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Novelis anticipates that the EU will impose an export tax on scrap aluminium this year
The European aluminium industry is expecting the European Union to introduce export tariffs for aluminium scrap in order to protect the recycling sector from the outflow of Europeans, Emilio Braghi said, President of Novelis Europe on Tuesday. After the U.S. introduced a 25% tariff on aluminum imports earlier this year, but excluded scrap aluminium from the tariff, the outflow of scrap aluminium from the EU increased. Scrap was exported to the U.S. in order to be recycled. The recycling industry's margins were affected by the rise in the price of aluminum scrap due to the outflows from Europe to the U.S. Novelis, the largest aluminium recycler in the world and a leading producer of flat-rolled products, has been in contact with the European Commission to discuss measures that will reduce the flow of scrap. They have received positive feedback, Braghi stated. He said on the sidelines at the CRU World Aluminium Summit held in London, "They understand the problem and want to find a solution." He added, "I hope that we will see some initiative coming from the European Commission in order to limit the scrap leakage before the end this year." In March, people familiar with the issue said that the EU Commission was considering export duties up to 25 percent on scrap metal. Novelis hopes to see an agreement between the EU, the U.S. and China on tariffs after the U.S. China deal that halted the high tariffs this week. This is really necessary, it's obvious. Braghi stated that it would be best to reach a good deal on both sides of the globe. The U.S. 25% tariff on aluminum prompted a drop in the European Aluminium Premium and an increase in the Midwest Premium in the U.S. Physical Market, leading to a large gap between Midwest and European premiums. Braghi stated that this was not sustainable in the long run. (Reporting and editing by Susan Fenton; Polina Devitt)
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Gold prices rise on bargain-hunting and softer US inflation data
The gold price rose on Tuesday, as bargain hunters sought to make up for a steep loss the day before. Inflation data from the U.S. that were lower than expected also helped. Gold spot rose by 0.2%, to $3,241.16 per ounce, as of 13:38 GMT (938 ET), after dropping as low as $3207.30 an ounce on Monday. U.S. Gold Futures rose 0.6% to $3,245.50. Bart Melek said that the news of a possible deal between the U.S.A. and China caused a large correction in the gold price on Monday. "However, tariffs on China are still 30% which is quite negative for economic growth." On Monday, the U.S. announced that it would suspend its tariffs on imports from China for 90 days. After the talks held in Geneva at the weekend, both the U.S. and China announced that they would pause their tariffs for 90 days. Bullion prices had broken multiple records in 2025 due to fears of an economic slowdown after President Donald Trump's tariffs, central bank purchases, geopolitical tensions, and increased flows into gold-backed ETFs. The Bureau of Labor Statistics of the Labor Department announced on Tuesday that consumer prices in other parts of the United States increased by 0.2% last year. The CPI was expected to rise by 0.3%, according to economists polled. Jim Wyckoff wrote in a report: "The report is slightly favorable for precious metals because it doesn't contain a problem inflation report which would cause the Federal Reserve to pause before cutting interest rates." The financial markets expect that the central bank will resume its policy of easing in September. The appeal of non-yielding gold is increased by lower interest rates. Silver spot rose 0.1%, to $32.62, platinum increased 1.4%, to $989.95 an ounce and palladium rose 0.2% to $947.24. (Reporting by Sarah Qureshi and Anjana Anil in Bengaluru; Editing by Sahal Muhammed)
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South Africa calls on a balanced and affordable energy transition
Officials in South Africa stepped up their calls on Tuesday for a more balanced approach to the energy transition, arguing that environmental protection and economic development must work together rather than be in opposition. Gwede Mntashe, Minister of Mineral and Energy Resources at the Africa CEO Forum held in Abidjan, said: "We must allow integration between the two." "We can't kill the economy in order to save ecology." Mantashe emphasized what he called an imbalance in global climate responsibility, noting that Africa contributed the least greenhouse gases globally but faces disproportionate pressures to decarbonize. "We have a tax on carbon, but the U.S.A., China, and Russia do not." Mantashe called it a "tax on us" because we trade with the EU. South Africa, the G20 president until November, has focused on "Solidarity, Equality, Sustainability" and advocated for financing solutions to support growth, inclusion, alongside climate goals. Kgosientsho RAMOKGOPA, Minister in the Presidency of South Africa, stressed during a separate meeting that Africa's transition to a clean energy must first address its basic needs. According to the International Energy Agency, about 600 million Africans lack reliable access to electricity. "We transition, you don't transition in darkness," Ramokgopa said. When the lights come on, the industries and manufacturing start up, and we get people out of poverty and into work, then the discussion becomes real for Africa and not just a debate among the elite. The Africa CEO Forum is a two-day event that ends on Tuesday. It brought together business leaders, investors, and finance ministers to discuss development priorities and investment strategies across the continent. Maxwell Adombila and Colleen Goko report; Hugh Lawson edits.
