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The US construction sector's spending fell in April due to a decline in single-family housing.
The U.S. Construction spending fell unexpectedly in April. This was due to a decrease in expenditures on single-family projects, as well as higher borrowing costs. Census Bureau of the Commerce Department reported on Monday that construction expenditures dropped by 0.4% following a 0.8% decrease in March, which had been downwardly revised. The economists polled had predicted that construction spending would rebound by 0.3% following a previous 0.5% decline reported in March. In April, spending decreased by 0.5% on an annual basis. Spending on private construction fell by 0.7%. Residential construction investment fell by 0.9%. Outlays for new single-family homes declined by 1.1%. The economic uncertainty caused by President Donald Trump’s aggressive trade policies, such as the recent doubled of steel and aluminium duties from 25% to 50%, is also limiting home construction. The new housing stock is at levels not seen since 2007, and the supply of pre-owned homes is at its highest level in over four years. This leaves builders with little room to start building. In April, the expenditure on multi-family housing decreased by 0.1%. Investments in non-residential private structures such as offices and factories decreased by 0.5%. Spending on public construction projects increased by 0.4%. Spending by state and local governments increased 0.3% while federal spending jumped 2.7%. Lucia Mutikani, reporting; Andrea Ricci, editing
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Britain faces race to avoid $1 Billion in EU Carbon Tax Costs
Market experts say that Britain will have a difficult time linking its carbon market with the EU's within the next seven months to avoid UK companies being charged the carbon border tariff by the EU and facing annual bills of around 800 million pounds ($1.08billion) for the UK. As part of "a reset" of relations following Britain's exit from the European Union in 2016, the two sides announced that they would link their carbon emission trading systems by the year end. The two sides have not set a deadline or described the steps that need to be taken before January when Europe's border tax on carbon kicks in. It will probably take several years for the linkage to become effective. Ben Lee, senior emission analyst at Energy Aspects, said that the earliest date is 2028. However, it's likely to be 2030 or 2029. The UK government stated that a major benefit of joining the EU carbon market (or emissions trading system, ETS) is the ability to avoid being charged by the EU carbon border tariff, which will be implemented next year. This fee will be imposed on CO2 emissions associated to imports of goods such as steel, cement, and others. The UK government claimed that avoiding these costs could save them 800 million pounds a year. EU officials claim that in order to be exempted of the border tax, Britain must link its carbon market with the EU. Yan Qin, ClearBlue's carbon analyst, said that a full linkage would take several years due to the technical complexity of the process. He added that an optimistic scenario could lead to the link being formed in 2027. A British government spokesperson said that the British government will try to reach an agreement on a carbon market connection as soon as possible. They said that they would not be providing a constant commentary on the negotiations. TECHNICAL HURDLES For the UK to make this link, it must adjust its national rules on carbon trading permits. It also needs to bring its emission permit auctions into line with EU regulations and change the national cap for how much carbon can be emitted by companies that are covered by the market. Not only that. EU and UK schemes have not aligned yet on the number of free CO2 permits that they offer industries. The EU carbon market also has a "reserve", which can add or remove permits to the market in order to stabilize prices. The EU scheme lacks the "reserve" that Britain has, but it does have a mechanism to control costs and set a price ceiling. Ingvild Sörhus, senior analyst at Veyt, said that resolving the issue of an adjustment mechanism for supply will be one of many technical calibrations needed before the two systems are linked. Many businesses claim that these problems are easily resolved. Alistair McGirr is the Head of Policy and Advocacy for British energy company SSE. He said that with the right political will an ETS linking accord between the EU and UK can be signed in 6 months and operational by the year 2028. Energy UK, an industry group, said that linkage negotiations might be concluded within a year. However the UK should request a waiver from the EU border carbon tax until the link has been sealed in the event the talks drag on into 2026. "It's not a matter of major political roadblocks but rather of primarily technical processes... Adam Berman, Energy UK's Policy Director, said that the problems were not small, but not insurmountable. The UK is planning to introduce its own carbon-border tariff in 2027, a year after the UK. Brussels might be less in a hurry. Britain's carbon markets are less than one tenth the size of those in the EU, so any link would give British businesses access to a more liquid market. Although EU officials claim that the EU wants to extend carbon pricing to as many countries as is possible, in order to ensure they all put a price tag on greenhouse gas emission. The companies also claim that the move will reduce costs and avoid competitive distortions for EU and UK consumers. Pascal Canfin is a French member of the European Parliament who said that the benefits for Britain are more evident than those for the EU. Canfin said that the EU was motivated by a "political move". "The UK used to be part of [the EU] ETS." It's not a big deal. $1 = 0.7387 pounds (Reporting and editing by David Evans, Susanna Twiddale)
