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Orban, the Hungarian Prime Minister, says he'll seek an exemption from US oil sanctions
Viktor Orban, the Hungarian prime minister, said that he hopes President Donald Trump will convince him to exempt Hungary from U.S. sanctions against Russian oil due to its high dependency on pipeline networks. Orban said that he would discuss U.S. Sanctions on Russian Oil Companies Rosneft, and Lukoil at a scheduled meeting with Trump for the 7th of November and hopes to conclude a wide economic agreement with America. "Hungary has a landlocked status... We depend on the transport routes that allow energy to reach Hungary. Orban stated that the majority of these are pipelines. He said: "We must make the Americans aware of this peculiar situation... if they are to grant exemptions to the American sanctions against Russia." Orban stated that Germany, despite its access to the sea and its refineries, had requested an exemption. Germany's Economy Minister said Tuesday that he received assurances from Washington stating that Rosneft Germany would be exempted from sanctions as the assets were no longer under Russian authority. Rosneft Germany owns the majority stake in Schwedt Oil Refinery. The U.S. announced new sanctions that could put Hungary at risk of relying on Russian crude oil imports. This was just days after an fire forced the Hungarian oil company MOL to reduce its capacity due to a fire in their main refinery along the Danube. The government of Hungary published a draft law to amend the existing legislation on imports and stockpiling crude oil, crude products and other crude materials. This will allow it to designate "standby" filling stations that can provide fuel in an emergency to users who are critical to supply. Orban will meet Trump for the first time next week, since his longtime ally has returned to the White House. (Reporting and editing by Sharon Singleton, Timothy Heritage and Anita Komuves)
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CATL sources lithium ore from outside suppliers as flagship mine remains closed
Sources say that China's CATL placed orders for lithium ore with external suppliers in November as the battery giant is seeking alternative feedstock since its flagship Jianxiawo Mine has closed. Two sources who have direct knowledge of the matter and requested anonymity because they are not authorised to talk publicly, said that a CATL joint venture in Yichun near the mine placed the orders earlier this month with traders. One source said that the two companies rarely did this when the mine was at full capacity. CATL has not responded to a comment request. CATL's Jianxiawo, one of its lithium assets in Yichun, Jiangxi Province, has been closed since the beginning of August, after its mining licence expired. CATL announced in August that it would renew its license as quickly as possible. The Chinese newspaper Securities Times announced a month later that the mine would reopen in a few weeks. CATL, however, has not yet announced such a move. According to Australian government data, the Jianxiawo Mine has a production capacity of 46,000 metric tonnes of lithium carbonate per year, which is 3% of global output in 2025. The mine was closed in last year. It reopened in February, but then shut down again in August. The mine is a major source of lithium for the global market, so prices have been affected each time. Mark Potter, Shanghai Reporting Editor
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Iron ore prices fall on rising stocks and falling demand; weekly and monthly gains are expected
Iron ore futures fell on Friday due to a dwindling Chinese demand and increasing inventories. However, hopes for a trade agreement between the two largest economies in the world kept prices on course for weekly and month gains. The daytime trading price of the most traded January iron ore contract at China's Dalian Commodity Exchange closed 0.56% lower, at 800 Yuan ($112.31) per metric ton. The contract posted a weekly gain of 3.7%. By 0736 GMT the benchmark December Iron Ore on the Singapore Exchange had fallen 0.19% to $106.25 a ton but was still up 2.4% so far this week. Both benchmarks saw a gain of around 2% in the month of March on optimism for a trade agreement during a Thursday meeting between U.S. president Donald Trump and his Chinese equivalent, Xi Jinping. After the meeting, Trump stated that he and Xi had agreed to lower tariffs against China in exchange for Beijing crackingdown on the illicit fentanyl market, resuming U.S. soya bean purchases, as well as keeping rare earths imports flowing. First Futures analysts said that the macro-driven driving forces have receded since the Trump-Xi summit. Investors shifted their focus to the weakening fundamentals for the main steelmaking ingredient, as the macro-boost had already been priced in. Data from Mysteel revealed that the average daily hot metal production, which is a measure of iron ore consumption, dropped 1.5% on a week-to-week basis to 2,36 million tons by October 30. Portside inventories increased 0.8% during this period. A Friday official survey revealed that the decline in China's manufacturing activity for a 7th month, October, further pushed up prices. Coke and other steelmaking materials, such as coking coal, lost 0.92% and 1.1% respectively. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. The Shanghai Futures Exchange saw a decline in steel benchmarks. $1 = 7.1230 Chinese Yuan (Reporting and editing by Amy Lv, Lewis Jackson and Eileen Soreng).
