Venture capital (VC) investors welcomed the changes proposed by the government to angel tax provisions that were originally announced in the Union budget for 2023-24, saying they provide much-needed clarity on incidence of the tax while preventing it from being arbitrarily applied.
The Centre has raised the funding support for electric buses and two-wheelers but slashed the subsidy for three-wheelers as part of a major rejig of the ₹10,000-crore electric vehicle (EV) incentive scheme.
Some, in a Pavlovian response, rushed to buy gold; others spent the weekend pondering over the task at hand. Those who panicked never showed it, and almost everyone agreed that a visit to the bank was a bad idea.
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Exxon Mobil XOM -1.21%decrease; is bracing for a future far less dependent on gasoline by drilling for something other than oil: lithium.
The Texas oil giant recently purchased drilling rights to a sizable chunk of Arkansas land from which it aims to produce the mineral, a key ingredient in batteries for electric cars, cellphones and laptops, according to people familiar with the matter.
Lithium is far removed from the fossil-fuel business, which has powered Exxon’s XOM -1.21%decrease; red down pointing triangle profits for more than a century, and signals the company’s assessment that demand for internal combustion engines could soon peak, the people said. It would also mark a return for the company to an industry it helped pioneer almost 50 years ago.
Exxon bought 120,000 gross acres in the Smackover formation of southern Arkansas from an exploration company called Galvanic Energy, according to some of the people. The price tag was more than $100 million, people familiar with the matter said, a relatively small transaction for a company of Exxon’s size.
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The new venture doesn’t amount to a significant strategic shift for Exxon, which has said it is confident that oil and gas will be needed for decades. But Exxon is looking to gain a foothold in a region believed to contain vast lithium reserves, both to produce the mineral and to test the viability of extraction technologies.
Exxon could begin drilling on the prospect in the coming months, people familiar with the matter said, and could expand its operations if it proves profitable.
Galvanic said last year that a third-party consultant it hired estimated the prospect could have 4 million tons of lithium carbonate equivalent, enough to power 50 million EVs. Extracting lithium from brine involves drilling for, piping and processing liquids, processes in which oil-and-gas companies have long developed expertise, making them well suited to produce the mineral, lithium and oil executives said.
Exxon projected last year that light-duty vehicle demand for internal combustion engine fuels could peak in 2025, while EVs, hybrids, and vehicles powered by fuel cells could grow to more than 50% of new car sales by 2050. The company has also projected the world’s fleet of EVs could climb to as much as 420 million by 2040, up from 3 million in 2017.
Exxon Chief Executive Darren Woods said last year that fossil-fuel demand would remain robust for decades, driven by the production of chemicals and heavy transportation and industry.
Lithium production would also diversify Exxon’s portfolio and expose it to a rapidly growing market. The company is positioning other parts of its business to accommodate electric vehicles. Exxon executives have said many of its chemical products supply EV manufacturers, whose cars are made with plastics and other petroleum products.
https://www.zacks.com/stock/news/2098143/exxonmobil-(xom)-acquires-drilling-rights-in-arkansas-land
Stocks have shown a recent tendency to shake off anything remotely bearish.
The latest example of this indifference occurred on Monday, when the S&P 500, the Nasdaq 100, and the Russell 2000 all managed to close higher, despite concerning rhetoric from Fed officials.
James Bullard, president of the St. Louis Fed, expressed his belief that the Fed funds rate should rise another 50 basis points. Bullard is not a voting member of Federal Open Market Committee in 2023.
Neel Kashkari, president of the Minneapolis Fed, is a voting member of the FOMC. Kashkari also hinted at further rate hikes on Monday, stating, "If we were to skip in June, that doesn't mean we're done with our tightening cycle."
How did the Nasdaq 100 respond to these hawkish comments? By closing at a 52-week high.
The Nasdaq continues to be powered by a handful of mega-cap names, like Meta Platforms (META) . The parent company of Facebook and Instagram climbed 1.17% on Monday, despite news that the company faces a $1.3 billion fine from the European Union. Meta Platforms has gained 106.4% year to date.
In addition to the stellar performance from Meta, Nvidia (NVDA) has gained 113.36% this year. Amazon (AMZN) has climbed 37%, Apple (AAPL) and Microsoft (MSFT) have gained 34%.
The S&P 500 is on the edge of a breakout. The large cap index has formed a huge ascending triangle (black dotted lines). A close above 4200, just eight points above Monday's close, places the index at an eight-month high.
All charts by TradeStation
How can markets be so sanguine in the face of hawkish rhetoric from Fed officials? The answer may be contained in the following chart.
Copper has broken down from a descending triangle pattern (black dotted lines). The breakdown occurred on heavy volume (arrows). The red metal is trading beneath its 50-day (blue) and 200-day (red) moving averages, and is just above its lowest level of the year.
Why is this chart important? Hawkish Fed officials have repeated warned about sticky inflation.
On Monday, Bullard noted that he'd prefer rates rise "sooner rather than later" because inflation remains persistently high. Kashkari described services inflation as entrenched.
Because China is the world's largest consumer of copper, the drop in copper prices could be an indication of slowing growth in that country.
Japan's Nomura Bank believes China's economy is slowing. Nomura recently cut its 2023 GDP growth forecast for China from 5.9% to 5.5%, citing a post-Covid recovery that is "rapidly losing steam". The decline in copper likely reflects falling demand, particularly for China's manufacturing sector. It's possible that global rate hikes are finally having their desired effect.
Bottom line: Copper's decline could be telling us that so-called sticky inflation is about to become unstuck. If true, that's good news for both consumers and investors.
By Laura Sanicola
(Reuters) -Oil prices fell more than $3 at one point on Thursday, after Russian Deputy Prime Minister Alexander Novak played down the prospect of further OPEC+ production cuts at its meeting next week.
Brent crude futures were down $2.85, or 3.6%, to $75.51 a barrel by 12:08 p.m. EDT (1708 GMT). U.S. West Texas Intermediate crude (WTI) fell $2.99, or 4%, to $71.35. At their session low, both benchmarks were down by more than $3.
Oil prices began falling after Novak was quoted saying he did not think additional OPEC+ cuts were likely.
"I don't think that there will be any new steps, because just a month ago certain decisions were made regarding the voluntary reduction of oil production by some countries..." Novak was quoted as saying by Izvestia newspaper.
In recent days, top OPEC+ producers have given a raft of conflicting messages about next oil policy moves, making it difficult to predict the outcome of the next meeting.
On Tuesday, oil prices were supported when Saudi Arabia's energy minister warned that short-sellers betting oil prices will fall should "watch out" for pain.
Some investors took that as a signal that OPEC+, the Organization of Petroleum Exporting Countries and allies including Russia, could consider further output cuts at a meeting on June 4.
"It's now OPEC+ producers experiencing the 'ouch'," said John Kilduff, partner at Again Capital LLC in New York.
Just a week before Prince Abdulaziz's comment, Russian President Vladimir Putin said that oil production cuts were required to maintain a certain price level.
Uncertainty over the U.S. debt ceiling also weighed on prices and sent equities lower on Thursday.
Some progress had been made but several issues remained unresolved in negotiations, House Speaker Kevin McCarthy said on Thursday, as the deadline ticked closer to raise the federal government's $31.4 trillion borrowing limit or risk default.
(Additional reporting by Alex Lawler in London and Jeslyn Lerh in SingaporeEditing by Mark Potter, Kirsten Donovan and David Gregorio)
https://finance.yahoo.com/news/oil-prices-fall-us-debt-004645911.html
The catalytic activity of molybdenum trioxide nanobelts (MoNB) in oxidative desulfurization of dibenzothiophene was investigated. The MoNB was produced by simple hydrothermal treatment of MoO 2 (acac) 2 aqueous solution without further use of the surfactants or templates. The material was characterized by transmission and scanning electron microscopes, X-ray diffraction, FTIR, Raman, and EPR spectroscopy. The results revealed that the surface Mo(VI) sites of MoNB interacted with H 2 O 2 , forming reactive peroxo-Mo(VI) groups. As a result, the catalyst exhibited high efficiency for oxidative desulfurization of DBT. The effects of H 2 O 2 /DBT molar ratio, catalyst dosage, and temperature on the catalytic properties of MoNB were studied in detail. Under mild reaction conditions, MoNB could be recycled five times without significantly decreasing activity, and N-compounds (quinoline) can be simultaneously removed in the same reaction medium, proving to be a promising alternative for applications in reactions complementary to traditional hydrodesulfurization.
https://link.springer.com/article/10.1007/s13738-023-02782-1
The remarks were delivered to Japan’s Kyodo News as leaders of Canada, France, Germany, Italy, Japan, the UK, and the US met in Hiroshima on Saturday to kick off the G7 meeting.
United Nations Secretary-General António Guterres. (UN photo)
UN Secretary-General Antonio Guterres said on Saturday that the actions and decisions of the G7 nations risk dividing the world into two distinct blocks similar to those of the Cold War era, prompting the world to align either with the US or with China.
"I believe it is very important to avoid the division of the world into two, and it’s very important to create bridges for serious negotiation," he said.
The remarks were delivered to Japan’s Kyodo News as leaders of Canada, France, Germany, Italy, Japan, the UK, and the US met in Hiroshima on Saturday to kick off the G7 meeting.
Guterres further called for "active dialogue and cooperation" between the G7 and China on matters pertaining to the climate and socioeconomic development.
Read more: China and Russia MoF criticize decisions of G7 summit
The UN chief has several times over the past years issued warnings of an incoming Cold War between the West and China.
In 2019, he coined the differing economic, political and military interests of both sides as the "great fracture."
Relations between the US and China have particularly reached an all-time low since the US made the provoking move of sending its former House Speaker Nancy Pelosi to Taiwan in August 2022.
While Guterres called on the G7 to refrain from proceeding with such a route, Western leaders on the other hand made Russia and China the subjects of a joint statement on nuclear weapons on Friday - reinforcing the very division that Guterres is warning against.
When developing countries fail, the world fails.
I’m in Hiroshima to urge #G7 countries to deliver financial justice for developing countries so they can invest in their people — education, health, decent jobs, gender equality. pic.twitter.com/1yOVfKXmLO — António Guterres (@antonioguterres) May 20, 2023
According to the statement issued by the G7, Russia was accused of "irresponsible nuclear rhetoric" and "undermining of arms control regimes," while China's modernization of its nuclear arsenal was described as a "concern to global and regional security."
Russia, on the other hand, outwardly condemned the UK for supplying depleted uranium ammunition to Ukrainian forces.
On Friday, Russian Security Council Secretary Nikolay Patrushev stated that Russian forces struck a warehouse containing British-supplied depleted uranium shells in the city of Khmelnitsky last week, sending a "radioactive cloud towards Western Europe."
Read more: US uses G7 as ‘tool’ to maintain hegemony: DPRK FM
Yesterday, the head of the Wagner Group private military company, Yevgeny Prigozhin, said that the Russian Armed Forces have gained full control over the city of Bakhmut.
Russian President Vladimir Putin attends a BRICS+ meeting during the BRICS summit via a video link in the Moscow region, Russia June 24, 2022. (Reuters)
The Kremlin press service said on Saturday that Russian President Vladimir Putin has congratulated the Russian armed forces and Wagner Group private military company (PMC) for their joint efforts in liberating the city of Bakhmut in the Donetsk People’s Republic (DPR).
"Vladimir Putin congratulates the Wagner assault units, as well as all the servicemen of the units of the Russian Armed Forces, who provided them with the necessary support and flank cover, on the completion of the operation to liberate Artemovsk [Bakhmut]," the Kremlin press service said in a statement.
"All distinguished individuals will be presented for state awards," the Kremlin said.
Read more: More time is needed before start of counter-offensive: Zelensky
Yesterday, the head of the Wagner Group private military company, Yevgeny Prigozhin, said that the Russian Armed Forces have gained full control over the city of Bakhmut.
Shortly after, the Russian Defense Ministry confirmed that the liberation of Bakhmut had been completed.
"In the Artemovsk [Bakhmut] tactical direction, as a result of the offensive actions of the Wagner assault units, with the support of artillery and aviation of the Yug Group of Forces, the liberation of the city of Artemovsk was completed," the Russian Defense Ministry said in a statement.
Bakhmut, situated north of Donetsk, holds strategic significance for the course of the war. The city had long been the transportation route of food and supplies for the Ukrainian troops stationed in Donbass.
In January this year, Prigozhin announced that Soledar became under the control of Russian forces.
Five hundred Ukrainian troops were reportedly killed in Soledar after refusing to capitulate, according to Prigozhin.
On September 30, 2022, President Vladimir Putin and the heads of the Donetsk and Lugansk People's Republics, as well as the Kherson and Zaporozhye regions, signed agreements on the accession of these territories to Russia, following referenda that showed that an overwhelming majority of the local population supported becoming part of Russia.
Read more: Russian Kinzhal missile destroys US Patriot system in Kiev: MoD
Investing.com - The U.S. banking crisis, which has claimed a few victims since March, is the direct result of the Fed's fight against high Inflation. Uncertainty about the health of regional banks and rising yields in the money market led to a steady outflow of deposits, bringing banks' balance sheets to their knees.
The primary beneficiaries of this situation are large banks like JPMorgan (NYSE:JPM), as they are trusted more.
CEO Jamie Dimon is aware of this fact and warned, not entirely disinterestedly, at JPM's Investor Day on Monday that further turmoil in the banking sector is to be expected. Although JPM, as a bedrock in U.S. banking history, has seen its fair share of turmoil, Dimon could not reassure investors that even he cannot say what impact the current Fed monetary policy will have:
"We've never had QT before. It just started, okay? And you see huge distortions in the marketplace already. We've never had the Fed in the market like this with that RRP program that Jeremy mentioned ever. They have $2.3 trillion basically lent out to money funds. And I don't know the full effect of that. And obviously, that's a direct deduction from deposits are rolling out it made sense to do."
The JPM CEO pointed out during his presentation that the acquisition of First Republic Bank (OTC:FRCB) was a fluke for investors. This is because JPM did not acquire all of its businesses, but only the most profitable ones, from which it continues to profit even as interest rates continue to rise.
That's why Dimon was also able to announce at the investor day that net interest income this year will be $84 billion instead of $81 billion.
According to Dimon, the current situation will inevitably lead to banks raising the bar for lending. Especially in the commercial real estate sector, things are looking increasingly bleak. That's because, according to Goldman Sachs) economists, 80 percent of those loans are made by regional banks. That is, from those institutions that have suffered the most from the monetary policy of the Fed and the outflow of capital. As CNN reported, Dimon said:
"You’re already seeing credit tighten up because the easiest way for a bank to retain capital is not to make the next loan,"
The JPM CEO is convinced that the situation will get worse, because contrary to market expectations that the Fed has reached the upper end of its interest rates, he expects higher interest rates, as he explained:
"I think everyone should be prepared for rates going higher from here. You should be prepared for 6 or 7 percent."
(Translated from German)
Related Articles
Jamie Dimon warns of 7% Fed rate, banking crisis, bleak commercial real estate
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Amgen settles patent lawsuit over biosimilar of J&J's big-selling Stelara
https://finance.yahoo.com/news/jamie-dimon-warns-7-fed-101749101.html
Botswana is set to dump its deal with De Beers, which could shake up the diamond business. / bne IntelliNews
By Richard Chetwode in London May 25, 2023
Last year, the ‘Knot’, the highly rated American wedding magazine, asked 12,000 newly wed couples whether they had chosen a natural or a lab-grown diamond for their engagement ring. This year they published the result… 36% chose the latter. In context, that’s by weight, not value, and engagement rings make up only 25% of the diamond jewellery market, but even so, that’s a worryingly big number.
In fact, the natural diamond industry is under threat as never before. The Natural Diamond Council does a fantastic job of promoting the “Diamond Dream” but it’s massively underfunded. Russia is (for obvious reasons) persona non grata, and the Kimberley Process is unsuited and unable to bring in the necessary changes. So yet again the industry falls back on the partnership which has given stability to the industry for the last half century – De Beers and the government of Botswana… except you may not have noticed; their relationship may be about to go up in smoke.
The 50:50 joint venture
By way of background, the Government of Botswana and De Beers both own 50% of Botswana’s largest diamond mining company ‘Debswana’. The profits are split 81.8% to Botswana; 19.2% to De Beers, but the development capital is split according to the shareholding, i.e. 50:50. So (in just one example) for its 19.2% profit share, De Beers pays half the costs of the $2bn ‘Cut 9’ development at Jwaneng (which only comes into production in 2027), and half of the $6bn to go underground (which will only come into production in 2034). That profit ratio, which is so in Botswana’s favour, would scare away most global mining companies, but it worked because the mines were so rich that it was a reasonable return (although as the mines get deeper, the increasing costs don’t make it as attractive as it once was), but more importantly it also worked because De Beers sees this as a partnership where the people of Botswana must be the main beneficiaries, for the betterment of all the people.
To their credit, De Beers continues to make a significant financial, environmental (not least in the Okavango) and social contribution to the country. During Covid, De Beers secured half a million Moderna vaccines for Botswana and contributed millions of dollars to support local communities in the procurement of medical supplies, logistical support, vulnerability assessment support plans…etc, Why? – it’s part of their DNA.
The marketing contract
De Beers had a ten-year marketing contract whereby 25% of Debswana’s production was sold direct through their wholly owned auction company (Okavango Diamond Company – ODC); 40% was sold by De Beers to diamantaires who cut and polished some of their diamonds in-country and the remaining 35% De Beers sold to their own customers. If they sold the diamonds for more than the expected price, they shared the upside with Botswana; if prices fell, they took all the pain themselves. A 5% fee covered the costs of sorting and sales (any profit remaining was split with Botswana) and De Beers received a further 5% marketing fee, which (only partially) contributed to De Beers’ corporate overheads, its funding of 50% ($45mn) of the Natural Diamond Council, and tens of millions of additional marketing for promoting ‘ForeverMark' and ‘De Beers Jewellers’, all of which went to promoting natural diamonds (Botswana also owns 15% of De Beers).
De Beers has also built a state-of-the-art diamond tracking system (Tracr) ‘best-in-class’ diamond grading (IIGDR), is the only diamond company to spend millions on R&D to defend the ‘integrity’ of natural diamonds… the list seems to go on and on, but all of these benefit Botswana. I challenge anyone to find a better deal in any other country.
Yet three years ago this marketing agreement came up for renewal, and it has been rolled over again and again, but next month is D-Day. Why is it still unsigned? Because the President of Botswana, President Mokgweetsi Masisi, has decided that he has found a much better sales model which will transform Botswana’s revenues from diamonds. That model is based on the current sales agreement between Canadian listed Lucara Diamonds and diamond manufacturer HB Antwerp…. and it was reading Lucara’s recent results which jogged me into writing this article. It also seems that the government has taken against De Beers… but let’s have a look at what has got President Masisi and the Botswana government so excited.
The HB/Lucara agreement.
Since mid-2020, Lucara has sold its +10.8 carat diamonds to HB, who use their proprietary technology to calculate the value of the polished outcome; Lucara receives an ‘initial payment’ based on a (undisclosed) percentage of that value. HB’s fees haven’t been made public, but market insiders suggest they take a 5% manufacturing fee and 15% margin (total 20%). When the polished diamond is sold, HB makes a ‘top-up’ payment to Lucara for the difference between the ‘initial payment’ and the sale value (minus HB’s margin). In the event that the polished diamond sells for less than the initial payment (plus HB’s fee) Lucara has to reimburse HB.
What can they do for Botswana?
You can only congratulate HB… what a great deal – they are achieving margins that most manufacturers can only dream about – by my estimate, their revenue to date from this deal (costs plus margin) is around $86mn (19.4% of the total polished value – seems to add up!).
But isn’t this also a game-changer for Lucara, and by inference, Botswana? To find out how good it is, you only have to read the numbers that HB are being quoted on. Just to grab a couple…
But before we start doing high fives around the room, let’s just double check the numbers, because if these claims have merit, we should be saying so; if they don’t, it’s even more important to call it out.
