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Indonesia increases CPO export levy by 10% as of May 17,
A regulation signed Wednesday shows that Indonesia will increase its crude palm oil export levy from 7.5% to 10% starting May 17, in order to fund the country's increased mandate for biodiesel blends. Export levies on refined products will range from 4.75% to 9.5% of CPO reference prices, an increase of between 3% and 6 % of current rates. The levies collected are used to finance palm oil programs such as the biodiesel program and a smallholder replanting subvention. Indonesia increased its palm oil-based Biodiesel mix from 35% to 40% this past year. It is now studying moving to 50% by 2026. Next year, it will also be blending 3% of jet fuel with the biodiesel. This year, the country's plantation funds agency which is responsible for collecting and distributing palm levy will distribute $2.14 billion (35.47 trillion Rupiah) as a biodiesel subsidy. An official from the Energy Ministry said that Indonesia consumed 4,44 million kilolitres (4.4 million liters) of biodiesel in this year until April 24. Indonesia, the world's largest palm oil consumer, has set aside 15.6 million KL for biodiesel distribution by 2025. This is up from 13 million KL in 2018. $1 = 16,565.0000 Rupiah (Reporting and editing by John Mair, Alasair Pal and Bernadette Cristina)
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Gulf stocks fall as excess oil worries weigh
On Wednesday, most Gulf stocks were down slightly as a drop in oil prices due to fears of increased supplies hurt sentiment. Investors also paused for thought about the economic implications of the U.S. China tariff truce. The price of oil, a major factor in the Gulf financial markets, fell on Wednesday as traders awaited a possible increase in U.S. crude stocks. Prices remained near their two-week highs, however, as traders waited for a possible increase in U.S. crude inventories. The U.S.-China Trade War may have stopped, but the financial markets are still uneasy. Israel warned Wednesday that three ports in Yemen should be evacuated after the Iran-aligned Houthis fired a missile at it, while U.S. president Donald Trump was visiting three Gulf States. Saudi Arabia's benchmark index fell by 0.19%. Saudi Telecom, and Saudi Electricity Company are the two biggest losers. Both fell nearly 5% in early Wednesday trading. Saudi Arabian Refineries Company shares surged 8%, limiting the losses. The refiner looks set to record its third consecutive session of gains. Dubai's main stock index traded flat at 0.09%, as a gain of 2.5% in Mashreqbank offset a fall of 2.7% in Amlak Finance. Qatar's benchmark stock market index fell 0.01%, while Abu Dhabi's benchmark index remained unchanged.
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Libyan capital is rocked by the most intense fighting in years
Witnesses in Tripoli said that the most intense clashes since years continued through Wednesday morning after Monday's death of a key militia leader sparked fighting between rival groups. The United Nations Libya Mission UNSMIL expressed its "deep alarm" at the violence escalating in Tripoli's densely populated areas and called for an immediate ceasefire. The latest unrests in Libya's capital may consolidate Abdulhamid al-Dbeibah's power. He is the prime minister of the divided Government of National Unity of Libya (GNU), and an ally of Turkey. Libya has seen little stability since an uprising in 2011 backed by NATO ousted Muammar Gadaffi, the longtime autocrat. The country was split in 2014 into rival eastern and Western factions. However, a major outbreak of warfare halted in 2020 with a ceasefire. Libya, a major energy exporter and a waystation for migrants headed to Europe, has attracted foreign powers, including Turkey, Russia and Egypt, as well as the United Arab Emirates, into its conflict. The main oil facilities of Libya are located in the south and east, away from the current fighting. While the eastern part of Libya is dominated by Khalifa haftar's Libyan National Army for more than a decade, control over Tripoli and Western Libya has been divided among numerous armed groups. Dbeibah ordered on Tuesday the dismantling what he referred to as irregular armed group. This announcement follows the death of Abdulghani Kikli (also known as Ghaniwa), a major militia leader, on Monday, and the unexpected defeat of his Stabilisation Support Apparatus group by factions aligned to Dbeibah. The 444 Brigade and 111 Brigade, which are Dbeibah-allied, have taken over SSA territory, indicating a concentration of power within the fragmented capital. This leaves the Special Deterrence Force, or Rada, as the only major faction that is not closely linked to the Prime Minister. (Reporting and writing by Libya Newsroom; editing by Aidan Lewis).