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Red Wings and Ducks shoot for Southern California sweep
Detroit Red Wings will visit Anaheim Ducks this Friday, riding a winning streak of three games. However, they know that their most recent victory was only a narrow one. The Red Wings are the top team in the Atlantic Division after a thrilling 4-3 shootout win over the Los Angeles Kings. Detroit seemed to be in control of the game when it led 3-1 with less than two minutes left in regulation. However, the Kings scored two goals within 40 seconds -- both while the goalkeeper was pulled to make room for an extra attacker -- forcing extra time. The Red Wings rallied to earn the extra point. "Obviously, that's not what we want to happen. But to fight through it, to do a good job (on penalty kicks) in overtime and to win a shootout in a great way," said Detroit forward Alex DeBrincat. He scored for the third time in a row and also added an assist. "Two goals is two goals, no matter how they are scored." The Red Wings also hope that the match will kick-start Marco Kasper. The 21-year old forward, who scored 19 goals in the previous season, ended an eight-game drought by scoring two goals at Los Angeles. Todd McLellan, the coach said: "He is a highly competitive individual who has placed some pressure on him." "Maybe this is what he needs to get going. We're counting on it, but we don't forget that he's only 21." "You'd have thought he was 27 based on the way he performed last year." John Gibson is expected to start the game in Anaheim. Gibson was the No. 1 goaltender for 12 seasons. Gibson spent 12 seasons as the Ducks' No. The Ducks are back home after a 3-2-1 road trip. Anaheim won a 3-2 shootout over the Stanley Cup champion Florida Panthers to end the trip. Everyone was happy not only because the Ducks won the game against Florida. The way they did it was what made everyone happy. Anaheim, like the Red Wings on Thursday, surrendered two goals in the third but recovered to win, and even stopped a Florida powerplay in overtime. Joel Quenneville, Ducks coach, said: "We lost one tough game the other night. I liked our reaction." Quenneville was referring to the Ducks' 4-3 loss against the Tampa Bay Lightning. "We stuck with it, and found a solution to the problem." The Ducks are starting a three-game at home stand and appear to be an entirely different team from the one Gibson played for in the previous seasons. Anaheim, which has spent several seasons at the bottom or near the bottom, is hoping to have a successful October. Anaheim is off to a great start with a 5-3-2 record, including a 4-2-1 road record. Troy Terry leads the offense with seven points in five games (three goals and four assists); Leo Carlsson is coming off of a performance that included one goal and one assist; Cutter Gauthier has six goals for the team. The Ducks have gained momentum as a collective. Goalkeeper Lukas dostal stated, "When I look back at the road trip we made, I believe we did an excellent job." "We will keep moving forward." "I felt that (Tuesday's game) was our best of the season." Field Level Media
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Miner Fresnillo acquires Canada's Probe Gold at a cost of $556 million
The companies announced on Friday that Mexican precious metals mining firm Fresnillo had agreed to purchase Canada's Probe Gold, for C$780,000,000 ($556,000,000) in cash. This marks the expansion of the London-listed company into North American markets. The deal follows a dramatic rise in gold prices in this year as investors seek safe haven assets like bullion due to geopolitical tensions. The deal will see Fresnillo pay C$3.65 for each share, a 39% premium over Probe Gold's closing price. It also gives Fresnillo access to Probe Gold’s 10 million ounces gold reserves, including its Novador project, located in Quebec. David Palmer, CEO of Probe Gold, said that after nine years of steady advancement, it was time to transfer the Novador Project to a more experienced operator. Fresnillo has the experience to move the Novador Project through the permitting and construction process. Fresnillo said that it would continue to develop Novador once the deal was completed. The company operates eight mines and has exploration projects both in Peru and Chile. The Novador Project, located in Quebec's Val d'Or Mining Camp, is Probe Gold's largest project. It can produce over 200,000 ounces of gold annually for more that a decade. Octavio Alvidrez, CEO of Fresnillo, said that Mexico would be a central part of its strategy and Probe Gold assets would "meaningfully" complement its project pipeline. Eldorado Gold and its largest shareholder, Probe Gold, which collectively holds 12% of the shares, signed agreements with Fresnillo committing to vote for the deal.
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Acerinox's profits for the third quarter of 2018 are below expectations due to low demand
Acerinox, the Spanish steelmaker, reported earnings slightly lower than expected for its third quarter on Friday. The company cited a low demand in Europe and America for stainless steel. LSEG data shows that the adjusted earnings before taxes, depreciation, and amortization came to 108 million euro ($125.95) - less than analysts' estimated average of 112 millions euros. Steelmaker says that sales in the U.S. are "undoubtedly" going to fall in the fourth-quarter due to seasonality at the end of the year, and therefore core-profits in the quarter will be lower than the third-quarter. The company pointed out that the uncertainty surrounding trade has negative effects on its business, despite the fact that the tariffs of 50% on imports of steel from the U.S. are helping it. Acerinox released a statement saying that "the prevailing mood has been one of caution and reserve, with major distributors only replenishing what they had sold in anticipation of greater clarity about the future economic outlook." Acerinox's performance has been affected by a combination of increased uncertainty, disruptions in the supply chain and companies delaying purchases and investments. Prices in Europe have fallen due to global overcapacity, which European steelmakers blame on cheap imports and imports from Asia.
