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Huayou will begin production of lithium sulphate in Zimbabwe by early 2026
The company announced on Thursday that Zhejiang Cobalt, a Chinese company, will begin producing lithium sulphate in the first quarter 2026 at its $400 million plant located in Zimbabwe. Zimbabwe is pushing for more local processing. A senior executive told a group of journalists that the newly-completed plant at Huayou’s Prospect Lithium Zimbabwe’s Arcadia Mine has a capacity of more than 50,000 metric tonnes of lithium sulphate per year. Lithium Sulphate is a product intermediate that can be refined to a battery grade material, such as lithium hydroxide and lithium carbonate. Henry Zhu, general manager of Prospect Lithium Zimbabwe, told reporters that the company would begin production at the start of next year. Zhu continued, "The amount of lithium sulphate will be greater than 60,000 tons. However, it depends on the configuration of this plant because it's brand-new." Zimbabwe, Africa's largest lithium producer, has encouraged miners to process this mineral in Zimbabwe to help boost its economy. Huayou acquired Arcadia Lithium Mine for $422 Million in 2022. In 2023, Huayou commissioned a 300 million dollar lithium concentrator. Sinomine, Chengxin Lithium Group and Yahua Group are among the Chinese companies that dominate Zimbabwe's mining of lithium. They produce concentrates, which they then ship back to China. Huayou export 400,000 tons lithium concentrate to Zimbabwe by 2024 In order to encourage more local processing, the country in southern Africa will ban exports of lithium concentrates by 2027. Sinomine announced plans to build an $500 million lithium-sulphate facility at its Bikita Mine in Zimbabwe. (Reporting and editing by Nelson Banya, Lincoln Feast, and Chris Takudzwa Muronzi.
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Gold rallies above $4,300/oz for the best week since 17
The price of gold reached a new record high on Friday, surpassing $4,300 per ounce. Investors were pushed to the metal as signs that regional U.S. banks are struggling, trade tensions around the world, and hopes for further rate cuts pushed them. As of 0439 GMT spot gold was up 0.9% at $4,362.39 an ounce after reaching a record high earlier of $4,378.69. U.S. Gold Futures for December Delivery jumped 1.7% at $4,375.50. Bullion is on track to have its best week ever since September 2008. Each session has seen a record-high price. Silver spot rose by 0.3%, to $54.41 an ounce. This represents an 8.2% increase in the weekly price. Prices reached a new record high earlier in the session of $54.35, following the rally in spot gold and a squeeze on the short market. Tim Waterer, KCM Trade's Chief Market Analyst, said that the $4,500 target for gold could be reached sooner than expected. However, it will depend on how long the concerns over U.S. China trade and the shutdown of the federal government continue to linger. China has accused the U.S. again of creating panic with its controls on rare earths, but it rejects calls to reverse the export restrictions. Christopher Waller, the U.S. Federal Reserve governor, has also expressed support for a further rate cut in response to concerns about the labour market. Investors expect a reduction of 25 basis points at the Fed meeting on October 29-30 and another in December. Wall Street also closed lower Thursday. Signs of weakness among regional banks have frightened investors who were already nervous about the U.S.-China tensions. Waterer stated that "the resurgence of regional bank credit concerns in the United States has given traders another reason to purchase gold." The non-yielding gold, which does well in low-interest rate environments, has gained over 66% in the past year, mainly due to geopolitical tensions and aggressive bets on rate cuts, central bank purchases, dedollarisation, and strong exchange-traded fund inflows. On Thursday, U.S. president Donald Trump and Russian president Vladimir Putin agreed to hold another summit about the war in Ukraine. The West continued to pressurize Russia on its oil sales. Britain even imposed sanctions against major Russian oil companies. Palladium increased 0.3%, to $1 618.95, while platinum fell by 0.4%, to $1 706.45. Both metals are headed for weekly gains. (Reporting and editing by Rashmia Aich, Subhranshu Saghu and Anmol Choubey in Bengaluru).
