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ASIA COPPER WORRID-China's crackdown on overcapacity reaches copper but market impact is unlikely
Plans to build a series of new smelters have been shelved The industry still expects to gain new capacity through projects in construction The move is seen as a sign of more to come Amy Lv. Lewis Jackson, and Dylan Duan Industry insiders say that the decision by China to suspend a number of planned copper smelters will not have a significant impact on historically tight copper markets, unless more measures are taken to reduce output. Due to the disruption of mines, copper concentrate supplies are becoming scarcer and more expensive. The growth in smelting capacity in China has increased competition globally for this feedstock. The fees paid for processing copper (also known as treatment and refinement charges) have dropped to negative historic levels. China announced on Wednesday that it had suspended the construction of 2 million metric tonnes of new smelting capacities. This was a gesture to the difficulties faced by Chinese smelters during annual negotiations over copper concentrate supplies. Eight analysts and three traders who spoke to us on the sidelines the World Copper Conference Asia, held in Shanghai, this week, stated that there would be no immediate impact on copper prices, as the projects currently under construction will be completed. Helen Amos is a commodities analyst with BMO Capital Markets. She said: "I don't believe the decision will change anything over the next two years because we are still seeing new smelting capacities coming online." Unidentified Chinese analyst said that the announcement which didn't name any projects only raised questions. This included how the 2 million ton figure was calculated. The Chinese government is redoubling its efforts to reverse the rampant industrial overcapacity. Policies to reduce production have been implemented for coal, lithium and polysilicon (the raw material used in solar panels). Uncertainty remains, however, as to how far Beijing is willing to go in order to curb a sector that helps China offset its reliance on refined copper imports, which it would like to reduce. The industry figures warned that if Wednesday's announcement signals Beijing is planning or considering more drastic measures, such as forced capacity reductions or a cap on production, then it could have a greater impact. Amos stated, "For me it's symbolic of the industry being affected by policy changes like we have seen in steel and aluminum in the past." (Amy Lv in Shanghai, Lewis Jackson and Dylan Duan; editing by Joe Bavier).
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Israeli forces kill two Palestinians who appear to be surrendering in West Bank
Two Palestinian men were shot by Israeli security forces on Thursday, who appeared to surrender and be unarmed in a raid conducted in Israel-occupied West Bank. The men can be seen in the video exiting the building in Jenin in the northern West Bank, removing their shirts, and lying down on the ground as if they were surrendering. The men were then directed back into the building by the forces before they opened fire. After hearing shots, a journalist near the scene saw Israeli forces standing next to what appeared to a dead body. In a press release, the Palestinian Health Ministry said that two men had been killed by the shooting. They were identified as Montasir Asasa and Yusuf Abdullah. Israel Police and the Israeli Military issued a joint press release announcing they had launched an investigation following the firing of forces on suspects exiting a building. The statement didn't give any reasons for the shooting, nor did it say that two men were lying on the floor before being directed inside the building to be shot. Jenin Governor Kamal Abu al-Rub accused Israeli forces, in a phone conversation, of carrying out "cold-blooded" executions of two young men, who, he claimed, were unarmed and surrendered. He said that those who fired should be held accountable, but he expressed doubts about the Israeli authorities' ability to conduct an honest investigation. In a joint statement, the Israeli police and military said that Israeli forces were conducting an operation in Jenin to apprehend people wanted for "terrorist activities", including throwing explosives at security forces and shooting them. The statement stated that the two men who had been shot were wanted people who were associated with a "terrorist network in the Jenin area". The statement did not say what the men were accused or provide any proof of their alleged connection with a terrorist network. According to military and police sources, security forces surrounded the building in which the men were found before launching a "surrender process" lasting several hours. The statement stated that "fire was directed at the suspects after their exit," adding that "the shooting is under review by the commanding officers on the ground and will be sent to the relevant professional body." Itamar Bin-Gvir, Israel's National Security Minister of the far-right party, issued a later statement in which he gave his "full support" to both the military and police unit involved in the shooting. He wrote: "The fighters acted as they were expected to - terrorists must die!" The Jenin raid is the latest in a campaign that Israel has been waging for months across cities of northern West Bank. Israeli forces launched an operation in the nearby city Tubas on Wednesday. Hamas, the Palestinian militant group that agreed to a Gaza ceasefire last month, has condemned the killings of men in Jenin and called on the international community intervene in order to stop Israel's "escalating executions in the field." The group has not claimed the two men. Reporting by Mohamad Tookman, Ali Sawafta, Steven Scheer, Alexander Cornwell, and Steven Scheer, in Jerusalem. Editing by Rosalba o'Brien.
