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Austria's voestalpine demands EU steel tariff countermeasures and talks with US
The Austrian steelmaker, voestalpine, called on Wednesday for the European Union to take immediate countermeasures as well as trade negotiations with the U.S. in response to the steel tariffs announced earlier this week by President Donald Trump. Herbert Eibensteiner, CEO of voestalpine, said in a recent press conference that the American tariffs would certainly affect trade flows. He added that this shift "would be evident" over the next few months. The comments echo those of Aperam in France, which called on Brussels on Tuesday to intervene and curb imports should the new U.S. Tariffs encourage companies to ship to the EU. Eibensteiner stated that he was not the only person who urged the European Union to respond to this announcement. He called on the executive of the bloc to begin discussions on how to handle future reciprocal deliveries between the U.S. and the EU. Trump raised steel and aluminum import tariffs by a substantial 25% on Monday, an action that was condemned by the EU and Canada. The EU announced on Tuesday that it will respond to the new tariffs with "firm countermeasures proportionate to their severity". Voestalpine announced a decline in its third-quarter earnings on Wednesday and reduced its profit forecast for the full year, due to a weak European automotive market. (Reporting and editing by Milla Nissi; Kirsti Knolle and Marleen Kaesebier)
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MSCI removes Adani Green Energy from the key global index and adds Hyundai Motor India
MSCI has added one Indian company to its Global Standard Index late Tuesday, the carmaker Hyundai Motor India. Adani Green Energy was removed as part of the index revision for February 2025. Changes will be implemented at the close of the market on 28th February. MSCI's previous index reconstitution, in November, added five Indian companies to the global index, increasing India's weightage in the indicator that tracks emerging market to almost 20%. Overnight, the MSCI India Domestic Smallcap Index was rebalanced to include 20 Indian stocks, including Ola Electric Mobility and Sundaram Clayton, as well as Zaggle Prepaid Ocean Services. The MSCI Smallcap Index was reduced by 17 stocks. According to IIFL Capital and Nuvama Alternative and Quantitative Research the MSCI rejig may lead to an inflow of passive funds between $850 million and $1 billion to Indian markets. According to IIFL Capital, the private lender IndusInd Bank which is already a part of global standard index saw its weight increase, which could result in an influx worth $258 millions. MSCI has added eight Chinese stocks and deleted 20 from the second largest economy in the world. As part of this review, 107 securities will be deleted and 23 added to the MSCI Global Standard Indexes. India's weighting in the MSCI Global Standard Index dropped to 19% from 19.8% after the most recent revisions. China's weightage increased from 26.8% to 27.1%.
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Barrick Gold announces new share purchase plans after beating profit expectations
Barrick Gold Canada beat analyst's expectations for the fourth quarter profit on Wednesday due to higher gold prices and production. According to LSEG, on an adjusted basis the second largest gold miner in the world posted a profit per share of 46 cents, compared with the estimated 41 cents, for the quarter ending December 31. The quarter's gold production was 1.08 million ounces compared to 1.05 million in the same period last year. This is due to the North America, Africa, and Middle East operations exceeding expectations. In 2024, gold prices increased by over 27%, the biggest annual increase since 2010. This was due to safe-haven demands, rate reductions, and central bank purchases. Barrick reported that its average realized gold price rose to $2.657 per ounce during the fourth quarter of last year from $1.986. The industry's total costs, or all-in-sustaining costs, a measure of expenses, increased to $1.451 per ounce during the third quarter from $1.364 per an ounce a year ago. The company announced that it would be launching a new $1 billion share-buyback program, which will replace its previous program in place since February 14, 2024. (Reporting from Seher Dareen, Bengaluru. Editing by Maju Sam)
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Aluminium loses ground as copper gains on the back of tighter supply
On Wednesday, copper prices rose on tighter supply. Aluminium prices fell on profit-taking as well as concerns about the impact U.S. Tariffs will have on demand. By 1050 GMT the three-month contract for copper on London Metal Exchange (LME), which had reached its highest level in three months Monday, was up by 0.4% to $9,392 per metric tonne. Nitesh Sha, commodity strategist with WisdomTree, said: "What's clear is that metal markets are tightening. Copper supplies do not seem to be as abundant as they were back in 2024." The treatment charges (TC), which are the fees that miners pay to smelters in order to convert raw materials into metals, have declined, indicating an absence of material. A media report stating that Chinese authorities were exploring a plan for helping property giant Vanke fill a funding hole also helped the overall metals market. Metals prices have been affected by the ailing property market in China, the world's largest metal