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Copper prices drop amid uncertainty about US trade talks
The Shanghai Futures Exchange (SFE) and London Metal Exchange (LME) saw copper prices fall on Monday due to concerns about U.S.-China trade negotiations, and the uncertainty around potential tariffs before President Trump's deadline of July 9. The LME's three-month contract for copper fell by 0.31% at $9,834 a metric ton as of 0103 GMT, and the SHFE's most traded contract lost 0.91%, to 79440 yuan (about $11,088.00). Donald Trump, the President of the United States, said that the U.S. was close to finalising a number of trade agreements. He will inform about a dozen other countries on Monday that they can expect higher tariffs to be implemented on August 1. ANZ reported that "Markets are worried about Trump's policies, which could cause a global slowdown and harm demand for industrial commodities." A Shanghai-based metals analyst from a futures firm said that "copper prices are expected to soften due to the recent rise in copper stocks on LME and SHFE and the diminished consumption enthusiasm as a result of higher prices." Copper inventories By July 4, SHFE-monitored storages had gained for the third week in a row, rising by 3.7% to reach 84,589 tonnes. This is 73.7% less than the previous year. Total Copper Stocks The LME registered warehouses saw a rise of 5% in four days, up to Friday. SHFE nickel dropped 1.05%, to 121.190 yuan per ton. Zinc fell 0.83%, to 22.165 yuan. Tin fell 0.82%, to 266,770. Yuan. Aluminium fell 0.68%, to 20,500. Yuan. Lead fell 0.29%, to 17.220. LME nickel fell 0.36% to $16,235 per ton. Zinc eased 0.24% at $2,717.5. Lead slid 0.17% at $2,055, and tin rose 0.07% at $33,725. Click or to see the latest news in metals, and other related stories. Data/Events (GMT 0600 Germany Industrial Production MM, Production Year-on-Year SA May 0600 Halifax House Prices UK MM,YY June 0645 France Total Reserve Assets June ($1 = 7,1645 Chinese Yuan) (Reporting and Editing by Sumana Niandy; Reporting by Hongmei LI)
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OPEC+ pumps more oil but is it necessary and at what cost? Russell
After OPEC+'s decision to increase crude oil production, two questions arise: Who will buy the extra crude and will they export the barrels that they claim to be producing? OPEC+ decided at a weekend gathering to increase production by 548,000 barrels a day (bpd). This is up from the 411,000 bpd that the group approved for May June and July and 138,000 bpd in April. Eight members of the group will boost production - Saudi Arabia (as well as Russia, Kuwait, Oman and Iraq), the United Arab Emirates (UAE), Kazakhstan, Algeria, Kuwait, Oman and Russia. The eight countries will have unwound the voluntary 2.2m bpd that they had imposed in an effort to support crude oil prices last year. OPEC+ cited "steady global economy outlook and current healthy fundamentals of the market" in its statement announcing increased August production, continuing a theme that it has been promoting in recent communiques: the oil market was in good shape. The reality is not as rosy, however, as OPEC+ portrays it, as the demand for oil in the major consumer countries like China, which is the top importer of the world, has been tepid. China's crude oil imports rose by just 0.3% or 28,500 barrels per day in the first five month of this year. The official data shows that the total was 11.1 million barrels per day. The growth rate is expected to increase when the June data are released next week. LSEG Oil Research expects imports to be 11,96 million bpd, up from customs numbers of 11,30 million bpd in June 2024. China's imports were likely strong in June. However, the reasons for this are not so positive. The reason why refiners bought more crude than intended is because the prices were lower when June's cargoes arrived. Brent futures, a global benchmark, hit a four year low of $58.50 per barrel on 5 May. They had been trending downwards since early April when cargoes due to arrive in June would have been purchased. In June, oil imports from Asia, which accounts for 60% of all seaborne crudes, increased. LSEG estimates arrivals at 28,65 million bpd - the highest since January 2023. The increased imports in June boosted Asia's arrivals to 27,36 million bpd during the first half 2025, an increase of 620,000 bpd compared with the same period the previous year. In a coincidence, this forecast is in line with the Organization of the Petroleum Exporting Countries' (OPEC) June monthly report which forecasts a demand growth of 630,000 bpd in Asia outside the OECD by 2025. Prices are key The question is if imports will increase in Asia in the second half or if momentum from June will fade. History shows that importers like China and India will tend to reduce imports when prices increase and use up their stockpiles. China's imports will likely be reduced in August or September due to the brief price spike in mid-June, triggered by Israel's attack on Iran. The United States joined Israel in this action. Lower oil prices will encourage buyers to buy and build up inventory to increase imports in the fourth quarter. The ball in this case is largely on OPEC+. Prices will likely continue to fall if the group produces what its quotas permit and exports it. According to a July 4 survey, the actual production has so far lagged behind the higher quotas. The five OPEC members in OPEC+ increased output by 267,000 bpd, which was short of the allowed 313,000 bpd. Saudi Arabia's actions will be crucial, as it is OPEC+’s largest exporter and has the capacity to increase output. You like this column? Check out Open Interest, your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist, who is also an author.