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Iron ore reaches a 5-week high due to Sino-US Trade truce optimism
The iron ore futures rose to their highest level in over five weeks on March 13, driven by the United States' and China's decision to reduce tariffs after a trade deal, which boosted hopes for a long-lasting resolution of the trade dispute. The September contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 2.43% higher, at 737 Yuan ($102.16), its highest closing since April 7. As of 0702 GMT the benchmark June iron ore traded on the Singapore Exchange had risen 2.3% to $100.80 a ton, its highest level since April 3. China announced on Tuesday that it would lower its tariffs against U.S. Imports by 10% for 90 Days, beginning at 12:01 PM (0401 GMT) Wednesday. The U.S. agreed to reduce the "de minimis tariff" for low-value shipments coming from China by as much as 30%. In an interview aired on Tuesday, U.S. president Donald Trump stated that he would be willing to deal directly with Chinese President Xi Jinping regarding the final details of a U.S. China trade agreement. Shougang Hierro Peru is a Chinese iron ore miner that has suspended its operations following a collapse of telecommunications infrastructure at its port. Repairs are expected to take between four and five months. Analysts and traders said that the Shougang Group - the parent company of the miner and a major Chinese Steelmaker - will need to purchase more iron ore on the spot market in order to maintain production. Coking coal and coke, which are both steelmaking ingredients, also saw gains, rising by 2.11% and 1.58 %, respectively. The benchmark steel prices on the Shanghai Futures Exchange have increased. Rebar gained 1.23%; hot-rolled coil gained 1.27%; wire rod gained 0.58% and stainless steel increased 1.16%.
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Volunteer firefighters fighting Greece's fires
Dimitris Marinelis, a Greek firefighter, spent the summer of 2023 on the frontlines of Europe's largest wildfire, which engulfed an entire forest in northern Greece. He protected homes and set up anti-fire areas as flames engulfed it. Marinelis, like the other members of his team, has never been paid for his work. He is one of thousands who are volunteers and juggle their day jobs while battling Greece's summer fires. They often drop everything to be where they are needed. Marinelis, 54, a 54-year old businessman who runs a construction firm, told the volunteers at their base in Ekali, a leafy suburb of Athens. He said: "When the phone rings or you have to work, you stop thinking of yourself and start thinking of others." Climate change is making Greece hotter and drier, which makes it more susceptible to wildfires. The government announced that they will deploy 18,000 firefighters in record numbers this year. This compares with 15,500 firefighters in 2022. They also plan to recruit around 10,000 volunteers. The company has also set aside 2 billion euros ($2.3billion) for the purchase of new aircraft. It will also use almost twice as many thermal cameras drones to detect fires than last year. One of these will be used by Ekali's team. Marinelis stated, "Unfortunately we are waiting for the worst while hoping for the better." The Greek fire service has a mix of seasonal and permanent workers, and is supported by volunteers. Many Greeks consider this to be the backbone of the firefighting efforts in the country. Online, images of tired firefighters in blackened clothing sleeping by the roadside with messages of support are often posted. It's not always easy for organizations to stay afloat. George Dertilis, the leader of Ekali's 60-member team, said that his team relies on donations to buy equipment and trucks. One truck dates back to 1986. Their uniforms were donated by their colleagues in France or Belgium. He said, "There are occasions when we don't have basic supplies such as hoses." Dertilis stated that in 2021, two weeks before an enormous fire broke out outside Athens they couldn't afford to cover all four trucks. Private donors then stepped up. The fire then destroyed their hoses, and they began searching for donations as the flames continued to burn. The team has grown closer over the years. But it's usually the thought of the family that makes them take less risks. Marinelis Pilou's wife Mariana Pilou is an architect and also volunteers on the team. They both have young daughters, and they try to avoid being deployed to the same fire. Pilou, 53 recalls a recent incident. "It was difficult and when I had to leave, I thought about my children and said... Don't act as a hero." (Writing and Editing by Alexandra Hudson, Karolina Tagaris)
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Indonesian cobalt production will double by 2027. No plans to "control" supply
A senior official announced on Wednesday that Indonesia would double its cobalt production by 2027 compared to last year. He added that the country, the second-largest producer in the world, has no intention of "controlling" the supply of this key component for electric batteries. Septian Hario Seto said that Indonesian cobalt production will increase to 114,630 metric tonnes per year in 2027 from the 55,630 tons produced in 2024. Indonesia is the second largest cobalt producer in the world after the Democratic Republic of Congo, which produces 70% of the global supply. The DRC announced earlier on Wednesday that it is reviewing a ban on exports of cobalt for four months, which was implemented on February 22 in order to curb oversupply and low price. In March, the DRC announced that it would also partner with Indonesia in order to manage global pricing and supply. Seto stated that Jakarta has no intention of "controlling" the cobalt supply. He said that if we want to control nickel, we'll need to control cobalt. Seto stated that the growth in Indonesian production is driven by plants that use high pressure acid leaching, a technique made economically viable thanks to increased cobalt and Nickel prices since 2021. Prices of cobalt will reach $40 per pound by 2022, before dropping to $10/lb by the end 2024. Prices have recovered substantially since the Congo export ban, and are currently around $16/lb. Seto stated that the expansion of cobalt production in Indonesia will not be sufficient to compensate for the reduced supply from the DRC, if the export embargo continues. He added that extending the export ban would cause short-term price volatility and long-term demand reduction for cobalt. This is because battery producers will, for example use technology to reduce cobalt consumption, which is a critical component of batteries for electric cars and mobile phones. He said, "Downstream users may think you're not reliable or sustainable and will then look for ways to replace you." He said that the cobalt content of batteries is now 10%, or even lower, than it was in the past. Reporting by Hongmei LI in Singapore, Editing by Lewis Jackson & Lincoln Feast.