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Gold falls as the dollar strengthens on Fed rate caution
Gold prices fell on Friday as the dollar strengthened on the uncertainty about further Federal Reserve rate reductions, but the bullion is still on track for its third consecutive month gain. As of 0700 GMT, spot gold was down 0.3%, at $4,011.60 an ounce. Bullion is up 4% this month. U.S. Gold Futures for December Delivery rose by 0.1%, to $4.021.20 an ounce. Tim Waterer, Chief Market Analyst at KCM Trade, said that the Fed Chairman's hawkish stance this week did not do gold any favors. The prospect of a December rate cut is now much less certain than previously believed, which has helped boost the dollar and made things more difficult for gold in terms of yield. Dollar index nears its highest level for three months against rival currencies, making gold more expensive to other currency holders. The Fed cut rates on Wednesday by 25 basis points, for the second consecutive time in this year. This brings the overnight benchmark rate down to a range of 3.75% - 4.00%. After Jerome Powell’s comments, traders reduced their bets on another rate reduction at the next policy meeting scheduled for December. According to CME Group’s FedWatch tool, markets now price in a probability of 74.8% for a 25-bp reduction compared with 91.1% a week earlier. Donald Trump, the U.S. president, announced on Thursday that he has agreed to reduce tariffs against China in exchange for Beijing crackingdown on illicit fentanyl, resumed U.S. soya bean purchases, and kept rare earths exports flowing. Gold was discounted in India this week for the first seven-week period, and a drop in prices boosted activity in other Asian hubs. Silver spot was up 0.4% to $49.1, platinum 0.6% to 1,621.60, and palladium 1.2% to $1462.43. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu, Mrigank Dhaniwala, Harikrishnan nair)
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Swiss National Bank profits shine with gold price surge
The Swiss National Bank announced a profit of 27,93 billion Swiss Francs ($35.22billion) for the third quarter, the central bank reported on Friday. This was boosted by the rising value of the gold reserves. Between June and September the central bank reported a gain in gold valuation of 14.33 billion Swiss francs, compared to the gain of 4.41 billion francs last year. According to UBS calculations, the SNB's average quarterly profit from gold over the past 10 years was less than two billion francs. GOLD GAINS FROM SAFEHAVEN DEMAND Gold prices have increased by 53% in the past year, as investors sought to hedge against political and geopolitical uncertainty. Gold has become more appealing due to the weakening of the U.S. Dollar. Rate cuts by the U.S. Federal Reserve also reduced the yield on other assets that are less risky, such as U.S. Treasuries. The SNB reported that it had also made a profit of 13,63 billion francs during the third quarter from the foreign currency positions it held, as well as the bonds and shares it purchased with the foreign currencies it bought. The central bank increased its profit for the third quarter to 27,93 billion francs from 5,67 million francs a year ago. Florian Germanier, economist at UBS, said: "It is very unusual that the SNB makes so much profit on gold but it reflects the huge price increases gold has seen this year." The profit is simply a side effect from holding an asset that is considered to be the ultimate safe-haven, and which the SNB must hold in order to diversify their holdings and carry out monetary policies.
Cyprus seeks enhancements to Chevron-led plans for overseas gas field
Cyprus said on Thursday it wished to see enhancements to Chevronled plans to extract gas from an overseas field, giving the consortium led by the U.S. major six months to meet its requirements.
There have been protracted talks on the future advancement of the Aphrodite field south-east of Cyprus since Chevron tried to introduce modifications to a 2019 field advancement strategy. That strategy had actually been concurred between Cyprus and licence-holder Noble, an independent energy operator Chevron obtained in 2020.
A brand-new field advancement proposition was sent by Chevron on March 29. Following a mindful evaluation, and with advisors of the Republic of Cyprus, it is our factor to consider the plan requires enhancements, the Energy Ministry said in a statement without further information.
In a letter to Chevron, Energy Minister George Papanastasiou has actually recommended specific targeted actions within the next 6 months, it stated.
Aphrodite was found in 2011 and is Cyprus's first offshore discovery, holding an approximated 3.5 trillion cubic feet ( tcf) of gas. It has actually since then found gas deposits in another 4 locations, all untapped to date.
Chevron is a partner in the field with Israel's NewMed and Shell.
Chevron said it valued its relationship with the federal government of Cyprus and other stakeholders and would continue working to advance the task.
Our company believe it is essential that Aphrodite is expeditiously established for the advantage of the Republic of Cyprus, the Eastern Mediterranean area, and European and other global markets.
Beyond this, it is not Chevron's policy to talk about commercial matters, it stated.
(source: Reuters)