consumer. LME aluminum fell 1%, to $2,618 per ton, as investors liquidated long or bullish positions, amid uncertainty about the 25% tariffs President Donald Trump announced last week on imports of steel and aluminium, which are due to go into effect on March 12th. LME aluminium reached a three-week peak on Monday after tariffs were announced. Marex, a broker, said that the majority of the selling took place in China. Position reports showed the net long at the Shanghai Futures Exchange fell from 12,900 lots on Tuesday to 9,000. SHFE's aluminium production was down by 0.5% to 20,575 Yuan per ton. It's a tricky time. Shah said that it was difficult to predict whether or not these tariffs would be implemented and, if so, what impact they would have on demand. Zinc rose 1.8% to 2,871, while lead rose 0.6% to 1,991, and tin increased 0.9% to 31,435 dollars. Nickel fell 0.9% to 15,395. (1 Chinese Yuan Renminbi = 7.3088 Chinese Yuan) (Reporting and editing by Kirby Donovan; Eric Onstad)
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Trump prepares reciprocal tariffs amid trade war fears
Donald Trump's advisers on trade were finalising plans for the reciprocal duties that the U.S. President has promised to impose against every country which charges duties on U.S. imported goods, raising fears of an expanding global trade war. Separately the trade ministers from the 27 countries of the European Union are due to meet by video conference to decide their response to the European Commission President Ursula von der Leyen's statement that tariffs against the EU "will not be ignored". Trump shocked the markets on Monday with his decision to impose tariffs starting March 12 on all imports of steel and aluminum. Mexico, Canada, and the European Union condemned the plans, while Japan, Australia, and other countries said they wanted exemptions. Industries that depend on imports of steel and aluminum scrambled to reduce the expected cost increase. Trump announced last week that he would impose an additional 10% tariff for Chinese goods starting February 4. Chinese countermeasures will be implemented this week. He delayed the 25% tariff on goods coming from Mexico and Canada by a month, until March 4, to allow for negotiations about steps to secure U.S. border security and stop the flow of fentanyl. Many U.S. workers have welcomed the metal tariffs imposed on Monday, but manufacturing-heavy companies are deeply concerned about the next steps. They warn that the tariff increase will reverberate throughout supply chains and affect all businesses who rely upon the materials. Ahold Delhaize, a supermarket chain, and Siemens Energy have warned that tariffs will lead to higher prices because they want to pass on additional costs from imports. Steelmakers in Europe are also concerned that U.S. Tariffs could lead to an influx of cheap steel into Europe. French steelmaker Aperam If that happens, Brussels will intervene and curb imports. Austria's specialty steelmaker voestalpine Call us today to learn more about our services. On the EU to immediately take countermeasures Australia's Industry Minister meanwhile stated that the U.S. Tariffs will not derail Australia's plan to increase "green" aluminum exports. Ed Husic: "The world is in high demand for aluminium. We need it to transition to net zero." Reporters at the National Press Club, Canberra. "Our American friends, do you want to pay more money for this product you have a high demand for?" MONUMENTAL UNDERTAKING White House officials are being tight-lipped regarding the timing or structure of the next tariffs. One source has said that the announcement could come later this week. Trump announced on Monday that he will announce reciprocal tariffs within the next two business days for all countries who impose duties on U.S. products. He also said he is looking into separate tariffs for cars, semiconductors, and pharmaceuticals. Experts in trade say that structuring the reciprocal duties Trump wants presents big challenges to his team. This may explain why the latest tariffs were not announced Tuesday. William Reinsch said Trump officials can choose between a simple 10% or 20% flat tariff rate or a messier option that requires separate tariff schedules that match U.S. rates to those of other countries. A source who tracks the work on tariffs reported that details are still being worked out as late as Tuesday. Damon Pike is a principal and trade specialist with BDO International's U.S. division. He said that the reciprocal tariffs Trump envisaged would be a massive undertaking given that the 186 member countries of the World Customs Organization have different duty rates. "At an international level, you'll find 5,000 different product subheadings at the 6-digit level. That's 5,000 times 186 countries. "It's like an artificial intelligence project," said he. Trump could also use the International Emergency Economic Powers Act to justify tariffs on China, and those pending against Canada and Mexico. Pike added that, without IEEPA's help, it would take some sort of agency action before trade remedies could be imposed. "But everything seems to move quickly," he said. Reinsch stated that imposing reciprocal tariffs also ceded the control of U.S. tariff rates to other countries. "For instance, if Colombia had a high coffee tariff to protect their industry, we'd put a similar high tariff on Colombian Coffee, even though we do not grow coffee. "The only ones who would suffer are the U.S. consumer," he said.