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Romania's Hidroelectrica Q1 profits plummet 56% after electricity production hits decade-low
Hidroelectrica, the Romanian state-owned energy producer, reported a 56% drop in its first-quarter profit on Wednesday. The company cited a severe dry spell that affected the flow of the Danube River. In a press release, the drought led to a 38% decline in annual net electricity production, which fell to 2,654GWh. This was the lowest level of the first quarter in the last decade. The company reported a net loss of 589 millions lei ($129million) for the third quarter. This is down from 1,33 billion lei during the same period in last year. Hidroelectrica reported that the company's revenue in the first quarter fell to 1.87 billion lei from 2.54 billion lei, due to the hydrological conditions being unfavorable, which led to a 60% decrease in wholesale volume available for sale. The report also stated that, although wholesale prices increased by 21% between January and March 2024 compared to the same period in 2024 the wholesale market revenues still fell by 53% due to the reduced sales volumes.
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Top executive of India's Kalyan Jewellers says that the company's opening spree will drive revenue growth.
Kalyan Jewellers, a gold and diamond retailer in India, is targeting a revenue increase of over 25% for this financial year. This comes as the company has accelerated store openings due to heightened demand for lower-carat jewelry. The record high gold price has not stopped the wealthy from buying ornaments and investing in gold in the country that is the second largest gold buyer. However, the middle class has switched to lighter and lower-carat jewellery. Ramesh Kalyanraman, Kalyan Jewellers Executive Director, said that consumers are more likely to shop at chains than independent jewellers. They also spend more on gifts. He said that Kalyan could "easily increase" its revenue by over 25% in the fiscal year which began on April 1. The jeweller plans to open 160 new stores this fiscal year. These will be split equally between the two brands. At the end of March, its bigger rival Titan operated more than 1,000 jewellery stores in India. Roughly half were under its "Tanishq", flagship brand. The executive director of Kalyan Jewellers said that in three years the company's "Kalyan", or "Kalyan"-branded stores, aimed to catch up Titan's "Tanishq", which counts, number. However, he warned that rapid expansion could squeeze the group's core earning margin. Kalyan Jewellers, which opened 136 shops in India in the last year, reported an increase of more than a third in revenues to 250.5 billion Rupees ($2.9billion). This was aided by a double-digit growth in same-store sales. Titan's jewellery business, which is its mainstay, saw its total revenue increase by 21% to 465.7 billion Indian rupees during the fiscal year. $1 = 85.2875 Indian Rupees (Reporting and editing by Mrigank Dahniwala in Chennai)
Cuba keeps schools closed, workers home during healing from power failure, cyclone
Cuba said on Wednesday it would keep schools closed and inessential workers home through Sunday as the crisisracked Caribbean island nation had a hard time to recover from the collapse of its power grid last Friday and Typhoon Oscar today.
The island's far eastern province of Guantanamo was especially hard hit by Oscar, that made landfall as a. classification one typhoon and unleashed more than 15 inches of rain. in some areas. The cyclone was devalued to a tropical storm. before veering north to the Bahamas earlier this week.
The storm, combined with an almost extraordinary electrical. grid collapse on Friday, developed a nightmare situation in a. country already suffering dramatic food, fuel and medication. shortages.
The crisis prompted scattered demonstrations throughout Havana and. elsewhere in the country.
Authorities said late on Tuesday seven individuals had died as a. outcome of the storm. Cuba's armed forces had actually saved almost 500. individuals from remote locations isolated by floodwaters or landslides,. with upwards of 4,000 homeowners still housed in shelters.
Flash floods destroyed homes, roads, agricultural lands and. already decrepit facilities throughout the major. coffee-producing region. Wind and rain had actually damaged a minimum of. 2,280 homes, state-run media reported.
Communications were still spotty in rural areas, and the majority of. the eastern province stayed without power as emergency situation employees. tidied up tangles of downed power lines.
The United Nations said on Wednesday it would support Cuba. in recovery efforts following Oscar.
The storm had likewise made complex the healing of Cuba's. already precarious electrical grid. Cuba supported its. electrical service on Tuesday, but warned that blackouts would. continue as before the grid collapse.
Cuba's outdated power plants, having a hard time to keep the lights. on, reached a full crisis this year as oil imports from. Venezuela, Russia and Mexico dwindled, culminating in last. Friday's grid collapse.
A generation deficit of about one-third total demand was. expected on Wednesday, the nationwide electrical company said,. leaving numerous Cubans still in the dark.
(source: Reuters)