Latest News
-
Europe's auto part suppliers suspend production due to China's restrictions on rare earths
As concerns grow about the impact of China's new restrictions on mineral exports, some European auto part plants have suspended production. BMW has also warned that its supply network is affected by a shortage of rare earths. China's April decision to suspend the export of rare earths, magnets, and other related products has disrupted supply chains for automakers, aerospace companies, semiconductor firms, and military contractors all over the world. China is using this move to demonstrate its dominance in the mineral industry that is key to green energy and as leverage against the U.S. president Donald Trump. China produces 90% of all rare earths. BMW, the German automaker, announced on Wednesday that a part of its supply network is affected by a shortage of rare earths but that its own factories are running normally. The European auto supplier association CLEPA has warned that the shortage of rare earths is threatening manufacturing. CLEPA said that only one quarter of the hundreds requests for export licences submitted by auto suppliers between April 1 and now have been granted. Some requests were rejected due to "highly formal" reasons, according to the association. The warning did not name the companies, but it warned of future outages. The process seems to differ from province to province, and IP-sensitive data has been requested in some cases, it stated. It added that if this was not done soon, then more plants could be affected as inventories run out in the coming weeks. The curbs are not only a part of the broader package to retaliate against Washington's trade tariffs but they apply worldwide and are causing concern among business executives all over the world. German and U.S. automobile manufacturers have complained about China's restrictions threatening production. This follows a similar complaint from an Indian electric vehicle maker last week. Many people are lobbying for their governments to come up with a quick fix and scrambling to look for alternatives. In an email, Wolfgang Weber said that some companies have only enough supplies to last for a few months or weeks. He said that companies in China feel left out by the politicians, and they are looking to solve their problems on their own. Swedish Autoliv, the largest maker of airbags in the world, has said that its operations have not been affected. However, CEO Mikael Bratta said he had set up a special task force to deal with the situation. RELIANCE ON CHINA Many automakers, including BMW, General Motors and ZF have been researching or developing motors that contain low-to-zero rare earths in an effort to reduce their dependence on China. However few have scaled production to lower costs. BMW's latest electric car generation uses a motor that is magnet-free, but smaller motors like those powering windshield wipers and window rollers still require rare earths. Volkswagen, the German automaker, has been informed that only a small number of Chinese export licences for rare earths have been issued to subcontractors. The company does not currently see any shortages. Trump has focused his criticism on China's slow pace in easing its crucial mineral export controls. He claims that Beijing has violated the truce agreed last month for tariffs to be rolled back and trade restrictions to be lifted. Trump is trying to redefine trade relations with China, the United States' largest economic rival. He has imposed steep tariffs on imported goods worth billions of dollars in an effort to narrow a deficit and bring back lost manufacturing. Trump had imposed tariffs of up to 145% on China, only to reduce them after the stock, bond and forex markets sank due the the broad nature of the measures. China responded by imposing its own tariffs, and using its dominant position in supply chains to convince Trump to back off. This week, Trump and Chinese President Xi Jinping will meet to discuss their differences. The export restrictions are likely to be a major topic of discussion. In a post on social media, Trump stated that Xi was "VERY TOUGH AND EXTREMELY DIFFICULT TO MAKE A DEAL", highlighting how fragile the deal is. (Reporting from Victoria Waldersee, Marie Mannes and Hakan Ersen; Additional reporting from Hakan in Frankfurt; Writing Josephine Mason; Editing Emelia Sithole Matarise).
