Latest News
-
Reports from FT suggest that UK's Thames Water could be required to restate its accounts
The Financial Times reported that Britain's Thames Water could be required to restate their financial accounts for the period ended March 2024. This would mark another possible setback for this struggling utility, as it attempts to avoid nationalisation. The newspaper cited documents that were seen by the report to say that Thames Water was trying to determine the implications of having to restate certain figures in the accounts it published last year. The report stated that there was concern at Thames Water that any change to its accounts might prompt one of the senior lenders to claim that debt terms were breached. It was reported that the Financial Reporting Council (UK's accounting watchdog) was aware of the problem, citing sources familiar with the matter. In response to an email request for comments, a Thames Water representative said: "We adhere to all UK-adopted International Accounting Standards. We take our regulatory accounting responsibility seriously." KKR, a U.S.-based private equity firm, backed out of a plan earlier this month to inject equity of 4 billion pounds ($5,39 billion) in the struggling company. This left its fate in senior creditors who are now negotiating a deal for a rescue with the water regulator Ofwat.
-
Putin: No need for OPEC+ intervention in the oil market because of Iran-Israel conflict
Vladimir Putin, the Russian president, said that the conflict between Iran & Israel had not caused oil prices to rise significantly. He also stated that the OPEC+ oil producers did not need to intervene on the oil market. Brent crude futures reached their highest level since late January as investors were on edge due to the escalation of a recent air war between Israel, Iran and Syria. Putin stated that the price of crude oil is now around $75 per barrel. Before the conflict escalated, it was $65. "We see, of course, that the current Middle East situation, as well as the conflict between Iran, and Israel has caused a slight increase in the prices." Our experts believe that this price increase is not significant. Iran is the third-largest producer of oil among the members of the Organization of Petroleum Exporting Countries. Hostilities may disrupt the oil supply and increase prices. Putin said OPEC, along with its allies, including Russia, a group called OPEC+ that pumps half the world's crude oil, were increasing their oil production, but gradually to maintain a balance on the oil market, and "comfortable prices". We will all watch together the unfolding of the situation. "No immediate action is needed," he stated. (Reporting and editing by Andrew Osborn, Jan Harvey and Guy Faulconbridge)
-
The US refinery capacity will grow to 18,4 million bpd by 2024
The U.S. Energy Information Administration reported on Friday that the capacity of U.S. refineries to process crude oil will increase by almost 40,000 barrels a day in 2024, reaching 18.4 million bpd. According to a report, the Port Arthur plant of Motiva Enterprises in Texas became the world's largest refinery based on capacity, with 640,500 barrels per day. It passed Marathon Petroleum's Galveston Bay Refinery, located in Texas City. Motiva increased its capacity by 14,500 bpd over the past year due to improved operating efficiency. The report for next year may show a drop of up to 402,476 bpd due to refinery closures. Lyondell Basell Industries closed its 263,776 bpd Houston refining plant permanently in February. Phillips 66 will close its 138 700 bpd Los Angeles facility by the end this year. If refineries do not improve their efficiency, also known as de-bottlenecking in the industry, then the U.S. production capacity will fall below that of 2023, which was 18.06 million barrels per day, according to the EIA. According to the EIA annual report, Marathon, located in Findlay, Ohio continues to be the United States' largest refiner. It has 13 refineries with a combined capacity of 2,96 million bpd, or 16% of total national production. According to the EIA, Valero Energy Corp., based in San Antonio is the second-largest refinery, with 13 facilities operating 2.2 millions bpd. This represents 12% of the U.S. production capacity. The EIA reported that Exxon Mobil Corp. is the third largest refiner, with four facilities with a crude oil throughput of 1.96 million barrels per day, or 10.6% the national capacity. The EIA Report reflects refinery capacities as of January 1, 2020 and is based upon reports submitted by refiners for individual capacities per refinery before January 1. It provides an overview of the growth that occurred in the prior year. In the long term, U.S. refineries have seen a trend of increasing capacity in remaining refineries while decreasing the number of refineries. The number of refineries in America remained the same at 132 in 2024. However, the EIA report states that the CPI Operations refinery, which produces 32,000 bpd, in Paulsboro in New Jersey, is idle. (Reporting and editing by Mark Porter, Louise Heavens, and Erwin Seba)
-
Moscow promises to closely supervise foreign businesses returning to Russia