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Gold falls from near 2-week-high as traders consider US rate cuts
Gold prices fell on Thursday after hitting a two-week high in the previous session. Investors also assessed the probability of a U.S. rate cut in December. As of 1601 GMT, spot gold was down by 0.2%, at $4,157.29 an ounce. U.S. Gold Futures for December Delivery fell 0.2% to $4154.30 an ounce. Carsten Menke, analyst at Julius Baer, said: "We expect that the consolidation process that began with the October setback will continue because the dust from that setback is still not completely settled." Bullion is down 5% from its record high of $4381.21 reached on October 20. However, it has traded broadly above the $4,000 per ounce key level. Menke said, "The factors that we see favoring the gold market remain largely unchanged. These include slowing U.S. economic growth, which has led to lower interest rates, a weaker U.S. Dollar, and sustained demand for safe havens, as well as continued central bank purchases." Federal Reserve signals contradictory on timing and magnitude of U.S. rate cuts has accelerated hedge flows into swaptions, and derivatives linked to overnight rates. Kevin Hassett has aligned himself with Donald Trump, the frontrunner for Jerome Powell to be the next Fed chair, in urging a rate reduction. The comments made this week by San Francisco Federal Reserve Bank president Mary Daly, and Fed Governor Christopher Waller boosted expectations for a reduction. CME FedWatch shows that traders now price in an 85% probability of a rate reduction next month, compared to just 30% one week ago. Gold that does not yield tends to do well in an environment of low interest rates. The U.S. market will be closed for Thanksgiving on Thursday and operate with a reduced schedule on Friday. Silver spot fell by 0.3%, to $53.17 an ounce. Platinum rose 1%, to $1.604.72, while palladium increased 0.5%, to $1.430.40. (Reporting from Noel John, Bengaluru. Editing by Alexander Smith and Ed Osmond. Nia Williams.
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Gold falls from near 2-week-high as traders consider US rate cuts
Gold prices fell on Thursday after hitting a two-week high in the previous session. Investors also assessed the probability of a U.S. rate cut in December. As of 1423 GMT, spot gold was down by 0.1% to $4,159.31 an ounce. U.S. Gold Futures for December Delivery fell 0.3% to $4156.30 an ounce. Carsten Menke, analyst at Julius Baer, said: "We expect that the consolidation process that began with the October setback will continue because the dust from that setback is still not completely settled." Bullion is down 5% from its record high of $4381.21 reached on October 20. However, it has traded well above the important 4,000 per ounce mark. Menke said, "The factors that we see favoring the gold market remain largely unchanged. These include slowing U.S. economic growth, which has led to lower interest rates, a weaker U.S. Dollar, and sustained demand for safe havens, as well as continued central bank purchases." Federal Reserve signals contradictory on timing and magnitude of U.S. rate cuts has accelerated hedge flows into swaptions, and derivatives linked to overnight rates. Kevin Hassett has aligned himself with Donald Trump, the frontrunner for Jerome Powell to be the next Fed chair, in urging a rate reduction. The comments made this week by San Francisco Federal Reserve Bank president Mary Daly, and Fed Governor Christopher Waller have also raised expectations for a rate cut. CME FedWatch shows that traders now price in a 85% chance for a rate reduction next month, compared to just 30% one week ago. Gold that does not yield tends to do well in an environment of low interest rates. The U.S. market will be closed for Thanksgiving on Thursday and operate with a reduced schedule on Friday. Silver spot rose by 0.2%, to $53.24 an ounce. Platinum gained 0.7%, to $1.599.10 and palladium rose by 0.2%, to $1.425.79. (Reporting and editing by Alexander Smith, Ed Osmond and Noel John from Bengaluru)
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OPEC+ is expected to maintain oil production policy for Q1 according to sources