-
UN Trade Agency: Tariffs will drive up seafood prices for US consumers
According to a Wednesday report by the United Nations agency for trade, global trade tensions will disrupt ocean goods and push up the price in the United States of fish imports. According to a report from the U.N. Trade and Development agency, U.S. president Donald Trump has imposed tariffs of 10% on almost all seafood. China will face tariffs as high as 30%. The report stated that "prices for fish products will likely rise due to the limited capacity of local production." The report stated that the wild fish stocks are being depleted in the U.S. due to overfishing. It also said it would take time to increase the domestic aquaculture production. Salmon farms, for example, have a production cycle of three years. UNCTAD data shows that the U.S. exports fish worth $4.5 billion and imports it for $16 billion each year. UNCTAD predicts that Brazil, which exports 55% its primary fish products in the U.S. and China, will likely redirect its seafood towards domestic markets or other trading partners. Some maritime freight services may also experience a decline in demand due to the change of trade routes, as countries look for new markets to export their products. The U.N. found that "higher or volatile tariffs for ocean goods will likely disrupt traditional trade, affecting consumers and exporters alike." UNCTAD has stated that tariffs on steel, aluminium and fish are already increasing the cost of shipbuilding as well as the price of fish. The report found that climate changes, overfishing and biodiversity loss were all threatening the global ocean trade. Reporting by Olivia Le Poidevin, Editing by Sharon Singleton
-
UAE firm IRH purchases majority stake in Congo tin mining company Alphamin
International Resources Holding, based in the UAE, has agreed to purchase a controlling interest in Alphamin Resources, a major tin producer in Africa. The deal is valued at C$503million ($367million), and comes as it expands its presence on the continent. IRH, a division of International Holding Co., has entered into an agreement with Tremont Master Holdings to purchase a 56% share in Alphamin for C$0.70 or approximately $367 million. The companies announced the deal in a joint press release. Alphamin's Bisie mine is located in eastern Democratic Republic of Congo, an area rich in tantalum and tungsten, as well as coltan. Alphamin's mine in Bisie produces about 6% annually of the global tin supply. In a statement, IRH CEO Ali Alrashdi stated that Alphamin's profile of production "aligns to our strategy" of securing interest in high-quality mine assets. Last year, the UAE firm concluded a $1.1 billion deal to purchase a 51% stake of Zambia's Mopani Copper Mines. Since then, IRH said that it was seeking deals to acquire critical minerals in Zambia or Congo. The UAE, as well as Saudi Arabia, are major oil producers who want to diversify their income sources and secure metal supplies from Africa or Latin America in order to take advantage of the shift to green energy. Tin is used for electronics, renewable energies, and semiconductors. Alphamin had to temporarily stop mining in Bisie earlier this year as M23, a Rwanda-backed rebel group, advanced near the mine. (Reporting and writing by David Lewis, Maxwell Akalaare Adombila, Editing by Kirsty Donovan and Barbara Lewis).
-
PetroChina will close the last unit of its largest refinery in north China by June, according to sources
PetroChina will close its last crude unit in its largest north China refinery by the end of the month. This is broadly in line an earlier plan, which marks the first complete closure of a country-run plant. PetroChina will switch off the 200,000-barrels-per-day No.1 crude unit at Dalian Petrochemical Corp on June 30, and the secondary processing units in the following month, said the sources familiar with the shutdown plan. Last October, it was reported that PetroChina planned to close its entire Dalian plant of 410,000 bpd by mid-2025. This is part of the long-planned project to relocate the facility and replace it with another smaller one at a different site. PetroChina is expected to start reducing its crude oil and feedstocks inventory this month, and will clean up the entire product inventory by August's end. A representative of the company did not respond immediately to a comment request. PetroChina is yet to decide on the final investment for the new refinery complex that will be built on Changxing Island, which is about two hours drive from Dalian's downtown. PetroChina will begin the process of shutting down the Dalian Plant in late 2023. The refinery processes primarily Russian ESPO crude oil from Siberian fields. Reporting by Trixie YAP and Chen Aizhu. Mark Potter edited the article.