Outside impact of Lucara’s results
Lucara’s agreement with HB commenced in the second half of 2020, but three factors impacted short term; first Covid; second, the time lag between rough diamonds sold to HB and their final sale in polished form; and third, a longer time lag to polish the larger, more complex stones. All of which meant some of the ‘top-up’ revenue would be outstanding at any given time. But the good news was that the wind was in Lucara’s sails; +10.8 carat diamond prices performed well during the pandemic and rose significantly in the boom of 2021 (even if they have come back down since).
What their results actually tell us
Using the numbers in its quarterly reports since the agreement started, Lucara has received ‘initial payments’ from HB of $285mn (for 56,066 carats), and ‘top-up’ payments of $73mn (a 25% premium net of HB’s fees) equal in total to $6,385 per carat.
But that 25% premium is not all ‘value added’. Lucara have never claimed that the ‘initial payment’ is the market price of a rough diamond – it patently isn’t, by the way. It is a set (undisclosed) percentage of what HB decide is its polished value. Even if an independent valuer gives a market valuation on the rough diamonds (I have found no proof that they do), that comparison isn’t shown to shareholders who might want to make their own judgement, but in truth, I’m not a shareholder so, so what? because it’s very important when looking at this from Botswana’s perspective, so let me explain in numbers.
The value of the 10.8 carat diamonds in the ground
Since the HB agreement was signed, Lucara have mined almost exclusively from one part of the deposit (not in Q1 2023, but most of the diamonds sold would have been recovered in Q4 2022), the high value South Lobe – M/PK(S) and EM/PK(S).
In December 2019, Lucara published an ‘NI 43-101 Technical Report’ and in the ‘value distribution model’, the ‘+10.8 carat diamonds’ in the South Lobe had an estimated rough diamond value of $7,600 per carat (importantly this model excludes exceptional diamonds like the 813 carat Constellation which sold for $63mn). Yet with the HB deal, Lucara have only realised $6,385 per carat. To be conservative, I’ll add on an assumed $25mn of ‘top up’ fees still to come through: still only $6,831 per carat … where’s this fabled 40% premium? They can’t even get to the resource numbers.
Maybe they weren’t recovering larger stones? Except the eight quarterly reports for 2021 and 2022 all quote words to the effect of… “recoveries during the quarter were within the expected range of the South Lobe resource model. I think a pig just flew past my window.
Let’s deal with a simple truth about the diamond business. The diamond industry is filled with some of the brightest and sharpest traders in the world: most are razor sharp! No diamantaire is going to pay one company 40-45% more for a polished diamond than he can get from someone else. GET REAL!
Is there an easy solution? Of course! Let HB tender for +10.8 carat diamonds at ODC’s auctions along with everyone else, then they can buy them at market price and demonstrate that they can make this fabled 40%. Hold on, though, there’s a better way. In its recent tender, ODC didn’t sell about $20mn of diamonds because the bids weren’t high enough. Since ODC knows what those bids were and therefore what the prevailing market price was, why doesn’t the government ask HB to buy those diamonds (at those prices) to demonstrate how they make an additional 40%. If they do, I’ll eat my hat … don’t worry, my hat is quite safe.
What is the government up to? I can quite see why they want 24% of HB…it’s a money printing machine, but for whom, and at what opportunity cost to Debswana (and let’s not forget its partner De Beers)? At the same time, they seem to be ‘allowing’ a concerted media campaign to attack De Beers… to squeeze the last pips out of the lemon. I’ve literally just read a very recent article in the (Botswana) ‘Sunday Standard’ to see the claim that “Research has revealed that De Beers makes upwards of 300% more from Botswana’s diamonds than [the] Botswana government mostly from jewellery manufacture and retail”. Really? Anything to do with jewellery sits in De Beers Jeweller’s (DBJ) accounts, and in 2020 DBJ lost $15mn on sales of $139mn and in 2021 DBJ lost $13mn on sales of $164mn (2022 hasn’t been filed yet). Whatever the journalist is smoking could he please share it around! There won’t be any winners from this fight… but it does have the potential to harm everyone, especially Botswana.
The message to Botswana’s parliament and the whole country must surely be: it takes decades to build up the enviable reputation Botswana has; it only takes a few weeks to damage it permanently. Why is the government doing this? Why are they putting up a huge sign saying “Botswana isn’t open for business”?
Richard Chetwode holds a number of non-executive roles in the diamond and property industry. He is a part-time journalist and is currently writing a book on the diamond industry in World War II (“When Diamonds changed Forever”). All the opinions in this article are his own but while efforts have been made to ensure the accuracy and reliability of the information provided in this article, neither can be guaranteed. and information in this article is strictly for informational purposes and should not be considered investment or financial advice. Consult your investment professional before making any investment decisions.
Georgetown (Guyana), May 20: American oil giant ExxonMobil said Friday it had appealed a recent Guyanese court ruling forcing it to set aside hundreds of millions of dollars in the event of a major oil spill off the coast of Guyana.
The company said in a statement that the court had failed to consider that Exxon and consortium partners Hess Corporation and China National Overseas Offshore Corporation have the “undoubted ability” to meet their financial obligations in the event of a spill at their operation.
The consortium is operating the prolific Stabroek Block near the southeastern border with Suriname.
In the ruling two weeks ago, Guyana’s high court ordered the local environmental agency to obtain independent liability insurance from Exxon’s subsidiary Esso Exploration and Production Limited. It also sought an unlimited guarantee from its parent company in the case of damage caused by operations in the South American country.
Rights activists and environmentalists fear that a spill could severely impact the country’s marine resources while devastating the tourism economies of nearby Caribbean nations.
Exxon, the lead operator in the consortium, has argued that a spill is highly unlikely, and that the court had “failed to recognize the ability of the Stabroek block co-venturers to meet our financial obligations, which are supplemented by the insurance that we already have in place and the agreement we reached with the EPA for financial guarantees that exceed industry benchmarks.”
Production began in December 2019, with some 380,000 barrels a day expected to soar to 1.2 million by 2027.
Guyana’s government said this week that it supports the appeal, contending the judge had erred in the ruling in part because the environmental agency already has agreed with Exxon on the amount of money to assess for each oil field in the event of a spill. (AP)
Deputy Foreign Minister Piotr Wawrzyk said that Poland has the right to assert its claims if Gazprom fails to meet its obligations. This is how he commented on Europol Gaz’s request for arbitration in Stockholm with a lawsuit against Gazprom for a refund of PLN 850 million.
The Russians owe EuRoPol Gaz a fortune. International arbitration for PLN 850 million and PLN 5 billion The owner of the Polish section of the Yamal gas pipeline, EuRoPol Gaz, has asked Russia’s Gazprom to settle claims totaling about PLN 6 billion
Piotr Wawrzyk, who was a guest Program “Mila 20” in TVP Info said that this case proves the need to set up a state commission to investigate Russian influence on the internal security of the Republic of Poland in 2007-2022.
The amount of PLN 850 million relates to overdue payments for gas transportation – last year Gazprom stopped gas transit to Europe via Poland, from which Europol Gaz earned.
ALSO READ: Poland took control of Gazprom’s assets in Poland
The company from Osijek was obliged to ship the raw material at least until 2045, which is why the Polish company suffered a significant loss. Poland will demand reimbursement of all lost benefits.
https://newsbeezer.com/polandeng/piotr-wawrzyk-gazprom-has-not-fulfilled-its-obligations/
International Energy Agency (IEA) does not expect moves by the Group of Seven nations to counter the evasion of price caps on Russian energy will change the supply situation for crude oil and oil products, the IEA’s Executive Director Faith Birol said.
The G7, the European Union and Australia agreed to impose a 60 (UD-Dollar) 9-per-barrel price cap on Russian seaborne crude oil and also set an upper price limit for Russian oil products to deprive Moscow of revenues for its invasion of Ukraine.
The G7 will enhance efforts to counter evasion of the caps “while avoiding spill over effects and maintaining global energy supply”, the group said on Saturday, without giving details, during its annual leaders’ meeting.
The IEA, which provides analysis and input to the G7 on energy, does not see the enhanced enforcement of the price caps affecting the global oil and fuel supply, Birol told Reuters in an interview on the side-lines of the summit.
“Any significant changes in the markets as always we will reflect in our analysis, in our reports, but for the time being I don’t see a reason to make a change in our analysis,” he said.
According to Birol, the price cap reached two main objectives: it did not trigger tightness in the markets as Russian oil continued to flow but at the same time Moscow’s revenues were reduced.
“Russia did play the energy card, and it did fail. But there are some loopholes, some challenges for the better functioning of the oil price cap,” Birol said.
GAS INVESTMENTS
The G7 has also brought support for the gas investment back to the communique on Saturday in that it said was a ‘temporary ‘solution to address potential market shortfalls and as nations are trying to de-couple from the Russian energy.
The move has alarmed climate activists who warned the group may fail to deliver on its goal to achieve net-zero carbon emissions by 2050 and limit global warming to 1.5 degrees Celsius (2.7 Fahrenheit).
“It may have some impact but countries once again reiterated that if there are some impacts to slow down in that area, they are going to accelerate in the other areas that it will not change their determination of reaching the 1.5 degree Celsius goal,” Birol said.
“The clean energy transition is happening and much faster than many think.”
The language change was brought in by Germany, once a top buyer of Russian gas, sources have said, and the communique did not have a time frame for investments into the gas sector.
“There is no determination of any time frame there, but I think the main issue is because of the reliance of especially European countries on Russian gas almost for decades. Now it is not easy to change everything from one day to another,” Birolsaid.
“(German) Chancellor (Olaf) Scholz made clear again and again that Germany is very keen to reach this 1.5 degrees target. And I believe in his words.
https://www.sabcnews.com/sabcnews/oil-supply-wont-be-affected-by-stricter-price-cap-enforcement-iea/
Asia to drive oil demand growth in second half, says Vitol
(Reuters) - Asia will lead oil demand growth of around 2 million barrels per day (bpd) in the second half of the year, a senior executive at Vitol said on Monday, an increase that could potentially lead to a shortage of supply and drive up prices.
International benchmark Brent crude has fallen to around $75 a barrel from a peak of nearly $140 in March last year, just after the disruption caused by oil producer Russia's invasion of Ukraine.
Prices have drawn support from surprise voluntary output cuts by some members of the Organization of the Petroleum Exporting Countries and allies, including Russia (OPEC+) announced in April. The group meets again on June 4 to review output policy.
"We are going into the second half of the year where, largely thanks to Asian demand growth, the world is going to need about 2 million bpd more than it needs now," Mike Muller, Vitol Asia president, told the Middle East Petroleum & Gas Conference in Dubai.
"For those of you asking whether OPEC+ needs to take more off the market or not, I will then let you draw your own conclusions," he said.
Muller's view echoes remarks from the International Energy Agency, which shortly after OPEC+ announced its output cut in April, said the producer group risked exacerbating an oil supply deficit expected in the second half of the year.
Also speaking at the Dubai conference, Fereidun Fesharaki, chairman of the FGE energy consultancy said the world could face a supply problem as Western sanctions on Russian oil curtail production growth if demand growth rises as predicted.
Russia can maintain production at around 10 million to 11 million bpd, he said, but would be unable to contribute sufficiently to ensure 2 million bpd of future growth given Western sanctions imposed on Russia following its invasion of Ukraine.
Fesharaki said he saw OPEC behaving very differently from when U.S. shale oil was its main threat and the grouping sought to limit price growth to discourage expensive shale projects from coming online.
Now he said OPEC would seek to monetize oil resources before demand for fossil fuel peaks as many countries shift towards low carbon energy.
Fesharaki said he saw "a desire to keep oil prices above $80 a barrel and a willingness to go over $100 if the market tightens".
OPEC Secretary General Haitham Al Ghais, who attended the event, did not discuss the short term, but reiterated a warning that underinvestment in the oil and gas sector in the long term could cause market volatility.
He also said the world needs to focus on reducing greenhouse gas emissions rather than replacing one form of energy with another, and that major investments were needed in all energy sectors.
"That is the truth that needs to be spoken," Al Ghais said.
Data source: U.S. Energy Information Administration, U.S. Energy Information Administration, Short-Term Energy Outlook , May 2023
We lowered our crude oil price forecast for the rest of 2023 and for 2024 in our May Short-Term Energy Outlook (STEO) because of relatively rapid declines in the crude oil price since April. Between April 12, 2023, and May 4, 2023, the Brent crude oil price fell $16 per barrel (b) to $73/b; the West Texas Intermediate crude oil price fell $15/b to $69/b. We expect that a drop in OPEC production and increases in demand will lead to relatively moderate price increases over the next few months.
The recent price declines are caused by a combination of supply and demand market factors. On the demand side, news of a decrease in China’s manufacturing Purchasing Managers’ Index, an indicator of economic conditions, added to market concerns about China’s economic growth and a possible U.S. recession. Concerns about the banking sector after First Republic Bank was closed and subsequently sold also added to concerns about global economic growth and oil demand.
On the supply side, oil flows from Russia have remained higher than expected, increasing global oil supply and putting downward pressure on crude oil prices. However, in April 2023, OPEC+ members agreed to cut oil production through 2023. In our May STEO, we forecast that OPEC total production of liquid fuels will decline from 34.0 million barrels per day (b/d) in April to average 33.7 million b/d for the rest of 2023.
In addition to our expectation that OPEC+ countries will adhere to voluntary production cuts, recent disruptions to crude oil exports from Iraq and a force majeure limiting crude oil exports from Nigeria have also reduced our near-term OPEC liquid fuels production forecast. We expect that these supply constraints will put upward pressure on crude oil prices. In 2024, we expect OPEC liquid fuels production will increase by 0.7 million b/d to 34.4 million b/d, driven by an end of the currently agreed upon OPEC+ production cuts in 2023.
We expect the Brent crude oil price will increase from $74/b in May 2023 to $79/b in September before declining slightly to average $78/b in the last three months of 2023. We expect the West Texas Intermediate price will follow a similar path.
Principal contributor: Matthew French
Oil futures: Crude prices drift sideways as US debt ceiling talks stall
Quantum Commodity Intelligence – Crude oil futures Monday were drifting sideways after debt ceiling talks between Democrats and Republicans broke down last week, prompting fears that a drawn-out confrontation could stunt US economic growth.
Jul23 ICE Brent futures were trading at $75.97/b (1630 BST) compared to Friday's settle of $75.47/b.
At the same time, Jul23 NYMEX WTI was trading $71.54/b, versus Friday's close of $71.69/b.
It came as futures traded in a tight range at the start of the week, with focus remaining on the debt ceiling standoff in the US that remained unresolved over the weekend.
US President Joe Biden attended the G7 summit in Japan over the weekend and US House Speaker Kevin McCarthy said he is not seeing progress while the President is away, adding the White House "moved backwards".
Comments from both sides "could suggest more fraught negotiations to occupy market attention this week," said Edward Bell, Senior Director at NBD, noting that Treasury Secretary Janet Yellen reiterated the Treasury might run out of funds as early as 1 June.
However, markets took some comfort after Federal Reserve chair Jerome Powell said the Fed could "afford to look at the data" ahead of the mid-June FOMC meeting, watering down anticipation that the Fed could again lean toward another hike in interest rates.
Ministers from OPEC+ producers will be closely watching developments ahead of the 4 June meeting amid speculation the group could consider further cuts.
"If oil is in its current price range or potentially even lower at the OPEC meeting next month, then OPEC is prepared to take additional action. They believe they have to support the market until more fundamental factors reassert themselves," said Helima Croft, the chief commodities strategist at Canadian broker RBC Capital Markets.
OPEC Secretary General, Haitham Al Ghais, gave few clues in his speech at Monday's MPGC conference in Dubai, focusing instead on the longer term.
"OPEC has been very clear in highlighting the real and dangerous consequences of under-investment in the oil industry. The reality is that oil and gas will continue to be an integral part of the energy mix for the foreseeable future," he said.
Speaking at the same forum Mike Muller, head of Asia at Vitol, said the 'risk premium' in the market had been largely eliminated as Russian barrels continue to flow.
Meanwhile, speculators remain negative towards the market, with the net speculative long in ICE Brent falling by 6,020 lots over the last reporting week to 106,722 lots as of last Tuesday, the smallest position speculators have held in 2023.
May 22 (Reuters) - Oil production in Iraq's Kurdistan region continues to drop as export flows to Turkey's Ceyhan port show few signs of restarting after a stoppage that has lasted almost two months.
Turkey halted Iraq's 450,000 barrels per day (bpd) of northern exports through the Iraq-Turkey pipeline on March 25 after an arbitration ruling by the International Chamber of Commerce (ICC).
The ICC ordered Turkey to pay Baghdad damages of $1.5 billion for unauthorised exports by the KRG between 2014 and 2018.
The 59-day stoppage is estimated to have cost the Kurdistan Regional Government (KRG) more than $1.5 billion.
The halt, coupled with limited storage space in the region, sent most of the region's 450,000 bpd of production offline within weeks. Fields that had continued producing are now offline or operating with reduced output.
The 4,500 barrel per day (bpd) Taq Taq field is no longer producing into storage, said a spokesperson at operator Genel Energy.
The Khurmala field is now producing at about 50,000 bpd, according to a source familiar with field operations.
This is a reduction from 100,000 bpd a month ago and 135,000 bpd before the pipeline stoppage.
Resulting lost revenue for the KRG stands at more than $1.5 billion, according to Reuters estimates based on exports of 375,000 bpd, the KRG's historic discount against Brent crude and 59 days of outages.
Iraq asked Turkey this month to resume pipeline flows and loading operations at Ceyhan on May 13.
Turkish pipeline operator BOTAS said it needed more time to check the technical feasibility of the pipeline to resume flows, an Iraqi oil official said.
However, BOTAS has yet to receive instruction from Turkish authorities, the source said, citing unofficial contact with Turkish energy officials.
"We're talking about weeks, not days, as an expected time frame to resume exports. This issue is more political now than technical," the source said.
Representatives of Iraq and Turkey's energy ministries were not immediately available for comment.
Iraqi government officials previously told Reuters they blamed elections for the delay.
Turkey held presidential elections on May 14 but neither of the two main candidates exceeded the required 50% of the cotes and a run-off is scheduled for May 28. (Reporting by Rowena Edwards in London and Ahmed Rasheed in Baghdad Additional reporting by Can Sezer in Istanbul Editing by Bernadette Baum and David Goodman)
BENGALURU (Reuters) -Oil prices rose on Tuesday on a tighter gasoline market outlook and a warning from the Saudi energy minister to speculators that raised the prospect of further OPEC+ cuts to support the market.
Brent crude was up $1.14, or 1.5%, at $77.13 a barrel by 11:33 a.m. EDT (1533 GMT). U.S. West Texas Intermediate (WTI) crude gained $1.21, or 1.7%, to $73.26 a barrel.
Those gains add to a 1% rise in the previous session, when a surge in U.S. gasoline futures lifted optimism for crude demand.
Gasoline futures rose another 1% on Tuesday, with analysts expecting a third straight weekly decline in inventories just ahead of the Memorial Day holiday on May 29, which kicks off the peak summer demand season.
The first of the week's two U.S. inventory reports, from the American Petroleum Institute, due at 4:30 p.m. EDT (2030 GMT). The U.S. Energy Information Administration reports official data on Wednesday.
Production cuts by some OPEC+ members take effect this month, which should squeeze supplies further.
Comments from Saudi Arabia's energy minister raised speculation the Organization of Petroleum Exporting Countries and allies including Russia may remove even more supply.
Saudi Arabia's energy minister said he would keep short sellers - those betting that prices will fall - "ouching" and told them to "watch out". The comments could mean OPEC+ will consider further output cuts when it meets on June 4, said OANDA analyst Craig Erlam. But he added that Brent crude prices need to rise above $77.50 a barrel to signal a sentiment shift.
"Of course, actions speak louder than words and traders haven't been overly deterred by his words, despite the group having announced two sizeable cuts in the last year that briefly shook the markets," Erlam said.
White House and congressional Republican negotiators will meet again on Tuesday to resolve a impasse over raising the $31.4 trillion U.S. debt limit, with Washington facing risk of default in as little as nine days.
