Latest News
-
Shanghai copper reaches 16-month high on profit-taking and rising inventories
Shanghai copper fell on Friday from its 16-month-high, as profit taking and new data indicating rising inventories in China masked concerns about a shortage of the metal. The most active copper contract at the Shanghai Futures Exchange closed daytime trading lower by 0.16%, to 85,900 Yuan ($12,059.19), per metric ton. Shanghai's prices were followed by the benchmark London Metal Exchange three-month copper, where momentum had also waned after it reached $11,000 per ton on Friday. The London future fell 0.4%, to $10,823.5 per ton as of 0849 GMT. However, it is expected to finish the week with a 0.97% gain. Traders said that prices fell because investors were taking profits. "High prices have weakened the demand... "High prices have weakened demand... Prices are also being pressed by the increase in copper stocks. According to SHFE's weekly report on stock, published Friday, copper stocks in SHFE's warehouses increased by 15.4%. Shanghai copper finished the week, which was shortened by holidays, 4.38% higher. This was due to fears of supply disruptions. According to Cochilco's data, copper output by Chilean state-run mining company Codelco fell 25% in August after a deadly mine collapse. Codelco has been working on speeding up recovery since September. However, the output data adds to the growing concerns about supply shortages following Freeport's declaration of force majeure in its Grasberg Mine in Indonesia. Aluminium, among other SHFE metals, fell 0.24%. Zinc rose 0.25%. Nickel slipped 0.09%. Lead grew 0.44%. Tin grew 0.59%. London Futures however mostly reversed from a rally that was led by copper. Lead was up 0.74% and zinc 0.35%, while tin fell 0.49%. Aluminium dropped 0.43%. $1 = 7.1223 Chinese Yuan Renminbi (Reporting and editing by Dylan Duan, Lewis Jackson and Eileen Soreng).
-
EU promises 11.5 billion Euros of Investment in South Africa
It announced late Thursday that the European Union had pledged to invest $13,3 billion in South Africa for clean energy, infrastructure, and pharmaceutical projects. The investment will be used to speed up South Africa's transition to renewable energy by upgrading the grid, introducing energy storage, and implementing green hydrogen. Africa's largest economy is trying hard to attract investors to boost its flagging growth, and to bring down the high unemployment. Meanwhile, U.S. Tariffs have dealt it another blow. In its statement, the EU mentioned the Coega Green Ammonia Project. This project aims to meet the growing demand for ammonia green in agriculture, chemicals, and mining. It also aims to boost the production of vaccines, other pharmaceuticals, and other products in South Africa, for the African continent. Ursula von der Leyen, President of the European Commission during her March visit to South Africa pledged 4.7 billion euro in investment. It was unclear whether this money was included in or added to the latest pledge. South Africa's outlook for exports was harmed by the 30% tariff that U.S. president Donald Trump imposed in August on its goods, and also the expiration of a major U.S. initiative to trade with Africa. South African officials try to convince the Trump administration that the tariff of 30% should be lowered.
-
Ibstock UK warns of profit decline amid construction market woes
Ibstock, a bricks and concrete manufacturer in the UK, warned that its profit for this year would be below expectations due to the persistent weakness of UK construction. This led to a drop in shares by as much as 15% in early trading. As builders retreat amid economic uncertainty, the profit warning highlights growing challenges for UK construction material suppliers. Residential construction is a major problem for the sector. The Leicestershire-based firm said that its clay and cement segment revenues were reached in the third quarter and sales volumes will be similar to those in the first half. In a recent statement, CEO Joe Hudson stated that "with clear, long-term, structural imperatives for growth in residential construction, it is disappointing to see additional near-term headwinds impacting the momentum in our markets at the end of the year". It expects the second-half's core profit to be similar in size to that of the first half, which was 35.5 million pounds (47.17 millions), as cautious consumers and an uncertain economy limit its ability to increase prices. The company had earlier guided that core profits would be between 77 and 82 million pounds by 2025. A business survey revealed that British construction activity declined for the ninth consecutive month in September, as firms delayed major investments until after November's budget. Peel Hunt analysts stated that the year had been tough, and the sluggish housing market was at the core of the softening volume. They added that budget uncertainty did not help matters.