-
European stocks up, dollar steady, even as tariff deal deadline looms
The dollar was largely unchanged on Wednesday as market sentiment was dominated by uncertainty over U.S. president Donald Trump's plans for tariffs and his negotiations with China. Trump has set a deadline of Wednesday for trading partners to submit proposals for trade agreements in order to avoid the "Liberation Day Tariffs" from coming into effect within five weeks. The U.S. also increased its tariffs on aluminium and steel on Wednesday. These higher tariffs apply to all trading partners except for Britain, the only country that has reached a preliminary agreement. The dollar-denominated MSCI All-Country Index climbed to a new record high. This was largely due to the recent weakness of the U.S. dollar. However, trading remained low as investors awaited news on a potential phone call between Trump, and Chinese leader Xi Jinping. Trump's social media post before the opening of European markets hurt sentiment. Trump wrote in a Truth Social post that he liked President Xi, "but he's VERY TOUGH and EXTREMELY DIFFICULT TO DEAL WITH." At 0956 GMT the pan-European STOXX 600 rose 0.5%, while Germany's DAX rose 0.8%. The dollar index was unchanged at 99.171, while the euro rose 0.1% to $1.1383. Amelie Derambure is a Senior Multi-Asset portfolio manager at Amundi, based in Paris. She was surprised by the relative calm on the markets regarding the threat of tariffs. She said, "To me, there is a very clear willingness on the part of the markets to believe that the Trump administration won't be able to stop U.S. economic growth at the end." Derambure stated that there may be more changes in the behaviour of traders as tariffs near their implementation. She said, "I believe we can expect a higher level of volatility in the days to come up until the end of the tariff pause." Investors have fled U.S. assets this year in search of safe-havens such as gold and other currencies. They expect that trade uncertainty will have a negative impact on the global economic climate. The traders are waiting to see what data the U.S. releases later in the day will reveal about how tariffs affect companies, before Friday's monthly payroll data. Derambure, from Amundi, said: "The market believes that the constant back and forth, the uncertainty hasn't had a major impact on the behaviour of firms at the moment." This can change relatively quickly if this assumption changes for any reason. It could be because the data is weaker or that some companies change their advice or are more concerned. The benchmark German Bund yield increased by 3 basis points to 2.533%. The European Central Bank begins its two-day meeting on Wednesday. After data showed that inflation fell below ECB target of 2% in May, the central bank will likely cut rates and continue to ease monetary policy on Thursday. PMI data shows that the growth of euro zone businesses slowed in May. Brent crude futures rose 0.3% to $65.85 as supply pressure from wildfires in Canada offset concerns over output increases. The weaker dollar and trade tensions helped gold to rise 0.3% in the last day, reaching $3,361.65.
-
Iberdrola's unions have called for more than 9,000 employees in Spain to go on strike
Iberdrola's unions have called for 9,000 workers to go on strike in Spain on Friday in order to demand more money and shorter working hours. This would be the first time in the history of the company, which spans over 100 years. The largest utility in Europe raised its employees' wages by an average of 2.8% from 2021 to 2024, while inflation was at 19%. The representative added that talks have been going on since January. The union representative stated that this would be the first strike in the history of the company. The cost of the project is small compared to the profits that the company generates every year, he said. Iberdrola data shows that the company's net profit for 2024 will be up 17% compared to last year. Iberdrola didn't immediately respond to an inquiry for comment. Spanish law requires that utility workers guarantee a minimum level of service. This means there will be no power outages during the strike. Iberdrola must have at least 1,100 employees on duty to ensure service. (Reporting and editing by Inti Larranaga and Sharon Singleton, with Javi West-Larranaga)
-
Learn about China's export restrictions on rare earths
The global manufacturers are concerned about China's decision on the export of rare earth alloys, mixtures, and magnets. This is a brief overview of China's policies on rare earths. What are they? The rare earths consist of 17 elements that are silvery white. Magnets are used to power cars, mobile phones, missiles, and other electronic devices. ARE THEY RARE? Although they are not uncommon in the strict sense, they usually occur in small amounts or in mixtures with other minerals making their extraction expensive and difficult. Which country is the largest producer? China produces 90% of rare-earth magnets. It mines 60% of the rare-earths in the world. It has set quotas for output, smelting and separation. These are monitored to gauge global supply. Why does China dominate production? Separating rare earths is one of the hardest processing steps. In the 1950s U.S. scientists developed a solvent extraction process, but radioactive waste in the United States made it unpopular. China, pushed by its government, has been expanding the industry ever since the 1980s. It has spent the last 30 year mastering solvent extraction. Cheap labour and lax environmental regulations give it an advantage in terms of cost. China has banned its technologies of separating rare Earths and producing magnets. There are