(Additional reporting by Alex Lawler, Yuka Obayashi in Tokyo and Andrew Hayley in Beijing; editing by Kirsten Donovan, Jason Neely, Louise Heavens, Jane Merriman and David Gregorio)
https://finance.yahoo.com/news/oil-prices-rise-outlook-higher-013807404.html
In its weekly release, Baker Hughes Company (BKR Quick QuoteBKR - Free Report) stated that the U.S. rig count was lower than the prior-week tally. The rotary rig count, issued by BKR, is usually published in major newspapers and trade publications.
Baker Hughes’ data, issued at the end of every week since 1944, helps energy service providers gauge the overall business environment of the oil and gas industry. The number of active rigs and its comparison with the prior-week figure indicates the demand trajectory for the company’s oilfield services from exploration and production companies.
Details
Total U.S. Rig Count Falls: The count of rigs engaged in the exploration and production of oil and natural gas in the United States was 720 for the week ended May 19. The figure is lower than the prior week’s count of 731. The tally decreased for three straight weeks. The current national rig count is also lower than the year-ago level of 728.
The onshore rigs in the week ended May 19 totaled 697, lower than the prior week's count of 707. In offshore resources, 21 rigs were operating, lower than the prior week’s count of 22.
U.S. Oil Rig Count Falls: The oil rig count was 575 in the week ended May 19, lower than the prior-week figure of 586. The current number of oil rigs — far from the peak of 1,609 attained in October 2014 — is down from the year-ago figure of 576.
U.S. Natural Gas Rig Count Flat: Natural gas rig count of 141 is flat with the prior-week figure. The count of rigs exploring the commodity is lower than the prior-year week’s tally of 150. Per the latest report, the number of natural gas-directed rigs is 91.2% lower than the all-time high of 1,606 recorded in 2008.
Rig Count by Type: The number of vertical drilling rigs totaled 19 units, in line with the prior-week count. The horizontal/directional rig count (encompassing new drilling technology with the ability to drill and extract gas from dense rock formations, also known as shale formations) of 701 is lower than the prior-week level of 712.
https://www.zacks.com/stock/news/2098506/permian-oil-rig-count-decreases-for-three-straight-weeks
Oil prices continued to climb on Tuesday with investors expecting a tighter market led by a seasonal rise in gasoline demand and supply cuts from OPEC+ producers, though concerns over the risk of a U.S. debt default capped gains.
Brent crude futures rose 28 cents, or 0.37%, to $76.27 a barrel by 0320 GMT while U.S. West Texas Intermediate (WTI) crude was at $72.36 a barrel, up 31 cents, or 0.43%.
It was the second day of gains after Brent rose 0.5% on Monday. WTI gained 0.6%, amid a 2.8% increase in U.S. gasoline futures ahead of the Memorial Day holiday on May 29 that traditionally marks the start of the peak summer fuel demand season.
“Oil prices are consolidating their bottoms, helped by a seasonal increase in U.S. gasoline demand from next week, production cuts by OPEC+ from this month and planned U.S. purchases to refill the Strategic Petroleum Reserve (SPR),” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
Last week, the U.S. Department of Energy said it would buy 3 million barrels of crude oil to replenish the SPR for delivery in August.
Voluntary production cuts by the Organization of the Petroleum Exporting Countries and its allies including Russia, known as OPEC+, that went into effect this month are also expected to keep oil markets tight.
Goldman Sachs analysts said in a report on Monday that they “expect sustained (oil supply) deficits from June as OPEC+ production cuts fully realize and demand rises further.”
Asia will lead much of that oil demand growth, adding about around 2 million barrels per day (bpd) of consumption in the second half of the year, a Vitol executive said on Monday.
Still, investors are also focused on negotiations to raise the debt limit of the U.S., the world’s biggest oil consumer. A U.S. default would likely spark chaos in financial markets and a spike in interest rates, impacting fuel demand growth both domestically and globally.
President Joe Biden and House Speaker Kevin McCarthy ended discussions on Monday with no agreement on how to raise the U.S. government’s $31.4 trillion debt ceiling and will keep talking with just 10 days before a possible default.
“The central focus for the broader risk environment has been revolving around the U.S. debt ceiling talks, and while that is keeping a cautious lid on upside for now, a positive up move on any eventual resolution on that front may remain on the table,” said Jun Rong Yeap, a market strategist at IG in Singapore.
(Reporting by Yuka Obayashi; Editing by Christian Schmollinger and Lincoln Feast.)
https://boereport.com/2023/05/22/oil-extends-gains-on-higher-gasoline-demand-tighter-supply/
SINGAPORE, May 23 (Reuters) - Shell (SHEL.L) has cut crude oil imports at its Singapore refinery this month and is relying on smaller tankers after extending repairs at its single buoy mooring (SBM) facility to June, according to government notices and shipping data.
The company is moving crude from Very Large Crude Carriers (VLCC) onto smaller Aframax tankers through ship-to-ship transfers before discharging them at another jetty on Pulau Bukom, the island south of Singapore where the refinery is located, shipping data from Refinitiv Eikon and Kpler showed.
The transfers typically add to refiners' transportation costs and come at a time when companies are already contending with depressed processing margins in the region amid ample fuel supplies.
Crude imports to Bukom fell to 3 million barrels so far in May from 7.65 million in April, Kpler data showed on Tuesday, while Refinitiv data said shipments dropped to 3.2 million barrels from 6.9 million.
Repair works at the SBM started in February and have been extended to June, according to public notices on the Maritime Port Authority of Singapore (MPA) website.
Shell declined to comment on the refinery's crude imports and product exports, operational status of the SBM and its refinery and additional shipping costs, citing commercial confidentiality.
Prior to the repairs, crude was mostly imported through the SBM, located about 2 miles (3.2 km) south of Bukom, according to Shell's website.
From the start of this year, crude shipments to the refinery have been limited to Aframax tankers capable of carrying about 600,000 barrels of oil, the data showed.
These tankers received their cargoes through oil transfers from VLCCs, which can carry 2 million barrels of crude, at Nipah, an Indonesian STS spot south of Singapore, shipping data on Eikon showed.
These cargoes contain crude from Qatar, Saudi Arabia and Abu Dhabi, the United Arab Emirates, the data showed.
The last VLCC to deliver crude to the refinery was in December, Kpler data showed. VLCCs discharge oil at the SBM since they are unable to dock at Bukom's jetties because the water is too shallow.
The Bukom refinery, Shell's sole refining-petrochemical centre in Asia, can process 237,000 barrels per day (bpd) of crude.
Gasoil exports from Bukom fell to 170,000 tonnes, or 1.29 million barrels, in April and 180,000 tonnes in May, down from a monthly average of about 300,000 tonnes in the first quarter, Refinitiv data showed.
Oil prices gained over $1 on Wednesday after U.S. inventories and fuel supplies tightened and as a warning from the Saudi energy minister to speculators raised the prospect of further OPEC+ output cuts.
Brent crude futures last rose 68 cents, or 0.9%, to $77.52 a barrel by 0330 GMT, while the U.S. West Texas Intermediate crude (WTI) gained 75 cents, or 1%, to $73.66 a barrel.
Brent had earlier rose as much as $1.03 to $77.87 a barrel. WTI had jumped as much as $1.07 to $73.98 a barrel.
“Oil is starting to turn bullish after the Saudi threat to short-sellers,” said Edward Moya, senior analyst at OANDA, adding that Saudi Arabia will likely do “whatever it takes to defend prices”.
Fears of a supply squeeze mounted after Saudi Arabia’s energy minister said he would keep short sellers – those betting that prices will fall – “ouching” and told them to “watch out”.
Some investors took that as a signal that the Organization of Petroleum Exporting Countries and allies including Russia, also known as OPEC+, could consider further output cuts at a meeting on June 4.
CMC Markets analyst Tina Teng said in a note on Wednesday that oil prices had jumped on speculation that OPEC+ may cut output further to keep price stability.
Also boosting oil prices was industry data late on Tuesday which showed that U.S. crude oil and fuel inventories fell sharply.
Crude inventories fell by about 6.8 million barrels in the week ended May 19, according to market sources citing American Petroleum Institute (API) figures. Gasoline inventories dropped by about 6.4 million, while distillate inventories declined by about 1.8 million.
If data from the Energy Information Administration (EIA), due on Wednesday, confirm the API figures, U.S. gasoline inventories would have declined for the third consecutive week to their lowest pre-Memorial Day levels since 2014.
“If that is confirmed with tomorrow’s EIA report, we could start to see some easing recessionary concerns,” said OANDA’s Moya.
The Memorial Day holiday in the United States, this year on May 29, traditionally marks the beginning of U.S. peak summer travel.
Elsewhere, markets were still wary about U.S. debt ceiling discussions which in turn tempered oil price gains. Another round of debt ceiling talks ended on Tuesday with no signs of progress as the deadline to raise the government’s $31.4 trillion borrowing limit or risk default ticked closer.
(Reporting by Stephanie Kelly and Emily Chow in Singapore; Editing by Shri Navaratnam)
https://boereport.com/2023/05/23/oil-prices-rise-1-on-concerns-over-tightening-supply/
PRAGUE/WARSAW, May 23 (Reuters) - The Czech Republic can cover its oil needs through shipments via the Transalpine Pipeline (TAL) pipeline from 2025, Prime Minister Petr Fiala said on Tuesday after the country signed a deal to boost capacity along the link.
The Czech government is looking to eliminate all dependence on Russian oil in the coming years, and thus end its exemptions from a European Union ban on imports from Moscow last year.
Czech refineries are owned by Polish state-controlled refiner PKN Orlen, which said in April it terminated a contract for Russian oil supplies for its Polish refineries.
Polish government and PKN Orlen officials met with the Czech Industry Ministry in Prague on Tuesday and said they would work to eliminate Russian oil from PKN-owned refineries in the Czech Republic.
Speaking separately outside of Prague at an oil storage facility for strategic reserves, Czech prime minister Fiala said an agreement just signed between state-owned pipeline operator MERO and the TAL pipeline company to boost capacity along the TAL by up to 4 million tonnes would enable it to cut off dependence on Russia from 2025.
"It is significant milestone," Fiala said.
The Czech Republic won TAL shareholder approval last year to upgrade the link, which runs from Italy to Germany and hooks up to the IKL pipeline from Germany to the Czech Republic.
The central European country needs about 7-8 million tonnes of oil annually, which has been split roughly between shipments coming via TAL and the Druzhba pipeline from Russia.
The EU banned shipments of Russian oil from December 2022, but exempted Druzhba pipeline supplies to refineries in Germany, Poland, Czech Republic, Slovakia and Hungary.
"Our common goal is to diversify crude oil deliveries as quickly as possible in order to completely eliminate Russian oil as we already did in Poland," Polish Deputy Prime Minister Jacek Sasin said alongside PKN Orlen Chief Executive Daniel Obajtek after meeting with Czech Industry Minister Jozef Sikela.
PKN said separately it was preparing to reconfigure technology at its Litvinov refinery, which is dependent on Russian crude, to take non-Russian supplies.
PKN Orlen is also open to cooperation on oil and gas supplies as well as cooperation in nuclear power with the Czech Republic, Obajtek said. He also stressed that tax issues, including windfall taxes, could hurt investments in Unipetrol assets, which include the two Czech refineries and petrol stations.
"Our investments also depend on the regulatory approach by the Czech state, we cannot invest in places where tax regulations are suffocating for our investment," Obajtek said.
(Reporting by Robert Muller and Jason Hovet in Prague, and Marek Strzelecki and Karol Badohal in Warsaw; writing by Jason Hovet; editing by Louise Heavens, Jason Neely and Jane Merriman)
The Biden administration has dropped a proposed plan that would have given credits to automakers, including Tesla, for using renewable natural gas to power electric vehicles (EVs). The proposed regulation, which sets biofuel-blending quotas for the next three years, is undergoing final review at the White House and the proposal was excluded from it, according to anonymous sources.
EV Manufacturers Would Have Been Able to Claim New Credits
Under the EV initiative, automakers would have been incorporated into the Renewable Fuel Standard that mandates refiners to blend biofuels into gasoline and diesel. They would then have been able to claim new credits in exchange for using electricity generated from natural gas harvested from landfills or farms. However, the Environmental Protection Agency (EPA) officials expressed concerns that they would not be able to finalize details of the complex EV initiative in time to meet a court-ordered June 14 deadline.
Lobbying and Opposition
Tesla, Rivian Automotive Inc. and the Zero Emissions Transportation Association lobbied the EPA in favor of the proposal, stating it would support President Joe Biden’s decarbonization goals. However, opposition came from refiners, renewable fuel producers and some lawmakers who challenged its compliance with federal law.
EV Initiative Would Have Provided Federal Support for Zero-Emission Vehicles
The EV initiative would have added another layer of federal support for zero-emission vehicles, following tax credits expanded in the previous year’s climate law and proposed limits on tailpipe pollution. Automakers would have received tradeable credits known as “renewable identification numbers” (RINs) in exchange for using renewable sources as fuel to power EVs.
Opposition from Fuel Refiners and Infrastructure Owners
Owners of truck stops and charging stations raised concerns that the initiative would further increase EV production without driving investment in charging infrastructure and biogas-to-electricity projects. Fuel refiners have also argued that the EPA was not authorized by Congress to create a new biofuel credit linked to electricity.
https://asumetech.com/why-is-biden-delaying-granting-renewable-fuel-credits-to-electric-carmakers/
On May 19, the Russian General Procurator announced on Telegram that the environmental network Greenpeace International was declared an "undesirable organization," entirely banning its activities in the country. This decision comes after a history of friction between the Russian government and the Canadian-founded climate organization.
For 30 years, Greenpeace has worked in Russia on waste separation, protecting reserves and national parks like Lake Baikal, and fighting the wildfires in Siberia, among other actions and campaigns. But their fight against oil and gas extraction set off alarms in the Russian government. The country heavily relies on income from fossil fuels, as it is one of the world's top three petroleum producers. In 2013, 30 Greenpeace International activists in the "Artic Sunrise" ship, its crew, and journalists were arrested at gunpoint after campaigners attempted to scale Gazprom's Prirazlomonoe off-shore drilling platform.
After the war in Ukraine broke out, Greenpeace International preached "Peace, not oil." The organization has denounced EU imports of Russian oil, claiming it fueled President Vladimir Putin's actions in Ukraine. After being banned, Greenpeace said, "This misguided decision effectively indicates that it is 'undesirable' to protect nature in Russia."
https://russianlife.com/the-russia-file/greenpeace-declared-undesirable/
SINGAPORE/BEIJING, May 20 (Reuters) - China's crude oil imports from Russia rose 8.6% in April from a year earlier, as larger private refiners also embarked on purchases of the discounted fuel.
Arrivals from Russia - including seaborne shipments and supplies via pipelines - totalled 7.1 million tonnes or 1.73 million barrels per day (bpd), according to customs data released on Saturday.
Large private integrated refiners have joined smaller independent plants in snapping up lower-priced Russian oil, both the ESPO blend loaded from Russia's Far East and Urals from European ports.
The April arrivals were well below the record of 2.26 million bpd reached in March however. China's overall crude oil imports last month posted a 16% decline from March.
Imports of Saudi oil - mostly consumed by state refiners and mega private plants - totalled 8.46 million tonnes or 2.06 million bpd, the data showed, slightly down from March's 2.1 million bpd and compared with 2.17 million bpd a year earlier.
Year-to-date imports from Russia rose 26.5% to 32.4 million tonnes, outpacing second-ranked Saudi Arabian imports which grew 2.9% to 31.28 million tonnes.
Imports from Malaysia remained elevated at 4.09 million tonnes, not far off March's 4.56 million tonnes and sharply higher than the 2.165 million tonnes in April of 2022.
To circumvent U.S. sanctions, traders have in the past three years been rebranding Iranian and Venezuelan oil as sourced from Malaysia, Oman or the United Arab Emirates.
China reported zero imports from Iran or Venezuela.
Below lists the details of imports from key suppliers, with volumes in million metric tonnes and percentage calculations by Reuters:
(tonne = 7.3 barrels for crude conversion)
EIA Reports a Build Smaller Than Anticipated
Stockpiles held in underground storage in the lower 48 states rose 99 billion cubic feet (Bcf) for the week ended May 12, below the guidance of 106 Bcf addition per a survey conducted by S&P Global Commodity Insights. The increase compared with the five-year (2018-2022) average net injection of 91 Bcf and last year’s growth of 87 Bcf for the reported week.
https://www.zacks.com/stock/news/2097910/last-week-was-a-good-one-for-natural-gas-market-this-is-why
Signage at the entrance of the Chevron Park campus in San Ramon, Calif. (David Paul Morris/Bloomberg News)
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Chevron Corp. agreed to buy Denver-based oil and gas producer PDC Energy Inc. in a $6.3 billion all-stock deal as it seeks to expand amid what’s expected to be a busy year of mergers and acquisitions in U.S. shale.
Chevron will pay $72 a share, a roughly 14% premium on a 10-day average based on May 19 closing prices, according to a statement May 22. The deal will increase Chevron’s production by just under 10% and expand the oil giant’s holdings in the Colorado and West Texas shale basins. Separately May 22, Exxon Mobil Corp. agreed to sell assets in the Williston Basin to Chord Energy for $375 million.
Though a small deal by Chevron’s standards — the price is less than the company’s first-quarter cash flow from operations — PDC falls into CEO Mike Wirth’s strategic plan to grow prudently in areas that fit with its existing assets rather take on large, transformative acquisitions. Chevron was widely praised for buying Noble Energy for $5 billion in a similar bolt-on deal in the midst of the pandemic in 2020 but has come under scrutiny recently about its lack of growth relative to Exxon Mobil Corp.
“PDC’s attractive and complementary assets strengthen Chevron’s position in key U.S. production basins,” Wirth said in the statement. “This transaction is accretive to all important financial measures and enhances Chevron’s objective to safely deliver higher returns and lower carbon.”
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Chevron will increase its capital expenditure budget by $1 billion per year, after realizing about $400 million in cost savings once the transaction closes by the end of the year, pending regulatory and PDC shareholder approval. Its new global spending range will be $14 billion to $16 billion a year through 2027.
Oil and gas producers are flush with cash after raking in record profits over the past year, leaving the U.S. energy patch ripe for a takeover boom. Companies are looking to bulk up and consolidate, particularly in the Permian Basin of West Texas and New Mexico, the most prolific U.S. shale play.
PDC shares climbed as much as 8.5% before the start of regular trading in New York. Chevron shares fell 0.7%.
The total enterprise value, which includes debt, of the deal is $7.6 billion. PDC shareholders will receive 0.4638 shares of Chevron for each PDC share. Chevron said it expects the tie-up to add about $1 billion in annual free cash flow at $70 per barrel of Brent oil and Henry Hub natural gas at $3.50 per thousand cubic feet. Morgan Stanley and Evercore advised Chevron, while JPMorgan advised PDC.
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Despite a marked decline in benchmark natural gas prices in Europe this year, the continent is “not out of the woods” yet as three factors could worsen the European energy crisis later this year, Fatih Birol, the executive director of the International Energy Agency (IEA), told CNBC this weekend.
“Europe countries did a good job... last winter,” Birol told CNBC’s Martin Soong on the sidelines of the G7 summit in Japan, adding that the region avoided gas and energy supply shortages thanks in part to milder winter weather.
Despite the absence of most of Russia’s pipeline natural gas, Europe didn’t go into recession this winter and managed to keep the lights and heating on, the IEA’s head said.
“Europe was able to transform its energy markets, reduce its share of Russian gas to less than 4%, and its economy still didn't go through a recession,” Birol noted.
However, expected higher LNG demand in China after the reopening, the possibility of a U.S. default, and the remaining dependence on Russian gas are three reasons why Europe shouldn’t be complacent ahead of the 2023/2034 winter, the IEA’s top executive warned.
Commenting on the ongoing talks on raising the U.S. debt ceiling, Birol told CNBC,
“This issue in the United States will be dealt with and common sense will prevail. And I don't see a major risk for the global oil markets. But of course, oil markets are always involved with risks.”
Europe’s natural gas prices have returned to the pre-war levels, while gas inventories in the EU are at their highest for the spring in at least a decade.