-
Malaysia's Petronas will pay a $4.7 billion government dividend in 2026 - the lowest amount in nine years
Petroliam Nasional Bhd, the state-owned energy company in Malaysia, is expected to pay a dividend of 20 billion Ringgit ($4.74billion) to the Malaysian government. According to a report released by the government on Friday, next year will be the lowest payout in nine years. Petronas distributed 32 billion ringgit to the government in dividends last year. The lowest payouts in the past 10 years were 16 billion ringgit both in 2016 and 2017. This drop highlighted Malaysia's need for a reduction in its dependence on Petronas. The company is a major contributor to government coffers, but also vulnerable to volatile oil price fluctuations. Petronas reported lower profits and revenue for the first six months of the year in August, which is in line with the falling benchmark prices. Malaysia's nontax revenue will decline by 9.9%, to 72.7 billion Ringgit, as a result of lower dividend payments from Petronas. This was revealed in the fiscal outlook report that accompanied the 2026 budget. In 2026, petroleum-related revenues will fall to 43 billion Ringgit while non-petroleum revenues will increase by 8.1% and reach 300.1 billion Ringgit. According to the government's economic outlook report, Brent crude oil is expected to average between $60 and $65. per barrel in 2019. It said that the natural gas sector is also expected to decrease due to lower production on Peninsular Malaysia and Sabah, as well as a weakening of demand from major importers like Japan, China, and South Korea. The report stated that "Overall natural gas production will be slower despite the planned start of several new projects." A decline in crude oil and condensate production is expected to affect the subsector next year.
-
Trustee at Tata's charity arm in India calls internal disputes 'unprecedented.'
The Tata Group charity arm's trustee has called the decision to remove him from the board of its $180 billion business empire "unprecedented". He said it signals a new era in the largest boardroom rift that India Inc. has seen in years. A year after Ratan Tata's death, the discontent at Tata Trusts has fueled fears that a public spat in 2016 between Tata Sons and the charity could repeat itself, damaging the reputation of India’s most respected conglomerate. Tata Trusts owns a 66% stake in Tata Sons. Tata Sons oversees 30 companies in various industries, from consumer goods and airlines to global brands such as Jaguar Land Rover. Tata Consultancy Services, and Tata Motors. Reports have revealed that the disagreements in recent weeks concern the trustees who should sit on the Tata Sons board, the general direction of the business taken by the group, and the management of the planned exit of the minority shareholder Shapoorji Pallonji. In September, the trustees voted to not re-appoint Vijay Singh as Vice Chairman to the Board of Tata Sons, revealing a dispute between senior members of this powerful charity, led by Ratan Tata’s half-brother Noel Tata. Singh, an insider who has traditionally avoided the spotlight at Tata Trusts, told the Indian Express that the idea of voting in any Tata Trusts matter was unprecedented. "Ratan Tata believed that consensus and unanimity were essential to any issue. We may be in a new era. He said that four trustees voted to remove Singh from the Tata Sons Board for reasons which did not seem to be explained. Tata Trusts & Tata Sons did not reply to email seeking comment on Friday. Singh didn't respond to texts. In a rare intervention, two senior Indian Ministers urged Tata Trusts this week to resolve internal boardroom conflicts. Sources with direct knowledge about the problems at Tata trusts have confirmed that two factions exist at the charity's arm, the one headed by Noel Tata, and the other led by Mehli mistry, a trustee. Source spoke under anonymity because the matter was private. It is unclear how the different factions will align on the issue at hand. Mehli Mistry was the cousin of Cyrus Mistry who died in 2022. Their family company Shapoorji Pallonji owns an 18% stake in Tata Sons. (Reporting and editing by Clarence Fernandez; Aditya K. Kalra)
-
Dalian Iron Ore gains on stronger steel prices outlook
Iron ore futures prices rose on Friday and posted gains for the week, boosted by expectations of higher steel prices and improving market fundamentals. The January contract for iron ore most traded on China's Dalian Commodity Exchange was up 1.02% to 795 yuan (111.56 dollars) per metric ton. The contract closed the week 1.6% up. As of 0217 GMT the benchmark October iron ore traded on the Singapore Exchange was 0.75% higher at $105.7 per ton. It is expected to gain 1.6% in a week. According to the chief analyst of consultancy Mysteel, after declining steadily for the past two month, Chinese steel prices will rise in October due to improved market fundamentals, and the anticipated implementation by the central government of stronger economic stimuli policies. Hexun Futures, a Chinese broker, says that despite stockpiling ore before the Golden Week holiday period, transportation restrictions prevent steel mills from keeping adequate inventories of raw materials, and could force them reduce production. One of Russia's top steelmakers estimates that the demand for metals has dropped by as much as 15%. Russia will be the fifth largest steel producer in the world by 2024, with a production of 71 million tonnes. The average amount spent by Chinese tourists during the Golden Week holiday has fallen to its lowest level in three years, as the weak economy continues to affect the second largest economy of the world. The U.S. Trade Policy, extreme weather conditions, intense competition on domestic markets and persistent weakness in property are all factors that contribute to the downturn. Coking coal and coke, which are used to make steel, have both gained in value, rising by 1.22% and 1.86 percent, respectively. The benchmarks for steel on the Shanghai Futures Exchange are mixed. The price of wire rod was unchanged, but rebar and hot-rolled coil rose by 0.37%. Stainless steel fell 0.16%.
