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South Africa grants Eskom coal plants limited emissions exemptions
The environment minister announced on Monday that South African coal-fired electricity stations had received some exemptions from the air quality laws, and regulations aimed at reducing harmful emissions. However, he stressed that these measures were not a "blanket respite". The government struggles to find a balance between the calls to reduce carbon emissions and to stop them and the need to supply electricity to Africa's largest economy which is stagnant due to power outages. Eskom, the power utility that generates South Africa's majority of electricity from its fleet of coal-fired plants, applied to exempt 8 of these plants from air quality regulations' minimum emission standards. The Ministry of Forestry, Fisheries and Environment, which granted the exemptions, said that Eskom would be required to increase monitoring, hire environmental health specialists and offer mobile health clinics, as well as other measures. Dion George, the Environment Minister, said at a press briefing that "these exemptions aren't a blanket reprieve. They are tailored to every facility with strict conditions." Six plants, Lethabo Kendal Tutuka Majuba Matimba Medupi, will receive exemptions for a maximum of five years. These will expire on April 1, 2020. The Duvha and Matla Power Stations will remain exempt until the planned decommissioning date in 2034. Eskom has been working hard to clear the maintenance backlog and end a decade-long period of economic damage caused by power outages. The company has said in the past that retrofitting their plants with new technologies to reduce harmful emission is too expensive. A 10-year study published in early this month found that South Africans living in the coal belt of Mpumalanga Province, which is dominated by coal-fired power plants, have a higher mortality rate than those who live elsewhere. In a report by the South African Medical Research Council (SARMRC) and Britain's Department for International Development, it was found that communities located near coal-fired plants had higher rates of cardiovascular and lung diseases and birth defects. The report recommended that coal-fired power plants be phased out. George stated, "We want enough power to grow our economy and clean, breathable, air." It is unacceptable that our children suffer from lungs problems and that babies are born with cleft lips. (Reporting and editing by Joe Bavier; Wendell Roelf)
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Gold records record high of $3,100/oz and is on track for the best quarter since 1986
Gold prices soared to record levels on Monday, surpassing $3,100 an ounce, amid fears of inflation caused by U.S. Tariffs. The safe-haven investment is set to have its best quarter since 1986. Bullion has continued to rise, with the metal up 18% this year. Gold spot rose 1.1%, to $3,117.43 an ounce, at 0935 GMT. It had earlier reached a record of $3,128.06. U.S. Gold Futures rose 1.1% to $3149.60. Bullion prices rose by more than 27% in the past year, as several factors, such as a favorable monetary policy and robust central bank purchases, combined to encourage investors to buy this safe-haven investment. Technical charts show that gold's Relative Strength Index is above 77. This indicates the market has become overbought. However, analysts say momentum has contradicted any logic about where prices should be. Gold's bull market is a reflection of the fear around tariffs. Gold is being supported by the fear that tariffs will be growth-constricting and could lead to lower economic outcomes, according to Nitesh Sha, commodities strategist for WisdomTree. Trump is expected announce reciprocal tariffs by April 2. Automobile tariffs will go into effect on April 3. The record run of non-yielding gold has been aided by a combination of factors including central bank purchases, rate cut bets and the demand for exchange traded funds. Shah stated that "gold prices could be trading at around $3,500 by this time next. This reflects the strong sentiment towards the metal, especially with the geopolitical risk still present." Trump stated on Sunday that he is "pissed" with Russian President Vladimir Putin. He said he would impose secondary duties of 25-50% to buyers of Russian Oil if he felt Moscow was blocking his efforts in ending the war in Ukraine. Gold demand was sluggish in India last week due to record-high prices and jewellers closing their accounts for the year. Most other Asian hubs saw the same trend. Silver spot rose by 0.2%, to $34.17 per ounce. Platinum was up by 1% at $993.15. Palladium rose by 0.5% to $978.75. All three metals are expected to see gains in the month of March.