The front-month futures at the TTF hub, the benchmark for Europe’s gas trading, have dropped below the $32.49 (30 euros) per megawatt-hour (MWh) mark and traded at $32.34 (29.86 euro) per MWh as of 12:23 p.m. GMT on Monday.
As fears of a natural gas crunch did not materialize this past winter, pulling European gas prices down, Europe shouldn’t count on another warmer-than-usual winter and less competition from Asia as it prepares for the 2023/2024 winter, according to analysts.
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By Charles Kennedy for Oilprice.com
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Finland’s gas importer and distributor Gasum has ended its long-term pipeline gas supply contract with Gazprom Export, an export affiliate of Russian gas giant Gazprom.
The termination follows months of talks between the two companies — ordered by an international arbitration chamber in Stockholm, Sweden, in November — after Gasum refused to accept Gazprom Export’s demands to be paid in roubles rather than euros.
“The negotiations between Gasum and Gazprom Export have now ended. The parties were not able to resolve the situation within the period defined by the arbitral tribunal and therefore, Gasum has terminated the long-term natural gas supply contract with Gazprom Export on 22 May 2023”, the Finnish company said.
“The parties will continue to finalise the details of the contract termination,” Gasum said, adding that another long-term deal with Gazprom for the delivery of liquefied natural gas from the Russian company’s small scale Portovaya LNG plant on the Russia’s Baltic Sea coast remains in force.
The Russian company responded: “Gazprom Export confirms receipt of a notice from the Finnish company Gasum about the termination of a long-term contract for the supply of pipeline gas. The company is conducting a legal analysis of further steps in this matter.”
Gasum has not specified the volume of contracted Russian pipeline gas, however, Gazprom Export said earlier that it delivered almost 1.5 billion cubic metres of gas to Finland in 2021.
The end result of the disagreement is being closely watched in Bulgaria and by other Gazprom Export customers in Europe that had refused to agree to the change in the gas payment scheme.
The change was pushed on them last year by the Russian giant after Russian President Vladimir Putin decided to retaliate against European states that introduced sanctions against the country and its corporations following the invasion in Ukraine in February 2022.
Gazprom terminated pipeline gas supplies to those European customers which did not agree to change their payments.
Gasum said: “In April 2022, Gazprom Export presented Gasum with a demand that the payments agreed in the supply contract should be paid in roubles instead of euros. Gasum did not accept this demand. According to the [arbitration] award, Gasum was not obligated to pay in roubles nor through the proposed payment procedure.”
The award had also called for Gasum to make an outstanding payment of about €300 million ($337 million) for gas delivered from when Gazprom first demanded the payment change and the date when the Russian company halted supplies.
The court has specified that Gasum should make this payment in euros, not in roubles.
https://www.upstreamonline.com/production/gasum-ends-long-term-supply-deal-with-gazprom/2-1-1455134
Russian oil industry tycoon Vagit Alekperov is set to join a team looking to buy a 50% stake in the country’s largest IT player, Yandex, for an estimated $3.5 billion.
The move by the founder of Russia’s largest privately held oil producer, Lukoil, has come despite the threat of further Western sanctions against Russian individuals and companies in response to the invasion of Ukraine early last year.
Alekperov led Lukoil for more than 30 years before resigning announced as executive chairman in April 2022 after the UK, Australia and New Zealand approved personal sanctions against him.
However, he has avoided being targeted by US and European sanctions, including last week’s expanded list of US sanctions targeting Russian oil-related educational establishments and its energy research and design institutions and providers, as well various individuals.
After stepping down from his role at Lukoil, the 72-year-old billionaire was reported as saying that he would focus on running social initiatives and charity programmes.
However, earlier this week it was revealed that Alekperov and fellow Russian businessmen Vladimir Potanin and Alexei Mordashov, with backing from the state-run VTB bank, are aiming to buy a 50% stake in country’s largest IT player, Yandex, for estimated $3.5 billion.
The joint bid was revealed by Russian independent news outlet The Bell, which quoted unnamed Russian government sources as saying that President Vladimir Putin had approved the list of possible bidders for Yandex.
Mikhail Krutikhin, a partner at Moscow-based energy consultancy RusEnergy, said Alekperov may have joined the Yandex bidding team “to demonstrate his loyalty” to Putin, even though the president awarded Alekperov a Services to the Fatherland honour a month after his resignation from Lukoil.
Potanin, Mordashov and their companies, and VTB all have close links to the Kremlin, with those same links causing them to be included by earlier US sanctions.
Yandex founder Arkady Vorozh decided to leave Russia after the invasion of Ukraine, but this has not helped him escape European Union sanctions.
Vorozh was placed on the EU’s list of Russian businessmen being sanctioned after Yandex was found to be filtering out alternative news sources on the invasion for Russian audiences and promoting state run news outlets.
According to a research paper written by David Salvo, managing director of Germany’s Alliance for Securing Democracy & Malign Autocratic Influence, Yandex “directs Russian speakers worldwide to manipulated information — and at times to outright disinformation”.
Shares of Sasol Limited (OTCMKTS:SASOF – Get Rating) fell 5% on Monday . The company traded as low as $11.92 and last traded at $11.92. 15,876 shares traded hands during trading, an increase of 1,202% from the average session volume of 1,219 shares. The stock had previously closed at $12.55.
Sasol Stock Performance
The business has a fifty day moving average of $12.87 and a two-hundred day moving average of $15.23.
Sasol Company Profile
(Get Rating)
Sasol Ltd. operates as a chemical and energy company, which engages in the provision of integrate sophisticated technologies and processes into operating facilities. It operates through the Mining, Gas, Fuels, Chemicals Africa, Chemicals Eurasia, and Corporate Centre. The Energy Business segments The company was founded in 1950 and is headquartered in Johannesburg, South Africa.
https://www.defenseworld.net/2023/05/23/sasol-otcmktssasof-shares-down-5.html
India’s spot purchases of crude oil from the Middle East have fallen in recent months, as cheaper Russian spot barrels are making their way to the world’s third-largest crude oil importer, according to the head of the largest Indian refiner.
“Spot purchases have gone down because somewhere there has to be a dip to make up for all the Russian purchases,” Shrikant Madhav Vaidya, chairman of Indian Oil Corporation, said at the Middle East Oil and Gas Conference in Dubai on Monday, as carried by Reuters.
Indian Oil, the largest refiner in the country by capacity, is committed to its term deals with Middle Eastern producers, but spot purchases from the Middle East have dropped amid Russian competition, he said.
Rising Indian oil consumption has opened more room for crude oil imports while Russia’s oil is suited for Indian Oil refinery specifications, Vaidya added.
India, together with China, is now a top market for Russian crude oil after the EU and the G7 introduced embargoes and price caps on Russian oil exports.
Over the course of one year since the Russian invasion of Ukraine, India turned from a marginal buyer of Russian crude to the most important market for Moscow’s oil alongside China. Indian refiners, not complying with the G7 price cap and looking for cheap opportunistic purchases, have snapped up many of the Russian Urals cargoes, which used to go to northwest Europe before the EU embargo.
Record imports of cheap Russian crude into India have undermined OPEC’s share of supply to the world’s third-biggest crude importer so much that OPEC’s share of all Indian oil imports has hit the lowest in at least 22 years.
As India’s imports of Russian crude surged in the past year, OPEC’s share of Indian oil supply slumped to as low as 59% in the Indian financial year ending March 2023, compared to as much as 72% in the previous fiscal year 2021/2022, according to a Reuters analysis of data from industry sources.
“Lower energy prices, abating supply constraints and a strong labour market supported moderate growth in the first quarter of 2023, dispelling fears of a recession,” the EC said in its latest economic policy guidance to member states.If energy prices were to rise again such that new support measures were needed, these should target vulnerable customers, be affordable and still encourage energy savings, it said.Many EU countries, such as Spain , introduced support measures for energy end-users in 2022 after gas and power prices soared to record highs.These highs were caused by reduced gas flows from Russia after it invaded Ukraine and lower nuclear and hydropower generation as a severe drought reduced cooling water and reservoir levels.But as energy prices fall, the EC is urging governments to focus on reducing their dependence on fossil fuels by boosting renewables and improving energy efficiency to protect against future price shocks.For example, Germany had successfully reduced its high dependence on Russian gas from 65% in 2021 to nearly zero, said the EC, but was still dependent on gas imports from other countries.Poland stopped importing Russian gas in April 2022, but remained heavily dependent on coal and had been decarbonising at “a substantially lower rate” than other EU countries, said the EC.France was also still dependent on fossil fuel imports, despite using less than other EU countries. The EC urged France to make a greater effort to meet its renewable energy targets, after it missed its 2020 target for a 23% renewables share of final energy demand, achieving only 19%.Even Spain, which has about 49.8 GW of installed wind and solar, one of the highest in the EU, and low direct dependence on Russian fossil fuels, needed to improve its efforts to add more renewables to protect against future price shocks, said the EC.In Italy, the share of renewables grew “very slowly” over the past year, said the EC, where fossil fuels still dominate the energy mix.The EC urged national governments to shorten and simplify permitting procedures for renewables to be deployed more quickly, and to invest more in grids to ensure the power flowed where needed.The EU is in the process of finalising a binding 2030 target to source 42.5% of its energy from renewables, up from 32%. This is part of the bloc’s efforts to cut its 2030 greenhouse gas emissions by at least 55% from 1990 levels.
https://www.montelnews.com/news/1501076/ec-urges-members-to-halt-energy-price-support-by-year-end
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Given the surge in gasoline demand, traders are assessing the prospects for a US seasonal surge and OPEC+'s efforts to " ouch " speculators. At the same time, news that Russia was cutting production helped prices rise also.
And given that 70% of oil demand is tied to the service sector in both the West and China, where there is still plenty of room to rise back to trend, such strong growth in oil demand should be expected by the end of this year.
Indeed, the IEA supports a similar view, suggesting more room to run.
That is not to say commodity fundamentals have been blue sky. Crude oil output in Russia has surprised by a remarkable 2 million bpd since the middle of last year, leading to stronger-than-expected exports of crude oil and distillates.
The tidy redirection of Russian barrels, particularly to Asia and the Middle East, was further met by rising exports of Iranian barrels on a sharp decline in floating storage, all of which explains why oil inventories, except for stocks on water, have continued to rise, despite the announced OPEC+ curtailments.
So Russia could be the key; if they follow through with cuts, oil prices will stand a better chance of rising even during these overcast economic times.
While I think the downside is limited ahead of the June OPEC, we could be nearing that point where the speculator community turns around and dares OPEC to create even more spare capacity than the current 5mm bpd, which could ultimately lead to discord within the ranks of the oil producers group.
Paper selling
There has been massive selling in the oil complex as the cost of holding positions against higher funding costs and more volatility have made the oil market unattractive. In the past 30 days, oil has seen 250 million barrels of paper selling.
Remarkably positioning is now as short as it was during Covid when inventories reached record levels, breaching capacity constraints which caused oil prices to turn negative quickly.
Why has market positioning swung so negatively?
In our view, mounting concerns over the financial sector's health, US debt ceiling risks, fears of an impending demand slowdown in the West, and a deflationary funk in China have further raised fears of an upcoming US or global recession.
The bottom line: investors have been cashing in their commodity inflation insurance premiums.
https://www.fxstreet.com/analysis/mid-week-oil-update-another-ouching-moment-202305240235
Qatar has issued a warning to Europe about disruptions in the supply of natural gas as the energy transition policies of governments stifle the investments necessary for keeping Europe flush with natural gas in the next decade.
Qatar’s energy minister, Saad al-Kaabi, warned Europe on Tuesday at the Qatar Economic Forum that there would be a “big shortage” of gas in the future, mostly “because of the energy-transition push that we’d say is very aggressive.”
Saudi Arabia’s energy minister had similar warnings, accusing policymakers of having “blinkers” on, sharing a pie in the sky view of how quickly the world can rid itself of oil and gas as renewables step up to the plate to take their place.
Qatar remains a major supplier to Europe for natural gas.
Last November, Germany—Europe’s largest gas market—signed a 15-year deal with Qatar for 2 MTPA of LNG, which will begin in 2026 through a wholly owned subsidiary of ConocoPhillips. It was Qatar’s first long-term LNG supply deal with Germany. Despite the long-term supply deal, Germany announced plans earlier this year to provide its industry with billions of euros in support of the energy transition in industry. But its fund for climate action and energy security was some $13 billion short on funds.
Al-Kaabi said Qatar was “so busy” with “lining up people to negotiate with” over its gas expansion projects, North Field East and North Field South. Qatar has also considered additional capacity expansions for natural gas beyond 126 million tons per year.
Europe may have escaped major oil and gas shortfalls due to the exceptionally mild winter this year, but the “worst is yet to come” for oil and gas shortages, al-Kaabi said.
Russia is the real threat to Saudi Arabia as Moscow targets key oil market, veteran analyst says
Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman. LUDOVIC MARIN/AFP via Getty Images
Russian oil exports to Asia are a real threat to Saudi Arabia, said veteran analyst Paul Sankey.
That's despite Saudi Arabia's recent focus on short sellers in the oil market.
"The real issue is can the Saudis corral Russia?" Sankey told Bloomberg TV.
Russian oil exports to Asian markets are a real threat to Saudi Arabia, which is seeing its price premiums eroded by competition, according to long-time industry analyst Paul Sankey.
Meanwhile, he gave little credence to Saudi Arabia's claims that market short sellers were behind underwhelming oil prices.
"Frankly, I don't know why they're so obsessed with speculators. I mean, you can squeeze speculators on a short-term basis. But the real problem is the overall oil balance," Sankey told Bloomberg TV on Wednesday.
On Tuesday, Saudi Energy Minister Prince Abdulaziz bin Salman cautioned short-sellers to beware of economic pain just days ahead of an OPEC+ meeting, though he did not outline specific actions.
The warning helped oil prices rally. But to Sankey, Saudi Arabia should be more focused on Russia than short-sellers.
"The real issue is can the Saudis corral Russia? Russia is a threat to Saudi, because what Russia is doing is it's sending its oil to Asia, and it's cutting the traditional long-term Saudi premium for selling oil to Asia," he said. "That's a much bigger deal than people appreciate between Russia and Saudi in terms of market share and competition."
And while Russian President Vladimir Putin and de facto Saudi ruler Crown Prince Mohammed bin Salman appear to have good relations, it's not clear the same can be said about their respective oil ministers, Sankey added.
Potential tensions between the two oil giants, who have coordinated production in recent years, comes as Russia has had to find alternatives for its energy exports after sanctions largely shut Moscow out of European markets.
Earlier this year, Russia's oil exports surpassed the volumes hit before its invasion of Ukraine, with China and India accounting for roughly 90% of its seaborne crude shipments.
And there's little sign that Russia will lessen its reliance on Asia. Russian Deputy Prime Minister Alexander Novak indicated this week that Moscow could supply 40% of China's energy needs.
https://finance.yahoo.com/news/russia-real-threat-saudi-arabia-041019689.html
An old Wall Street saying warns investors not to “Catch a falling knife.” The saying has merit in that often, the most straightforward trade an investor can make is to latch onto an already existing trend because “The trend is your friend.”
However, some investors can make countertrend trading work. Countertrend trades offer some distinct advantages, including:
More considerable “reversion to the mean” potential: By definition, an investor who successfully times a buy in a beaten-down stock has more profit potential. When a stock or investment vehicle is stretched far in one direction, it often snaps back like a rubber band, and the reversion to the mean trade can be breathtaking.
Sentiment: When an investor buys a heavily beaten down asset, they go against the grain and trade in a contrarian state of mind. If timed correctly, the rewards for this type of trade can be fruitful.
https://www.zacks.com/commentary/2099599/is-natural-gas-a-mean-reversion-play
TotalEnergies has published a report created by Jean-Christophe Rufin, one of the founders of Doctors without Borders, into the humanitarian situation in Cabo Delgado, Mozambique. The report formulated an action plan for the return to operation of the Mozambique LNG (liquefied natural gas) project in the area.
Rufin’s report assessed the humanitarian situation in the region after insurgent violence had TotalEnergies declare force majeure on the Mozambique LNG project in 2021. Much of the violence was directed at the Afungi port, which the $20bn (€18.59bn) LNG project is based out of.
Rufin was appointed to monitor and report on Cabo Delgado in April 2023 after Mozambique’s President, Filipe Nyusi, declared that TotalEnergies may resume its operations at the LNG project.
TotalEnergies and its partners in the project have unanimously approved an action plan for the resumption of activities at the project. Despite this, no expected date for the resumption of LNG production has been given.
The action plan includes the formation of the Pamoja Tunaweza foundation focused on the “implementation a socio-economic development program” the covers the surrounding Cabo Delgado province beyond the LNG project.
TotalEnergies has also initiated a dialogue with Mozambican authorities to review the relationship between Mozambican Defence Forces and the project itself after a positive evolution of the security situation in the region.
The $200m foundation’s development programme includes resettling and compensation of former residents displaced by the insurgent violence. Almost 1,000 residents were evacuated from the region by TotalEnergies at the outset of the insurgency.
“A follow-up mission to monitor the implementation of this action plan will be carried out by Jean-Christophe Rufin at the request of Mozambique LNG project partners,” TotalEnergies stated in a press release.
Rufin stated in the report that the other partners in the Mozambique LNG project, beyond TotalEnergies, must participate in the development project. TotalEnergies is the sole operator of the project but holds a 26.5% stake.
Other stakeholders of the project are Indian companies NGOC Videsh, Oil India and Bharat Petroleum, Japanese company Mitsui, Thai Company PTTEP and the state of Mozambique.
https://www.offshore-technology.com/news/mozambique-lng-cabo-delgado-report/
To the delight of Western analysts, the management of Gazprom admitted that the conflict in Ukraine and anti-Russian sanctions affect the results of economic activity. After summarizing the results for the 2022 financial year, he showed a decline in revenue and profit, which, in turn, affected the market value of the company.
While Russian oil giant Rosneft and LNG producer Novatek hold their ground against the West, Gazprom is still feeling the sting of Western sanctions, judging by its annual earnings report. OilPrice columnist Alex Kimani writes about it.
Gazprom’s official statement reports a decline in net profit in the 2022 financial year. The company’s revenue for the year amounted to 1,226 billion rubles ($15.4 billion). dollars), down 41% from 2021. The company cited unforeseen expenses in the form of additional taxes imposed by Moscow last year as the reason for the results. The statistics were summarized by Gazprom Deputy Director General Famil Sadygov. According to him, the company is trying to rectify the situation for the better. The losses are partly offset by increased deliveries to China.
Weak results sent Gazprom shares falling another 6%, pushing a 12-month loss in value to almost 40%. But the shares of its Russian oil and gas rivals looked much better: shares of Rosneft rose 13.5% and Novatek 38.4%.
An OilPrice expert disputes the reason for the company’s declining performance. According to him, it is most likely Western sanctions, not a new income tax, that are the main reason for Gazprom’s profit slump. Although the restrictions have not directly affected the energy company’s natural gas exports, exports have halved to 101 billion cubic meters in 2022 as the EU has sharply reduced imports of Russian gas.
Unlike the pipeline operated by Gazprom, Europe is more keen on buying Russian LNG, which is mainly supplied by Novatek. The ghost fleet and the Asian market allowed Rosneft to positively increase its profits and capitalization. This is why the sanctions affected the gas giant and not its domestic competitors.
Gazprom on Thursday announced its intention to increase natural gas stocks in national storage to a record high next winter, which is not surprising given the sharp drop in exports. The company plans to store 72.842 billion cubic meters of operational gas reserves in underground storage facilities with a maximum daily capacity of 858.8 million cubic meters.
https://www.easternherald.com/2023/05/25/sanctions-affected-gazprom-but-not-novatek-and-rosneft/
Shares of SandRidge Energy, Inc. (NYSE:SD – Get Rating) gapped down before the market opened on Tuesday . The stock had previously closed at $17.52, but opened at $15.66. SandRidge Energy shares last traded at $15.55, with a volume of 116,151 shares changing hands.
Analyst Ratings Changes
Separately, StockNews.com assumed coverage on SandRidge Energy in a research note on Thursday, May 18th. They issued a “hold” rating on the stock.