-
ASIA GOLD - Festive buying boosts demand in India, while China's post-holiday trading is muted
The physical gold demand in India remained steady this week, despite the record-breaking price rise, as jewellers, investors, and collectors bought bullion in anticipation of important festivals that will take place later in this month. In China, however, buying was subdued due to higher exchange rates in the post-holiday market. Hong Kong residents sold everything, from gold bars and rings to cash out on the record price rise. Gold prices in the spot market rose to $4,000 an ounce on Wednesday for the first time, due to a combination of geopolitical, economic and rate-cutting expectations. This month, Indians will celebrate Dhanteras (Diwali), a festival during which purchasing gold is considered auspicious. These are also the busiest days for buying bullion in the country. Indian dealers quoted a premium The premium is now up to $15 an ounce, including 6% import duties and 3% sales taxes, compared to the $9 last week. The investment demand is very strong at the moment. Investors paid extra for record-high prices because they expected prices to continue rising. On Friday, domestic gold prices traded at around 121,000 rupees per 10 grams ($1,364.10) after reaching a record high earlier in the week of 123677 rupees. A New Delhi-based jeweller said that retail jewellery demand was still low, but they hoped it would pick up next week, with Diwali just around the corner. After a long holiday the demand in China, the world's largest consumer of gold, was weak. Discounts between $48 and $60 per ounce were offered to lure buyers. Gold bars and coins are popular investments, but the demand for jewellery is low. "People are interested in buying, but are waiting for the prices to drop," said Peter Fung. In Hong Kong, gold In Singapore, the price ranged from a discount up to $1. Gold traded from a discount between $0.5 and a premium of 1.30 dollars. In Japan, bullion The price was equal to or higher than spot prices by $1 per ounce.
-
Gold gains for the eighth consecutive week on strong demand for safe-havens
Gold prices held firm below the critical $4,000 per ounce level on Friday. This was set to be an eighth weekly gain. The gains were boosted by geopolitical tensions, economic uncertainty, and expectations for further U.S. interest rate cuts. As of 0637 GMT spot gold was unchanged at $3,974.99 an ounce. However, it has gained 2.2% this week. U.S. Gold Futures for December Delivery rose 0.3% to $3985.8. Silver increased 1.6%, to $49.89 an ounce. It had previously reached a record of $51.22 per ounce. The options markets showed a rise of volatility and downside protection for the gold price during this rally's final stages. It seems like a good time for gold bulls book some profits. "I expect that any pullback will be limited," said City Index senior analyst Matt Simpson. Israel's government approved a ceasefire agreement with Hamas, paving the way for the suspension of hostilities within Gaza in 24 hours, and the release of Israeli hostages within 72 hours. Israeli attacks on the besieged Gaza enclave continue. ANZ analysts stated in a report that a slowing economy, rising inflation, a changing geopolitical environment, and diversification away from U.S. investments and the dollar would keep the investment demand for gold and central bank purchases strong. Renewed rate cuts will also help the metal. On Wednesday, the price of gold surpassed $4,000 an ounce for a first time, hitting a new record high at $4,059.05. This non-yielding investment, which is traditionally used as a hedge in times of geopolitical or economic uncertainty, gained 52% so far this year. The rally was fueled by geopolitical tensions, central bank purchases, increasing exchange-traded fund inflows and expectations of U.S. interest rate cuts. The minutes of the September Federal Reserve meeting were released on Wednesday. They showed that officials believed the risks in the job market justified a rate reduction, but they remained cautious because inflation was persistent. In September, the Fed began its cycle of rate cuts with a reduction of 25 basis points. The traders expect a 25-bp rate cut in both October and December. There is a 95% chance of each. Palladium fell 2%, to $1386.24, while platinum slipped 1.4%, to $1596.0. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich, Subhranshu Sahu and Sherry Jacob-Phillips)
Nayara, a sanctions-hit company, scrambles with New Delhi to maintain operations
Since late August, Nayara Energy refinery in western India has been moving fuel by rail to inland depots with two or three 50-tanker trains per day. This is more than twice the amount of diesel and petrol it used to transport previously. The European Union imposed crippling sanctions on the Russian-owned refinery on July 18 that shut it out of many markets. It forced the refinery to find new customers and divert more fuel into the domestic market.