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Dollar drops, US inflation increases futures, and risk appetite is heightened
Dollar fell, and U.S. Stock Futures rose on February 2, after data showed U.S. Consumer Inflation picked up less in April than expected. This was when President Donald Trump announced a series of tariffs which have caused havoc to global markets and supply chains. On Monday, the U.S. announced that it would suspend its trade war with China for 90 days. It will also reduce reciprocal duties while negotiating a permanent agreement. The agreement has reignited the appetite of investors for stocks, commodities and cryptocurrencies. Tuesday's inflation numbers have also helped fuel this move. The Bureau of Labor Statistics reported that its Consumer Price Index (CPI), which measures consumer prices, rose by 0.2% from March to April. This brings the annual rise from 2.4% to 2.3%. Economists polled had predicted a rise of 0.3% per month and 2.4% per year. The dollar continued to lose ground against a basket currency, while the euro rose 0.4% in a single day and reached a high of $1.113. Futures for the S&P 500, Nasdaq, and Dow Jones rose between 0.2-0.3%, suggesting that Wall Street will start the week with a modestly better start. The S&P gained 3.3% after the U.S./China news. Peter Cardillo is the chief market economist for Spartan Capital, a New York-based firm. The report indicates that Fed officials should be cautious, and the stance they've taken for the moment is likely the best course of action. After the Geneva talks, the U.S. announced it will reduce tariffs on Chinese imports from 145% to 30%. China also said that it would lower duties on U.S. imported goods from 125% to 10%. The change in U.S. China trade relations has caused traders to reduce expectations of Federal Reserve rate reductions, believing that policymakers will have more flexibility to lower rates as inflation risks decrease. The traders are now pricing in 56 basis point cuts for this year. This is down from April's forecasts of over 100 basis points, when the fears of Trump's Tariffs were at their highest. Cardillo stated that "the Fed is on the right track and until there are any real changes in the trade war by June, a rate cut in June remains in doubt." Economists and fund managers have stated that the 90-day break is welcomed, but it hasn't changed the larger picture. Christopher Hodge said that the tariffs would still be higher after all was said and done and this will have a negative impact on U.S. economic growth. The ratings agency Fitch estimates that the U.S. tariff rate has dropped to 13.1% from 22.8% before the agreement, but is still above the 2.3% at the end 2024. After the inflation figures, U.S. Treasury rates dipped below their one-month highs of Monday. The benchmark 10-year rate was down 1.4 basis point on the day, closing at 4.443%. Oil rose by 0.9% to $65.48 per barrel, continuing Monday's rally of 1.2% to a 2-week high over $66 a barrel. Gold increased 0.4% to $3.246 per ounce after falling 2% on Sunday.