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Reliance's IT counter-pressure helps India's Nifty reach a one-year high
India's equity benchmarks reversed their early losses on Friday. The Nifty 50 reached a new high of one year, with gains from Reliance Industries before its results, outweighing losses by Infosys, and Wipro. Both companies fell due to margin concerns, despite strong earnings. As of 10:36 am IST, the Nifty 50 index rose by 0.42%, to 25,693.3. This is its highest level since October 1, 2024. The BSE Sensex also increased by 0.50%, to 83887.58. Both indexes dropped about 0.2% when they opened. The benchmarks reached a three-month high on Thursday and are now less than 3% off their record peak in September 2024. Two analysts said that the markets are experiencing a bullish consolidate following a recent rally and before the results from ICICI Bank and HDFC Bank this Saturday, as well as Reliance Post Market on Friday. Reliance Bank and ICICI Bank both rose by 0.9% and 0.6%, respectively. HDFC Bank gained by 0.4%. VK Vijayakumar is the chief investment strategist of Geojit Investments. He said that "good results from HDFC Bank, ICICI Bank, and Reliance can support the markets and if Reliance joins in the rally after its results, then the market can continue to sustain the momentum." Ten of the sixteen major sectors posted gains. Small-caps gained 0.2% while mid-caps lost 0.1%. Analysts raised concerns over margin pressures resulting from recent acquisitions and deal ramp-ups, causing the IT sub-index to drop by 1.3%. Wipro fell 4.5%, despite exceeding second-quarter revenue expectations. Infosys, which reported strong results for the September quarter, also fell 1.8%. CLSA said that the company's revenue forecast for fiscal 2026 of 2% to 3% was too conservative. Asian Paints, a major paintmaker's input, rose by 5% among individual stocks. This was aided by the drop in oil costs, which is a significant factor. Nestle India rose 1.2% after rising 4.5% Thursday, following the release of a report on sales and volume growth for the third quarter. Zee Entertainment dropped 3% following a dramatic drop in its second-quarter profits. (Bharath Rajeswaran, Bengaluru. Sumana Niandy, editing)
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ASIA GOLD - India's festive rush drives gold premiums over 10-year high
The physical gold market in Asia was very strong during this week. Prices broke multiple records and premiums in India reached their highest levels in more than a decade, ahead of the major festivals in this month. Gold prices in the spot market surpassed $4300 an ounce on Thursday for the first. They have gained 7.6% over this past week, amid renewed U.S. China trade tensions, and anticipation of a U.S. interest rate cut. This week, the domestic gold price in India reached a new record of 131 699 rupees for 10 grams. Indian dealers quoted premiums Up to $25 per ounce above official domestic prices including import and sales taxes, compared to $15 last week. Ashok Jain is the owner of Mumbai's gold wholesaler Chenaji Narsinghji. A Mumbai-based bullion seller with a private banking firm said jewellers are stocking up on coins and bars of small denominations in preparation for the festival. Indians celebrate Dhanteras (Diwali) and Diwali later this month. These are occasions when purchasing gold is considered auspicious, and they're among the busiest days for gold purchases in the country. Officials from the government and industry have said that gold smuggling has increased in India due to high prices and shortages. Independent analyst Ross Norman stated that a retail rush on investment gold would normally signal a mature rally. However, almost all expectations regarding gold's price behaviour seem to have been proved wrong. Bullion prices in China were discounted anywhere from $20 to $66 per ounce compared with the global benchmark price . Hugo Pascal is a precious-metals trader with InProved. He said that the global demand for precious metals has returned, as has Chinese demand. Peter Fung of Wing Fung Precious Metals, the head of trading, said that "some people sell jewelry because they want to make a profit". Gold in Hong Kong Singapore sold the same product at a $1.30 premium, whereas Singapore Prices ranged from a $0.50 discount to a $1.30 premium. Pascal stated that "the dealers' inventories continue to deplete in Singapore as the demand for metals is strong." In Japan, gold The price was $1 higher than the spot prices. Tokyo-based trader: "Investors aren't deterred by the high prices; they just buy." (Reporting and editing by Harikrishnan Nair in Bengaluru, Anmol Choubey)
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Sources: Japan Q4 aluminum talks drag on in an effort to bridge the gap
Three sources involved directly in the discussions said that quarterly pricing talks between Japanese aluminum buyers and global producers took an unusually long time as both sides struggled to close a large gap on primary metal shipment for October toDecember. Japan is one of the largest Asian importers of metals and the premiums that it pays each quarter above the London Metal Exchange cash price (LME) set a benchmark for the region. However, it is rare to have talks continue weeks after the start date. Early September saw the beginning of talks between Japanese buyers, global suppliers such as Rio Tinto and South32. In the initial offer, producers offered Japanese buyers premiums ranging from $98 to $100 per ton, a drop of 5% to 10% over the previous level for July-September, due to low demand. Sources said that one producer cut its price to $97, from $103, and buyers refused, citing premiums of $70 or more, and wanting levels in the 80s. Source at a Japanese fabricator said, "The $97 offer has expired and we've asked the producer for a new offer." She added that low demand and high inventory keep bids in $80s. Three major Japanese ports have large stocks of aluminium Marubeni, a trading house, said that the total volume of coal sold in September was 341,300 metric tonnes, an increase of 1.8% over the previous month. Sources at a producer say that sellers are holding out for a higher price as the rising prices in Europe and the United States are expected to cause a shortage of supplies in Asia. They also said that discussions could continue until the end this month. Sources declined to identify themselves as this is a sensitive issue. (Reporting and editing by Clarence Fernandez; Yuka Obayashi)