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Minister says India is considering a temporary tax on imports of cheap Chinese steel
H.D. Steel Minister H.D. Kumaraswamy said that India could implement a temporary import tax of 15-25% in six months due to the "serious threat" to local producers from low-cost imports. Kumaraswamy stated. In an interview given late Tuesday, Kumaraswamy said that "rising Chinese steel imports are a major challenge for Indian manufacturers." "The government remains resolute to protect the Indian steel industry", Kumaraswamy said. New Delhi started an investigation in December to determine whether it should impose a temporary duty known locally as a "safeguard duty" to reduce steel imports. It could be in place for up to two years if adopted. The minister stated that "based on ongoing investigations, safeguard duty in the range 15-25% is being considered to ensure fair competition and level playing fields" as well as prevent unfair competitors. India became a net exporter of finished steel during the fiscal year that ended March 2024. Shipments from China also reached record levels between April and December. In the fastest growing major economy in the world, steel prices are down despite a robust local demand. As a result, some of India's smaller textile mills had to reduce their operations and even consider job reductions as a consequence of the recent import surge. Insiders in the industry say that President Donald Trump's steep tariff increases on imports of steel could worsen the problem as exporters may look to ship instead to India. South Korea and Japan may increase their import pressure in FY2026, as they seek alternative markets for the cargoes that were previously American. The pressure can be exerted on domestic steel prices and further reduce the earnings of the industry in FY2026. India's exports of steel have also fallen in recent months. This is primarily because global demand has been sluggish. It has exacerbated the problems faced by India's largest steelmakers, such as JSW Steel and Tata Steel. JSW Steel India's largest steelmaker reported last month a decline in profit from October to December, its third fiscal quarter, that was larger than expected. The government has been working to expand market access, Kumaraswamy stated, referring to India's efforts in finding new markets for steel. He said that India wanted to sell its high-quality steel to Africa and the Middle East. The price of high-grade steel is higher, and competition from China has lessened. Kumaraswamy stated that India also seeks to diversify its sources of raw materials for steel production, such as coking, by looking at Canada, Russia and other countries, including Mongolia, Mozambique and the United States. Australia accounted for about 80% all coking coal shipments to India during the past decade. In 2024, its share fell to 62% as the U.S., Russia and Mozambique supplied coking coal to India. The Minister also announced that the government will launch a programme of incentives linked to production in order to promote low-carbon steel production. The minister stated that India's steel sector would need to invest an estimated $20-25 billion in order to decarbonise. This transition will be funded by green bonds, public-private partnerships and concessional financing. (Reporting and editing by Kate Mayberry; Additional reporting in Bengaluru by Manvi Pan; Reporting by Neha Bhardwaj, Mayank Bhardwaj).
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Officials in Russia say that Ukrainian drones have hit a city near the Zaporizhzhia Nuclear Plant.