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Australia's Ioneer quadruples lithium reserves at Nevada project
Ioneer, a critical minerals miner based in Australia, announced on Monday that the ore reserves of its Rhyolite Ridge Lithium Boron Project have grown four-fold. Nearly half the mineral resource has been converted into reserves. According to the company, ore reserves have quadrupled from 60 million tonnes to 246,6 million tonnes by 2020. Ioneer said that the reserve contains 1,92 million tonnes equivalent lithium carbonate and 7,68 million tonnes equivalent boric acid, making it one of the largest lithium-boron reserves in existence. It allows Ioneer the flexibility to blend or prioritize ore in order to produce boric acid, which is a valuable co-product whose market has no correlation with that of the primary lithium product. This was stated by Bernard Rowe, Ioneer's Managing Director. Due to an oversupply of lithium, the price has fallen by more than 80% since its peak in November 2022. This has forced companies to shut down mines and postpone projects. Ioneer will prioritize high-boron ores in the first 25 production years, when lithium prices are low, to maximize revenues from boric acids sales. The upgrading of ore reserves follows months after Sibanye Stillwater announced it would not invest in the Lithium project due to the plummeting price of the rare metal. As part of its diversification in battery metals, Sibanye agreed to establish the joint venture between Ioneer and Sibanye by 2021. Ioneer estimates that the total capital cost to complete the project will be $1.67billion. (Reporting and editing by Shreya biswas in Bengaluru, Pooja menon from Bengaluru)
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EU advisors warn against lowering new climate goal
Independent advisers to the European Union have warned against softening 2040's climate target, while EU officials are considering a softer goal to limit a backlash to ambitious environmental policies. In July, the European Commission will propose a legally-binding target for EU countries to reduce their emissions by 90 percent by 2040 compared to 1990 levels. Brussels, however, is considering options to overcome the pushback of governments. These include setting a lower goal for domestic industries and using international credits to bring up the gap. The European Scientific Advisory Board on Climate Change, or ESABCC, warned against this strategy, saying that it could divert funds from investments into European industries and infrastructure. In an analysis of 2040's target published on Monday, the ESABCC stated that using international carbon credits, even partially, would undermine the creation of domestic value by diverting resources away from the transformation needed in the EU economy. The Commission's spokesperson did not respond directly to the advisors' caution about carbon credits. The spokesperson stated that "the Advisory Board is faithful to its mission to provide scientific advice with full independence and reminds us in today's report of the urgent need for ambitious climate action as well as the importance of setting a target of 2040 emission reduction," Carbon credits are a way for EU countries to buy credits from projects abroad that reduce CO2 emission - such as forest restoration in Brazil. These credits can then be used towards the EU's goal. These credits, say their supporters, are an important way to raise money for projects that reduce CO2 emissions in developing countries. Some EU officials remain cautious. In 2013, the EU banned international credits on its carbon market after an influx of cheap credits that had weak environmental benefits led to a crash in carbon prices. ESABCC, despite geopolitical headwinds such as looming U.S. Tariffs and high energy costs, said that it would stick to its 2023 recommendation, which was for the EU to agree to a net reduction of 90-95% in greenhouse gas emission by 2040. This, they said, is achievable, and in line to global goals in order to avoid worse climate change. It would be necessary to have a power sector that is almost entirely free of emissions by 2040, and electrify industries that pollute. They said that this would have many benefits, including fewer pollution-related illnesses, a boost in investments for modernising industries, and improved security, as Europe would be less dependent on fossil fuel imports. (Reporting and editing by Kirsten Doovan and Hugh Lawson).