Two delegates and a source with knowledge of OPEC+ meetings said that OPEC+ will likely leave oil production levels unchanged during its Sunday meeting and agree on a method to measure members' maximum capacity to produce. Two delegates stated that the eight OPEC+ nations who have gradually increased output in 2025 will keep their policy of halting hikes in the 1st quarter of 2026. OPEC+, a grouping of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, led by Russia and pumping about half the oil in the world, has been discussing production capacity figures for years, against which the members' targets are set. Sources who spoke under condition of anonymity said that the full OPEC+ will likely agree to the capacity mechanism at a separate gathering on Sunday. OPEC announced in May that this capacity assessment will be used as a reference for the 2027 baseline output. OPEC, Saudi Arabia and Russian authorities didn't immediately respond to a comment request. The two delegates stated that four online meetings are planned for Sunday, starting at 1300 GMT with OPEC Ministers alone. The Joint Ministerial Monitoring Committee will then meet, followed by all OPEC+ Ministers. Finally, the eight members of the Joint Ministerial Monitoring Committee will convene. OPEC+ met in September to discuss the issue of capacity on a technical basis. Baseline discussions in the past have been fraught with tension as they determine how much each member will cut production. Angola left the group in 2024 due to a disagreement over its production target. OPEC+ cut supplies for many years, until the eight members started to increase production in April to regain market share. The cutbacks peaked in march, when they reached 5.85 million barrels a day. This is almost 6% of the world's total production. Saudi Arabia, Russia and the UAE have all raised their output targets from April to December by around 2.9 millions bpd. They also agreed on a first-quarter break at their last meeting. The sources also said that OPEC+ ministers will not be making any changes to the group's production targets for 2026. These include a cut of 2 million bpd, which is shared by all members until the end next year. (Reporting and editing by Alexander Smith)
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EU watchdog accuses Commission lack of transparency with 'urgent proposals'
The EU Ombudswoman, who represents the EU citizens in Strasbourg, accused the European Commission of being rash to introduce measures on sustainable reporting, agriculture and illegal migration without adhering to its own rules for transparent and evidence-based legislation. The EU Institutions' watchdog said that the Commission failed to justify its urgency, citing the findings of an investigation prompted by complaints from climate and human right activists. Teresa Anjinho, Ombudswoman, said that the deficiencies constituted maladministration. "There are certain principles of good legislation that cannot be compromised, even if it is urgent." The European Commission stated that it would carefully examine the recommendations but also maintained that it had produced solid evidence about the problems and the required response and that it included input from consultations in its decision-making. Eight organisations complained in April that the Commission proposed weakening sustainability rules following private meetings with lobbyists from the industry, without consulting the public or assessing the impact of the suggested changes. They said that any agreement reached should be based on evidence and aligned with EU climate goals. Their statement stated that "if this cannot be ensured, the Commission should retract its proposal." (Reporting by Alessandro Parodi and Bart Meijer; editing by Philippa Fletcher, Alexandra Hudson)
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China launches new platinum futures contracts, which will increase the price of platinum
The spot platinum price rose on Thursday, as the opening of futures trading at the Guangzhou Stock Exchange in China helped to increase the overall liquidity. These contracts represent the first domestic price-hedging mechanisms for platinum and palladium, which are used in automakers and other industries including jewellery and investment goods. On their first trading day, Guangzhou's June platinum futures jumped 6% while palladium rose 1.5%. After hitting a one-month high of $1,641, spot platinum prices in London rose 1.0% to $1,604 per troy inch by 1226 GMT. Palladium spot prices were unchanged at $1,423. China is the largest consumer of metals in the platinum group, and relies heavily on imports. Analysts say that China, which accounts for almost 30% of global palladium consumption and 20% of platinum, has no domestic price guidance. It is left to