Igor Krasnov is the Russian Prosecutor-General, who led the government's effort to seize property valued at 2.4 trillion rubles ($31 billion). He said that foreign companies returning to Russia would be closely monitored to ensure Russia benefits. In the three years since Russia began its war in Ukraine, Moscow has taken over a dozen assets owned by foreigners under its management. This year, prosecutors have increased the seizure and confiscation of assets in Ukraine. As the economy slows down after two years of high growth, fueled by military spending, Russian officials try to strike a balance between protecting the economy from Western nations they consider unfriendly, and the need to grow to continue funding the conflict in Ukraine. Krasnov stated, "We will closely monitor the actions of the government." "That's who will come... and on what terms they'll come." Krasnov stated that "we will look to make sure the conditions in which our business (Russian business) operates are better when Western business returns." He said that it must be profitable for the Russian firms themselves. Russia gives priority to its domestic firms. Some of these companies have taken over market share from Western firms such as McDonald's, Unilever and others that left the country since Russia started the conflict in Ukraine. Vladimir Putin, President of Russia on Friday, said that the Russian economy cannot develop without foreign investment and that Moscow will create conditions for making foreign partners feel comfortable. He said that Russian companies should fulfill legally binding buybacks of foreign companies but that Russia would support any measures that are in its own interest. Putin stated that if someone leaves for political reasons or under pressure by their own political elites and their country, they are not reliable partners. WESTERN FIRMS ARE ABSENT Kirill Dmitriev is the head of Russia's sovereign fund. He has stated that U.S. firms are in discussions to return to Russia. However, lawyers and investors insist that sanctions need to be lifted first before any significant influx takes place. The Finance Minister Anton Siluanov said to the Izvestia newspaper on Friday that there had been no requests for foreign companies to return. Siluanov stated that "there are no applications yet for entry, but I sense that the situation is evolving and interest is growing in investing in Russia." Some analysts have also raised concerns over property rights. According to two sources in Russia's banking and energy sectors, some companies could be interested in returning if they can make money but not at the moment. Since 2022, the state has taken over foreign assets owned by Danone, a French yoghurt manufacturer and Carlsberg, a Danish brewery. These assets have been sold to Kremlin friendly buyers. $1 = 78.4955 Russian Roubles (Reporting and writing by Anastasia Lyrchikova. Editing by Toby Chopra).
-
Sources say that Congo is considering extending the cobalt export prohibition as it considers quotas.
Sources familiar with the discussion say that the Democratic Republic of Congo may extend its ban on cobalt exports as it looks at how to implement quotas in shipments of electric vehicle battery materials. The Congo will likely continue to ban exports of cobalt because it wants to give the government more time to figure out how to distribute the export quotas to mining companies who produce the metal for battery vehicles, according to sources. In February, the world's largest cobalt supplier imposed a ban on exports of cobalt for four months. The ban expires Sunday. It was intended to reduce oversupply in order to revive prices that had fallen by nine years. Glencore, the second largest cobalt producer in the world, has backed a proposal to implement quotas. Glencore, however, has a different position from CMOC Group, which is lobbying for the lifting of the ban. Eurasian Resources Group is another major Congo producer that wants to lift the ban and hears more from the government about how the cobalt export quotas will be implemented. Zack Hartwanger is the head of Commercial, Africa for Swiss commodity trader Open Mineral. Hartwanger stated that "some (in the government) expressed concerns about revenue, employment and informal supply chains." There is tension between industrial policies and economic realities. CMOC and Congo's Ministry of Mines, the top cobalt producing company in the world, did not reply to emailed inquiries. ARECOMS (the Authority for the Regulation and Control of Strategic Mineral Substances' Markets), which is responsible for implementing the export restrictions on cobalt, has not responded to emailed inquiries. CMOC has increased cobalt production at its two mines located in Congo where the battery material can be produced as a copper by-product. This is despite the fact that demand for electric vehicle manufacturers is declining as the growth of the sector slows. In February, the market glut pushed prices down to as little as $10 per pound or $22,000 per ton. Reporting by Felix Njini, Kinshasa; Sonia Rolley and Maxwell Akalaare Adombila. Editing by Rod Nickel.