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Shanghai copper falls as traders focus trade tensions, weak dollar limits decline
Shanghai copper fell on Friday, as investors continued to focus on trade tensions. However, a weaker U.S. Dollar and the rising prospect of another Fed rate reduction limited losses. As of 0330 GMT the most traded copper contract on Shanghai Futures Exchange fell 0.42%, trading at 84630 yuan (11,881.56) a metric ton, and is expected to finish the week down 2.42%. The benchmark copper for three months on the London Metal Exchange fell 0.82%, to $10,560 per ton. This was a 0.46% gain in a week. Market participants continue to be cautious as they closely monitor trade developments between China, the United States and other countries as an important meeting between these two countries approaches. China blamed Thursday the United States of creating a panic in the world over its control on rare earth exports. The U.S. official's comments on Wednesday that China's expansion in rare earth exports is a danger to global supply chains and threatens to decouple, as well as their urging China to alter its course. Beijing claimed that the U.S. "seriously misrepresented" China's actions and deliberately stoked misunderstandings and panic. The Federal Reserve cut interest rates again, which helped to support copper's decline. The soft dollar makes commodities that are traded in greenbacks cheaper for investors who use other currencies. Fed Governor Christopher Waller announced on Thursday that he would be on board with another rate reduction later this month. Citing weak labour market statistics, his colleague Stephen Miran urged a more aggressive path of rate cuts. Zinc fell 0.48% among SHFE's base metals. Lead was down 0.26%. Tin grew 0.52%. Aluminium and nickel were not affected. Zinc fell 0.72% on the LME, nickel dropped 0.41%, tin declined 0.23%, and lead rose 0.28%. Aluminium was relatively unchanged. ($1 = 7.1228 Chinese yuan renminbi) Friday, October 17, DATA/EVENTS - (GMT) 0900 EU Housing Starts Number Sep. 1230 US Import prices YY Sept. (Reporting from Dylan Duan and Lewis Jackson).
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Gold prices rise to $4,300/oz for the first time in five years
Gold reached a new record high of $4,300 per ounce on Friday, and investors were rushing to buy the metal as a safe haven due to signs of weakness among regional U.S. banks, global trade frictions, and the expectation of further rate cuts. As of 0233 GMT spot gold was up by 0.3% to $4,336.18 an ounce after hitting a new session high of $4 378.69. U.S. Gold Futures for December Delivery jumped 1%, to $4348.70. Bullion is up about 8% this week, which would make it its best week since the month of March 2020. Each session has seen a new record high. Silver spot fell by 0.7%, to $53.86 an ounce. However, it remained on course for a weekly increase. Prices reached a high of $54.35 earlier in the session as a result of the gold rally and the short squeeze on the spot market. Tim Waterer, KCM Trade's Chief Market Analyst, said that the $4,500 target for gold could be reached sooner than anticipated, depending on how long the concerns over U.S. China trade and the shutdown of the federal government linger. China has accused the U.S. again of creating panic with its controls on rare earths, but it rejects calls to reverse the export restrictions. Christopher Waller, the Federal Reserve governor, has also expressed support for a further rate cut in response to concerns about the labour market. Investors expect a reduction of 25 basis points at the Fed meeting on October 29-30 and another in December. Wall Street also closed lower Thursday. Signs of weakness among regional banks have frightened investors who were already on edge due to the U.S.-China Trade tensions. Waterer stated that "the resurgence of regional bank credit concerns in the United States has given traders another reason to purchase gold." The non-yielding gold, which does well in low-interest rate environments, has gained over 65% in the past year, driven by geopolitical turmoil, aggressive bets on rate cuts, central bank purchases, de-dollarisation, and robust inflows into exchange-traded funds. On Thursday, U.S. president Donald Trump and Russian president Vladimir Putin agreed to hold another summit about the war in Ukraine. The West continued to pressurize Russia on its oil sales. Britain even imposed sanctions against major Russian oil companies. Palladium fell 0.4%, to $1607.93, while platinum dropped 0.7%, to $1701.0. Both metals are headed for weekly gains. (Reporting and editing by Rashmia Aich, Subhranshu Saghu and Anmol Choubey in Bengaluru).
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Petrobras Picks Halliburton for Deepwater Completions Job off Brazil
U.S. oilfield services provider Halliburton has secured multiple contracts from Petrobras to provide completion and stimulation services for its deepwater fields offshore Brazil.The contracts entail vessel stimulation, intelligent completions, and safety valves services, using Halliburton’s engineering solutions.In the Búzios field, Halliburton will deploy its SmartWell intelligent completion technology to enable real-time reservoir management and actionable insights to optimize production. For the Sépia and Atapu fields, Halliburton will provide EcoStar electric tubing retrievable safety valves (eTRSV) to improve the safety and efficiency of this project.Additionally, Halliburton's Stim Star Brasil, tailored for Petrobras activity, will deliver stimulation services that focus on reservoir productivity and improve asset performance.The contracts are expected to begin in 2026.“Halliburton’s engineered stimulation solutions strengthen the collaboration with Petrobras. These awards demonstrate our longstanding relationship in Brazil and support our global strategy to improve asset value and safety through our completions services,” said Shawn Stasiuk, senior vice president, Halliburton Completion and Production division.
