large event occurs. Instead of selling only certain positions, they try to raise cash by reducing a percentage fixed across all their holdings. The positions that have increased the most are sold most. This is why, when magnified across the market, assets that should benefit from an event can fall the fastest. CROWDING OUT In the last few weeks, gold has been the most obvious example. BlackRock data shows that in 2025, a record amount of money will flow into commodity ETPs. BlackRock data shows that $83 billion of the $100 billion in new money went to gold products. In January, $15.5 billion was added to gold ETPs - the largest monthly inflow in recent memory. Bank of America data shows that gold was trading 30% above its 200 day moving average before the Middle East conflict. This is the highest of any major asset. Shortly, gold was a very busy trade. It was because of this that its value dropped when war broke out, despite the fact that it had a reputation for being safe. The same is true for European defense companies. The index of the industry has risen more than three-times as much as the European market in the last 12 months. Some companies have soared since the beginning of the Ukraine War. Rheinmetall in Germany, for instance, has risen by 1,700%. In January, flows into an iShares European Defence ETF reached a record high. This sector, which was a 'clear beneficiary of rising geopolitical conflict', weakened immediately after the war began. It was obvious that this was due to crowded positioning and not fundamentals. What's next? In a crisis, de-risking can be the easiest part. What to do next is the harder question. Investors should ask themselves a few key questions. Is it essentially the same, in which case the original positions can be restored? Or is the world radically different? Consider first two categories of wounded assets: European defense contractors and gold. The case for European defense companies is still pretty good, if not even better than at the end February. Our analysis on the gold front shows that mining firms are poised to generate record-breaking cash flows, while trading at a discount to their historical average valuations. This thesis is still valid, given that recent gold price weakness wasn't likely driven by a fundamental change in investor sentiment. You can also take a look at South Korean chip stock prices, which have fallen sharply in value since the beginning of the war. These stocks were the big winners of the first two month of the year. They rose more than 50%. This was due to the massive amount of capital being deployed by large technology companies for artificial intelligence hardware. Why did they retreat? The war did not change much for the companies themselves. They were located in a region that was vulnerable and, perhaps most importantly, the stock prices had risen the most. In February, Korean stocks were trading at a level nearly 40% higher than their 200-day moving average. The momentum score was also the highest of any market segment. Companies like SK Hynix gained 400% in the previous 12 months. A retreat was to be expected. The retracement in the last few weeks was excessive, especially for large and cash-generating firms. Asia's dependence on Middle East oil - and the rise in Asian fuel costs - are serious risks for the region. It could potentially affect the outlook of these companies if it persists. In some cases, the crisis can change fundamentals in a short time, which can lead to mismatches in?price' and 'value. This may be true for oil companies. Brent crude has soared to over $100 per barrel after Iran closed the Strait of Hormuz, through which a fifth of world oil used to transit. Oil producers' shares haven't kept up with the price of crude oil. This 'gap' could present an opportunity. It is important to know the difference between a fundamental shift and a technical recalibration when navigating markets. Helen Jewell is the author of this article. She is International CIO for Fundamental Equities at BlackRock. This column is intended for educational purposes and should not be taken as investment advice. This column is interesting to you? Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn, X 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.
