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Copper prices set to reach record highs, but focus is on limited supplies outside US
The dollar was weaker on Monday and the prospects of shortages outside the U.S. boosted the price of copper. The traders said that the U.S. holiday meant volumes would be muted and that they were focusing on copper and zinc. The benchmark copper price on the London Metal Exchange was 0.2% higher, at $14.443 per metric ton. It reached $14,467 earlier in trade, its highest level since January's all-time high of $14,527.50. Since President Donald Trump proposed import tariffs last February, traders and producers have shipped large amounts of copper to the U.S. Comex copper stock levels are at a record high of 766,795 metric tons or 695.624 short tons. Albert Mackenzie is an analyst at Benchmark Mineral Intelligence. He said: "It's difficult to predict what will happen with tariffs, but the longer the uncertainty persists the higher the prices will be as materials?flow into the U.S." Some copper has returned to the LME due to higher?premiums? or?backwardations? for contracts that are close by compared with longer-dated futures. The LME is expected to lose more than 121,000 tonnes of copper over the next couple weeks due to cancelled warrants and metal that has been earmarked for deliveries at 51%. . In mid-August, the premium for cash on a three-month forward was above $430 per ton. This is the highest level since 2021. It closed at around $74 last Friday. The Shanghai Futures Exchange monitors warehouses in China. They have 63,000 tons of stocks, which is 85% less than the middle of March. This is the lowest level since January 2024. Copper prices are also falling on SHFE, indicating that the top consumer China is worried about supply. Zinc prices were up?0.7%, to $3,973 per ton. This was mainly due tighter supplies. At the beginning of September, it had reached $3,990 per ton, its highest level since May 2022. Base metals prices were supported by a?softer U.S. dollar, which made dollar-priced'metals cheaper for holders other currencies. Lead rose 0.6% at $1,913.5. Tin gained 0.7% at $55,250. Nickel fell 0.6% at $16,750.
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Radiant World sued in Singapore by a fund linked to Jefferies
The website of Singapore's Supreme Court showed that LAM Trade Finance Group II - in which U.S. bank Jefferies holds a minor stake - applied for a freezing order against Radiant World and its founder on Monday. The filing is just one of many challenges that the iron ore traders are facing. Some banks have frozen their accounts, and other trading houses have severed their ties with them over concerns that invoices sent to its banks might not be valid. Radiant World denies any wrongdoing. Last week it was reported that the Jefferies fund had obtained a freezing order from a UK court over the trader. On Wednesday, a hearing will be held in the Singapore case at the?Supreme Court of the city-state. There were no further details available on the filing. The filing revealed that the case in Singapore also names Sapphire Minmetals, the iron ore trading firm, and its Chairman Rakesh Setti, along with entities of Radiant World, Pinkesh Nahar and his company. Radiant World and Sapphire Minmetals did not respond immediately to our requests for comment. Gary Nagle is the CEO of Glencore. He said that last month, the company considered Radiant World, Sapphire Minmetals, and other companies to be part of the same group. Sethi, however, has denied this. Bloomberg News reported that Incomlend, a trade-finance company, is also suing Radiant World in Singapore and Nahar? in Japan, while Mizuho Bank took legal steps to remove the management of Radiant?World Singapore. Radiant World is being investigated by the 'Singapore Police force,' which said last month that it received reports about the company and was looking into them.