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More US companies are saying that retailers are turning away their products as 'Buy Canadian" grows
The "Buy Canadian' movement has sent new waves of concern to the U.S. consumer companies who had hoped to sell their products in Canadian retail stores. Jessica Hung, CEO of California-based Parasol Co, said that the company has been working with a distributor since January to increase sales to new retailers, including convenience shops, in Canada. Hung said that the distributor, whom she declined to identify, had stopped working on the deal in early March due to the growing anti-American sentiment? Canada. Hung, referring the distributor, said that "they were instructed by a retail to pause any American-brand launch." They told us that they would reevaluate the situation when the market conditions permit. Hung said, "That is a disruption that we never expected." I never heard about this until now. "It's definitely a lot of headwinds." The dramatic reorganization of Canada's shelves demonstrates the impact of patriotic consumerism in Canada. In 2024, Canada imported almost $350 billion worth of goods from the United States, making the United States its largest trading partner. The annexation of Canada by U.S. president Donald Trump, the 25% tax on Canadian steel and aluminum and the threat to tax other products from Canada have led many Canadians to avoid buying U.S. made goods. Hung stated that Parasol, a company which sells mainly online and in Target stores in the U.S.A., is working to label its packages in French in order to appeal more directly to Canadian consumers. Hung said that she has already started making decisions on which products will be included in the Canada distribution agreement, now scrapped. Shopper Rebecca Asselin, a mom and health insurance professional from Saint-Jean-sur-Richelieu, Quebec, has been using social media to share her story about her search for Canadian products. She said she switched to Royale diapers made by Irving Personal Care in Moncton (New Brunswick), one of Canada's only manufacturers of baby training pants and diapers. I never thought about where diapers are made before, but it seems that Canadian diapers can be hard to find. This is a major change for us." Irving Personal Care says retailers from across Canada have reached out to discuss the possibility of increasing distribution. Jason McAllister is Irving Personal Care's Vice President of Business Operations. He said that weekly shipments had quadrupled. Companies say that the Buy Canadian campaign is hurting more than just one business. It also affects drinks and citrus fruits from the U.S. Brown Forman, the maker of Jack Daniel's, said that in early March that the removal from Canadian stores of American bourbons and whiskeys was worse than Canada's tariffs. Early March, a source familiar with Californian citrus exports said that Canadian retailers had cancelled their orders. GT's Living Foods in Los Angeles, California and its Synergy Kombucha products are known. They said that retailers in Canada including Walmart have placed fewer orders because of the uncertainty surrounding tariffs. The distributors of Walmart Canada, Loblaw's Metro, and Sobey's have told us that they will only buy one truck of product instead of two, as retailers are cautious and waiting to see what the outcome of this (tariff) situation will be," said Daniel Bukowski. He managed these accounts for GT's Living Foods while serving as senior vice president for sales. Walmart stated that it will "continue to work closely with its suppliers to find the most effective way forward in these uncertain times." Loblaw's & Sobey's have not responded to our requests for comments. Metro prioritizes Canadian local products when possible. Metro said it prioritizes local Canadian products whenever possible. Demeter Fragrances is a small, family-owned business in Pennsylvania that produces perfumes. It has announced it will not expand to Canada by 2025. Mark Crames is the chief executive officer of Demeter Fragrances. He said that Canadians have turned away from American products. "It seems to be a waste of time and effort, so we scrapped it." According to Vice President Tracy Hayes, Grime Eater Products Limited is a Canadian manufacturer that produces Response and Luster Sheen products. The company has been unsuccessfully trying to convince Canadian Tire to carry its products for many years. She said that the future is promising with the Buy Canadian movement spreading. She learned that Canadian Tire, which operates 504 stores across Canada, was planning to reduce its offering of Fast Orange, the hand cleaner brand produced by Permatex, her U.S. competitor. Permatex and Canadian Tire did not respond to requests for comment. (Reporting from Siddharth Cavale in New York, and Nivedita Bali in Toronto; Additional reporting by Jessica DiNapoli; Editing by Aurora Ellis.)