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Brickworks and Soul Pattinson of Australia secure funding for the $9.15 billion Topco Merger
Washington H. Soul Pattinson, an Australian investment company, and Brickworks, a building materials group from Australia said they had secured funding to merge their companies into a $9.15-billion ASX listed entity named Topco. The company has secured additional funding of A$220,000,000 ($143.81 millions) at the same price as Soul Pattinson’s last closing price, A$42.61. The proceeds from the sale will be used to pay off Brickworks' outstanding debts and other liabilities. Topco's debut is expected to be marked by a market cap of approximately A$14 billion (9.15 billion), supported by A$13.1 in diverse assets, including private equity, property and credit holdings. Brickworks shareholders will receive 0.82 Topco shares at a value implied of A$30.28 per share, which values the building products manufacturer at A$4.62billion. Mark Ellenor, CEO of Brickworks, said: "With equity in place, the combined company is ready to reap the benefits from the merger. We have a streamlined balance sheet, and a clear growth agenda." Topco, in conjunction with the capital raising announced in June and in July, has received commitments to buy 34 million shares. This will generate approximately A$1.4 billion. In a statement released on Monday, Topco and the other companies confirmed that the merger was now fully funded. No further shares were required. Corporate governance experts in Australia have long criticised the complex ownership structure of both companies, which has existed for more than 60 years. Brickworks' outstanding loan debt was A$721m at the end of the half-year period ending January 31. As of 0108 GMT shares in Soul Pattinson rose 0.6% while Brickworks remained largely flat. The benchmark index fell by a small 0.1%.
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South32, Australia's South32, will pay $130 million for the sale of Colombian nickel assets
South32, an Australian diversified mining company, announced on Monday that it would incur a $130 million impairment charge related to the sale to CoreX Holding B.V. of its Cerro Matoso Ferronickel operations located in northern Colombia. South32 anticipates receiving up to $100,000,000 in cash from CoreX. CoreX is a diversified industrial company with operations spanning the metals and mining sector, green energy and other sectors. In January 2024 the miner began a strategic review at Cerro Matoso, citing an important decline in nickel prices. Nickel producers are struggling with a price collapse fueled by a surge in production from Indonesia. This has forced some operators to cut spending, write off investments, and stop their mining operations. South32's Nickel production decreased by 6 percent in the nine months ended March 2025, due to lower nickel grades. They also cited structural changes on the nickel market as continuing to put pressure on nickel prices. BHP Group, world's biggest listed miner, announced in July 2024 it would cease its Western Australia nickel operations in October. It cited a drop in prices and an oversupply of metal in the global market.
