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Copper Heads Weekly Rise Despite Mideast Pullback
The price of copper is expected to rise despite a drop from midweek, as an escalation in Middle East conflict has exacerbated inflation fears and affected the macroeconomic outlook. The benchmark three-month copper contract on the London Metal Exchange remained stable, adding 0.35% to $13,642.50 per metric ton at 0700 GMT. The Shanghai Futures Exchange's most traded copper contract fell by 1.19% to 104,750 Yuan ($15.461.03) per metric ton. Prices have risen by 0.88% at the LME, and 1.6% at the SHFE, since the beginning of the week. However, they are still down from the midweek highs when metal prices surged on demand expectations, inventory pressure, and supply concerns. Sandeep Daga is the head of research for Metal Intelligence Centre. The markets are concerned that higher oil prices will lead to increased inflation, forcing policymakers to raise interest rates. This could reduce demand for commodities like copper by dampening economic activity. Early support from fears about a shortage of supplies and perceptions of good demand from China has faded. Yangshan Copper Premium The previous session saw a record high for the interest in metal imports to China, the world's largest consumer. On the supply side: Stocks in LME-registered storage facilities For the first time in two weeks, metals were stable on Thursday. Yesterday, LME warehouses reported a rewarranty after consecutive days of withdrawal requests. Daga stated that this alerted buyers. Aluminium lost 0.39% among other LME metals. Zinc was barely?changed and only rose 0.04%. Lead?dipped by 0.32%. Nickel gained 1.06%. Tin gained 0.5%. Other SHFE markets saw a dip in aluminium of 0.26%, a drop in zinc of 0.12%, a loss of lead by 0.82%, tin losing 0.84%, and soaring nickel.
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Enervoxa Canada plans India rare-earths project and may tie up Vedanta or NALCO
Enervoxa, a Canadian developer of climate technology, plans to talk with Vedanta and Hindalco Industries in India as well as the state-owned NALCO. The company is looking at setting up a plant there to 'extract rare Earths from waste byproducts produced during aluminium production. Enervoxa CEO Vandit Verma said that a?commercial-scale' plant would cost between $250 and $350 million. It could be funded by a combination of project financing and strategic equity. He said that the company was looking for possible locations in eastern India to build this project. The recovery of rare?earth?concentrates from bauxite residue, a byproduct known as "red mud" in aluminium production, is a relatively recent commercial application. It has gained momentum due to growing geopolitical concern over China's dominance?of rare-earth processing. Rare earth elements play a vital role in technologies such as mobile phones, electric motors for vehicles and defence applications like cruise missiles. India has large reserves of rare earth minerals, but does not have the industrial scale facilities to process them at high purity. India is the second largest aluminium producer in the world and third biggest consumer. Verma, in an interview with Wednesday's newspaper, said that Enervoxa spent eight years developing their own process for recovering rare earths from the red mud. Enervoxa will also approach steel producers and critical minerals processing firms to create an integrated value chain of the products that can be recovered from red mud. These include iron oxides, pigments, coagulants and titanium bearing materials. Verma added that the company plans to also seek?assistance from the Indian government. The government announced last year that India's Jawaharlal Nehru Aluminium Research Development and Design Centre is working with other stakeholders in the government think tank NITI aayog to conduct?research on metal extraction and rare element enrichment from mud red. Verma stated that Enervoxa’s project may involve the full processing of red clay within India, or a?production of rare earth concentrate to be refined at a downstream facility. He said that the company was evaluating potential commercial partnerships with companies from India, North America and Southeast Asia, as well as other alumina producing regions. (Reporting and editing by Mayank Bhardwaj, Kevin Buckland and Neha Arora)
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Gold prices drop on the prospect of Fed rate hikes
Gold fell?lower? on Friday, after dropping 2% in the previous session. The move of Brent crude back above $100 per barrel has stoked inflation fears and reinforced the case for higher rates before the Federal Reserve's policy meeting next Monday. Spot gold prices fell more than $130 since Wednesday's two-week high, falling to $4,037.29 an ounce at 0702 GMT. U.S. gold futures for delivery in August were down 0.3% at $4,039.80. Bullion is still on course for a 0.5% weekly gain. "In the near term, we anticipate more volatility... Gold has been stuck between $3,980 and $4,170 for weeks. We see big buyers come to buy it back up every time the price hits $4,000 or slightly below," said GoldSilver Central Managing Director Brian Lan. Donald Trump, the U.S. president, promised "major military sanctions" against Iran and its Houthi ally after Yemeni fighters attacked two Saudi oil tanks in the Red Sea. Brent crude increased by 7% on Friday, surpassing $100 per barrel for the very first time since last May. This is one of the steepest increases since the start of the war. The market is concerned about inflation and interest rates that could rise for a longer period of time. Gold is often seen as an inflation hedge, but its appeal as a low-yielding investment diminishes when interest rates are high. Investors also have their eyes on the Fed meeting next week, when policymakers are expected to leave rates unchanged. According to the CME's FedWatch Tool, traders are pricing in an?81% probability of a rate hike in September. The European Central Bank kept rates at the same level as expected but left the door open to another rate increase in September. Silver spot was up by 0.1% at $57.76 an ounce, and is on track to gain 3.4% in a week. Palladium fell 1.7% and platinum dropped 1%, both heading for a weekly decline. (Reporting from Pablo Sinha and Swati verma in Bengaluru. Editing by Subhranshu Sahu and Mrigank Dhaniwala. Ronojojo Mazumdar.