follow international market movements. Weibin Deng is the Asia Pacific head at World Platinum Investment Council. He said that this launch will transform China's market for platinum group metals. He added that "for the first time domestic industrial users and fabricators now have a direct and regulated tool for hedge against global palladium and platinum price volatility." The global prices of two platinum group metals soared this year due to tighter supply and renewed interest from investors following the record-breaking performance for gold and Silver. The price of palladium and platinum has risen by 76% and 56% respectively in 2025. Reporting by Ella Cao and Polina Devtt, London; editing by Louis Heavens
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EU watchdog accuses Commission lack of transparency with 'urgent proposals'
The EU Ombudswoman, who represents the EU citizens in Strasbourg, accused the European Commission of being rash to introduce measures on sustainable reporting, agriculture and illegal migration without adhering to its own rules for transparent and evidence-based legislation. The EU Institutions' watchdog said that the Commission failed to justify its urgency, citing the findings of an investigation prompted by complaints from climate and human right activists. Teresa Anjinho, Ombudswoman, said that the deficiencies amounted "to maladministration". "Certain rules of good legislation cannot be compromised, even if it is urgent." The European Commission didn't immediately respond to an inquiry for comment. Eight organisations complained in April that the Commission proposed weakening sustainability rules following private meetings with lobbyists from the industry, without consulting the public or assessing the impact of the suggested changes. They said that any agreement reached should be based on evidence and aligned with EU climate goals. Their statement stated that "if this cannot be ensured, the Commission should retract its proposal." Reporting by Alessandro Parodi, Bart Meijer and Philippa Fletcher; editing by PhilippaFletcher.
Orlen scraps Venezuela oil offers after heavy losses - source
Polish oil refiner Orlen has actually cancelled contracts to buy Venezuelan oil and improved items after losing more than $400 million on prepayments for shipments it never received, a business manager stated on Tuesday.
Oil and tanker charter contracts put in place by the Swiss based unit Orlen Trading Switzerland (OTS) were ditched as tankers weren't filling and a U.S. sanctions window will close, the person said.
The U.S. Treasury Department in October provided a licence lifting sanctions on Venezuela's oil production and exports through mid-April, triggering trading homes to purchase freights from unknown intermediaries registered as clients of state company PDVSA.
The loading of six tankers, consisting of 3 Huge Crude Providers (VLCC), at first arranged for December and January, was not completed in March.
With everyday demurrage costs of $600,000 and the April 18 sanctions window closure date nearing, Orlen chose to cancel the agreements, the manager stated.
In late February, when new management of OTC was designated following a change at the helm of its parent, the demurrage expense for the 6 tankers amounted to $30 million, the individual stated.
OTC is now being audited. District attorneys are penetrating former management activities connected to the oversight of the trading system.
In 2 other probes, prosecutors are taking a look at whether the company under the helm of former CEO Daniel Obajtek synthetically lowered costs ahead of a 2023 election and offered assets at below fair worth.
Orlen made a note of 1.6 billion zloty ($ 394 million) from the worth of OTS this month stating it had prepaid purchases of oil and refining products but did not get the items by the agreed deadline. It assessed the reimbursement of the prepayments as not likely.
The refiner published a 2023
revenue
of 27.55 billion zlotys.
The biggest beneficiary, a Dubai based intermediary run by a. Chinese resident, received over $200 million in prepayments, the. supervisor said, without providing additional detail.
Contrary to standards, the advance payments were paid. without collateral to entities with which Orlen had never ever. cooperated before, the company stated on April 11.
OTS was set up in Zug, Switzerland, in 2022 ahead of the. European Union ban on imports of Russian oil products which came. into force in early 2023.
(source: Reuters)