Woodside goes all-in on LNG with brave Tellurian buy: Russell
Australia's. Woodside Energy wishes to turn into one of the world's biggest. independent producers of melted natural gas (LNG).
In itself this is not a bad ambition. However choosing to do so. by taking control of a distressed U.S. LNG task is certainly a brave. way of tackling it. Woodside stated on Monday it has accepted obtain all of. Tellurian for an overall worth of $1.2 billion, consisting of. a cash payment of some $900 million, or $1 per share, a premium. of 75% to the U.S. business's last closing price.
The purchase price is largely irrelevant. What's important. is whether Woodside can take Tellurian's Driftwood LNG task. in Louisiana from its early stages of advancement to its complete. potential of producing 27 million metric heaps a year of the. super-chilled fuel.
Woodside Chief Executive Meg O'Neill told a financier. rundown on Monday the transaction positions Woodside to be a. international LNG powerhouse.
That is true, since if Woodside does successfully establish. the Driftwood job it possibly will end up being the. second-biggest independent LNG producer on the planet, overtaking. incredibly majors such as Shell and Exxon Mobil.
Woodside's present LNG capability - run, equity share and. off-take - stands at about 12.05 million loads per year.
While Driftwood is allowed for 27.6 million lots a year,. Woodside's initial aim will be to quickly advance Phases 1 and. 2, which are awaiting Final Financial investment Choices (FIDs) and have. a combined yearly capability of about 16.5 million lots.
There are numerous engaging factors for Woodside to handle. the Driftwood job. Becoming world-scale is just among. them.
Having a strong existence in the Atlantic basin would permit. Woodside to make the most of arbitrage opportunities between. customers in Europe and in Asia, the two most significant need centres. for LNG.
Woodside likewise has a strong performance history of developing LNG. tasks, consisting of the North West Shelf and Pluto plants in. Western Australia state.
The business no doubt has the technical proficiency to develop. Driftwood, something that Tellurian potentially lacked.
DIFFERENT MODEL
Woodside likewise brings a strong balance sheet and prepares a. somewhat different design of offering LNG from the traditional. U.S. operation.
U.S. LNG plants tend to be tolling operations, where their. earnings is largely originated from a repaired cost for converting. natural gas into LNG, which is then marketed by off-takers.
This frequently indicates long-term off-take offers are needed. before tasks can get sufficient funding to be developed.
This was mainly the problem Tellurian dealt with ahead of time. Driftwood, with preliminary handle buyers such as Shell,. TotalEnergies, Vitol and others stopping working to. be converted into firm agreements.
Woodside intends to improve the value of the Driftwood project by. accessing cheap feedstock from the U.S. gas market,. putting the LNG into its own marketing portfolio, while still. retaining the option for some tolling volumes.
Woodside also intends to bring in what it called top quality. partners, and will target to offer down its equity stake to. around 50%.
To do this, Woodside is going to need to show it can develop. Driftwood in a prompt and affordable manner.
The Perth-based business stated it anticipates development expenses. for Driftwood to be around $900-$ 915 a ton, which would be. around $14.9 billion for the initial capacity of 16.5 million. heaps a year.
Spot LNG prices for delivery to North Asia << LNG-AS > ended at. $ 12.20 per million British thermal units (mmBtu) in the week to. July 19, which is comparable to about $631 a load.
This would indicate a relatively fast recoupment of development. expenses, even accounting for purchasing feedstock and operating. expenditures.
In addition to the threats involved in handling a project. that at finest can be described as having a troubled history,. Woodside is likewise making a massive bet on the future of LNG as. the world transitions far from fossil fuels.
Woodside's view has actually consistently been that LNG is required for. the shift given it is less polluting than coal and. functions well as a peaking fuel to backup variable sustainable. generation from sources such as wind and solar.
Much will depend on what paths are taken by governments,. with the threat that European nations go harder on storage. options such as batteries rather than gas-peaking plants.
LNG can likely remain a force in Asia's energy mix, however this. will mostly be dependent on the fuel being cost-competitive. against coal while not weakening the profitability of LNG. producers.
Disclosure: At the time of publication Clyde Russell owned. Woodside shares as an investor in a fund.
The viewpoints revealed here are those of the author, a. writer .
(source: Reuters)