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BRICS leaders condemn Gaza attacks and Iran attacks; urge global reforms
Leaders of BRICS, a group of developing countries, condemned the attacks on Gaza and Iran on Sunday. They also called for reforms to global institutions. The bloc was portrayed as a safe haven for multilateral diplomatic efforts amid violent conflicts and wars. The expansion of BRICS is a response to the divisions in the G7 and G20 group of major economies and the "America First" policy of U.S. president Donald Trump. Brazil's Luiz Inacio Lula Da Silva, in his opening remarks at the Rio de Janeiro summit, drew an analogy with the Cold War Non-Aligned Movement. This was a grouping of developing countries that refused to join either side of the polarized world order. Lula said to leaders that "BRICS was the heir of the Non-Aligned Movement." "Multilateralism is under attack and our autonomy has been weakened once more." Lula warned business leaders on Saturday of the rise of protectionism by pointing out that BRICS countries now account for more than half of the world's total population and 40% its economic output. In 2009, the first BRICS summit brought together leaders from Brazil and India, as well as China. In 2009, the bloc was expanded to include South Africa, and in 2012, Egypt, Ethiopia and Indonesia. Indonesia is the first country to be included in this summit. The BRICS fill the vacuum that others leave almost immediately, said a Brazilian who requested anonymity. The diplomat said that although the G7 still has a lot of power, it doesn't hold the same dominance as before. There are still questions regarding the goals shared by a BRICS group that has become more heterogeneous, as it now includes regional rivals and major emerging economies. Chinese President Xi Jinping sent his premier to the summit in lieu of himself, stealing some thunder. Due to an international criminal court arrest warrant, Russian President Vladimir Putin will be attending the summit online. Several heads of state, including Indian PM Narendra Modi, and South African president Cyril Ramaphosa, gathered at Rio's Museum of Modern Art for discussion on Sunday and Monday. Over 30 countries have expressed an interest in joining the BRICS either as full members, or as partners. GROWING COMPLEXITY AND CLOUT The expansion of the BRICS group has given it more diplomatic weight. It aims to represent developing nations in the Global South and strengthens calls for reforming institutions like the United Nations Security Council, the International Monetary Fund, etc. Lula's remarks highlighted the failures of U.S. led wars in the Middle East. Lula urged the BRICS countries to lead reforms. He reflected on the G20 Summit held in the same location last November. "In a very short time, the world has deteriorated so much that many of the initiatives approved back then are no longer possible." In a statement issued on Sunday afternoon by the assembled leaders, they called attacks against Iran’s “civil infrastructure” and peaceful nuclear installations a “violation of international laws.” The group expressed its "grave concern" over Israeli attacks in Gaza and condemned a "terrorist" attack that was described as a "terrorist act" by the Indian-administrated Kashmir. The joint statement on trade warned that the increase in tariffs threatened global trade. This continued the group's veiled critique of Trump's U.S. Tariff policies. The group expressed its support for Ethiopian and Iranian to join the World Trade Organization while calling to restore urgently its ability to settle trade disputes. As first reported last week, the leaders' statement endorsed plans to pilot a BRICS Multilateral Guarantees Initiative within the group's New Development Bank in order to lower financing costs for member states and boost their investment. In a separate press release following a discussion on artificial intelligence, leaders called for the protection against unauthorized AI use to avoid excessive data gathering and to allow mechanisms for fair payments. Brazil, which is also hosting the United Nations Climate Summit in November, has used both events to show how serious developing nations are about tackling climate changes, while Trump has put the brakes on U.S. initiatives. According to two sources familiar with the discussions regarding funding the conservation of endangered forest around the globe, China and the UAE indicated in their meetings with Brazilian Finance minister Fernando Haddad that they intend to invest in the proposed Tropical Forests Forever Facility. (Reporting and editing by Lisandra Paraguassu, Manuela Andreoni and Bill Berkrot)
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Mercury revenge on Wings led by rookies