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Volkswagen finds defence future for German plant amid major overhaul
Volkswagen announced on Monday a preliminary agreement that will see one of its German plants switch over to defense production. This is a major step in the automaker’s effort to restructure factories struggling to compete against lower-cost Chinese competitors. The deal could be a blueprint for other Volkswagen plants facing an uncertain future, as Europe's biggest carmaker embarks upon its largest ever restructuring in order to revive margins while combating chronic overcapacity on its stagnant European markets. Volkswagen, under the initial terms of this deal, will sell its Osnabrueck factory to Israel's Aurelius Capital, and Volkswagen's own state of Lower Saxony. This move, according to labour officials, could save about 1,400 jobs at the site. The agreement was reached just days after 'Volkswagen' announced a major overhaul to reduce jobs and simplify the company structure. It also highlighted how increased defence spending in Europe can help absorb excess production capacity in the?automotive sector. Volkswagen warned that four German factories could be closed or repurposed if 'alternative uses' cannot be found due to a 'weak demand, rising costs and increasing competition from China. Letter of Intent Aurelius Capital, Lower Saxony and Volkswagen, the second largest shareholder, signed a letter of intent to buy the factory where production will end in 2027. Volkswagen confirmed that an initial "anchor" project for Osnabrueck will be a collaboration with Israel's Rafael Advanced Defense Systems. Rafael is one of Israel's key partners and the company behind Iron Dome Arrow and David's Sling air and missile defense systems. Volkswagen said that the plans include the manufacture of components and systems for air defense systems in Germany and Europe. The cooperation could lead to further deals. Defense production is increasingly being viewed as a solution for underused auto plants. Companies such as Rheinmetall and Continental are pursuing similar initiatives. Aurelius, along with Lower Saxony's premier Olaf Lies, would purchase a majority stake at the site. This would be similar to the state purchasing a stake at the Meyer Werft Shipyard in 2024. Lower Saxony paid EUR200 million (US$232 million) at the time for a stake of 40% in the?shipyard. Tomer Jacob, Aurelius Capital, said: "Osnabrueck has a lot to offer, including years of experience with high-quality products, precision manufacturing processes, and well-coordinated, highly-qualified teams, as well as a long-standing tradition." Investor lists drone technology, satellite systems and cybersecurity as its main focus areas.
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Gates-backed TerraPower aims to start British nuclear power plants by 2034
TerraPower, a?U.S. The?Bill Gates-backed nuclear developer TerraPower expects that its Natrium reactors will begin to generate electricity in Britain by the year 2034. The UK has supported the development of small-modular reactors to increase energy security and achieve climate targets. An Advanced Nuclear Framework was launched this year to support privately-funded projects. Chris Levesque said that progress made on TerraPower's first Natrium nuclear reactor, which is due to be finished in 2031, shows that "2034 nuclear power in the UK from Natrium is very feasible". The technology is being evaluated under Britain's Generic Design Assessment process (GDA). Each Natrium sodium-cooled reactor produces 345 MW of baseload electricity and has storage that can boost output up to 500 MW over a period of five hours. The reactors are powered by high-assay low-enriched Uranium (HALEU). Both the U.S. and Britain are building plants to produce this fuel which was previously only available commercially from Russia. Levesque stated that electricity generated by "Natrium plants" would be competitive with other technologies which are low carbon, such as combined solar and battery projects. It will cost less than PS100 (135.32) per Megawatt Hour. TerraPower is yet to select a location for its first UK project. However, its British subsidiary will likely be located in Liverpool, north-west England, near the nuclear regulator of that country. The company in the US has an agreement with the tech giant Meta for the development of up to eight nuclear reactors. Levesque stated that TerraPower might seek similar partnerships with the British government.