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Russian seaborne diesel exports rise in May, data shows
According to LSEG and market sources, the increase in fuel production led to a rise in Russia's seaborne gasoil and diesel exports during May. Calculations based on data from the industry suggest that Russia's idled diesel production capacity is expected to be down 8.1% in May compared to April, to 1.6 millions metric tons, or 52,700 tonnes per day (around 392 088 barrels per day). The increase in fuel production and exports is a result of the lower idle production. Calculations based on data from LSEG, and other market sources, showed that diesel and gasoil exported from Russian ports in May rose to approximately 3.7 million metric tonnes, an increase of 7% compared to April. Shipping data shows that in May, the two main importers of Russian gasoil and diesel were Turkey and Brazil. Last month, the Russian ports exported 1.3 million tonnes of diesel and gasoil to Turkey, an increase of 15% over April. However, loadings to Brazil dropped by 14%, from 0.7 to 0.63 millions tons. Shipping data revealed that Russia's diesel and gasoil imports from Africa in May increased by 7% compared to the previous month, totaling about 0.83 millions tons. Ghana, Tunisia and Senegal were among the top four African importers. According to LSEG, a total of 0.35 million tonnes of diesel and gasoline from Russian ports is waiting for discharge on ships-to-ship transfers in the vicinity of Limassol. Shipping data showed that ships loaded with diesel in Russian ports in May, about 230,000 tonnes, had their destinations marked "for orders", which means their discharge points were either not known or not declared. Mark Potter, Mark Potter (Reporting in Moscow)
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OPEC+'s crude production hike comes amid tepid Asian demand for oil: Russell
The crude oil markets pay attention to what OPEC+ has to say, but less so to what they actually do when it comes down to the supply of this world-famous commodity. Eight members of a wider group who had implemented voluntary production reductions met over the weekend to decide on a rise in output of 411,000 barrels per daily (bpd) for July, which would be the third consecutive month of this increase. Saudi Arabia, Russia, and the United Arab Emirates will each receive more than half the increase in production. There are still two questions to be answered. Will the eight parties to the agreement increase their output by the agreed-upon volumes? And if so, will they be able to find buyers for this additional oil? It's important to note that OPEC+ and most of the market talk about production. However, the key metric for setting the price is the export volume of crude oil. Saudi Arabia's exports were actually lower in April, at 5.75 million barrels per day, compared to March's 5,80 million barrels per day, according data collected by commodity analysts Kpler. Kpler data shows that Saudi Arabian exports jumped to 6.0 millions bpd by May and are expected even higher in June. This suggests that there's a delay between the output agreements and exports. The Russian crude oil exports by sea were 5,07 million barrels per day in March. They remained relatively flat at 5,12 million in April, and then dropped to 4,82 million in May. This shows that the increase in production agreed upon did not translate into increased shipments. INVENTORIES and DEMAND It is still unclear whether additional oil will be needed in Asia, the region that imports most oil. In a statement released after the May 31, OPEC+ reaffirmed its belief that the global oil markets have "healthy" foundations, "as reflected by low inventories." They have maintained this position since April, when they began to ease the voluntary production cuts of 2.2 million bpd. The Organization of Petroleum Exporting Countries' monthly report for the month of May shows that crude inventories rose by 21.4 millions barrels in March to 1.323 trillion barrels. This is 139,000,000 barrels less than the annual average between 2015 and 2019. The Organization for Economic Cooperation and Development inventories are below pre-COVID levels, and were rising even before OPEC+ began increasing output. Inventories are not as visible outside of the OECD, especially in China. China is the largest crude oil consumer worldwide. Although China does not disclose its commercial and strategic stocks, it is possible to estimate the surplus crude by subtracting the volume of refined oil from the total domestic production and inventory. China's oil surplus has risen in recent months. It reached 1.98 million barrels per day in April, its highest level since June 2023. This is up from 1.74million barrels per day in March. China has increased its oil imports since March and April, as it procured discounted cargoes of Iranian and Russian crude. In May, China's appetite has reportedly waned despite lower global crude prices. Kpler estimates that China's seaborne exports were 9.43 million barrels per day in May, down from 10.46 in April and 10.45 in March. ASIA IMPORTS China's lower appetite in May led to a decline in arrivals in Asia. Kpler estimates 24.2 million bpd. This is down from 24,85 million bpd. in April. Asia's crude oil imports by sea are estimated to be 24.45 millions bpd for the first five month of this year. This is down 320,000 bpd compared to the same period in the previous year. The demand for oil in Asia has not increased despite a near 30% decline in Brent crude futures from mid-January to the lowest price of the year, $58.50 per barrel, on May 5. The impact of lower oil prices is still being felt. While demand could rise in the coming months due to cheaper oil it's possible that economic uncertainty caused by President Donald Trump's tariff war has crimped fuel consumption. Brent futures rose by over $1 on Monday to $63.84 per barrel. The increase in prices indicates that the market was expecting a higher output from the OPEC+ eight-member group for July. The Trump trade war has created distortions that have a significant impact on the outlook for demand. There is uncertainty about the future of supply and whether OPEC+ top producers will seek to increase export volumes or compete for market share. These are the views of a columnist who writes for.