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SandRidge Energy Price Performance
The business has a 50 day moving average price of $14.78 and a 200 day moving average price of $16.22. The stock has a market capitalization of $572.32 million, a PE ratio of 2.49 and a beta of 2.34.
SandRidge Energy Dividend Announcement
SandRidge Energy ( NYSE:SD Get Rating ) last announced its quarterly earnings data on Wednesday, March 15th. The oil and natural gas company reported $1.02 EPS for the quarter. The company had revenue of $56.11 million for the quarter. SandRidge Energy had a net margin of 96.37% and a return on equity of 37.95%.
The firm also recently announced a dividend, which will be paid on Wednesday, June 7th. Shareholders of record on Wednesday, May 24th will be paid a dividend of $2.00 per share. The ex-dividend date is Tuesday, May 23rd.
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently modified their holdings of the business. US Bancorp DE purchased a new position in SandRidge Energy in the 1st quarter worth about $42,000. NewEdge Advisors LLC purchased a new position in shares of SandRidge Energy during the first quarter valued at approximately $50,000. Zurcher Kantonalbank Zurich Cantonalbank bought a new position in SandRidge Energy during the second quarter valued at approximately $59,000. UBS Group AG boosted its holdings in SandRidge Energy by 5,147.7% in the third quarter. UBS Group AG now owns 5,615 shares of the oil and natural gas company’s stock worth $92,000 after purchasing an additional 5,508 shares during the last quarter. Finally, Point72 Middle East FZE bought a new stake in SandRidge Energy in the 4th quarter worth approximately $94,000. 17.42% of the stock is owned by institutional investors.
SandRidge Energy Company Profile
https://www.defenseworld.net/2023/05/25/sandridge-energy-nysesd-shares-gap-down-to-17-52.html
Battery technology is advancing rapidly, with different cell chemistries and charging technology potentially revolutionising electric vehicles (EVs) within a few years.
Here’s a rundown of some of these game-changing technologies, from new battery materials to AI robotics for safer, faster battery disassembly.
Silicon anode technology: faster charging, longer-lived batteries
Most modern EV batteries in 2023 use lithium-ion cell chemistry, with varying cell design and mix of metals. But almost all of them use a graphite anode, which is one of the factors that causes li-ion battery performance to degrade over time and charging cycles.
Now, silicon anodes are being pegged for one of the big technical advancements that could really improve battery life and performance. Silicon battery anodes have been experimented with since the 1970s. But, lithium-silicon batteries have made huge leaps in the last few years as it’s become more critical to improve battery charging speeds, longevity of performance and cell energy density.
It’s worth clarifying that lithium-silicon batteries (as they’re becoming known) are a sub-brand of lithium-ion and so still rely on hard-to-source metals such as cobalt and nickel, but the silicon anode material can transform the battery’s charging rate and longevity.
Clean energy generates the energy we need without any adverse environmental effects. Renewable energy, such as wind power, hydropower, biofuel, and solar, provides affordable, reliable energy and various economic benefits.
Similarly, the piezoelectric effect converts mechanical energy into electric energy or inversely. However, traditional piezoelectric materials used in commercial devices had limited capacity for generating electricity. Also, they generally use lead, which harms human health and the environment.
To overcome this problem, researchers at the University of Waterloo and the University of Toronto have developed a new piezoelectric material that is compact, reliable, low-cost, and eco-friendly.
“Our breakthrough will have a significant social and economic impact by reducing our reliance on non-renewable power sources,” said Asif Khan, a Waterloo researcher, and co-author of a new study on the project. “We need these energy-generating materials more critically at this moment than at any other time in history.”
Using the Jahn-Teller effect, researchers made a large crystal of molecular metal-halide compound called EDABCO-copper chloride (CuCl 4 ). It is a well-known chemistry concept related to the spontaneous geometrical distortion of a crystal field. EDABCO-CuCl 4 has one of the most significant energy density potentials of any recorded material, and the resulting piezoelectric energy harvesters are highly stable.
Then this material is used to create nanogenerators with a record power density that can generate tiny mechanical vibrations under any dynamic condition, from human motion to automotive vehicles. In this process, it does not require lead or non-renewable energy.
This nanogenerator is 2.5 sq. cm. in length and about the thickness of a business card. It can be easily used in many situations and has the potential to power sensors in all kinds of electronic devices, including the billions needed for the Internet of Things.
In the future, integrating nanogenerators with various devices could help generate power from vibrations of the device and will be helpful in different circumstances.
According to Dr. Dayan Ban, a researcher at the Waterloo Institute for Nanotechnology, in the future, an aircraft’s vibrations could power its sensory monitoring systems, or a person’s heartbeat could keep their battery-free pacemaker running.
Journal reference:
https://www.inceptivemind.com/new-piezoelectric-material-converts-vibrations-electricity/30808/
The US and its partners, including the UAE, have pledged to provide $275 million for a small modular reactor (SMR) nuclear project in Romania as part of efforts to support the transition to clean energy.
The US Export-Import Bank (Exim) has issued a letter of interest for potential support for up to $99 million to RoPower Nuclear, the project company for deploying the SMR in Romania, the White House said on Saturday.
In total, the project has received $275 million in early stage support, including from public and private companies in Japan, South Korea and the UAE, the White House said.
These commitments, along with new pledges by Romania, support the procurement of materials, engineering and design analysis, provision of project management experts and regulatory site activities.
In 2021, the EU country partnered with US company NuScale Power to build small nuclear reactors to reduce its reliance on fossil fuels.
NuScale is majority owned by construction and engineering company Fluor Corp.
The US International Development Finance Corporation and Exim have also issued letters of interest for potential support of up to $1 billion and $3 billion, respectively, for project deployment, the White House said.
“When built, the SMR will pave the way for new innovative energy technologies, accelerate the clean energy transition, create thousands of jobs and strengthen European energy security while upholding the highest standards for nuclear safety, security and non-proliferation,” the White House said.
Today at the G7, @POTUS announced a major new round of financial support for a pioneering SMR project in Romania. Nuclear energy is clean energy -- delighted to see support of @DFCgov, @EXIMBankUS, Japan, Korea, plus the UAE via our PACE partnership, to advance this important… — Special Presidential Envoy John Kerry (@ClimateEnvoy) May 20, 2023
Romania has a diverse energy mix comprising gas, nuclear power and renewable sources.
Last month, the EU’s energy ministers held meetings to plan a common path on whether nuclear power should be incorporated into the bloc's renewable goals.
France has historically invested massively in nuclear power programmes. More than 70 per cent of its electricity is derived from nuclear energy.
The Czech Republic, Hungary and Poland are among EU countries in favour of nuclear power.
Business Extra in Davos: Energy in crisis and transition
Last year, the European Parliament supported EU regulations that classify investments in gas and nuclear power plants as environmentally sustainable.
Countries such as Japan and Germany shut down several reactors after the Fukushima disaster in 2011.
Petrovietnam Technical Services Corporation (PTSC) on Friday cut a deal with Orsted, Denmark’s leading energy firm, to manufacture turbine foundations for the 920-MW Greater Changhua offshore wind farm in Taiwan, one of Asia’s largest offshore wind projects. Under the deal, the Vietnamese firm will produce 33 suction bucket jacket foundations based on Orsted’s bespoke designs. They will be eco-friendly. The foundations will be installed at the Greater Changhua 2b and 4 wind farm, which covers 185 square kilometers, in late 2025. The project is estimated to consume 70,000 tonnes of steel and create thousands of jobs at PTSC and other contractors in the supply chain. PTSC CEO Le Manh Cuong speaks at the signing ceremony on May 19, 2023. Photo: Supplied “The partnership with Denmark’s Orsted marked a key milestone for PTSC’s development, driving the firm’s mass production," said PTSC CEO Le Manh Cuong. "The deal is expected to contribute to forming the supply chain for offshore wind power projects in Vietnam." “This is the first time the advanced suction bucket jacket technology has been applied in Asia Pacific,” said Jonas Bak Solhoj, development director for Greater Changhua 2b and 4. Jonas Bak Solhoj, development director for Greater Changhua 2b and 4, delivers a speech at the signing ceremony on May 19, 2023, Photo: Supplied Like us on Facebook or follow us on Twitter to get the latest news about Vietnam!
Petrovietnam Technical Services Corporation (PTSC) on Friday cut a deal with Orsted, Denmark’s leading energy firm, to manufacture turbine foundations for the 920-MW Greater Changhua offshore wind farm in Taiwan, one of Asia’s largest offshore wind projects.
Under the deal, the Vietnamese firm will produce 33 suction bucket jacket foundations based on Orsted’s bespoke designs. They will be eco-friendly.
The foundations will be installed at the Greater Changhua 2b and 4 wind farm, which covers 185 square kilometers, in late 2025.
The project is estimated to consume 70,000 tonnes of steel and create thousands of jobs at PTSC and other contractors in the supply chain.
PTSC CEO Le Manh Cuong speaks at the signing ceremony on May 19, 2023. Photo: Supplied
“The partnership with Denmark’s Orsted marked a key milestone for PTSC’s development, driving the firm’s mass production," said PTSC CEO Le Manh Cuong. "The deal is expected to contribute to forming the supply chain for offshore wind power projects in Vietnam."
“This is the first time the advanced suction bucket jacket technology has been applied in Asia Pacific,” said Jonas Bak Solhoj, development director for Greater Changhua 2b and 4.
SYDNEY, May 21 (Reuters) - New Zealand's Contact Energy (CEN.NZ) said on Sunday it had negotiated to provide 30 megawatts of renewable-generated power to NZ Steel's operations near Auckland, in a move that would cut 800,000 tonnes of carbon emissions.
Contact said in a statement that it would deliver the renewable-generated electricity to NZ Steel in a flexible off-peak arrangement enabling the steelmaker "to scale down production in times of peak demand or supply shortages".
By substituting coal and ironsand with power and scrap steel, NZ Steel would reduce emissions at its Glenbrook steelworks, outside the country's biggest city Auckland, by an amount equivalent to taking 300,000 cars off the road, Contact said.
The agreement related to a NZ$300 million ($190.32 million) electric arc furnace to be built by NZ Steel at its steelworks at Glenbrook within the next three years, NZ Steel said in a statement.
NZ Steel CEO Robin Davies said the New Zealand government would contribute up to NZ$140 million to the project, with the company committing NZ$160 million.
"(Emission) reductions will come from replacing Glenbrooks existing oxygen steelmaking furnace and two of the four coal fuelled kilns," Davies said.
Contact CEO Mike Fuge said: This is the biggest example we have in New Zealand of the move towards electrification and is tangible evidence of the demand for renewable energy as well as supporting our renewable development pipeline".
In August last year, Contact said it would build a 51.4 megawatt geothermal power unit near its Te Huka power station in Taupo, about 270 km south of Auckland, that would help bolster its renewable power generation amid high demand.
At the time, it said the investment, along with the Tauhara geothermal power station would collectively boost New Zealand's total renewable electricity supply by over 5% on average per year and the company's by 25% from the current levels. ($1 = 1.5763 New Zealand dollars) (Reporting by Sam McKeith; Editing by Simon Cameron-Moore)
A new project will increase the amount of hydrogen produced from the energy provided by solar panels.
A project which aims to produce hydrogen efficiently for use in remote rural locations such as farms and forestry operations has been awarded nearly £130,000 from the Scottish Government.
The Remote Rural Hydrogen Production project, led by Scotland’s Rural College (SRUC), will increase the efficiency of the solar energy used to power the hydrogen production process, as well as investigating the use of rainwater or wastewater in place of deionised water.
With the drive to decarbonise land management practices, hydrogen will become the fuel of choice for many operators of large machines such as tractors, harvesters and forwarders in the land-based sector.
The project will address the significant gap in the various technologies either already developed or being developed that, when combined, will provide a zero-carbon solution to food production in the agricultural sector and for forestry operations.
It will do this by developing an algorithm to ensure the maximum amount of hydrogen is produced from the energy provided by the solar panels.
Another innovative aspect of the project is investigating the use of all types of water to feed into the electrolyser, easing any pressures on a local water system.
Lead researcher Professor Nick Sparks, Dean of SRUC’s South and West Faculty, said: “This proof-of-principle project aims to deliver an economic and sustainable way of generating green hydrogen, at the point of use, for farming and forestry operations.
“Working with commercial, academic and NGO collaborators, SRUC researchers are working on a wide range of projects, all focussed on reducing the carbon footprint of land management operations and generating economic benefit for rural communities.
"This project will make a key contribution to this programme of work.”
The project is being run in partnership with Locogen, a leading specialist in the renewable energy sector, and is one of 32 projects awarded funding under the Hydrogen Innovation Scheme.
Rich in phosphates and cobalt deposits, Morocco is poised to attract investments in the fields of electric batteries and environment-friendly vehicles as it pushes to achieve industrial sovereignty and expands high-tech manufacturing.
The country’s officials have on multiple occasions mentioned an active quest to attract investors to build a gigafactory that will lure other EV manufacturers and car part makers to the country.
This comes at a context the EU, Morocco’s largest auto-industry market, prepares for total shift to electric vehicles starting from 2035.
Morocco’s growing automotive sector, which has topped Morocco’s industrial exports with 10 billion dollars in 2022, should therefore prepare the ground for its transformation in line with the market’s future requirements.
The country’s mining sector could help make the transition easier by fostering Morocco’s competitive edge. The availability of high-quality cobalt and phosphates could offer investors cost-effectiveness.
Morocco could also easily import lithium- another key metal for EV batteries- in view of its good commercial ties with exporting countries such as the DRC and Chile.
Morocco’s largest mining company Managem is already operating a factory in Guemassa to produce sulfate cobalt as it also has prospects elsewhere in the country for cobalt and other rare metals.
Renault and BMW have already started sourcing cobalt from Managem’s mines to supply their EV battery plants.
Morocco’s cobalt enjoys high purity, unlike in the DRC where the metal is extracted as a byproduct of mostly copper.
In a recent report, Morocco’s social and economic council (CESE) said the country had 7 of the world’s 24 most strategic and rare metals, key to high-tech industries.
The report urged the government to develop plans to transform these metals at home instead of exporting them raw, to the exception of cobalt and phosphates.
These metals are also vital for Morocco’s quest to achieve its industrial sovereignty.
The mining sector’s output rose to 40.5 million tons in 2021, including 38 million tons of phosphates. The sector accounts for 10% of Morocco’s GDP and 26% of its exports and employs 50,000 people, according to the report.
Ford CEO Jim Farley at a battery lab for the automaker in suburban Detroit, announcing a new $3.5 billion EV battery plant in the state to produce lithium iron phosphate batteries, Feb. 13, 2023. Michael Wayland/CNBC
DETROIT — Ford Motor's largest competition in electric vehicles isn't U.S. leader Tesla or crosstown rival General Motors — it's Chinese automakers, CEO Jim Farley said Thursday. Farley said Chinese companies such as Warren Buffett-backed BYD are ahead of the large U.S. automakers and startups on electric vehicles, specifically battery chemistry and other emerging technologies. related investing news Tesla and more: Morgan Stanley names EV stocks set to benefit as supply chains move West "We see the Chinese as the main competitor, not GM or Toyota," Farley said during the Morgan Stanley Sustainable Finance Summit. He used BYD as the prime example of a Chinese automaker that has successfully developed and sold EVs, first in China, and now Europe. "I like BYD. Totally vertically integrated, aggressive … very, very impressive company. And they were always committed to electric," Farley said when asked which company is doing EVs right.
BYD's new luxury brand Yangwang is selling its first model, the U8, for more than 1 million yuan (US$160,000). CNBC | Evelyn Cheng
BYD has grown its sales in China from 445,000 units in 2015 to nearly two million last year, making it one of the top five automakers by sales in China, according to LMC Automotive. Farley's comments echo those of industry experts and investors regarding the growth of BYD and other Chinese automakers, which have government backing in China. "BYD has a huge place, both from the electric vehicle perspective and also through the battery production side," Philip Ripman, portfolio manager at Storebrand Asset Management, told CNBC Pro Talks last week. Ripman, who manages the $1 billion Storebrand Global Solutions sustainable fund, highlighted BYD's developments in cheaper, sodium-ion battery technology, which could potentially replace lithium batteries. He noted these could become prevalent in BYD's more affordable EVs and help increase profit margins for the automaker. Farley also noted BYD's battery advantages compared to the current U.S. industry standard of lithium-ion batteries.
The Ford Mustang Mach-E is presented at the New York International Auto Show, Manhattan, New York, April 5, 2023. David Dee Delgado | Reuters
Investment in clean energy will extend its lead over spending on fossil fuels in 2023, the International Energy Agency said today, with solar projects expected to outpace outlays on oil production for the first time.
Annual investment in renewable energy is up by nearly a quarter since 2021 compared to a 15% rise for fossil fuels, the Paris-based energy watchdog said in its World Energy Investment report.
Around 90% of that clean energy spending comes from advanced economies and China.
But highlighting the global divide between rich and poor countries as fossil fuel investment is still double the levels needed to reach net-zero emissions by mid-century.
"Clean energy is moving fast - faster than many people realise," said IEA Executive Director Fatih Birol.
"For every dollar invested in fossil fuels, about $1.70 is now going into clean energy. Five years ago, this ratio was one-to-one," he said.
Around $2.8 trillion is set to be invested in energy worldwide in 2023, of which more than $1.7 trillion is expected to go to renewables, nuclear power, electric vehicles, and efficiency improvements.
The rest, or around $1 trillion, will go to oil, gas and coal, demand for the last of which will reach an all-time high or six times the level needed in 2030 to reach net zero by 2050.
Current fossil fuel spending is significantly higher than what it should be to reach the goal of net zero by mid-century, the agency said.
In 2023, solar power spending is due to hit more than $1 billion a day or $382 billion for the year, while investment in oil production will stand at $371 billion.
"This crowns solar as a true energy superpower. It is emerging as the biggest tool we have for rapid decarbonisation of the entire economy," energy think tank Ember's head of data insights, Dave Jones, said in a statement.
"The irony remains that some of the sunniest places in the world have the lowest levels of solar investment," he stated.
Investment in new fossil fuel supply will rise by 6% in 2023 to $950 billion, the IEA added.
The agency did not expressly reiterate its blockbuster projection from 2021 that investors should not fund new oil, gas and coal supply projects if the world wants to reach net-zero emissions by mid-century.
Producer group OPEC has said calls by the IEA to stop investing in oil undermine global energy security and growth.
Scientists and international climate activists have warned the fossil fuel industry exacerbates the catastrophic impacts of climate change.
https://www.rte.ie/news/business/2023/0525/1385637-world-energy-investment-report/
Shares of PJX Resources Inc. (CVE:PJX – Get Rating) rose 5% during trading on Friday . The company traded as high as C$0.11 and last traded at C$0.11. Approximately 1,000 shares changed hands during mid-day trading, a decline of 95% from the average daily volume of 21,954 shares. The stock had previously closed at C$0.10.
PJX Resources Trading Up 5.0 %
The company has a current ratio of 14.01, a quick ratio of 9.00 and a debt-to-equity ratio of 0.33. The company has a market capitalization of C$13.99 million, a P/E ratio of -10.50 and a beta of 0.78. The business has a 50 day moving average price of C$0.09 and a 200 day moving average price of C$0.10.
About PJX Resources
(Get Rating)
PJX Resources Inc, a mineral exploration company, engages in the acquisition, exploration, and development of mineral resource properties in Canada. The company primarily explores for gold, silver, zinc, lead, cobalt, and copper deposits. Its flagship mineral property is the Dewdney Trail property covers an area of approximately 10,000 hectares located in northeast of Cranbrook, British Columbia.
https://www.defenseworld.net/2023/05/21/pjx-resources-cvepjx-stock-price-up-5.html
Thai rice exports valued at 23% more than same period last year
Photo via Bangkok Post.
From January to April, Thailand’s rice exports reached 2.79 million tonnes, with an estimated total for the year surpassing 8 million tonnes, according to the government. Prime Minister Prayut Chan-o-cha, expressed optimism regarding the exports being valued at US$1.5 billion (51.2 billion baht) revenue, a 23% increase compared to the same period last year, as reported by government spokesperson Anucha Burapachaisri.