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Policymakers at the ECB warn of rising inflation risks
Three policymakers on Friday said that the European Central Bank might need to increase 'interest rates again. The ECB kept rates the same on Thursday, and gave strong indications that a rate hike is likely in September as oil prices have returned to around $100 a barrel and natural gas prices continue to surge. Even though policymakers' public comments were more measured, this has reinforced the expectation that the ECB would?pull the trigger? after the summer holiday. Joachim Nagel, Bundesbank President, said in a press release that "we?are observing in the Middle East the situation remains extremely fragile." "We still face intense uncertainty." Nagel said that the ECB was in a 'good position' to respond to a deterioration of the inflation outlook. The ECB's June projection was based on a scenario where oil prices would be near "baseline". This assumption assumed that policy would tighten in the months to come. Other people have expressed similar views. In a recent blog post, Slovenian Central Bank Chief Primoz Dlenc stated that the risks remain high. He added that the developments surrounding the war in Iran exacerbate the risk. The ECB stated on Thursday that the risks of economic growth are more negative than expected, while inflation is more positive. Martin Kocher of the Austrian central banks said that a rate hike could be needed, but it was unclear if this would happen in September. "I believe everyone knows that if inflation expectations, such as those for the medium term, are deteriorating, there is a need to act," he said on Bloomberg TV. The financial markets expect at least 'two more rate increases from the ECB, with the first fully 'priced-in by October and second by February. However, market economists polled only expect a single rate hike in September. (Reporting and editing by Francosi Murphey and Balazs Coranyi; Kira Donovan, Jamie Freed and Kira Donovan)
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Spain declares a national emergency due to wildfires in Madrid and Avila
On Thursday night, the Spanish government declared a state of emergency after a series wildfires threatened communities in and around Madrid. The Interior Ministry stated that the decision was made due to the simultaneous outbreaks of multiple fires and adverse weather conditions, as well as the need to mobilize large resources from various public administrations. This increased the complexity of civil protection and firefighting efforts. Scientists have linked climate change to the increasing severity of wildfire seasons in Spain and southern Europe. Scientists have found that the excessive vegetation growth after unusually heavy spring rains has dried up in extreme summer heat, creating fuel to rapidly spread fires. Madrid's regional government requested assistance and described the situation as "extremely grave". The regional government of Madrid said that active fires at Villa del Prado in Castile-La Mancha could spread beyond the current capacity to extinguish them. The weather could also cause the Burgohondo wildfire, Avila to spread into the Madrid area in the next few hours. According to the regional government, more than 10,000 people were evacuated from Villa del Prado and San?Martin de Valldeiglesias as well as Pelayos de La Presa and Aldea del Fresno. According to the National Civil Protection System law in Spain, the declaration places emergency under the authority of the Interior Minister, who is responsible for coordination. The authorities said this was the first time a declaration of emergency has been made in connection with a "wildfire". In the affected areas more than 270 emergency personnel, 40 ground units and several Military Emergency Unit (UME) contingents were deployed. In Spain, more than 100,000 hectares of land have been?burned so far this year. This is roughly equal to the average annual burnt area in the country over the last decade. Thirteen people died in the wildfire season of 2026, making it one of its deadliest seasons. (Reporting and editing by Jesus Aguado, Tomaszjanowski and Emma Pinedo)
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ASIA GOLD - India gold discounts reach seven-week-high as demand weakens, and China purchasing improves.
India's gold discount widened to its highest level in seven weeks as demand remained low after a price rise earlier in the week discouraged buyers. However, top consumer China experienced an increase in purchasing interest. On Friday, domestic gold prices traded at around 141.800 rupees for 10 grams, after rising earlier in the week to?146,000. "Footfalls in jewellery stores are negligible." Retail buyers wait for a meaningful price correction before they make purchases, said a jeweller in Chennai. Dealers quoted discount This week, you can save up to $56 per ounce on official domestic prices, including 15% import duty and 3% sales tax, compared to a $45 reduction last week. Jewellers do not expect the demand to recover anytime soon, said a Mumbai bullion dealer working for a private bank. Bullion in China was traded at a premium between $3 and $6 per ounce above the global benchmark spot rate The previous week, the price was at par and now it is $7 higher. "The premiums are firmer this week, as there is increased physical demand, and the market has a greater buying interest. $4,000 acts as a good level of support," said Peter Fung, Wing Fung Precious Metals' head of dealing. Physical gold is available in Hong Kong Traded at a $0.25 discount to a $1.70 price premium in Japan Gold was sold with a $0.25 discount. In Singapore Last week, gold was sold at a discount of $1 to a premium of $2, as opposed to par to a premium $2. The price of international spot gold continued to fall on Friday, after falling?more? than 2% the previous session. This was due to escalating tensions?in?the Middle East, which pushed up oil prices, raising fears about inflation and possible interest rate increases by the U.S. Federal Reserve.