new separation technologies being developed, but they are not widely used yet. What export restrictions has China imposed? China added seven rare earth metals to its export control list on April 4. This was two days after Donald Trump imposed the highest tariffs in American history. Sources in the industry say that exporters must apply for a license, which can take up to two months. Shipments have been stopped at many Chinese ports while applications are processed. As part of a temporary trade deal, U.S. Trade Representative Jamieson Greer stated that on May 13, China agreed not to impose any non-tariff measures after April 2. This includes the rare earth restrictions. Greer said that China "slow-rolled" the removal of these items, while Trump claimed that China had violated their deal. WHAT HAS CHINA SAYN ABOUT CURBS? China claims that its export restrictions are "nondiscriminatory", and do not target any particular country. On Friday, the foreign ministry said to media that China is ready to discuss this issue with other nations. What impact have the curbs already had? The global automakers warned that rare earths were used in many key components such as power steering and automatic transmissions. This could lead to production delays. (Reporting and editing by Clarence Fernandez; Colleen howe)
-
Copper prices are on the rise; trade developments to be considered
Copper prices edged higher on Wednesday, helped by stronger-than-expected U.S. jobs data, even as investors stayed cautious amid ongoing trade negotiations. The London Metal Exchange reported that the price of three-month copper was up by 0.1% at $9,643.5 per ton as of 0945 GMT. The U.S. Dollar fell, making metals cheaper for holders of currencies other than the dollar. Alastair M. Munro, broker at Marex, said: "Yesterday’s JOLTS was better than expected and leaves the markets surprised by U.S. economic resilience." The Labor Department's Bureau of Labor Statistics reported that job openings, which are a measure of the labor demand, had risen 191,000 by the end of April to 7.391 millions, according to its Job Openings and Labor Turnover Survey (JOLTS) report. Trump also signed an executive order that will put into effect his announcement from last week, which was a surprise. He had increased the tariffs from 25% to 50% on imports of steel and aluminum. The White House also wants trading partners to submit proposals on Wednesday that could help them avoid Trump’s "Liberation Day", hefty tariffs, from going into effect in just five weeks. LME copper has also benefited by the continued flow of goods from LME registered warehouses. LME data shows that inventory has fallen to 141.350 tons after 2,500 deliveries, which is a new low for the LME. The recent metal tariffs have brought the U.S. investigation of potential new copper import duty to light, which is aimed at increasing domestic production. The COMEX copper price has now risen above LME prices, which has led traders to divert copper supplies from the LME to the U.S. in order to profit from the price difference. LME tin rose 3% to $32,300. Aluminium climbed 0.8% to 2,483.5 per ton. Zinc was up by 0.4% at $2,717.5. Nickel was up 0.2% at $15,465. Lead fell 0.1% to 1,984.5. Ashitha Shivaprasad reports from Bengaluru.
Citgo reports $25 million loss in Q2 over unfavorable market conditions
U.S. oil refiner Citgo Petroleum on Thursday reported a net loss of $25. million in the second quarter following unfavorable market. conditions and refinery upkeep and upgrades, compared to. income of $410 million in the quarter instantly prior.
A U.S. federal court is auctioning shares of among the. moms and dads of the Venezuela-owned company, which is the seventh-. biggest U.S. refiner, in order to pay up to $21.3 billion in. claims from financial obligation defaults and expropriations in the South. American nation.
Citgo's crude processing fell to 678,000 bpd with an average. crude utilization of 84% due to turn-around and maintenance. activities, compared to crude runs of 769,000 bpd and. usage of 95% in the previous quarter.
Citgo had earnings of $2 billion in 2015.
Our 2nd quarter incomes show a lower margin. environment and the effect of extensive turnaround and. maintenance activities at our refineries, Citgo Chief Executive. Carlos Jorda stated in a release.
Citgo's 463,000-bpd refinery in Lake Charles, Louisiana,. underwent works to enhance utilization of certain systems, while. the company's other two refineries, the 177,000-bpd center in. Lemont, Illinois, and the 167,000-bpd one in Corpus Christi,. Texas, optimized heavy crude processing.
The business has actually committed about $1 billion so far this year. to capital expenditures, turn-arounds and catalysts, it stated.
Quarter-end liquidity fell to $3.8 billion from $4.5 billion. at the end of the very first quarter, a crucial metric business. participating in the court-organized auction of shares have actually been. keeping an eye on to determine their bids.
Marketing sales volume increased to 424,000 bpd in the second. quarter, from 394,000 bpd the previous quarter, the biggest. quarterly increase in top quality sites in the last twenty years.
The company reported an unbranded gasoline sales record in. June and new jet fuel sales contracts signed.
U.S. refiner CVR Energy, backed by activist financier. Carl Icahn, and a group of creditors holding claims versus. Venezuela are completing in the last mile of the auction for. Citgo's parent, sources informed Reuters previously this month.
By Aug. 22, a winner should be selected by a court officer. overseeing the auction in Delaware, while Oct. 30 was set for. the sales procedure' last hearing.
(source: Reuters)