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Germany's Merz says EU will tighten sanctions against Russia if there is no progress in Ukraine this week
German Chancellor Friedrich Merz announced on Tuesday that the European Union was ready to impose stronger sanctions on Russia, if there is no progress in ending the conflict in Ukraine this week. He added that a new set of sanctions had been prepared. Merz and his Greek counterpart spoke at a press conference. "We're waiting for the agreement of (Russian president Vladimir) Putin, and we both agree that there will be no real progress made this week. We want to work with you at European level in order to tighten sanctions significantly," Merz stated. He said that he would be looking into other areas such as the financial and energy markets. Merz stated that EU leaders agreed with Ukrainian president Volodymyr Zelenskiy to allow him to take part in discussions with Russia this week in Istanbul, on condition that Russian attacks and bombardments on civilians must cease. Merz said that he was impressed by Zelenskiy’s willingness to compromise in order to achieve a ceasefire. Merz said, "I don't think more concessions and compromises is reasonable." The Greek Prime Minister Kyriakos Misotakis stated that the EU should be the center of any settlement for peace. Reporting by Rachel More, Madeline Chambers, and Lefteris Papadimas from Athens. Editing by Matthias Williams
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Tariff concerns could lead UK chip supplier IQE to move some production from the UK to the US
Apple supplier IQE wants to move some production from China to the United States and share tariff costs with its customers in order for it not be subjected any potential U.S. duties against the chip sector, said its new CEO on Tuesday. Last month, Donald Trump announced that he would consider tariffs on semiconductors starting at "25% and higher", without specifying when they could be implemented. Jutta Meira, confirmed CEO of IQE on Tuesday, stated that IQE constantly talked to customers about ways to mitigate tariff risk. She added that this would require a lot of investment and time. Meier explained that the Cardiff-based firm is looking for gallium outside of China to diversify its supply chain and ensure it does not depend on a single supplier. Trump announced tariffs against global trading partners, as well as industries such as steel and aluminum. While countries negotiate with the U.S. government, some broader tariffs are being delayed. IQE, a company with manufacturing facilities in the U.S.A., Britain, and Taiwan, stated that there is "currently" no direct impact from the implementation U.S. Tariffs. DIVERSIFICATION STATEGY IQE said that it may sell its Taiwan operation as part of a review of strategic options to reduce debt and boost the growth of the company. Previously, IQE had considered an IPO. Meier said that a full sale "makes sense" from both a timing and valuation perspective. We can use the proceeds to accelerate our growth and diversification strategies. According to a consensus provided by the company, IQE anticipates that revenue in 2025 will be between 115.1 and 123 millions pounds ($151.9-162.5 million) within the market expectations. The company reported revenue of 118 million pounds for 2024. In afternoon trading, shares of the company rose 4.6%.
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Volkswagen Suppliers on list of first export permits for rare earth magnets issued by Beijing
China has granted export permits to four rare earth magnet manufacturers, including suppliers to Volkswagen. The German carmaker, and industry sources, said that this was the first time since Beijing restricted shipments in the last month. It is a sign the vital materials will continue to flow. Three sources confirmed that Baotou Tianhe Magnetics which produces magnets for electric and hybrid motors received a license from Volkswagen late April. Three sources said that Volkswagen had reached out Beijing for assistance during the process. Volkswagen responded to questions by saying that it was in constant contact with its suppliers. It had also received information that some of the magnet suppliers for Volkswagen AG have been granted export licences by China. Two sources confirmed that Zhongke Sanhuan had received at least one license. One source added that Baotou INST Magnetic, Earth-Panda Advanced Magnetic Material and Baotou INST Magnetic were all granted at least one license. Sources declined to name themselves due to the sensitive nature of the issue. Requests for comment from the four magnet manufacturers and China's Commerce Ministry were not immediately responded to. Beijing does not confirm whether all four companies' clients have received export licenses. According to one source, permits were only granted to suppliers who had customers in Europe or Vietnam. The permits were issued prior to the Monday truce in the trade war with Washington, according to industry sources. This is likely to make approvals easier for U.S. clients. Beijing issued the permits in less than a week after it placed restrictions on seven rare-earth elements and related materials, as a reaction to U.S. president Donald Trump's previous tariffs. Sources said that the permits were the very first ones issued since Beijing implemented its restrictions. China is the dominant supplier of rare earths, which are used in clean energy, defense, and auto manufacturing. Companies have very few alternative suppliers. Volkswagen's involvement and lobbying by other large Western users demonstrate this dependence. Elon Musk stated last month that Tesla was in discussions with Beijing about licenses for its Optimus robotics.