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The Russian rouble has weakened after Trump's Russia remarks
The Russian rouble fell against the U.S. Dollar on Monday, after U.S. president Donald Trump declared that he was "pissed" with Russian President Vladimir Putin. He also threatened to impose tariffs on buyers of Russian crude oil. The rouble had fallen 0.7% to 85.50 USD on the OTC market by 0920 GMT. The Russian currency has gained about 25% this year against the US dollar, mainly due to expectations that geopolitical tensions will ease. Trump said to NBC News that he had been very angry when Putin criticized the leadership of Ukrainian President Volodymyr Zelenskiy. His comments show his frustration over the lack of progress on a ceasefire. Denis Popov, a PSB bank representative, said: "The news background, at least, has stopped the formation of optimism in the market which limits the demand for rouble denominated assets." Exporting companies also stopped buying roubles to pay their corporate taxes, as they had done last week. Popov said that "after the exhaustion by fundamental factors which created a slight excess of foreign currency in the last week there is the risk that the value may move to a somewhat weaker level." The rouble fell 0.2% on the Moscow Stock Exchange against the Chinese Yuan, which is the most commonly traded foreign currency in Russia. (Reporting and editing by Gareth Jones.)
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Copper tariffs at two-week low, but China data support
Copper prices fell on Monday, their lowest in over two weeks. Worries about new U.S. Tariffs are due this week cushioned the losses by strong factory data coming from China's top metals consumer. The benchmark three-month copper price on the London Metal Exchange fell 0.7% at 9730.50 per metric tonne by 1000 GMT to its lowest level since March 13. The stock market and other financial markets were sent into a tailspin after U.S. president Donald Trump announced that he would introduce reciprocal tariffs to all countries this week. Data released on Monday revealed that China's manufacturing sector expanded at its fastest rate in an entire year in March. Ole Hansen is the head of commodity strategy for Saxo Bank, Copenhagen. He said that "the Chinese data keeps the market from aggressively reversing some of its recent strong gains. We're still holding relatively high levels." LME copper is up 11% this year, while the U.S. Comex has risen by 27%. Hansen said that traders have been buying up copper in anticipation of tariffs expected on the metal. However, these tariffs will be implemented within the next few weeks, so there is not much time left to complete the trades. U.S. Comex Copper Futures fell 0.7% to $5.12 a lb. This brings the premium of Comex to LME up to $1,542 a tonne. Hansen stated, "I believe that the arbitrage period has closed or is about to close, which brings the risk of the Comex contract suddenly seeing a significant additional weakness." The Shanghai Futures Exchange saw a 0.4% increase in tin, to 282,350 Yuan ($38,938.92), due to concerns about supply disruptions following an earthquake that occurred last Friday in Myanmar, which is rich in tin. Tin prices on the LME fell 1.6%, to $35,815 per ton. Other metals include LME aluminium, which fell by 0.1% to 2,544 per ton. Zinc also dropped 0.9% to 2,830.50; lead fell by 0.3% to $2,000 and nickel dropped 2.7% to $16,945. $1 = 7.2511 Chinese Yuan Renminbi (Reporting and Editing by Krishna Chandra Eluri; Additional reporting by Violet Li in Shanghai)
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Dutch consider new subsidies for offshore Wind as bidders opt-out
The Dutch government wants to introduce subsidies into its offshore wind farm tenders, because bidders have withdrawn from the current "zero-subsidy" model. Since 2017, the Netherlands has been able to attract builders to its offshore wind farms, without subsidizing electricity prices. However, interest has decreased due to increasing construction costs and uncertain power prices. The Dutch Climate Ministry said that interest in the upcoming auction for three sites on the North Sea was "very low". Eneco, Orsted and other energy firms have already announced that they will not participate in the September tender because they do not see a viable business case for them without subsidies. Pieter ten Bruggencate, the ministry's spokesperson, said that the absence of bidders was a "real difference" from the previous three years. We are constantly looking for new ways to provide bidders with more comfort and security. He said that any changes to the tender for the three 1-gigawatt sites would be relatively minor, without providing further details. The government will also look at "contracts of difference" in the long term. These contracts offer companies a subsidy when the electricity price is low, while the government gains when the prices are high. Ten Bruggencate suggested that other forms of price guarantee could be considered. Sophie Hermans, the climate minister, is expected to release detailed plans in mid-April. The Netherlands pushed back their plans last year to increase capacity by 4.7 GW instead of 21 GW, citing cost, supply-chain difficulties, and "challenges with timely decision making". (Reporting and editing by Bart Meijer)
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Sources say that China's smelter groups has agreed not to provide guidance on Q2 copper TC/RCs.