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Stocks hit by rising inflation, geopolitical uncertainty and oil prices
Investors were on edge Monday as rising oil prices, the conflict in the Middle East, and political unrest in Europe kept them on edge. Stocks fell on Monday ahead of important U.S. inflation data this week. Tehran announced that it would 'announce a limited zone outside the Strait of Hormuz within the next few days,? after U.S. forces struck three Iranian tankers. Iran's Islamic Revolutionary Guard Corps fired ballistic missiles on two U.S. Navy vessels. Brent crude futures have risen 0.6%, to $97 per barrel, the highest in seven weeks. Oil prices rose almost 8% in the past week, and are now 35% higher than they were at the end of February before war began. Diesel prices, which power transport, shipping and farming, as well as manufacturing, reached record highs in the last week. They are now around 90% higher than before the war. Investors should pay close attention to this week's U.S. Consumer Price Index because central banks will likely raise interest rates as food and fuel prices are on the rise. The European Central Bank will likely raise rates to 2.75 percent on Thursday. Futures indicate a 75% probability of a second hike to 3.0% in December. Markets are also pricing in 75% of the possibility that Bank of Japan will increase rates by a quarter point during its September 18 meeting, with 60% of a second move expected before December. Bruce Kasman is the global head of economics at JPMorgan. He said that the patience of central banks during the energy crisis has helped asset prices and credit cycles. "However central banks are now moving." RATE INCREASES? The Federal Reserve's last-week's payroll report, which exceeded expectations by a whopping?162,000, left the markets pricing in a 58% chance of an increase when they meet on September 16 and a 70% chance of one in October. The euro was a little stronger today around $1.1625, as an ECB rate hike is all but a done deal. Analysts said that the euro has been drifting lower since August's three-month highs. With political tensions increasing on many fronts, it may be hard to gain much upward momentum. The Alternative for Germany (AfD), a far right party in Germany, won the state elections in Saxony Anhalt on Sunday. This is the first time in history that a far right party has been able to win power at the state level. The AfD, while still far from a majority and gaining power at the national level, has stated that one of their policies is to abandon the euro. Kathleen Brooks, XTB's research director, said: "This development is harmful for the long-term stability of a single currency." Recent polls in France show that far-right leader 'Marine Le Pen', who has previously supported abandoning the Euro, is likely to win the first round at next year’s presidential elections. The next few years may see a wave of political change in Europe, and a shift towards the right for the two biggest economies. It may not be an issue for FX traders now, but tomorrow it will be. This could explain why the euro is among the weakest currencies in comparison to its peers by 2026, Brooks stated. The euro fell 1.1% this year, making it one of the worst performing major currencies against the dollar. This is compared to a modest 0.7% increase in the Japanese yen which was partly boosted through official intervention and a 0.4% gain in the pound. Dollar?retreated? against the yen as buying sparked a surge of yen to a 7-month high. Last week, the yen posted its best weekly performance in over a month, due to the rising expectations that the BOJ will raise rates and the threat of additional official buying. While European stocks were down about 0.1%, Wall Street was a little quieter due to a U.S. Holiday. S&P futures were down by 0.1% while Nasdaq Futures rose 0.1%.
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French wine production at 30-year lows following heatwaves
The French wine production will likely be the worst in 30 years. Champagne's output is expected to drop by half from 2025 due to shrinking vineyards, severe heat and drought, and vines and grapes being damaged. The world's second largest producer, after Italy, projected a production of 33.9 million hectolitres in its first estimate. This is 6% less than last year's average and 17% lower than the 2021-2025 period. The hectolitre equals 100 litres, or 133 standard bottles of wine. After a poor wine harvest in 2024, this would be the third consecutive year that France has had a low-production wine crop. The ministry stated that although spring conditions initially supported a more favorable harvest outlook, heatwaves and summer droughts have damaged vines and decreased yields. Champagne's output is predicted to be down 49% on 2025 and 47% below its five-year average. Bourgogne-Beaujolais is expected to decline by a third, Val de Loire by 12%, and Charentes by 6 %. Languedoc-Roussillon, France's largest producing basin, should rise 5% from last year's weak harvest thanks to better yields, though output remains below average. Bordeaux's production is expected to rise 10% by 2025, after the late-August rains helped alleviate drought stress. However, it remains below its 5-year average. The ministry reported that most wine producers in France,?as well as other European countries, started picking grapes early this year due to?extreme temperatures. France has traditionally been the largest exporter in terms of value. This year, the production area decreased by 2.5%. In the past, winemakers have been forced to remove a part of their vineyards due to an oversupply and a decline in wine consumption. The French agriculture sector has been severely affected by the record heatwaves this summer, which have destroyed crops, pastures, and water supplies. France announced on Friday an emergency assistance package for farmers worth more than EUR1 Billion ($1.16 Billion).