Sources from the Indian government and the company claim that the ongoing crisis at Nayara has forced the Indian government to provide enough support for it to continue operating, while avoiding actions that could provoke an Western backlash. New Delhi has taken several measures to assist a refinery that is owned by a friendly country. These include providing tanker train services and approving coastal vessels for the transport of its products.
Nayara is owned by the Russian state oil giant Rosneft, which puts it in the middle of a long-standing relationship between New Delhi and Moscow. This puts India at odds against its Western allies. The refiner's biggest shareholder, the Russian state oil company Rosneft relies solely on Russia to import oil, after Iraqi crude and Saudi Arabian oil supplies were cut-off following the EU measure. This makes it vulnerable if flow disruptions are caused by tighter sanctions or increased U.S. pressurization.
"The government is trying cover two possible scenarios: trying to support Nayara, while remaining aware of the fact there will be a persistent global pressure to tighten the sanctions," said Amitendu Palait, a Senior Research Fellow at the National University of Singapore Institute of South Asian Studies.
He said that "Long-term Support might not be sustainable until the global dynamics change, such as a resolution between Russia & the U.S.A.
Nayara has not responded to an email asking for comment on this story. India's Oil Ministry and Rosneft have not responded to requests for comments.
Nayara, a Mumbai-based company, is a major player in India's rapidly growing fuel sector. It accounts for 8% the refined product output and operates more than 6,500 gasoline stations. It has been forced to reduce crude runs at its 400,000-barrel-per-day Vadinar refinery to 70-80% of capacity - it was previously running at 104% - as it struggles to find export buyers for its fuel and banks to facilitate payments, sources with knowledge of the refinery operations say.
STOP-GAPS AND WORKAROUNDS Nayara's refinery, which is not connected to the pipeline network, increased its use of railcars for fuel transportation after sanctions made it difficult to charter coastal vessels or export products, forcing it redirect production domestically. Its access to more railcars was facilitated by New Delhi, which has also temporarily allowed Nayara to use four coastal vessels, sources said, including the E.U.-sanctioned Leruo and two shadow fleet ships, the Guinea-Bissau-flagged Garuda and Djibouti-flagged Chongchon.
Sources said that Nayara was seeking approval from the government to use two additional coastal ships. Nayara also seeks government assistance to find equipment and materials it struggles to get due to sanctions, for a scheduled maintenance shutdown in February. Sources said that Nayara is also considering pushing back the shutdown until April while it searches for alternative raw materials.
A senior official of a company, speaking on condition of anonymity due to the sensitive nature of the issue, said that the company was constantly under threat. The official cited the concern that the vessels they are currently using may be subject to future Western sanctions.
We never expected to be so directly hit. "Every day is like fighting fires."
Nayara, a combination of Hindi and English meaning "New Era", was originally called Essar Oil. It was purchased by Rosneft in 2017, along with a group that included the Russian fund UCP and Trafigura. Trafigura later sold its share.
Nayara purchased oil from many countries until 2022. In that year, India began buying discounted Russian oil, after the West sanctioned Moscow for its invasion in Ukraine. It became the largest buyer of Russian crude by sea. Recent purchases by India have led to a diplomatic rift between Washington and New Delhi. President Donald Trump doubled tariffs on Indian imports up to 50%.
MAINTENANCE AND PAYMENTS ARE THE IMMEDIATELY BIGGEST CHALLENGES
Sources at the company have stated that the most immediate challenge for Nayara is to resolve the maintenance issue and be able make international payments. Sources have reported that Nayara’s principal banker, the government-owned State Bank of India (SBI), stopped processing forex and trade transactions for the refiner due to concerns over EU sanctions in August. SBI did respond immediately to a comment request.
Nayara officials met with officials from the finance ministry and banks to try to resolve this banking issue. However, they have not yet found a solution. This limits Nayara’s ability to import and export fuel in foreign currencies.
The Indian finance ministry has not responded to a comment request.
According to shipping and traders data, Nayara exported 30% of its production before the sanctions. This was mainly through trading with Western, Middle Eastern, and Asian firms to ship products to Asia and Northwest Europe. Data shows that since then, Nayara has shipped cargoes to the Middle East, Turkey and Brazil. At least 16 of these cargoes were diesel, gasoline, and jet fuel, and they were all transported on EU-approved tankers. Industry sources claim that some of these recent exports were done through traders, with payment offset against crude supplies.
According to Kpler, Nayara exports 2.23 million barrels in September. This compares with an average of 3.3 millions barrels per month from January through June.
A trader from north Asia said, "We're interested in buying their products." They told me that their bank account was blocked and they couldn't accept payments.
(source: Reuters)