Sources said that the top Chinese copper smelters, who met on Monday, decided to not set guidance for second quarter copper concentrate treatment and refining costs (TC/RCs), as they are struggling with an acute lack of concentrate. Sources at the China Smelters Purchase Team in Shanghai said that, due to the scramble for stocks, spot TC/RC price has been negative since December. This has resulted in a benchmark so disconnected, it is now meaningless. A second source who spoke under condition of anonymity said that the CSPT had never given negative price guidance. A third source said that the tightness in copper concentrate supplies could last through this year, and possibly next year due to smelters expanding. The TC/RCs are an important source of revenue for the smelters. They also serve as a gauge for the availability of copper concentrates that are used to produce refined copper. If the TC/RC is negative, the smelter must pay the miners or traders for converting concentrate into refined metal. On March 28, the Shanghai Metals Market Copper Concentrates TC/RC Index was -$24.14 a metric ton, and -2.41cents a pound. A second and fourth source, who spoke on condition of anonymity, said that planned maintenance for the second quarter made it less important to give guidance because they wouldn't be buying as much spot cargo. Many copper smelters in China, the top consumer of the metal, have begun maintenance on their equipment and are opting to close down the plants during the traditional peak period for demand, March, to reduce losses due to the shortage. The first quarter guidance was $25 per tonne and 2.5 cents a pound. Reporting by Violet Li in Beijing, Amy Lv, and Lewis Jackson; Editing by Jamie Freed and Sherry Jacob Phillips, Rashmi aich, and David Evans
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Andy Home: Crisis in Europe is a hindrance to future metals strategies for Europe
The European Commission identified 47 strategic project which it hopes will kickstart the critical minerals sector in the region and reduce its dependency on imports from China, especially. Even as European policymakers strive to create a future industrial base for the region, they face a crisis within its existing metals industry. The long-term decline in European steel and aluminum production has been accelerated by Chinese overcapacity, and high energy costs. However, the latest threat comes from the United States. The tariffs imposed by President Donald Trump, in particular the higher tariff on aluminum imports, could lead to a metal flood into Europe. Europe's response will be equally protectionist and lead to further fracturing in global trade patterns. BUILDING FOR FUTURE Europe's strategic project qualify for fast-track progress through the permitting phase - maximum 27 months in case of mine projects, and 15 months in case of processing projects. They also have access to both European and national funding. List is heavily geared towards battery inputs like lithium, cobalt and nickel, but includes other elements as well, such as germanium, gallium and tungsten. The list includes 14 of the 17 metals listed on the EU’s strategic metals. The projects in 13 states span the entire supply chain, from mining and processing to recycling to materials substitution. The EU should be able to meet its domestic production benchmarks of cobalt, lithium and nickel by 2030 and make "substantial" progress with other battery materials like manganese, graphite, and manganese. METLEN’s project in Greece, which covers the needs of the region by 2028, will be able to meet the current Chinese export restrictions on gallium. More is to come. The European Commission has received 46 requests for projects outside the EU. The European Commission said that a decision regarding the selection of these projects would be made at a future stage. CURRENT CRISIS The European ambitions to develop new energy metals are in stark contrast with the problems that Europe's traditional metals sector faces. The EU's steel production has fallen from 160 million tons in 2017 down to 126 millions in 2023. The Commission has stated that the current steel capacity utilization of around 65% was unsustainable. Around half of the remaining capacity has been idled in the region since 2021. In its "Action Plan", the Commission identifies that high power costs are a major problem for their industrial metals base. The power prices soared in 2022 following Russia's invasion in Ukraine. Although they have since dropped, they are still higher than their historical levels and far above those in the United States. There are a number of proposed solutions, from improving the efficiency of the network to facilitating