-
Rosatom will explore the construction of a high-capacity reactor in Uzbekistan
Rosatom, the state-owned nuclear corporation of Russia, signed a deal with Uzbekistan’s Atomic Energy Agency on Friday to examine the feasibility and cost of building a nuclear power plant capable enough to generate large amounts in this Central Asian nation. Rosatom has already planned to build smaller nuclear units in Uzbekistan. The agreement was signed with the Uzbek Government at the St. Petersburg International Economic Forum. Over the weekend, the Kazakh government also asked the Russian energy company to lead a group to build the country's first nuclear power station. The five former Soviet Central Asian republics do not have any nuclear power plants, despite the fact that Uzbekistan, and its neighbor Kazakhstan, who are both uranium-producing countries, have said for years that their economies, which are growing, need them. The Uzbekistan facility will use two VVER-1000 Russian reactors with the option to expand to four. In May of last year, Russian President Vladimir Putin signed a deal with Uzbek president Shavkat Miziyoyev to build smaller plants in Uzbekistan. Each plant will have a 55 megawatt capacity. Alexei Likhachev, the head of Rosatom, said on Friday that Rosatom is discussing building two nuclear reactors with low power and two with high power in Uzbekistan. Likhachev, a reporter in St. Petersburg, told reporters that the small modular nuclear plant in Uzbekistan was the first export of modern small power plants in the world. Likhachev said that the plants will help Uzbekistan meet its increasing electricity needs. He told journalists that the company had also approved a preliminary roadmap for two units in Kazakhstan using Russian VVER-1200 nuclear reactors.
-
Brazil will push for climate targets from local governments and corporations at the COP30
Brazil, the COP30 President, proposed on Friday that pledges of emissions reductions be expanded to include companies, states and cities. This was to bolster climate efforts after the U.S. withdrew from the Paris Agreement. Brazilian diplomats working on the climate summit are working closely with U.N. officials to encourage countries to submit revised targets for reducing greenhouse gas emissions before September. Many missed the deadline of February. In the Paris Accord, where almost all countries agreed to limit global warming to 2 degrees Celsius or less from pre-industrial levels by 2050, it is required that these targets be submitted and updated every few years. In a Friday letter, COP30 president Ambassador Andre Correa do Lago suggested widening the pathway for reducing carbon emissions by creating a global NDC that would include targets from different actors, and not just countries. This would transform the Global Stocktake – the process of reviewing the Paris Agreement progress. Lago proposed the term GDC, or "globally-determined contribution," to describe the expanded initiative. Lago didn't explicitly frame the initiative in response to U.S. policies changes. However, he did acknowledge that it would allow U.S. businesses and local governments to participate who have maintained their commitment to curbing climate change despite Trump administration’s formal withdrawal from the Paris Agreement. Lago added that the proposal will also encourage countries to adopt more ambitious emission targets. The Brazilian diplomat stated that private sector actors are often more aggressive in their climate actions than governments. Governments, he said, are more vulnerable to factors such as oil companies' role in boosting economic growth and the cost of transforming the electricity grids. Dan Ioschpe is a Brazilian businessman who was appointed "climate champion" for COP30. He said that the initiative will provide clarity to non-state actors so they can align themselves with Paris Agreement goals. Ioschpe stated that "not only in the United States but also in other countries where national governments are not as involved, we see governors, mayors and the private sectors extremely involved." The Paris accord will be celebrated in November in the Amazonian town of Belem. (Reporting, writing and editing by Lisandra paraguassu; Editing by Manuela Andreonim; Editing by William Maclean).
-
Senate rejects Republican attempt to reverse Biden Vehicle Rules
The Senate Parliamentarian ruled that Senate Republicans could not use a fast track procedure to overturn historic rules aimed at reducing vehicle tailpipe emissions drastically and boosting EV sales in a tax bill and budget bill. Republicans and Donald Trump have targeted EVs in a variety of ways, a reversal from the former president Joe Biden's policies that encouraged EVs as well as renewable energy sources to combat climate change and reduce emission. Biden, as the Environmental Protection Agency in 2024, set strict vehicle emission rules that aim at reducing fleetwide tailpipe emissions of cars and light trucks nearly 50% from 2026 levels by 2032 while dramatically increasing new electric vehicles. According to the EPA's forecast, between 35 and 56 percent of all new vehicles sold from 2030-2032 will be electric in order to comply with strict vehicle pollution regulations. Senate Republicans want to repeal the EPA's new emission limits for heavy-duty vehicles, such as delivery trucks, garbage trucks, public utility trucks and school buses. The Senate parliamentarian ruled that to roll back the EPA regulations, 60 votes would be needed in the 100-seat Senate chamber. This is instead of the simple majority required for other tax and spending packages under a complicated budget process Republicans use to bypass Democratic opposition. This was one of the most important environmental regulations implemented by Biden. He made climate change a central pillar in his presidency. Senate Republicans proposed on Monday ending the $7.500 tax credit for new EV purchases six months after a tax and budget measure was signed into law, and phasing in the use of EV credits. Republicans also propose eliminating fines for failure to meet Corporate average fuel economy rules. This would effectively end a fifty-year-old programme that requires automakers build more efficient cars. Trump signed last week a resolution passed by Congress that bars California's historic plan to stop selling gasoline-only cars by 2035. This plan has been adopted and endorsed by 11 states, representing one third of the U.S. automobile market. Trump signed resolutions that reversed the new limits on heavy-duty vehicle emissions. General Motors and Toyota, among other automakers, have asked Congress to reverse the new emissions regulations. (Reporting and editing by Alexandra Hudson.)