Prayut has directed state agencies to actively work on enhancing rice exports and increasing crop production while maintaining high rice prices in overseas markets. Anucha added that Thai rice exports are expected to continue rising due to increasing demand in numerous countries. Thailand currently holds the position of the world’s second-largest rice exporter, following India.
The stable baht in April contributed to the increase in rice prices, keeping the commodity competitive in foreign markets. Consequently, the prices of most rice types have surpassed the government’s price guarantee. The Ministry of Agriculture and Cooperatives now anticipates that rice exports will exceed the annual target.
The Department of Internal Trade (DIT) predicts that exports will reach 8 million tonnes, an increase from 7.69 million tonnes in 2022, Bangkok Post reports. As of May 10, rice exports amounted to 3.05 million tonnes, with orders for Thai rice from abroad continuing to rise, as stated by Anucha Burapachaisri.
Thailand’s primary rice markets include Iraq, Indonesia, the US, South Africa, Senegal, Bangladesh, China, Japan, Cameroon, and Mozambique, with white rice being the most exported variety, followed by jasmine rice.
Anucha mentioned that the prime minister expressed gratitude to state agencies and the private sector for their efforts in marketing and enhancing the quality of rice for export to meet demand. However, Prayut Chan-o-cha warned against fraudulent exports that could tarnish the international reputation of Thai rice.
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Udom Srisomsong, deputy director-general of the DIT, stated that the robust global demand for Thai rice has sustained competitive prices, negating the need for government intervention through price guarantee measures to support farmers.
The Thai Rice Exporters Association, on the other hand, expressed concern over the lack of clarity in crop price measures from the Move Forward Party or Pheu Thai, the two main parties forming the new government. Charoen Laothamthat, the association president, emphasised that a change in government should not hinder or abruptly alter policies that impact the development of essential crops. There are concerns that Thailand may lose its competitiveness in rice exports to Vietnam.
SINGAPORE: Chicago corn slid on Thursday, falling for the first time in four sessions, while soybeans also lost ground as a lack of demand for both products weighed on prices.
Wheat inched higher, recouping some of the deep losses from the previous session.
FUNDAMENTALS
* The most-active corn contract on the Chicago Board of Trade (CBOT) was down 0.2% at $5.86 a bushel, as of 0012 GMT, and soybeans lost 0.1% to $13.23-3/4 a bushel.
* Wheat added 0.1% to $6.06-3/4 a bushel, having lost 2.6% on Wednesday.
* Dismal demand for corn and soybeans from top importer China is providing headwinds to prices.
* A surplus of cheap wheat in China is replacing significant volumes of corn in its huge animal feed market, say feed makers and analysts, curbing consumption of both corn and soymeal and potentially reducing demand for imports.
* Ukraine accused Russia of effectively cutting the Ukrainian port of Pivdennyi out of a deal allowing safe Black Sea grain exports of food and fertiliser from Ukrainian ports of Odesa, Chornomorsk and Pivdennyi. Russia complained it had been unable to export ammonia via a pipeline to Pivdennyi.
* Export prices of Russian wheat fell again last week as the world market eased due to good supply and an extension of the Black Sea grain deal, as well as local expectations of a cut in export duty, analysts said.
* The Buenos Aires grains exchange said on Wednesday that intense rains in recent days in Argentina's key agricultural farmland has improved expectations for the 2023/2024 wheat crop, after a historic drought badly crimped yields.
* Rainfall is critical for Argentine farmers to start planting wheat, with sowing set to begin in the coming days. The total crop is estimated at 18 million tonnes, up from the 12.4 million tonnes harvested in the previous season.
* Commodity funds were net sellers of CBOT wheat, soybean and soymeal futures contracts on Wednesday, traders said. They were net buyers of CBOT corn and soyoil contracts.
MARKET NEWS
* World stocks dropped on Wednesday as U.S. debt ceiling talks dragged on without resolution, stoking a general malaise in markets that saw safe-haven assets such as the dollar hold around recent highs.
DATA/EVENTS (GMT) 0600 Germany GDP Detailed QQ/YY SA Q1 0645 France Business Climate May 1230 US GDP 2nd Estimate Q1 1230 US Initial Jobless Claims Weekly (Reporting by Naveen Thukral; Editing by Sherry Jacob-Phillips)
GOLD PRICES edged lower on Monday, losing $15 from Friday's $30 bounce off 7-week lows after speculators cut their bullish position on Comex futures and options at the fastest pace since early March but Federal Reserve Chair Jerome Powell then said the US central bank may be finished raising interest rates, writes Atsuko Whitehouse at BullionVault.
With talks continuing between President Biden and Republican Speaker McCarthy over a a debt-ceiling deal ahead of June's x-date for a US default, the Dollar index – a measure of the US currency's value versus its major peers – edged lower after snapping a six-day winning streak, pulling back from Friday's early 6-month peak ahead of Powell's comments.
Ten-year US Treasury yields – a benchmark rate for government as well as many finance and commercial borrowing costs – meantime recovered a dip to rise back to 3.69%, the highest since mid-March.
"[The Fed's] policy rate may not need to rise as much as it would have otherwise to achieve our goals," Powell said Friday in a discussion with former Fed chief Ben Bernanke, "[because] developments in the banking sector are contributing to tighter credit conditions and are likely to weigh on economic growth, hiring and inflation."
Hedge funds and other leveraged speculators in Comex gold futures and options cut their bullish betting 6% on gold as a group in the week-ending last Tuesday, according to the latest data from US regulators the CFTC.
That 'managed money' group also grew its bearish betting by 17% to the highest since the week ending 21 March – back before gold prices reached $2000 for a third time – and overall, that pushed the net long position of Managed Money traders down 10%, the steepest retreat in 10 weeks after reaching the largest since early March 2022, when gold prices jumped amid US and European sanctions against Russia over the Kremlin's invasion of Ukraine.
Speculators last week also cut their net bullish betting on silver, slashing it in half as the more industrially-useful precious metal dropped nearly 7% in price.
The price of silver , which finds around 50% of its annual demand from industrial uses, also cut Friday's rally from 7-week lows in half on Monday, back down to $23.70 per ounce.
Gold prices in the US Dollar fell to $1969 per ounce, while wholesale bullion in the spot market slipped 0.3% for UK and 0.6% for Euro investors to £1585 and €1823 respectively.
"Markets are seeing a deal on the debt limit and at the same time the Fed pushing back on rate cuts which is ultimately proving positive for the Dollar," said one FX strategist to Reuters.
The last time the USA came this close to default thanks to arguing over the debt limit was in summer 2011, also with a Democrat president and Senate with a Republican-led House.
https://www.bullionvault.co.uk/gold-news/gold-price-052220232
Barrick Gold Co. (TSE:ABX – Get Rating) (NYSE:ABX)’s stock price passed below its 200-day moving average during trading on Tuesday . The stock has a 200-day moving average of C$24.16 and traded as low as C$23.69. Barrick Gold shares last traded at C$23.98, with a volume of 3,294,101 shares trading hands.
Analysts Set New Price Targets
Several equities research analysts have recently issued reports on the company. Barclays reaffirmed an “equal weight” rating and issued a C$26.00 price target on shares of Barrick Gold in a research report on Monday, January 30th. National Bankshares increased their target price on shares of Barrick Gold from C$28.00 to C$32.00 in a research note on Tuesday, April 18th. Cormark reduced their target price on shares of Barrick Gold from C$27.00 to C$25.00 in a research note on Thursday, February 16th. Sanford C. Bernstein cut their price target on shares of Barrick Gold from C$27.00 to C$26.00 in a research note on Thursday, April 20th. Finally, Stifel Nicolaus raised their price target on shares of Barrick Gold from C$29.00 to C$30.00 in a research note on Thursday, April 20th. Three equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to data from MarketBeat.com, Barrick Gold currently has an average rating of “Hold” and an average target price of C$28.40.
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Barrick Gold Stock Performance
The stock has a market capitalization of C$42.20 billion, a price-to-earnings ratio of 299.75, a price-to-earnings-growth ratio of -0.78 and a beta of 0.13. The company has a current ratio of 2.66, a quick ratio of 2.62 and a debt-to-equity ratio of 15.25. The stock’s 50 day moving average is C$25.68 and its two-hundred day moving average is C$24.16.
Barrick Gold Cuts Dividend
Barrick Gold Company Profile
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, June 15th. Stockholders of record on Wednesday, May 31st will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Tuesday, May 30th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 1.67%. Barrick Gold’s dividend payout ratio is 675.00%.
Barrick Gold Corporation engages in the exploration, mine development, production, and sale of gold and copper properties. It has ownership interests in producing gold mines that are located in Argentina, Canada, Côte d'Ivoire, the Democratic Republic of Congo, Dominican Republic, Mali, Tanzania, and the United States.
i-80 Gold Corp. (NYSEAMERICAN:IAUX – Get Rating)’s stock price was down 3.4% during mid-day trading on Tuesday . The stock traded as low as $2.24 and last traded at $2.27. Approximately 251,640 shares traded hands during mid-day trading, a decline of 77% from the average daily volume of 1,076,791 shares. The stock had previously closed at $2.35.
Wall Street Analysts Forecast Growth
Separately, Scotiabank upped their price objective on i-80 Gold from C$4.25 to C$4.50 in a research report on Wednesday, April 12th.
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i-80 Gold Price Performance
The company has a debt-to-equity ratio of 0.39, a current ratio of 1.66 and a quick ratio of 1.29.
Institutional Investors Weigh In On i-80 Gold
i-80 Gold ( NYSEAMERICAN:IAUX Get Rating ) last released its earnings results on Tuesday, March 14th. The company reported ($0.05) earnings per share for the quarter, hitting the consensus estimate of ($0.05). The firm had revenue of $11.65 million for the quarter. i-80 Gold had a negative return on equity of 18.39% and a negative net margin of 178.69%. As a group, sell-side analysts anticipate that i-80 Gold Corp. will post -0.09 earnings per share for the current year.
Large investors have recently modified their holdings of the stock. Windsor Group LTD acquired a new stake in shares of i-80 Gold in the first quarter valued at about $57,000. WMS Partners LLC acquired a new stake in i-80 Gold during the 1st quarter valued at approximately $66,000. Dubuque Bank & Trust Co. acquired a new stake in i-80 Gold during the 4th quarter valued at approximately $71,000. Ritholtz Wealth Management acquired a new stake in i-80 Gold during the 1st quarter valued at approximately $74,000. Finally, XTX Topco Ltd acquired a new stake in i-80 Gold during the 1st quarter valued at approximately $81,000. Institutional investors and hedge funds own 26.17% of the company’s stock.
i-80 Gold Company Profile
i-80 Gold Corp., a mining company, engages in the exploration, development, and production of gold and silver mineral deposits in the United States. It holds a 100% interest in the Lone Tree property covering an area of approximately 12,000 acres located in Battle Mountain-Eureka, Northern Nevada; Ruby Hill property located in Battle Mountain Trend, Northern Nevada; McCoy-Cove project covering 31,000 acres located in Battle Mountain Trend, Nevada; and Buffalo Mountain property located in Battle Mountain Trend, Northern Nevada as well as controls Granite Creek Project located in Getchell Trend, Northern Nevada.
https://www.defenseworld.net/2023/05/25/i-80-gold-nyseamericaniaux-shares-down-3-4.html
Ero Copper (TSE:ERO – Get Rating) has been assigned a C$30.00 target price by stock analysts at Stifel Nicolaus in a note issued to investors on Friday, BayStreet.CA reports. The firm currently has a “hold” rating on the stock. Stifel Nicolaus’ target price indicates a potential upside of 19.71% from the stock’s current price.
Several other equities analysts have also weighed in on the company. Barclays lifted their price target on Ero Copper from C$22.00 to C$25.00 in a research note on Friday, April 21st. Scotiabank increased their target price on Ero Copper from C$30.00 to C$32.00 in a research report on Thursday, April 6th. TD Securities boosted their price target on shares of Ero Copper from C$24.00 to C$25.00 and gave the stock a “hold” rating in a report on Monday, April 10th. BMO Capital Markets increased their price objective on shares of Ero Copper from C$25.00 to C$26.00 in a report on Tuesday, May 9th. Finally, Cormark boosted their target price on shares of Ero Copper from C$25.00 to C$26.50 in a research note on Thursday, March 30th. Five equities research analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. Based on data from MarketBeat, Ero Copper currently has a consensus rating of “Hold” and a consensus price target of C$27.15.
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Ero Copper Trading Up 0.2 %
Ero Copper stock opened at C$25.06 on Friday. The firm has a market cap of C$2.32 billion, a PE ratio of 22.78, a P/E/G ratio of -0.72 and a beta of 2.12. Ero Copper has a 12 month low of C$10.54 and a 12 month high of C$28.05. The stock’s 50 day simple moving average is C$24.70 and its two-hundred day simple moving average is C$21.23. The company has a current ratio of 2.95, a quick ratio of 1.43 and a debt-to-equity ratio of 71.95.
Ero Copper Company Profile
Ero Copper ( TSE:ERO Get Rating ) last announced its quarterly earnings results on Tuesday, March 7th. The company reported C$0.33 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of C$0.41 by C($0.08). The firm had revenue of C$158.45 million for the quarter, compared to analysts’ expectations of C$167.50 million. Ero Copper had a return on equity of 13.37% and a net margin of 17.66%. Analysts anticipate that Ero Copper will post 1.5936693 earnings per share for the current year.
https://www.defenseworld.net/2023/05/21/ero-copper-tseero-pt-set-at-c30-00-by-stifel-nicolaus.html
Shares of Anglesey Mining plc (LON:AYM – Get Rating) hit a new 52-week low during trading on Friday . The company traded as low as GBX 1.34 ($0.02) and last traded at GBX 1.48 ($0.02), with a volume of 651082 shares trading hands. The stock had previously closed at GBX 1.48 ($0.02).
Anglesey Mining Stock Performance
The company has a quick ratio of 4.11, a current ratio of 4.11 and a debt-to-equity ratio of 27.72. The stock has a 50 day simple moving average of GBX 2.04 and a 200 day simple moving average of GBX 2.11. The company has a market capitalization of £4.35 million, a price-to-earnings ratio of -9.50 and a beta of 2.22.
Anglesey Mining Company Profile
Anglesey Mining plc, a mining company, engages in the exploration, evaluation, and development of mineral properties. The company owns a 100% interest in the Parys Mountain underground zinc-copper-lead-silver-gold deposit in North Wales, the United Kingdom. It also holds 12% interest in the Labrador iron project located in Labrador and Quebec; and 20% interest in the Grangesberg iron ore mine situated in Bergslagen district of central Sweden.
https://www.defenseworld.net/2023/05/21/anglesey-mining-lonaym-reaches-new-52-week-low-at-1-34.html
Boliden AB (publ) (OTCMKTS:BDNNY – Get Rating) was downgraded by Berenberg Bank from a “buy” rating to a “hold” rating in a research note issued on Friday, The Fly reports.
A number of other equities analysts have also commented on the company. Deutsche Bank Aktiengesellschaft increased their price target on Boliden AB (publ) from SEK 370 to SEK 380 and gave the company a “hold” rating in a research note on Friday, January 20th. JPMorgan Chase & Co. lowered Boliden AB (publ) from a “neutral” rating to an “underweight” rating in a research note on Friday, March 3rd. Credit Suisse Group began coverage on Boliden AB (publ) in a research note on Thursday, March 2nd. They set an “underperform” rating for the company. Morgan Stanley lowered Boliden AB (publ) from an “equal weight” rating to an “underweight” rating in a research note on Wednesday, March 29th. Finally, Handelsbanken raised Boliden AB (publ) from a “market perform” rating to an “outperform” rating in a research note on Monday, March 20th. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating and one has issued a buy rating to the stock. According to data from MarketBeat, Boliden AB (publ) has an average rating of “Hold” and a consensus price target of $364.00.
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Boliden AB (publ) Price Performance
Shares of Boliden AB (publ) stock opened at $66.15 on Friday. The stock has a 50 day moving average of $74.04 and a 200 day moving average of $77.17. Boliden AB has a 12 month low of $55.19 and a 12 month high of $94.11.
About Boliden AB (publ)
Boliden AB engages in the exploration, mining, smelting, and recycling of metals. It operates through the Business Area Smelters and Business Area Mines segments. The Business Area Smelters segment consists of Kokkola and Odda zinc smelters, the Ronnskar and Harjavalta copper smelters, and the Bergsoe lead smelter; and is involved in trade of smelters’ products.
LONDON, May 22 (Reuters) - Copper prices fell on Monday as the market focused on a deteriorating demand picture in top consumer China, rising supplies and climbing inventories in LME-approved warehouses.
Benchmark copper CMCU3 on the London Metal Exchange (LME) was down 1.1% at $8,157 a tonne by 1006 GMT.
Prices of the metal used in the power and construction industries fell below the 200-day moving average on May 11 and have since traded in a narrow range.
"May is seasonally a slow month for industrial metals demand. Copper demand looks weak, orders from wire rod plants are poor," said Dan Smith, head of research at Amalgamated Metal Trading. "We are also seeing a pick-up in supplies."
China's CMOC 603993.SSrecently reached an agreement on royalties with Democratic Republic of Congo's state miner, paving the way for copper exports to resume.
Copper production in Peru jumped in March as large mines resumed operations after stoppages caused by social protests.
Stocks of copper MCUSTX-TOTAL in LME warehouses have risen by 80% since the middle of April to 92,250 tonnes. This has eased worries about supplies on the LME market and widened the discount for the cash contract over the three-month copper MCU0-3 to about $50 a tonne.
Industrial metals prices are also being influenced by negotiations over the U.S. debt ceiling. Investors are concerned about the possibility of the US federal government falling behind on its debt payments, which could trigger a default and spark chaos in financial markets.
Elsewhere, zinc CMZN3 fell to 2-1/2-year lows of $2,426 a tonne. Prices of the metal used to galvanise steel for construction have dropped 30% over the past four months.
The sell-off was triggered by sliding activity in China, where new construction starts measured by floor area fell 21.2% year on year in the January-April period, having been 19.2% down in the first three months.
Three-month zinc CMZN3 fell 1% to $2,454 a tonne.
In other metals, aluminium CMAL3 ceded 1.1% to $2,259, lead CMPB3 was up 0.1% to $2,095, tin CMSN3 lost 1.5% to $25,065 and nickel CMNI3 gained 1.1% to $21,525.
https://www.nasdaq.com/articles/metals-copper-pressured-by-poor-demand-prospects-and-higher-supply
One of central India's leading steelmakers, Godawari Power and Ispat Limited (GPIL), has announced its 2022-2023 (FY23) results. Notably, the company has posted its highest ever annual iron ore mining volumes as well as pellet production and sales in the preceding fiscal.
Performance highlights:
Total steel billet output for the financial year was largely stable at 0.32 mnt compared with 0.33 mnt in the previous fiscal.
Other highlights:
Average pellet sales realisation falls: GPIL's average sales realisation stood at INR 9,409/t in FY23, a decrease of 24% y-o-y from INR 12,390/t in FY22.
EBIDTA down y-o-y: The company's EBIDTA was recorded at INR 1,133 million (mn) in FY23, down significantly by 39% y-o-y as against INR 1,864 mn in FY22. EBIDTA crashed mainly due to sharp drop in pellet realisation.
Production guidance for FY24: The company has kept its production guidance for iron ore pellets at 2.6 mnt in FY24.
Iron ore capacity to increase: The company has announced that the existing iron ore mining capacity of its Ari Dongri mine in Chhattisgarh is slated to increase to 6 mnt from the current 2.35 mnt and an iron ore beneficiation plant with capacity of 6 mnt will be set up, which is estimated to be completed by Q3FY24. However, the company does not intend to sell the raw material in the open market as it will be consumed for captive purposes, mainly to cater to GPIL's enhanced production capacity. The company has applied to MoEF for environmental approval for expansion of iron ore mining which is under consideration.
Enhancing high-grade pellet capacity: GPIL has proposed to enhance its high-grade pellet production capacity to 5.7 mnt from the current 2.7 mnt by setting up an additional plant within an estimated 36 months. The application for the same is also under consideration of the concerned ministry.