The regional governor, who is based in Moscow, said that Ukrainian forces carried out a drone strike on Enerhodar on Wednesday near the Zaporizhzhia Nuclear Power Plant held by Russia. The management of the plant said that no safety violations had been recorded. The message said that the radiation background is normal at the site as well as in the observation area. The drones struck a carpark about 300 metres from one of the reactors at the plant, wrote Governor Yevgeny Balitsky on Telegram. The report could not be independently verified. Ukraine has not yet commented. Russian forces took over the largest nuclear power plant in Europe, shortly after President Vladimir Putin's troops entered Ukraine in February 2022. The six reactors are all in "cold shut down" mode to reduce the possibility of an accident. Russia and Ukraine accuse one another of shelling the plant as well as the surrounding area. The International Atomic Energy Agency, the U.N.'s nuclear watchdog has placed permanent monitors on the site. It also urged both sides not to attack it. IAEA chief Rafael Grossi warned that attacks on the plant have increased. He added that it is impossible to determine who was responsible by studying the fragments of drones. (Reporting and Writing by Lucy Papachristou, Editing by Marktrevelyan & Gareth Jones).
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Vitol CEO: European LNG prices have reached levels that will affect demand
The European price of liquefied gas (LNG), currently trading at a premium compared to Asia, is reaching levels which will begin to hurt demand, said the CEO of global energy and commodities firm Vitol on Wednesday. "Europe is attracting more LNG, and the European price now exceeds the Asian price." Russell Hardy, speaking at the India Energy Week in New Delhi, said that it is usually the other way around. The higher European prices and lower temperatures have led to a greater demand for LNG in the region. Hardy stated that Europe will have sufficient gas to replenish its gas stocks, but added government intervention would be necessary to ensure adequate winter LNG supplies. "We have a very unique situation, where the market for gas is in reverse going into the summer. So the price is higher for the summer than the price of January next year." "That's counter-intuitive for a market based on winter," he said. As Europe's demand in winter is usually higher than that of summer. "So, you have this imbalance. The European Union is concerned with winter supply. Keeping people warm is also a priority. There's a worry today that this won't be possible without some force. This instruction is being developed in the EU, and will likely come with incentives, subsidies or negative-priced storage." Gas Infrastructure Europe reported that Europe's gas storage tanks are 48.48% filled, compared to 67% last year. Hardy said that while global LNG supply is "tight" at the moment, he doesn't expect any new policies from the top-producing country of the United States will change the global LNG supply balance. He added that 200 million new tons of LNG will be available on the market in the period 2028-2031. He said that the U.S. policy changes may not have a major impact on the balance of the United States by 2030, but could affect it in the next 10 years. (Reporting and writing by Emily Chow, New Delhi; editing by Himani Sarkar & Kim Coghill).
German Spot on Drop in Renewable Supply
The German spot electricity price for the day after rose on Wednesday, as it was anticipated that wind and solar energy supply would fall, while demand would increase.
By 0905 GMT, the German baseload electricity for Thursday had risen 8.2% to 164 Euros ($170.07) per Megawatt Hour (MWh).
The French power price for the day ahead rose by 1.5%, to 153 Euro/MWh.
LSEG data indicated that the German wind power production was expected to fall by 6.7 gigawatts on Thursday, to 11.5 GW. Meanwhile, wind energy in France should increase by 520 Megawatts (MW), to 2.5 GW.
The data revealed that the German solar power output was expected to fall by 1.4 GW - 2.5 GW.
Naser Hashemi, LSEG analyst, said that "residual loads are increasing (on Thursday in Germany) because of a combination between lower wind and solar output and higher consumption."
The French nuclear capacity has increased by two percentage points, to 84%.
LSEG data shows that power consumption in Germany will increase by 1.3 GW this Thursday to reach 64.8 GW. In France, it is projected to drop by 930 MW at 63.7 GW.
The German baseload year-ahead contract fell 0.2% to 100.05 euros/MWh, while the French baseload 2026 contract was not traded with a bid of 72.65 euro.
The benchmark European carbon permits fell 0.7% to 81.91 euro per metric ton.
Equinor, following a sudden shutdown on the previous day, has partially restored production at the giant Johan Sverdrup field in the North Sea. The company is now working to achieve full capacity. (Reporting and editing by Mrigank Dahniwala; $1 = 0.9643 euro)
(source: Reuters)