longer-term contracts for power supply. The short-term goal is to "use all of the flexibility (of the state aid rules) in order to reduce costs for energy intensive industries." Tariff Turbulence Metal diverted from America washing up in Europe has prompted a focus on ways to stop further contractions in Europe's nonferrous and steel metals sector. According to the Executive Vice-President of the European Commission Stephane Sejourne, tighter steel import quotas may come as early as next month. The Commission is considering a "melted and poured rule" that would allow it to take action directly against the original metal producer, rather than the third-party converter. The Commission is preparing to implement some kind of safeguard measure in order to prepare for the plans for import restrictions. Many struggling operators are in a race against the clock. Paul Voss has called for "immediate and targeted interventions to stabilize the sector immediately." One of these interventions would be to stop the flow of recyclable material out of Europe. SCRAP WARS The U.S. 25% tariff on aluminum imports has been described as "without exemptions or exceptions", but it does not apply to scrap. The EU was already on course to export 1.3 million tonnes of aluminium scrap last year. This figure will likely rise as more scrap material is sent to the United States where it can be remelted into aluminum products, and the processors are able to pocket the premium. The threat of U.S. tariffs on copper is already causing European copper recycling companies to worry that more units are being sent to the United States, along with refined metal. The Commission promises to propose appropriate trade measures by the third quarter this year to ensure that more scrap remains in the EU. This will include reciprocal actions against both countries that impose metals tariffs as well as those who currently block the export of scrap. Geopolitics have not affected global scrap trading much, but this is about to change. SENSE OF URGENCY When it comes to critical metals, the European Union is catching up with the United States. The 27-member bloc does not have the same presidential powers as the Joe Biden or Trump administrations. The combination of metals action plans and strategic projects shows that the European Commission is aware of the importance of building for the future while protecting what they already have. As both corporations and lobby groups are quick to note, words must be followed by actions. To quote Voss, European Aluminium: "Strategy will not keep our operation running." These are the opinions of the columnist, an author for.
Chinese state-owned firms restrict imports of Russian April ESPO blend oil, resulting in a discount on the price.
Four trade sources reported on Friday that the Far East flagship ESPO blend oil price in Russia fell to its lowest level in 10 months due to a cooling in demand by China, the main consumer of the oil. Prices for April loading have now become a discount at Chinese ports for first time since last June, they said. The sources reported that ESPO blend oil cargoes loaded for the next month were trading at a discount up to $1.50 a barrel against the ICE Brent benchmark, delivered to China. Data shows that this is the lowest level of price since last June.
This was a dramatic drop from a premium over $2 per barrel for ICE Brent delivered on a basis of March-loading. Prices fell as Russian shipments into China rebounded, after more tankers that were not sanctioned entered the market. Some major buyers stayed away from the markets due to their concerns about dealing with sanctioned companies. China's Sinopec and Zhenhua Oil have reportedly stopped purchasing Russian oil with a March-loading.
Sources said that the situation continued through April and into early May.
Some Russian oil exporters who usually offer tenders months in advance, have reportedly held off on selling volumes for May due to low prices.
Two sources confirmed that independent Chinese refiners are still buying ESPO Blend, but they require vessels to be "clean", non-sanctioned, for ESPO blend supplies. The discount could increase up to $1 per barrel if the vessel or producer has sanction traces, according to the sources.
ESPO Blend is a very popular oil grade in China, thanks to its high quality and proximity to ports.
The price decline was also influenced by the expectation of a rise in Russian oil exports during April-May, as well as seasonal maintenance at Russian refineries. Oil companies can export more crude oil because refineries are processing less oil. Reporting by Chen Aizhu and Siyi Liu from Singapore, with staff in Moscow. Editing by Chizu Nomiyama.
(source: Reuters)