Steel billets production capacity to rise: GPIL has proposed to enhance its steel billets capacity to 0.5 mnt by setting up two additional furnaces. The project shall be completed by the end of Q2FY24.
The Malaysia-based PMB Technology Bhd will invest significantly in its Phase 3 plant project in Samalaju Industrial Park, Bintulu, increasing the output capacity of metallic silicon by 50 per cent annually.
It has been reported that the company is investing RM350 million in the Phase 3 unit of the smelter, which would have a capacity of 36,000 tonnes per year. According to PMB Technology, the project is expected to be accomplished by Q3 2023.
The 2022 annual report of the company pronounces, "With both Phase 1 and Phase 2 up and running now, the group's combined annual installed capacity is 108,000 tonnes, supplied by a total power of 129 megawatts (MW)."
The subsidiary PMB Silicon Sdn Bhd carries out metallic silicon manufacturing. On October 31, 2022, the group began constructing the Phase 3 project after securing an extra 25MW of electricity from Syarikat Sesco Bhd.
Silicon is added to aluminium to lower the melting point and increase fluidity. Chemically, silicon is an abundant, non-toxic element. Silicon, when combined with aluminium, increases the metal alloy's fluidity without causing it to degrade at high temperatures.
With Press Metal Aluminium Holdings Bhd as its largest shareholder, PMB Technology entered the metallic silicon business five years ago by constructing the Phase 1 plant, which can produce 36,000 tonnes of metallic silicon annually.
When the Phase 2 facility was accomplished and put into service in 2020, the production capacity was increased to 72,000 tonnes annually. With a smelting capacity of 1.08 million tonnes per year from its industrial sites in Samalaju Industrial Park and Mukah, Press Metal is South-East Asia's largest integrated aluminium smelter.
The Company stated, "The (metallic silicon) plant's expansion plays an important role in the production by way of cost reduction and increased operational efficiency when it comes to leveraging workforce and raw material management, especially during routine plant maintenance."
“However, to remain in the global competition, the business can acquire significant quantities of raw materials at a cheaper cost. In the longer run, the group is optimistic about achieving a more excellent economy of scale in production. Besides that, the automation of certain production processes is also one of the group's approaches to sustain this relatively tight labour market."
LONDON: Copper prices fell on Monday as the market focused on deteriorating demand in top consumer China, rising supplies and climbing inventories in LME-approved warehouses.
Benchmark copper on the London Metal Exchange (LME) was down 1.3% at $8,144.5 a tonne at 1601 GMT.
Prices of the metal used in the power and construction industries fell below the 200-day moving average on May 11 and have since traded in a narrow range.
“May is seasonally a slow month for industrial metals demand. Copper demand looks weak, orders from wire rod plants are poor,” said Dan Smith, head of research at Amalgamated Metal Trading. “We are also seeing a pick-up in supplies.” China’s CMOC recently reached an agreement on royalties with Democratic Republic of Congo’s state miner, paving the way for copper exports to resume.
Copper production in Peru jumped in March as large mines resumed operations after stoppages caused by social protests.
Stocks of copper in LME warehouses have risen by 80% since the middle of April to 92,250 tonnes. This has eased worries about supplies on the LME market and widened the discount for the cash contract over the three-month copper to about $50 a tonne.
Industrial metals prices are also being influenced by US debt ceiling negotiations. Investors are concerned about the possibility of the US federal government falling behind on its debt payments, which could trigger a default and spark chaos in financial markets.
Elsewhere, zinc fell to 2-1/2-year lows of $2,425 a tonne. Prices of the metal used to galvanise steel for construction have dropped 30% over the past four months.
Three-month zinc fell 2% to $2,428.5 a tonne.
Beowulf Mining plc (LON:BEM – Get Rating) passed below its 200-day moving average during trading on Monday . The stock has a 200-day moving average of GBX 3.01 ($0.04) and traded as low as GBX 1.85 ($0.02). Beowulf Mining shares last traded at GBX 1.95 ($0.02), with a volume of 118,965 shares traded.
Beowulf Mining Price Performance
The firm has a 50 day moving average price of GBX 2.03 and a 200 day moving average price of GBX 3.01. The company has a quick ratio of 1.47, a current ratio of 0.80 and a debt-to-equity ratio of 14.73. The stock has a market cap of £22.62 million, a P/E ratio of -23.20 and a beta of 1.11.
Beowulf Mining Company Profile
(Get Rating)
Beowulf Mining plc engages in the acquisition, exploration, and evaluation of natural resource assets in Sweden, Finland, and Kosovo. The company explores for iron ore, base precious metals, lead, zinc, gold, copper, silver, graphite, and other mineral properties. Its projects include the Kallak magnetite iron ore deposit consists of 500 hectares located in Norrbotten County, Northern Sweden; Atvidaberg exploration license that comprises 12,533 hectares, which cover an area of 225 square kilometers situated in the Bergslagen area, southern Sweden; and Pitkajarvi and Aitolampi graphite prospects covers an area of 407 hectares, which are located in Eastern Finland.
The Apache tribe has been protesting the prospective land swap at Oak Flat. Credit: Rosemarie Mosteller via Shutterstock.
The US Forest Service has halted progress on the creation of a Rio Tinto copper mine in Arizona after it informed a federal court that it does not have a timeline for the completion of the deal’s review.
Oak Flat, sited on federally owned land in Arizona, is the subject of an attempted land swap between the federal government and Anglo-Australian miner Rio Tinto. The mining giant hopes that the proposed Resolution Copper Mine built on the site will supply as much as 25% of the US’s required copper.
Local indigenous communities have objected to the process. Oak Flat is a listed Traditional Cultural Property that holds religious significance in some native American cultures. Native rights campaign group Apache-Stronghold says that Oak Flat has been a gathering place for tribal ceremonies with centuries of culture.
Rio Tinto argues that an 1852 treaty between the US Government and Apache tribesmen does not grant the tribe right to the relevant land.
In 2021, US President Joe Biden unpublished the Final Environmental Impact Statement (FEIS) into the prospective land swap, commissioned by his predecessor Donald Trump, in order to give his own administration a chance to review it. Although an attorney for the US Forest Service had told Rio Tinto that the FEIS would be republished “this spring”, this has now been cast into doubt.
In an open letter to Joe Biden, Apache-Stronghold said that the rescinded FEIS stated: “The mine would create a crater up to two miles wide and 1,000 feet deep. It would consume more than 250 billion gallons of water in an area that is already suffering from a historic mega-drought.”
The letter added: “The mine would create 1.4 billion tons of toxic mine tailings that would cover nearly 4,000 acres of nearby wildlands, threatening to contaminate groundwater and surface water forever.”
The mine’s supporters claim that the copper mined from the site will support the US energy transition through the production of EV batteries. Rio Tinto’s website states: “We are encouraged by the significant local support for the project, but respect the views of certain groups who oppose it, and we will continue our efforts to address and mitigate these concerns.”
https://www.mining-technology.com/news/us-forest-service-rio-tinto/
LONDON - Copper extended this week's decline on Wednesday, touching an almost six-month low on signs of subdued Chinese demand that analysts expect to pressure prices over the coming days.
Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) was trading 1.6% down at $7 975 a tonne by 10:15 GMT, having touched $7 944 for its lowest level since November 29.
Copper hit a seven-month high of $9 550.50 in January after China removed its Covid curbs, but prices for the metal used in power and construction have since retreated.
"Copper has now given back all of its 2023 gains on weaker than expected Chinese demand, in what is normally a peak construction season, and subdued demand in the U.S. and Europe, with interest rate rises weighing on economic growth," said ING analyst Ewa Manthey.
"Hopes for higher demand from China have now faded with recent disappointing Chinese data underscoring a mixed picture for the world's biggest consumer of copper."
Copper is also weighed down by growing inventories in LME-registered warehouses MCUSTX-TOTAL, said Standard Chartered analyst Sudakshina Unnikrishnan.
"The much-anticipated rebound in China's copper imports and demand following the abrupt end to COVID lockdown policies has failed to materialise as of yet."
Rising LME inventories increased the discount on the cash contract against three-month copper MCU0-3 to $66 a tonne, its widest since early 1990s.
Among other metals, LME aluminium CMAL3 eased 0.7% to $2 211 a tonne after hitting its lowest since October 31 at $2 190.
Nickel CMNI3 lost 0.5% to $20 950 after touching $20,820 for its lowest since Sept. 5 while zinc CMZN3 was down 2.3% at $2 318.50 after sliding to $2 309, its weakest since October 2020.
Lead CMPB3, meanwhile, dipped by 0.8% to $2 055.5 and tin CMSN3 retreated by 1.6% to $23 940.
https://www.miningweekly.com/article/subdued-demand-pushes-copper-to-multi-month-low-2023-05-24
JAKARTA - Indonesia will continue shipping some raw minerals for the next year despite a looming export ban, its mining minister told parliament on Wednesday, as companies rush to finish smelters to process the ore domestically.
The resource-rich country had planned to ban exports of all metal ore starting in June to encourage investment in the domestic processing industry.
But copper, iron ore, lead, zinc and anode mud from copper concentrates will be allowed to leave the country until May next year so smelters, many of which were delayed by the pandemic, would be ready to handle the materials, said Energy and Mineral Resources Minister Arifin Tasrif.
He said banning exports prematurely would cost the country revenue and jobs.
Companies can keep exporting if they pay export duties and if their smelters were at least half-completed as of January. But they will be fined for every month of delay, Arifin said.
Jakarta has said it would exempt copper miners Freeport Indonesia and Amman Mineral Nusa Tenggara from the ban as their smelter development was also disrupted by the pandemic.
BAUXITE EXPORT BAN
However, bauxite shipments will be stopped in June, Arifin said, since four existing smelters can absorb ores intended for export.
"By optimising the processing at these four smelters there would still be an additional export value of $1.9-billion ... so the government would still get a net benefit," he said.
But Ronald Sulistianto, chairman of Indonesian Bauxite and Iron Ore Companies Association, said there are only two operating bauxite plants in the country.
"We produce 30 million tonnes, where would this output go? If this cannot be absorbed, many would lose their jobs," he said. Each smelter producing alumina from bauxite could only handle around 6 million tonnes of ore.
Arifin also noted that out of eight bauxite processing plants currently being built, seven were found to be "just open fields" despite progress companies saying they were up to 66% complete.
Ronald said these projects had seen little progress due to difficulty in securing financing, including from state-controlled banks that still see them as risky.
Indonesia in 2020 banned exports of nickel ore, rattling global markets. But the policy resulted in massive inflows of smelter investment and helped boost the value of exports from Southeast Asia's largest economy.
Customs data showed that China's lithium carbonate imports were 11,313 mt in April. The figure was 96% higher than in the same period last year, but 35% lower than in March.
Imports from Chile decreased 34% month-on-month, while those from Argentina fell 42% month-on-month.
The average import price was $55,116/mt in April, a decrease of 10% month-on-month, but up 54% year-on-year. The average import price from Chile stood at $57,941/mt, down 10% MoM.
71% of imported lithium carbonate went to Shanghai, 14% to Fujian, 8% to Jiangsu, and 4% to Guangdong.
From January to April, lithium carbonate imports totalled 50,048 mt, an increase of 50% year-on-year.
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(Bloomberg) -- Billionaire mining investor Robert Friedland said the tumble in copper prices is a temporary setback and the metal that’s essential for the decarbonization of the global economy continues to face a supply crisis.
The note of confidence from Friedland comes after China’s economic activity disappointed expectations since strict pandemic restrictions were removed late last year, weighing on metals demand. Weak domestic demand saw copper fall below $8,000 a ton for the first time in six months on Wednesday, adding to broader gloom about the global economy.
“It’s momentary,” Friedland said in a Bloomberg TV interview at the Qatar Economic Forum. “We’re very very bullish on demand.”
Friedland, the founder of Ivanhoe Mines Ltd., expects China to stimulate demand in the second half of the year. The world is facing a crisis of supply in copper, with not enough mines being built to satisfy future needs, he said. Ivanhoe is looking to develop its Kamoa-Kakula mine in the copper-rich Democratic Republic of Congo.
https://www.bnnbloomberg.ca/billionaire-friedland-says-copper-market-weakness-is-temporary-1.1924734
CMOC Group Limited (OTC:CMCLF – Get Rating)’s stock price shot up 0.6% during mid-day trading on Wednesday . The stock traded as high as C$0.54 and last traded at C$0.54. 315 shares traded hands during mid-day trading, a decline of 99% from the average session volume of 59,228 shares. The stock had previously closed at C$0.54.
Analyst Upgrades and Downgrades
Separately, HSBC raised CMOC Group from a “hold” rating to a “buy” rating in a research report on Monday, January 30th.
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CMOC Group Stock Performance
The business has a 50-day moving average of C$0.59 and a two-hundred day moving average of C$0.54.
CMOC Group Company Profile
CMOC Group Limited, together with its subsidiaries, engages in the mining, beneficiation, smelting, refining, and trading of copper, cobalt, molybdenum, tungsten, niobium, phosphates, and other base and rare metals. The company provides molybdenum oxide, ferromolybdenum, molybdenum and tungsten concentrates, copper concentrate, cobalt hydroxide, ferroniobium, phosphate fertilizer, gold and silver, and other related products.
https://www.defenseworld.net/2023/05/25/cmoc-group-otccmclf-shares-up-0-6.html
Osisko Mining Inc. (OTCMKTS:OBNNF – Get Rating)’s share price dropped 1.5% on Wednesday . The company traded as low as $2.25 and last traded at $2.29. Approximately 169,512 shares traded hands during trading, a decline of 36% from the average daily volume of 263,680 shares. The stock had previously closed at $2.33.
Analysts Set New Price Targets
Several research analysts recently weighed in on OBNNF shares. Scotiabank cut their target price on Osisko Mining from C$4.50 to C$4.25 in a research report on Wednesday, May 3rd. National Bank Financial increased their target price on Osisko Mining from C$4.00 to C$6.00 in a research report on Tuesday, April 18th. Finally, BMO Capital Markets cut their target price on Osisko Mining from C$6.25 to C$5.75 in a research report on Wednesday, May 3rd.
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Osisko Mining Stock Down 1.5 %
The stock has a 50 day moving average of $2.79 and a 200 day moving average of $2.61.
About Osisko Mining
Osisko Mining, Inc engages in the exploration and development of gold resource properties. Its project portfolio includes Windfall, Quévillon, and Urban Barry. The company was founded on February 26, 2010 and is headquartered in Toronto, Canada.
https://www.defenseworld.net/2023/05/25/osisko-mining-otcmktsobnnf-shares-down-1-5.html
LONDON, May 25 (Reuters) - Zinc prices fell to their lowest since July 2020 on Thursday as weak demand for the metal used to galvanise steel pushed the market into surplus and exchange inventories rose.
Prices have plunged 35% from a high in January as an economic recovery in China, zinc's biggest consumer, proved weaker than expected and rising interest rates slowed growth elsewhere.
Adding impetus on Thursday was data showing an 18,050-tonne increase in zinc inventories in the London Metal Exchange warehouse system, taking total LME stocks to an eight-month high of 63,450 tonnes. MZNSTX-TOTAL
Benchmark LME zinc CMZN3 was down 2.7% at $2,251.50 a tonne at 1034 GMT, taking its losses this week to around 9%.
"Zinc is very exposed to the construction markets (and) construction is doing badly in many places," said Dan Smith, head of research at Amalgamated Metal Trading.
Steel and iron ore prices have also fallen. Chinese steel demand during the peak spring construction season was below expectations and building activity typically slows in summer.
"A meaningful recovery is physical zinc demand is unlikely in the coming months," said Citi analyst Tom Mulqueen in a note earlier this month.
Citi said it expected the roughly 14 million tonne a year market to be oversupplied by 147,000 tonnes in 2023.
Nevertheless, Smith said zinc looked oversold: "I'd be surprised if we had a huge amount of downside from here."
Also putting pressure on metals was a strengthening U.S. dollar which made dollar-priced metals more expensive for buyers with other currencies. =USD
LME tin CMSN3 was up 1.5% at $24,320 a tonne after the International Tin Association said a detailed plan to suspend mining in a region of Myanmar controlled by an ethnic Wa militia force had been published this month, raising supply concerns.
Copper CMCU3 was up 0.9% at $7,975, aluminium CMAL3 rose 0.9% to $2,224.50, lead CMPB3 fell 0.9% to $2,031 and nickel CMNI3 was up 2.1% at $21,170.
https://www.nasdaq.com/articles/metals-weak-demand-drives-zinc-to-its-lowest-since-july-2020
SHANGHAI, May 22 (SMM) - Stainless steel prices remained low last week, with spot #304 quotes dipping about 300 yuan/mt WoW. Last Wednesday, a stainless steel mill in east China suspended the cold-rolled coil shipments to the Wuxi market and cut the shipments to the Foshan market. Besides,with the digestion of warrant goods, social inventory of cold-rolled coil declined a little.. In terms of hot-rolled coils, a mill in east China reduced its shipment volume to the market last week, allowing the social inventory to drop slowly. High-grade NPI prices were low last week. Some holders slightly cut their quotes when the downstream demand was lower than expected. SMM predicts that the short-term NPI prices will fall in the short term as the stainless steel mills will carry out overhauls. Prices of ferrochrome rose slightly during the week amid the producers’ intention to raise their quotes before the bid price release, but the transactions were slack because of the wait-and-see approach taken by buyers. Ferrochrome prices will run steadily before the bid price release. In general, the stainless steel supply and demand both decreased last week. Spot stainless steel prices are expected to drop this week.
https://news.metal.com/newscontent/102223296/Spot-Stainless-Steel-Prices-Stood-Low-Last-Week/
TOKYO : Japan's JFE Steel said on Monday it will go ahead with a 46 billion yen ($341 million) plan to triple production capacity of electrical steel sheet at its Kurashiki plant in western Japan to meet growing demand for electric vehicles (EVs).
The move comes after its bigger rival Nippon Steel Corp said earlier this month it would spend 90 billion yen to boost its capacity to make high grade non-oriented electrical steel sheet at two of its domestic steel works.
JFE, the flagship unit of JFE Holdings Inc, had flagged the potential expansion in electrical steel sheet, a key material used in primary motors of EVs, in February.
The latest investment follows its 2021 decision to spend 49 billion yen to double capacity at the plant by September 2024.
After the second expansion is completed by March 2027, output capacity will triple from current levels.
Japan's second-biggest steelmaker also said it and Indian partner JSW Steel Ltd have reached a basic agreement to form a joint venture to produce electrical steel sheets used in power plant transformers.
Under the plan, which was also flagged in February, the new factory will start operating by March 2028.
A spokesperson at JFE Steel declined to comment on an expected investment cost.
($1 = 135.0500 yen)
JSW Steel is entering into an equal joint venture with JFE Steel Corporation of Japan to manufacture grain-oriented steel sheets. These sheets find a use in the electrical industry.
According to information, in Vijaynagar, Karnataka, where JSW runs a 12 million-tonne steel plant, the downstream facility will be built. The companies did not disclose the investment, but according to industry benchmarks, capex should be in the range of Rs 5,000 crore.
It may be noted that India imports all of its cold-rolled grain-oriented (CRGO) steel sheet, which is perfect for power transformer cores. The first company to manufacture this specialised steel in India will be this JV. The JV will use a hot rolled coil as its raw material, which will be produced in Vijayanagar.
JFE Steel is a strategic investor in JSW Steel, holding a 15 per cent stake in the company. The strategic alliance between the two companies kicked off in 2009.
In May 2021, a memorandum of agreement for a joint feasibility study was signed. Since the study's completion, JSW Steel and JFE Steel have both agreed in principle to establish a 50:50 JV.
According to a statement from JFE, the electrification of autos, the quest for improved energy efficiency, and the usage of renewable energy are all projected to drive up demand for high-grade electrical steel sheets globally.
Jayant Acharya, joint managing director & CEO of JSW Steel, said, “The JV would further strengthen JSW Steel’s position as India’s leading manufacturer of advanced steel products that lead to reduced CO2 emissions, and create sustainable steel solutions.”
In advance of the annual Made in Steel trade fair, held in Milan this month, European steel buyers expressed their uncertainty about future prices and, therefore, held back purchases. The gap between domestic and imported coil product prices remained substantial. European steel producers attempted to resist downward pressure. Buyers looked to the Milan event for a clear signal.