Andy Home: Copper smelters face both market and price crises
Copper smelters have become so desperate for raw materials that they pay miners to convert their concentrates into refined copper.
The so-called treatment-and-refining-charges (TCRC) are supposed to be a major revenue source for copper smelters, but the spot charges have been in the negative since the beginning of the year.
The copper bull narrative is that there are too few mines. However, the current collapse in processing fees can be attributed to too many smelters and too much demand.
The imbalance is unsustainable, especially if the smelters accept to pay a negative amount for the mid-year discussions, which established the price for volumes much higher than those on the spot market.
Copper industry pricing concentrations that are done annually or semi-annually is also unsustainable.
ACID LIFELINE
Smelters can rejoice that spot treatment costs have stopped dropping. Benchmark Mineral Intelligence reports that spot treatment charges have not done more than stabilize at $-45 a ton and -4.5 cents a pound.
Smelters who chose to lock-in tonnages for the entire year are partially protected, but this year's benchmark term of $21.5 per tonne was also the lowest since at least 20 years.
Mid-year negotiations are likely to produce a lower result, but smelters may balk at locking in a TCRC that is negative for contracts which could extend into 2026.
The smelters are able to survive financially by producing valuable by-products, such as silver and gold. Smelters also produce sulphuric acids, which are in high demand in China due to the phosphate fertiliser industry.
Copper should be the main source of revenue for a copper smelter, but that is not what we are seeing.
Too Many Smelters
The mines are not denying that production has increased. According to the International Copper Study Group, global output increased by 2.1% in 2020, 2.8% by 2024, and another 1.2% by the first quarter this year.
China's copper concentrate imports are on the rise. They reached a record 28.2 millions tons of bulk weight in 2018 and grew 7.5% from year to year during the first four month of 2025.
The problem is that Chinese smelting capacities have been brought online too quickly, and newcomers are chasing the available tonnage.
The scrap is an alternative source of feed for some, but the market is becoming more competitive and Chinese imports are flat this year compared to 2024.
In China's refined metal production, the rapid expansion of processing capacity can be seen. According to the National Bureau of Statistics, May's output increased by 14% compared to last year.
Shanghai Metal Market, a local data provider, estimates that production has increased by 11% this year compared to 2024.
Several Western smelters are already closing due to the squeeze on margins.
In February, Glencore put its Pasar smelter located in the Philippines into care and maintenance. Sinomine has done the same at its Tsumeb facility in Namibia.
Chinese operators appear to be intensifying their efforts in what is a strategy of the last man standing.
BREAKING POINT
China's increased smelting capability will not allow the world's mines to increase their collective output to the same extent.
The raw materials supply chain will only get more stressed as new smelters are built in Indonesia. This will end the country's position as a major supplier of concentrates to Asian smelters.
It is inevitable that something will give, especially since the Chinese copper market demand is expected cool down due to the reduction of subsidies in the solar panel industry.
It could be some time before more capacity is closed to correct the current imbalance between supply and demand.
This puts more pressure on the price-discovery process in the industry, which is still based on annual deals.
In China, there has been a move towards quarterly and spot pricing.
Smelters have learned that a negative annual price can be a serious problem. A mid-year negative deal is a bad precedent.
Iron ore markets, for example, have shifted away from annual benchmarks that could not capture price volatility on the spot or sudden changes in supply dynamics.
CME contracts are now available for the hedge of lithium, a commodity that is widely perceived to be too unique to trade on standardised futures.
Copper smelters may need to rethink their pricing strategy in the processing chain. They are literally handing money to miners.
The author is a columnist at
(source: Reuters)