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Oil gains, stocks fall as Mideast ceasefire prospects dominate
Investors treaded carefully amid the rapid pace of Middle East developments, as Asian stocks fell in choppy trade. Oil prices rose. Iran said it would consider a U.S. offer to end the conflict. This month's widening conflict has shaken the global markets, sending oil prices skyrocketing, reigniting inflation fears, and upsetting global interest rate expectations. Investors are on edge due to the contradictory messages sent by both sides in regards to ceasefire talks. U.S. president Donald Trump said Iran is desperate to reach a deal, while Iranian foreign minister Abbas Araqchi claimed that there has been no dialogue with the U.S. or negotiations. However, various messages have been exchanged via intermediaries. The Nikkei index of Japan reversed its early gains and traded 0.7% lower. South Korean stocks dropped 2.7%, while Hong Kong's Hang Seng index fell 1.7%. MSCI's broadest Asia-Pacific share index outside Japan fell by more than 1%, resulting in a decline of 9.5% this month. This is its largest monthly drop since October 20,22. Stock?futures indicate a lower opening in Europe. U.S. futures for stocks were also lower. Charu Chanana is the chief investment strategist for Saxo. She said, "It appears that the market's relief trading has started to wobble." "Traders also remember that one peace rumour doesn't undo inflation and rates damage in the system." After a nearly month-long conflict triggered by U.S. and Israeli strikes against Iran in late Feburary, Iran has effectively closed?the Strait of Hormuz. This is a conduit that carries a fifth of the world's oil and natural gas. Crude prices have risen?above 100 per barrel due to the disruption. Brent crude futures stood at $104.53, up over 2% for the day and set to see a 43.6% increase in the month. The dollar held steady near recent highs, and was on course for a monthly gain of 2%. This cemented its status as a preferred safe haven. Iran's latest remarks suggest that Tehran is willing to negotiate a ceasefire if it can meet its demands. The U.S. initially ignored a 15 point ceasefire proposal that the U.S. had sent to Iran. It will be difficult to reconcile the goals of the U.S., Israel, and Tehran, said Matthias Scheiber. He is the senior portfolio manager at Allspring Global Investments and head of their multi-asset team. "We think that there's a good case for higher energy prices at the moment." Fear of an inflationary 'aftershock' has pushed traders into pricing out any chance of Federal Reserve rate cuts this year. This is supporting the dollar. The bets on U.S. interest rate increases briefly gained momentum, but they have since been reduced. The yield on Japan’s two-year Government Bond hit its highest level for 30 years, as traders consolidated their bets that the Bank of Japan would raise interest rates as soon as April. The European Central Bank's Christine Lagarde said on Wednesday that she would consider raising interest rates if the war in the Middle East continues to drive up inflation for a while in the Eurozone. Lagarde said in Frankfurt that if the shock leads to a large but not too persistent overshoot, then a measured adjustment of policy may be warranted. The euro remained at $1.1564, and sterling was $1.3362. The?yen was hovering at 159.44 dollars, close to the 160 dollar level that traders watch as a possible trigger for intervention. As the yellow metal continued to sell off, gold reversed its course and traded 0.3% lower. The gold price is set to drop 14% this month. This would be the steepest monthly decline in gold since October 2008. (Reporting from Ankur Banerjee, Singapore; editing by Shri Navaratnam).
Japan Q2 aluminium prices hit an 11-year high due to Mideast supply concerns
Four sources said that the Middle East conflict had tightened the supply of aluminium. As a result, Japanese aluminium buyers paid a premium between $350 and $353 per metric ton, the highest in 11 years.
Japan is the largest Asian importer and the premiums it pays for metals shipped each quarter above the London Metal Exchange cash price (LME) serve as a regional benchmark.
The new rate is 79%-81% higher than the $195 premium paid during the January-March period. This marks the second consecutive quarterly increase, and the highest level since April-June 2015.
Global producers offered Japanese buyers a premium of $220 to $250 per ton in late February. This was up by 13% to 28% from the previous quarter. However, they later retracted or let the offer expire as they assessed the risks of cargoes passing through the Strait of Hormuz after the U.S. & israel attacked Iran on 28 February.
In mid-March, one producer increased its offer from $350 to $350 per tonne and the buyers accepted. Sources say that another producer wanted to raise the price, but both parties settled on $353 per ton.
A source from a Japanese rolling-mill said that, "We had no choice but to accept the high prices due to the possibility of disruptions in supply coming from the region" because the conflict was expected to continue.
If the strait is closed, Middle Eastern smelters may struggle to obtain raw materials. Production could be affected. He said that we had to compromise quickly, as prices would rise if we waited any longer.
Due to the sensitive nature of the issue, the sources refused to identify themselves.
The Middle East is responsible for around 9%?of?global aluminum supply. And the war has shook the market,?effectively freezing the shipments through this strait.
Aluminium Bahrain, one of the largest smelters in the world, declared force majeure over shipments earlier this month. Meanwhile, Qatari smelter Qatalum began shutting down its production.
In 2025, Japan imported from the Middle East nearly 30% of its total aluminium ingots (primary and alloy), including primary ingots.
Last month, the quarterly negotiations between Japanese miners and global buyers including Rio Tinto Ltd. and South32 started.
(source: Reuters)