Dallas rookie guard JJ Quinerly said that the Wings had "punched" first in their 98 - 89 win over the Phoenix Mercury visiting team on Thursday. When the teams meet again for a rematch on Monday in Phoenix, the ball will be in Mercury's hands. Mercury coach Nate Tibbetts stated, "These games are fun and fun series." "It's always a good feeling when you have a team come back to us, especially in the manner they did so. We will have to be prepared to respond and I am confident in our team. The Wings (6-13), who had a season-high of 6-13, used a 32 point first quarter to gain a lead they never relinquished on Thursday. This victory evened up the series with the Mercury at 1 game each after they beat them 93-80 in June 11 despite Paige Bueckers' 35 points. Bueckers scored 23 points, had five assists, and Aziaha had 28 points, including five 3-pointers. The Wings began the game with four rookies. Quinerly said, "We were the first to punch out," with 17 points and 7 assists. "We were able to get up quickly, into transition and make some quick shots." This gave us confidence, and we kept building." Kahleah copper scored 33 points in her sixth match back after preseason surgery on her left knee, while Satou Sabally, a former Wing who returned to Dallas in the same season, had 20. The Wings fought back after the Mercury reduced an 18-point deficit by four points late in the third quarter. Tibbetts stated, "I thought that they became extremely comfortable." When you let a team play comfortably, the night will be long. "We need to be more aggressive defensively." Dallas beat the Mercury (12-6), causing them to lose their second consecutive game. The Wings scored 61 percent of their points in the first-half. Chris Koclanes, Wings' coach, said: "We have been discussing playing the full 40 minutes." "Thursday wasn't perfect but it was very close. We started well, shared the ball and defended each other. Dallas guard Arike Ogunbowale was forced to miss her first game on Thursday due to a thumb injury. Her teammate DiJonai carrington also missed the match with a rib fracture. Both are regular starters. Bueckers stated, "We have always been in it." If you watch our games, it's always close. If we could close out games better, our record would be completely different. Now it is coming together. "Any given night, anyone's night can be anyone's." Field Level Media
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Reeves, UK's Reeves, announces National Wealth Fund Investment in Carbon Capture
The British Finance Minister Rachel Reeves announced on Monday that the National Wealth Fund will invest 39 million pounds (28.6 million pounds) in a project to capture carbon emissions, which could lead to new jobs in northern and central England. Last year, Britain announced that it would invest up to 21,7 billion pounds in 25 years for the development of carbon capture and storage project to reduce emissions from industry and to create new jobs. Britain has set a target of achieving net zero emissions in 2050. CCS is needed to reduce emissions from industrial sectors that are energy intensive. Reeves, in a statement released by her ministry, will celebrate the funding on Monday as the first step toward the development of a pipeline for carbon capture between British cement and lime firms located in Britain's Peak District. The pipeline will store emissions beneath the Irish Sea. Reeves, in a press release, said that the National Wealth Fund was a force of growth. It invested 3 billion pounds to boost the British economy. "We are modernising the cement, lime and lime-based industries, providing vital carbon capture infrastructure, and creating jobs in Derbyshire, Staffordshire and North West, to put more money in the pockets of working people." Reeves, along with the rest of Keir-Starmer's Cabinet, are eager to demonstrate what the Labour Government is doing to transform Britain. They have announced new projects to do so after having been forced to make a series embarrassing U turns and to deal with a rebellion within the Labour Party over welfare reforms. These have raised concerns about the government's ability to reduce spending and party control.
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Leaders of the BRICS in Rio defend the multilateralism against attacks
Lula draws parallels with the Non-Aligned Movement of Cold War Group condemns attacks against Iran and Gaza, increasing tariffs Xi Jinping skips, Putin online, Modi and Ramaphosa present By Lisandra Paraguassu and Manuela Andreoni RIO DE JANEIRO - On Sunday, the BRICS leaders condemned the attacks in Gaza, Kashmir and Iran during their summit. They portrayed the group as a defender for multilateral diplomacy, while criticizing the U.S. trade and military policy. The expansion of BRICS is a response to the divisions in the G7 and G20 group of major economies and the "America First" policy of U.S. president Donald Trump. In his opening remarks, Brazilian President Luiz inacio Lula da silva drew an analogy with the Non-Aligned Movement of the Cold War, a grouping of developing countries that refused to join either side of the polarized world order. Lula said to leaders that "BRICS was the heir of the Non-Aligned Movement." "Multilateralism is under attack and our autonomy has been weakened once more." Lula warned business leaders on Saturday of the rise of protectionism by pointing out that BRICS countries now account for more than