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Aluminum premiums for US buyers rise after Trump doubles tariffs
The price of aluminium in the United States has risen dramatically since Donald Trump announced that he would increase the tariffs from 25% to 50% on imports of steel and aluminum. The U.S. heavily relies on imports of aluminium. Around half of the aluminium used for transportation, packaging, and construction in the U.S. is imported, the majority from Canada. The new tariffs will be in effect from June 4. On the physical market, buyers pay the London Metal Exchange benchmark price for aluminium plus a premium to cover taxes, transportation and handling costs. On Monday, the duty-paid aluminum premium in the Midwest of the United States reached $0.58 a lb or $1,279 per metric ton. This was a 54% increase from Friday, and a 164% growth rate since 2025. The fact that Monday was the first trading day in a new month, which is when regional premiums are often at their strongest, contributed to the growth. Goldman Sachs estimated that the premium needed to increase to $0.68 to $0.70 per lb in order to reflect the import tariff of 50%. LME benchmark aluminum was last up by 0.2%, at $2448.5 per ton. (Reporting and editing by David Goodman.
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Brazil's vast forest is managed by "conservation mosaics".
Brazil has 40% public natural areas The "mosaics", or contiguous conservation units, are grouped together. Regional policies are articulated by local governments, NGOs and communities By Andre Cabette Fabio Borges, speaking on her porch near the Negro River in Ecuador, said that her company, Yara Amazonas has partnered with loggers so they can extract oil and seeds from the forests instead of cutting down trees. Yara Amazonas, a sustainable initiative within the Lower Negro River Mosaic of Protected Areas (a group of 14 Conservation Areas established between 1980 and 2018 covering an area greater than Ireland), is one of dozens in the Lower Negro River's mosaic of protected zones. Henrique Pereira is a professor of the National Institute of Amazonian Research. He said that the federal government created the mosaic system to help manage natural reserves which overlap or are contiguous. The councils of Brazil's 27 Mosaics are made up of members from the community and administrators at the federal, state, and municipal levels. They help to fight land-grabbers and loggers as well as illegal farmers and they allow funds to trickle to initiatives on the grounds. In Brazil, the management of public areas is a massive task. From national parks with strict rules that prohibit people from living there to Indigenous territories and settlements, for sustainable development. According to a government assessment of 2024, these areas cover about 40% of the nation's land, an area bigger than India. They are governed under a variety rules and jurisdictions. Brazil is preparing for the COP30 U.N. Climate Change Conference in the Amazonian city of Belem, in November. This will raise expectations about new funding and actions to protect Brazil's natural environment as well as help communities. Brazilian authorities claim that a severe drought in Amazon has contributed to food insecurity. Wildfires also played a significant role in the record-breaking global forest losses last year. Scientists claim that deforestation compounds the effects of climate changes, and threatens to transform large areas of Amazonia into drier ecosystems. Marcos Pinheiro said that the mosaic councils help members to exchange information and gain strength in order to make conservation efforts effective on the ground. Puranga Conquista, an 86,000 hectare area that forms part of the Lower Negro River mosaic, is home to over 800 families. From Manaus, the capital of Amazonas state, where the Lower Negro River Mosaic can be found, take an hour-long trip on the Negro River. The river is flanked by lush jungle and a few wood houses. Settlers receive land in batches and can cultivate crops, harvest seeds, fish and fruit, or extract timber and wood under strict environmental regulations and a community-agreed plan. LAND RIGHTS IS KEY It hasn't always been like this. Puranga Conquista, when it was first protected by the government in 1995 was classified as a part of state park. Human