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Climate change is causing Europe's crops to mature earlier, according to data
Data shows that maize, rapeseed, and winter wheat were harvested much earlier in Europe in 2026 compared to the turn of century. Winter wheat reached maturity 20 days earlier in certain parts of the European Union, according to data from the European Commission. Similar intervals were observed for rapeseed or corn. "In the past 20 years, we have always been fully involved in the maize crop around September 14, 15, or 16. Hermann Greif is the district president of the Upper Franconia Bavarian Farmers' Union. Typically, crops are harvested between 10 and 20 days after maturity. However, this can vary greatly by crop, year, country, etc. The same is true for cereals. In the past we would usually harvest wheat in the second week of august, between August 10 to 15. Greif stated that we now harvest wheat as early as 'July in the last days of month. Europe, the fastest-warming continent in the world, experienced several heatwaves from as early as May 2026. This accelerated crop maturation. Sebastien Poncelet is a senior analyst with Argus. He said that the development of plants is largely determined the amount of heat units needed to progress from one physiological phase to another and eventually reach maturity. He added that as temperatures rise, even by a few degrees at a time, plants accumulate heat units faster, which speeds up their growth cycle, resulting in an earlier harvest and maturity date. AFFECTED BY QUALITY AND Quantity The quantity of crops harvested was negatively affected by drought and heat. FranceAgriMer, the French farm office, estimated that as of Friday only 27% of the grain maize crop was in excellent or good condition. This is the lowest score since 2011. Greif added that "some crops whose critical stages of growth coincide with summer and spring droughts can face significant challenges." These crops could face significant yield reductions when drought strikes while they are still requiring water. France's Agriculture Ministry forecast a 35% decrease in grain maize output compared to the previous year. Analysts expect production to plummet by about half, to its lowest level ever.
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China's central banks continues to increase gold purchases in August
China's central banks increased its gold -purchases in August for the sixth consecutive month. This is the highest amount of bullion added to their?reserves? since October 2023. Gold holdings of the People's Bank of China rose from 76.08 to 76.73 millions fine troy-ounces by the end of August. The 650,000 ounce addition was slightly higher than the 640,000 added in July, and it is the largest monthly increase since October 20, 2023 when holdings increased by 740,000 pounds. Since March, when central?bank added 160,00 ounces of gold, the pace of 'purchases' has increased. In June, it added 480,000 ounces. China continues to accumulate gold despite the sharp rise in bullion price this year. China's gold reserves increased to $350.08 Billion at the end August, from $306.35 Billion a month before, according to the data. This was due both to new purchases and the sharp increase in gold prices. Gold gained 9.7% in August. This was its biggest monthly gain since January. Supported by a weaker Dollar, lower Treasury yields, and a safe-haven market. Prices were under pressure at the end of the month, after Federal Reserve Chair Kevin Warsh's hawkish remarks revived expectations of further U.S. rate increases. Spot gold was down around ?0.4% on Monday after stronger-than-expected ?U.S. jobs data boosted rate-hike expectations.
Russia's EV sales are expected to double this summer, as drivers face fuel shortages
Data from the analytical agency Autostat revealed that new electric vehicle sales in Russia have more than doubled during the summer months as shortages caused a result of Ukrainian attacks on refineries, boosted demand for alternatives to cars powered by combustion engines.
The data provided showed that sales of new plug-in or electric hybrid passenger cars were mainly manufactured in China. They reached 26,543 units from June to August of this year. This is up from 12,187 units during the same period in 2025.
Kyiv's attacks on major Russian refineries intensified in early June. They forced some to stop operations and contributed to fuel shortages. By the end of August, Russia's gasoline production was only 70% of its domestic consumption.
Russian motorists were forced to queue for hours at gas stations and search for fuel. Some consumers decided to switch to electric vehicles or convert their vehicles to natural gases.
The EV market in Russia is still'relatively small,' mainly because of the limited charging infrastructure, long distances and harsh climate. Autostat reported that EVs and hybrids made up just 4.3% last year of Russia's overall car sales.
Autostat said that EV sales had been 'constrained by a lack of supply' as manufacturers and importers were surprised by the gasoline shortages.
(source: Reuters)