Trade fairs, with many industry participants together in one place, typically provide an opportunity to reset the market. European steelmakers, however, could not provide clear direction. Most market offers were withdrawn, as mills sought to identify the path ahead from their discussions.
EU mills face a dilemma. They have little obvious incentive to reduce prices, if their capacity is as heavily committed as they claim. They know that lowering offers will attract few additional orders, while demand is weak and buyers remain cautious. Nonetheless, they must be seen to be competitive, to secure future business.
Distributors and service centres are overstocked, relative to current actual and apparent demand. There is no appetite for speculation and only essential purchases are made. Steel buyers regularly receive quotations for import material, at very attractive prices. New offers from outside Europe are for September/October arrival, but this is not much later than current EU delivery lead times.
Spot deals confirmed this month, albeit relatively sparse, all exhibit a downward tendency, whether for flat or long products. Buyers assume that lower prices would be available, for bigger volumes, but large enquiries are rare.
The automotive industry continues to produce at levels below its peak. Construction, particularly housebuilding, is weak, due to high interest rates. This has had a negative impact on long product values.
Structural sections, merchant bar and rebar prices have been softening for several weeks. Spanish mills were notably aggressive with their offers, which also affected French market prices. Italian producers had previously maintained a strong stance, supporting values in northern Europe too, but their prices started to erode this month. The effect was visible throughout the region.
Turkish producers lifted scrap purchases and steel output, in anticipation of post-earthquake reconstruction activity. This, however, is delayed, partly by the presidential election. Consequently, scrap buying activity has decreased, putting downward pressure on European scrap values. Turkish mill offers to European buyers, at competitive prices, have increased in number.
Source: MEPS International
https://www.hellenicshippingnews.com/european-steel-prices-lacking-clear-signal/
By Enrico Dela Cruz
May 22 (Reuters) - Benchmark futures prices of steel and steelmaking ingredients including iron ore fell on Monday, surrendering some of their last week's gains on persistent worries about China's sluggish property sector.
The most-traded September iron ore on China's Dalian Commodity Exchange DCIOcv1 ended morning trade 1.6% lower at 724 yuan ($104.74) a tonne.
On the Singapore Exchange, the most-active June iron ore contract SZZFM3 dropped as much as 2.7% to $102.55 a tonne, its weakest since May 15.
Prices of the steelmaking ingredient climbed 6% last week in Singapore, marking their biggest weekly gain in seven, as hopes grew for more policy stimulus to shore up top steel producer China's patchy economic recovery.
China will take more targeted measures to expand domestic demand and stabilise external demand in an effort to promote a sustained economic rebound, Premier Li Qiang was quoted by state radio as saying on Thursday.
"One of the main problems with sentiment-driven rallies is that they're incredibly fragile unless fundamentals play catch up sooner rather than later - which is highly unlikely for now," said Navigate Commodities managing director Atilla Widnell.
A slower pace of home price gains in China, along with last week's bearish data showing a sharp fall in property investment and sales, has raised doubts about the strength of recovery in the real estate sector, a key driver of steel demand and crucial to the health of China's economy.
"We expect steel production in China to fall in coming months due to a lack of growth in new construction activity. This will weigh on iron ore demand, just as supply disruptions ease," ANZ commodity strategists said in a note.
Coking coal DJMcv1 and coke DCJcv1 on the Dalian exchange slumped 3.4% and 3.1%, respectively.
Rebar on the Shanghai Futures Exchange SRBcv1 dipped 1.8%, hot-rolled coil SHHCcv1 shed 1.7%, wire rod SWRcv1 lost 2.5%, and stainless steel SHSScv1 dropped 0.8%.
https://www.nasdaq.com/articles/iron-ore-other-ferrous-futures-fall-on-china-property-blues
CZR Resources has inked an option agreement to acquire a granted exploration tenement just 70km south of the Port of Ashburton as it ponders a potential stockyard and haulage depot to service iron ore exports.
The agreement with Great Sandy Pty Ltd is for a tenement covering 115 square kilometres, 60km south-east of Onslow in Western Australia’s Pilbara region. Management believes the land is positioned perfectly for a potential central stockyard and distribution hub to service its Robe Mesa iron ore mine.
However, in order to lower capital and operating costs, the company believes it would work best as a joint shared facility given its proximity to Strike Resources’ Paulsens East iron ore mine and the proposed Port of Ashburton Consortium export facility.
Under the terms of the deal, CZR will pay an initial fee of $5000 for an exclusive option until August 31. It may exercise its option to acquire the tenement at any time during the period for $75,000 worth of its shares.
Alternatively, the company may extend its option period by another four months with a payment of a further $5000. During the second period, it can take up its option for $70,000 in shares.
CZR is already on the front foot in applying for a miscellaneous licence for the tenement for the specific purpose of holding the related stockyard, trucking and accommodation facilities.
Apart from its potential as an infrastructure hub, management says its new tenement also hosts the Mt Minnie project, which is prospective for copper-gold mineralisation. The project was discovered in the 1990s by Wiluna Mining Corporation as a possible iron oxide-copper-gold deposit after it identified four prospects using airborne and ground geophysics surveys and surface geochemistry.
CZR’s Robe Mesa project is in the West Pilbara, 200km south-west of Karratha and 175km from Onslow. It forms part of the Robe Valley channel iron deposits between Rio Tinto’s Mesa A and Mesa J-K iron ore mines.
Earlier this month, CZR cranked up its Robe Mesa iron ore reserves by a massive 230 per cent to 27.3 million tonnes at 55 per cent iron, or 62.2 per cent iron after calcining.
The company’s boosted reserves underpin an initial eight-year mine plan production figure of 3.5 million tonnes per annum with a cash cost (C1) of $57 a tonne and an impressive internal rate of return of 70 per cent at an iron ore price of $131.1 per tonne. Management believes there is more scope for growth in its inventory, mine life and production levels by including its Robe Mesa South deposit.
CZR owns 85 per cent of Robe Mesa and the remainder is held by well-known prospector-turned-investor Mark Creasy, whose interest is free-carried until the completion of the project’s DFS.
Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au
May 24 (Reuters) - Iron ore futures stretched losses on Wednesday, with the Singapore benchmark languishing below $100 a tonne, as steel prices slumped in China on economic recovery worries.
A weaker yuan also added to the gloomy mood, with Shanghai rebar futures hitting their lowest in more than six months.
The steelmaking ingredient's most-active June contract on the Singapore Exchange SZZFM3 fell as much as 2.5% to $97.50 a tonne, its weakest since May 12.
The most-traded September iron ore on China's Dalian Commodity Exchange DCIOcv1 dipped as much as 3.2% to 692.50 yuan ($100.19) a tonne, its lowest also since May 12.
Benchmark October rebar on the Shanghai Futures Exchange SRBcv1 dropped 2.5% to 3,503 yuan a tonne, its weakest since Nov. 4.
The yuan's CNY=CFXS, CNY/ weakness added to lingering concerns about top steel producer and metals consumer China's patchy economic recovery, Sinosteel Futures analysts said in a note.
Market fundamentals have also been uninspiring, with steel demand in China likely to remain muted as authorities have imposed production limits, while mills are expected to "actively reduce" their output to stay afloat.
"In the medium term, the crude steel production control policy will lead to a significant drop in iron ore demand, while the long-term outlook is also relatively pessimistic," Sinosteel analysts said.
Citing data from the China Iron and Steel Association, Westpac analysts said steel production at major mills on a rolling month basis to mid-May is now down 1% versus the average over the last three years. It was up as much as 9.4% above the average at the end of March.
Other Shanghai steel benchmarks were also under pressure, with hot-rolled coil SHHCcv1 down 2.2%, and wire rod SWRcv1 and stainless steel SHSScv1 both falling 1.1%.
Coking coal DJMcv1 and coke DCJcv1 on the Dalian exchange were down 1.4% and 2.3%, respectively.
https://www.nasdaq.com/articles/sgx-iron-ore-languishes-below-$100-t-as-china-concerns-weigh
Benchmark Singapore and Dalian iron ore futures stretched losses on Wednesday, languishing below $100 a tonne, as steel prices slumped in China on economic recovery worries.
A weaker yuan added to the gloomy mood, with Shanghai rebar futures hitting their lowest in more than six months.
The steelmaking ingredient’s most-active June contract on the Singapore Exchange tumbled as much as 4.7% to $95.25 a tonne, its weakest since May 5.
The most-traded September iron ore on China’s Dalian Commodity Exchange ended daytime trading 4.6% lower at 682.50 yuan ($98.74) a tonne, also touching its lowest since May 5 at 682 yuan.
Benchmark October rebar on the Shanghai Futures Exchange slumped as much as 3.6% to 3,462 yuan a tonne, its weakest since Nov. 3.
China’s yuan weakened to near six-month lows against the dollar on Wednesday and surrendered all the gains it made this year against a basket of currencies of its trading partners amid fresh tensions in Sino-U.S. relations.
The currency’s weakness added to lingering concerns about top steel producer and metals consumer China’s patchy economic recovery, Sinosteel Futures analysts said in a note.
Market fundamentals have also been uninspiring, with China’s steel demand – which did not meet expectations for the peak construction season between March and May – likely to remain muted, and as steel mills comply with China’s production limits to curb emissions.
“In the medium term, the crude steel production control policy will lead to a significant drop in iron ore demand, while the long-term outlook is also relatively pessimistic,” Sinosteel analysts said.
Other Shanghai steel benchmarks also tumbled, with hot-rolled coil down 3.1%, wire rod shedding 1.9%, and stainless steel falling 0.8%.
Coking coal and coke on the Dalian exchange were down 1.9% and 2.7%, respectively.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu and Sohini Goswami)
https://www.hellenicshippingnews.com/iron-ore-tumbles-as-worries-over-china-demand-grow/
(Bloomberg) — BHP Group Ltd. is confident China’s troubled property market will turn around in coming months, despite gloomy economic signals pushing iron ore and copper prices back to levels last seen during the Covid Zero era.
Secondary sales in the housing market “continue to be strong, very strong,” Vandita Pant, BHP’s chief commercial officer, said in an interview on Thursday. “We always thought sales and completions of homes will turn around first, and then new starts,” she said, adding “that trajectory is holding.”
The note of confidence from the world’s biggest miner comes after China’s economic activity disappointed expectations since strict pandemic restrictions were removed late last year, heavily impacting metals demand. The Asian powerhouse is by far the largest importer of both iron ore and copper.
Weaker-than-expected construction, particularly in the property sector, has pushed iron ore — BHP’s top export — below $100 a ton. Copper, another of its key commodities, fell below $8,000 a ton for the first time in six months this week, adding to broader gloom about the global economy.
But Pant said BHP still expects China’s metals demand “to be a source of stability in the second half, and the second half to be better than the first half,” echoing the words of Chief Executive Officer Mike Henry at the company’s half-year results in February.
The first quarter of 2023 was “better than we were expecting,” but the market got carried away in the second quarter, pushing commodity prices to unrealistic levels, Pant said. China’s economy wouldn’t feel the “full tailwind” of government stimulus measures, introduced earlier this year, until 2024, she said.
Copper futures on the London Metals Exchange edged up 0.4% to $7,929 a ton at 12:22 p.m. in Singapore, but are still down almost 4% this week.
The 10 biggest emitters in the European Union last year were all coal plants, with those in Germany and Poland dominating the list, a new analysis by energy think tank Ember revealed Tuesday.
The power sector accounted for 739 million tons of CO2 equivalent (CO2e) last year, about half of the EU’s Emissions Trading System (EU-ETS) emissions. Coal was responsible for over 60% of power sector emissions, with Germany and Poland accounting for two-thirds of it.
The top 10 coal plants accounted for a quarter of all emissions from the power sector last year and 13% of total EU emissions recorded in the ETS, according to the analysis.
The system covers over 10,000 installations across sectors including power, aviation and other industries such as cement, steel and oil refineries.
"Coal plants are the repeat offenders of the EU's dirty list," said Ember's analyst Harriet Fox. "The faster Europe can get off coal power the better."
Seven of the coal plants have been among the top 10 power plants every year for the last decade.
PGE's Belchatow power plant in Poland has topped the list as it has done since the ETS began in 2005.
Germany’s RWE and EPH and Poland’s PGE dominated power sector emissions for the sixth consecutive year as they each emitted almost as much CO2e as Italy's power sector in 2022.
Those three utilities accounted for 30% of the EU's power sector emissions, with lignite plants responsible for the majority of this, Ember said.
Besides the coal plants in Germany and Poland, Bulgaria's Maritsa East 2 coal plant ranked the 10th largest emitter in the EU.
According to the analysis, while coal still dominates the EU's emissions, the long-term decline of coal power is clear as coal emissions in 2022 were lower than a decade ago.
Coal power emissions in Europe rose by only 6% last year compared to 2021, despite concerns that Europe would return to coal power during the global gas crisis exacerbated by Russia's war in Ukraine.
Ember said the two biggest EU-ETS coal power emitters, Germany and Poland, have seen declines in coal power emissions, though Germany is moving more quickly.
Coal power emissions have fallen by 37% in the last decade in Germany, which is targeting phasing out coal plants in 2030.
Poland, however, has yet to set a coal phase-out date and reduced its coal power emissions by only 12% in the last 10 years. As a result, Poland had an increased share of 28% of EU-ETS coal power sector emissions in 2022, up from 19% a decade ago, while Germany's share remained stable.
TOKYO: Tokyo Steel Manufacturing Co , Japan's top electric-arc furnace steelmaker, on Monday said it would hold steel product prices steady in June to ensure hikes implemented earlier this year would be absorbed by the market.This is the second month the company will keep prices unchanged for all of its steel products, including its main H-shaped beams. Tokyo Steel raised prices for some products in March and April.For June, prices for steel bars, including rebar, will remain at 103,000 yen ($763) a tonne while H-shaped beams will also stay at 127,000 yen a tonne.Tokyo Steel's pricing is closely watched by Asian rivals such as South Korea's Posco and Hyundai Steel , and China's Baoshan Iron & Steel Co Ltd (Baosteel) .($1 = 135.0500 yen) (Reporting by Yuka Obayashi , Editing by Bernadette Baum
According to the Vietnam Steel Association, over 735,000 tons of construction steel were sold in April, the second-lowest monthly sales figures since 2022.
The sale was down 15% against the same period last year.
Over 710,000 tons of construction steel were produced, posting the smallest monthly output since 2022, and a year-on-year drop of 37%.
According to Hoa Phat Group, which holds one-third of the market share for construction steel, demand remained weak worldwide, so it sold only 214,000 tons of construction steel in April, down 28%.
To spur sales, Hoa Phat on May 19 reduced the price of rebar by VND200,000 (US$8.50) to VND15.09 million per ton. Other steel makers lowered the price by VND150,000-250,000.
Since early April, steel prices have decreased six times. At present, the average price of most common products is around VND15 million per ton, similar to that in October 2022 when steel demand started to plummet.
According to Vietcombank Securities Company, steel prices started to fall in late April when prices of input materials such as iron ores, steel scrap and coke went down.
Construction steel prices are likely to drop further in the coming time because of weak demand, the company said, noting that real estate developers and people are discouraged to build houses amid economic difficulties with high lending interest rates.
According to the World Steel Association, the global steel demand is likely to increase by 2.3% to 1.82 billion tons this year, and by 1.7% to more than 1.85 billion tons next year. However, the demand will still be affected by high leading interest rates.
https://www.retailnews.asia/construction-steel-sales-fall-15-in-april/
SHANGHAI, May 23 (SMM) - Rebar futures fell 0.58% today to 3,588 yuan/mt. The spot transactions were sluggish. According to SMM research, some blast furnaces resumed production with an improvement in marginal profits. EAF mills in Guizhou all shut down amid low profits, and those in central China, south China and other places suspended their production due to tight steel scrap supply. As a result, the overall supply of construction steel rose only slightly. On the demand side, the number of infrastructure and housing construction projects both decreased, while the demand from existing projects was low, dragging down construction steel prices and transactions.
The stable coke prices and the slower drop in iron ore prices may offer certain support to steel prices. It is rumoured that Hebei is conducting research on steel mills. This move may prepare for the steel output control policy. Besides, the end demand for construction steel will hardly exceed expectations as there will be no favourable policy stimulus. On the whole, short-term steel prices may hover at lows.
https://news.metal.com/newscontent/102225209/smm-review-and-forecast-on-rebar-prices
Dalian and Singapore iron ore futures fell to one-week lows on Tuesday on pessimism over demand prospects in top steel producer China, although support appeared intact near $100 a tonne.
Benchmark prices of the steelmaking ingredient have fallen more than 20% from this year’s peak at just above $130 a tonne around mid-March, when sentiment was positive as China entered its peak spring construction season and following its exit from strict COVID-19 restrictions.
With the construction season now winding down and steel demand not meeting expectations, while the domestic economy performs unevenly amid a sluggish property sector, analysts said China’s iron ore consumption may remain muted.
Iron ore’s benchmark June contract on the Singapore Exchange was down 1.8% at $100.30 a tonne, as of 0339 GMT.
It dropped to $99.80 earlier in the session, its lowest since May 15. The most-traded September iron ore on China’s Dalian Commodity Exchange ended morning trading 2.3% lower at 712 yuan ($103.01) a tonne, after earlier falling to 709.50 yuan, its weakest also since May 15. Iron ore has pulled back after last week’s rally spurred by hopes that China will roll out additional policy support for its economy.
Iron ore, other ferrous futures fall
“However, considering the lack of significant changes in monetary and fiscal policies, it is anticipated that China’s economic cycle will reach its trough in Q3,” industry consultancy and data provider Mysteel said in its weekly outlook.
“The bearish expectation stems from the residential sector and private corporate sector, which are less optimistic about future prospects.”
Mysteel said the decline in real estate investment and new construction activity in China in the January-April period signalled continued weakness in steel demand.
Rebar on the Shanghai Futures Exchange dipped 0.6%, hot-rolled coil shed 0.8%, while stainless steel dropped 0.7%.
On the Dalian exchange, coking coal rose 0.7%, but coke fell 0.7%.
Mongolia is keen to tap India as a probable partner for supply of coking coal and has reportedly approached the Steel Ministry to explore probable tie-ups, those familiar with the developments told businessline.
Coking coal is a key steel-making raw material and India — the world’s second largest crude steel producer — is amongst the largest importer of the feedstock. Most of the imports are met from Australia, followed by the US, Indonesia and Mozambique.
However, in view of increasing volatility of coking coal prices in recent times, India’s steel mills have been keen to tap into alternate markets like Russia. US and Indonesian shipments nearly doubled in FY23. In FY23, coking coal imports were 54.3 million tonnes (mt).
“Mongolia is keen to supply coking coal to Indian mills and has approached the Ministry with proposals. In fact, some company level discussions were also held. But the decision has to be taken by steel makers,” the official aware of the discussions said.
It is being said, Mongolia is building a washing station for coking coal — with a 2024 deadline — and it could help export coking coal here. Joint venture tie-ups could also be explored.
Major concerns
According to officials in the Ministry, one of the major concerns raised by Indian mills is the “land-locked nature of Mongolia” and the possibility of transporting coal “over long distances” leading to an increase in costs. Then there are other concerns on whether the quality of Mongolian coking coal will suit or blend with that of the blast furnaces of Indian mills.
Reportedly, Mongolia has rail connectivity to Russia and China and the ports of these countries. The push is towards leveraging these lines for exporting coal. Three major rail projects have been commissioned in 2022 and four new railroad checkpoints will be opened, primarily with a focus on mineral transportation.
Mongolian coal on exchanges
Mongolia, incidentally, is exporting its coal at prices set via auctions on the Mongolian Stock Exchange (MSE), beginning February, and has reportedly stopped signing direct sales contracts with overseas buyers.
The government there approved a regulation requiring parties involved in coal exports to make their trades through open electronic trading via the MSE.
Under the previous trading mechanism, buyers only paid mine-mouth prices to miners and sorted out the logistics by themselves. The new so-called “border prices” will factor in the transportation fees and aim to simplify the coal export process, it is being said.