settlement was also banned. Francisco Borges, Elisangela’s father and member of the Mosaic’s Council, said that people who lived there for years could have been evicted. In 2000, with the support of other mosaic members, the community launched a campaign that was successful in 2014, persuading the authorities to reclassify this area as a reserve for sustainable development, so the people could continue living there. Francisco Borges said, "A request from the council of the mosaic is more powerful than one from a single reservation." After communities successfully lobbied for an area to be recognized as a sustainable settlement, the Lower Negro River Mosaic has gained 580,000 additional hectares in 2018. Securing communal land rights, say environmentalists, is crucial to stopping deforestation. It discourages people clearing public forests and using the land for private farms. The Amazon Fund is an international mechanism that supports projects to stop and reverse deforestation. It has funded production by Yara Amazonas, and three workshops where local Indigenous people produce handicrafts. The Lower River Negro Mosaic also includes numerous other initiatives, such as youth groups, fire brigades and furniture workshops, in addition to preserving turtle populations. POLITICAL HEADWINDS These initiatives haven't always been backed by the political establishment. Pinheiro from REMAP said that many conservation mosaics helped communities to engage in territorial protection even during political turmoil. The far-right Brazilian government led by President Jair Bolsonaro saw a significant increase in deforestation between 2019 and 2022 as they dismantled their environmental policies. The Lower River Negro Mosaic Council continued to operate under the radar. Pinheiro explained that "they understood that it was just a passing storm, so everyone kept quiet." However, the political challenges have not disappeared. A bill that will loosen the rules for environmental licensing is currently being debated in parliament. Brazil's powerful agribusinesses are in favor of the change. However, environmental NGO Instituto Socioambiental says it will allow developers to ignore the impact of road, rail, hydropower dams, and other projects on areas protected. Elisangela Borges stated that Brazil has vast potential for development, but it can be done without harming the environment.
Ecuador to raise rate for most-used fuels as it cuts aids
Ecuador's federal government is set to raise the price of the nation's mostused kinds of gasoline as part of plans to cut fuel subsidies, the Economy Ministry said on Friday, in spite of calls by unions and others for protests versus the step.
The strategy, which is most likely to come into effect next month, will raise the cost of two various types of gas to be in line with international prices and develop a system to set monthly prices.
President Daniel Noboa, who was chosen in October to finish his predecessor's term and is anticipated to run again in 2025, has stated removing state aids for gasoline is needed to improve the nation's beleaguered finances.
Aids for diesel and domestic gas will stay in place.
Under the measure, both extra gasoline and ecopais. fuel will rise in cost by 0.26 cents to $2.72 per gallon,. though rates can increase by as much as 5% or fall by as much as. 10% month-to-month depending upon worldwide crude costs,. according to a file shared by the Economy Ministry.
Efforts to remove fuel aids have actually previously triggered. mass protests by unions, social motions and Native. organizations and Noboa's procedures have already drawn ire, with. some groups alleging the modifications were ordered by the. International Monetary Fund, though Noboa drifted them before a. current deal with the IMF.
Ecuador and the IMF in May reached a contract to underpin. a four-year, $4 billion extended fund center.
The government will supply compensation to some 85,000. owners of transportation automobiles, including taxis and cargo trucks,. depending on ranges driven, and is holding talks with. various interested groups, according to the ministry.
Compensation would amount to some $35 million between July and. December this year, a substantial fall from the $644 million. spent by the federal government on aids for the 2 fuels last. year.
(source: Reuters)