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Salt is dropped from the ODIs against West Indies. Cricket-Dawson will return to England's T20 Squad.
The England & Wales Cricket Board has not selected Phil Salt for the upcoming home white-ball series against West Indies. Will Jacks, a batting all-rounder, has been recalled to the England squads that will face West Indies in three ODIs (over 20-overs) and three T20s between May 29 and July 10. Harry Brook, the white-ball captain, is leading both teams. Luke Wood and Tom Hartley have both returned to England's T20 and ODI teams, respectively, after not playing white-ball cricket since September 2023. Jacks was playing in the Indian Premier League along with Jos buttler, Jacob Bethell and Jamie Overton, before it was suspended due to fighting between India, Pakistan and Afghanistan. The IPL will take place in 2019. Resuming on May 17, The final is now scheduled for 3 June, which coincides with the West Indies ODI series. British media reported that all 10 English IPL players will meet with the Professional Cricketers' Association to discuss security arrangements in case they return to India. Cricket Australia has also stated that they are. Working with the Indian Cricket Board (BCCI). Several of their players are deciding whether or not they will play the remainder of the IPL. England will play a four day test against Zimbabwe starting on May 22 at Trent Bridge. England squads Harry Brook (captain), Jofra Archer, Gus Atkinson, Tom Banton (Surrey), Jacob Bethell (James Smith), Brydon Carett (Ben Duckett), Tom Hartley (Tom Hartley), Will Jacks (Saqib Mahmood), Jamie Overton (Matthew Potts), Adil Rashid (Joe Root), Jamie Smith (Jamie Smith). Harry Brook, Rehan Ahmed, Tom Banton (captain), Jacob Bethell, Brydon Care, Liddell Dawson, Ben Duckett Will Jacks Saqib Mamood Jamie Overton Matthew Potts Adil Rashid Phil Salt Luke Wood. (Reporting by Chiranjit Ojha in Bengaluru Editing by Christian Radnedge)
GAIL (India's) quarterly profit drops more than expected due to lower gas margins and cost pressures
Gas distributor GAIL India posted a larger-than-expected drop in quarterly profits on Tuesday. This was mainly due to lower gas marketing margins, and higher costs.
GAIL, India’s largest natural gas distributor based on market share, reported a net profit after taxes of 20.49 billion Rupees ($240.1 millions) for the three-month period ended March 31, a decline of 5.9%.
According to data compiled and analyzed by LSEG, analysts had predicted that profit would fall on average 3.1%, to 21.13 billion Rupees.
Gas marketing, which accounts for the majority of revenue generated by the company through wholesale trading and distribution of natural gas, saw a 11% increase in revenue to 316.03 trillion rupees.
Analysts noted lower trading margins in the third quarter, as GAIL switched from short-term sales to long-term contracts with city gas distribution companies.
They added that LPG margins were also lower due to the reduced availability of feedstock regulated by government.
The company's overall costs increased 11.4% as a result of rising costs in the liquefied hydrocarbon and liquefied petrol gas businesses.
GAIL's revenue from its natural-gas transmission segment, where it holds 70% of the market in the country fell by 2.6%.
The company's operating revenue increased by 10.4%, to 357.07 billion Rupees.
GAIL shares fell by 1.8% following the results. (Reporting and editing by Sherry Phillips in Bengaluru, Janane Venkatraman, and Yagnoseni das in Bengaluru)
(source: Reuters)