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Nagel: ECB is well-positioned to deal with energy price shock.
Joachim Nagel, Bundesbank president, said that the European Central Bank is in a strong position to respond to rising energy prices and should consider incoming data before deciding on whether or not to increase interest rates in September. The ECB kept rates the same on Thursday, but 'offered strong hints that a rate hike is 'likely in September since oil prices have returned to around $100 a barrel and natural gas prices also surged. Nagel stated in a press release that "the rate hike in June has already put us in a good position to monitor future developments." He added, "We see in the Middle East the situation is highly fragile." "We still face intense uncertainty." ECB president Christine Lagarde stated that a rate 'hike' was being discussed on Thursday. However, the decision to stay on hold was unanimous. This is partly because of the fact that the surge in energy prices?isn't generating second round inflation impacts. Nagel argued that the ECB shouldn't commit to any rate if move and instead should?analyse the vast?volume? of data before its next meeting, on September 10. Balazs Coranyi, Kirby Donovan and Balazs Koranyi contributed to this report.
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China's iron ore imports are expected to increase this year, as steelmakers compensate for declining grades
Analysts said that China's imports of iron ore are expected to increase for the third year in a row in 2026 as steelmakers purchase more to compensate for a 'declining' iron content, and Guinea's Simandou Project boosts supply. Analysts said that the top iron ore consumers imports will likely rise by as much as 4 percent to a new record just above 1.3 million metric tons. This is expected to help prevent a price decline due to oversupply. The second largest economy in the world is expected to import more steelmaking ingredients, even though its crude steel production is set to fall for a third consecutive year due to a prolonged property market slump. Sushmita Vaszirani, Kpler's lead analyst, said that the import story is more driven by supply than demand. This is largely due to Simandou ramping up production and the weakening of domestic mining. BHP's financial year that ended in June saw record production of iron ore, while Vale reported its highest second-quarter output of iron ore since 2018. Macquarie analyst Florence Sun stated that the Simandou project, located in West Africa, is expected to add 18 million tonne of iron ore this year and 45 to 48 millions next year. Iron ore imports from China increased 6.3% during the first half of this year, resulting in a rise in portside stock Steelhome's data showed that the amount of steel produced in July was 156.6 million tonnes, which is nearly 20% more than it was a year ago. The increase in iron content is partly due to aging mines. "Headline portside inventory can overstate the effective availability of iron units when viewed purely on a physical-ton basis rather than on a Fe-unit or value-in-use-adjusted basis," said research ?director David Cachot at consultancy Wood Mackenzie. Yilin Wang told a recent conference that the average iron content in Chinese port stocks was 60.2% between January and March, compared to 60.6% in 2023. Sun, a?Macquarie analyst, said: "The persistent decline of average?shipped-grade is the main driver of higher import tons despite weaker demand for iron units." Wood Mackenzie predicts that China's crude output of steel will decline by 2.9% in this year, while Kpler expects a 3.6% drop. Analysts said that iron ore prices will 'likely trend lower, but at a slower rate than the oversupply led many to believe. Macquarie estimates that the benchmark price for 62% Fe will average $103 per metric ton in 2018 and $97 per metric ton next year. Steelhome data showed that prices averaged $104 during the first half 2026. .
Acerinox Steels posts strong profit on US and recovering Europe
The Spanish steelmaker, 'Acerinox', reported a second-quarter profit that was higher than expected and predicted further growth for the third quarter. This is due to the strong performance in America and a recovery?in Europe.
The stainless steel manufacturer reported core earnings of?EUR176 million ($200million) for the second quarterly, an increase of 57% from a year earlier. Analysts surveyed by LSEG expected earnings to rise to EUR154m on average.
The company stated that it expected the third quarter earnings to be higher than the second, due to the strong U.S. economy and gradual improvement in Europe.
In the earnings report, CEO Bernardo Velazquez highlighted the turnaround at Acerinox Europa, as being particularly notable. Acerinox has benefited from increased protectionist measures in its key markets. From President Donald Trump's tariffs of 50% on steel imports, to the European Union carbon tax on high-emissions imports and its recently implemented policy to halve the quotas for importing?steel from outside the EU.
(source: Reuters)