half of the world's total population and 40% its economic output. In 2009, the first BRICS summit brought together leaders from Brazil and India, as well as China. In 2009, the bloc was expanded to include South Africa, and in 2012, Egypt, Ethiopia and Indonesia. Indonesia is the first country to be included in this summit. The BRICS fill the vacuum that others leave almost immediately, said a Brazilian who requested anonymity. The diplomat said that although the G7 still has a lot of power, it doesn't hold the same dominance as before. There are still questions regarding the goals shared by a BRICS group that has become more heterogeneous, as it now includes regional rivals and major emerging economies. Chinese President Xi Jinping sent his Prime Minister in his place to steal some thunder at this year's Summit. Due to an international criminal court arrest warrant, Russian President Vladimir Putin will be attending the summit online. But on Sunday and Monday, several heads of states, including Indian PM Narendra Modi, and South African president Cyril Ramaphosa, gathered at Rio's Museum of Modern Art for discussions. Over 30 countries have expressed an interest in joining the BRICS either as full members, or partners. GROWING COMPLEXITY AND CLOUT The expansion of the BRICS group has given it more diplomatic weight. It aims to represent developing nations in the Global South and strengthens calls for reforming institutions like the United Nations Security Council, the International Monetary Fund, etc. Lula's remarks highlighted the failures of U.S. led wars in the Middle East. In a statement issued on Sunday afternoon the leaders condemned the military attacks against Iran’s “civil infrastructure and peaceful nuclear installations under the full safeguards provided by the International Atomic Energy Agency." The group expressed its "grave concern" over Israeli attacks in Gaza and condemned what it called "a terrorist attack" on Indian-administrated Kashmir. The joint statement on trade warned that the "indiscriminate rise in tariffs" threatened global trade. This continued the group's veiled critique of Trump's U.S. Tariff policies. The group expressed its support for Ethiopian and Iranian to join the World Trade Organization while calling to restore urgently its ability to settle trade disputes. As first reported last week, the leaders' statement backed plans for a pilot BRICS Multilateral Guarantees Initiative within the group's New Development Bank in order to lower financing costs while boosting investment in member countries. Brazil, which is also hosting the United Nations Climate Summit in November, has used both events to show how serious developing nations are about tackling climate changes, while Trump has put the brakes on U.S. initiatives. According to two sources familiar with the discussions regarding funding the conservation of endangered forest around the globe, China and the UAE indicated in their meetings with Brazilian Finance minister Fernando Haddad that they intend to invest in the proposed Tropical Forests Forever Facility. (Reporting and editing by Lisandra Andreoni and Manuela Paraguassu; Will Dunham, Bill Berkrot, David Gregorio and Brad Haynes)
Oil falls as OPEC+ increases August output more than anticipated
The oil price dropped more than 1% Monday, after OPEC+ surprised the markets by increasing output more than anticipated in August. This raised concerns about an oversupply.
Brent crude futures dropped 80 cents or 1.2% to $67.50 per barrel at 0010 GMT. U.S. West Texas Intermediate Crude was $65.68, which is down $1.32 or 2%.
The Organization of the Petroleum Exporting Countries (OPEC+) and its allies agreed to increase production in August by 548,000 barrels a day.
Tim Evans, of Evans Energy, said in a report that "the increased production clearly represents an aggressive competition for market shares and some tolerance for a resulting decrease in price and revenue."
The August increase is a big jump from the monthly increases that OPEC+ approved in May, June, and July. And 138,000 bpd for April.
OPEC+ cited a stable global economic outlook, healthy market fundamentals and low oil inventories as reasons to release more oil.
In a note, RBC Capital's analysts led by Helima Crockt stated that the decision would bring back nearly 80% (2.2 million bpd) of the voluntary cuts made by eight OPEC producers. The actual increase in production has been less than expected so far, and the majority of the supply comes from Saudi Arabia.
Saudi Arabia raised its August price of its flagship Arab Light crude on Sunday to a record high for Asia.
Goldman analysts anticipate OPEC+ will announce a final increase of 550,000 bpd for September during the next meeting, on August 3.
Separately Donald Trump, President of the United States, said that the United States was close to concluding several trade agreements and would notify other countries by July 9 about higher tariff rates. The higher rates are scheduled to go into effect on August 1, 2018. Florence Tan, Lisa Shumaker, and Christopher Cushing edited the report.
(source: Reuters)