On Saturday evening, Luxembourg's Minister for Foreign Affairs, Jean Asselborn, joined our colleagues from RTL Télé to address the ongoing developments in Russia.
Asselborn expressed his concern, stating that "the situation in Russia is serious." He pointed out that the current state of affairs was a consequence of President Vladimir Putin's actions, describing it as a "humiliation" for Putin.
At the time, Asselborn highlighted the potential risk of a civil war in Russia within the next few hours, emphasising that the monopoly on the use of force no longer solely rests with the state.
While the Wagner group has backed down since the minister's statements, Asselborn also pointed out that there are "dozens of groups like Wagner" in Russia. "Gazprom has one, there's people like Kadyrov [Head of the Chechen Republic], and their intelligence service also has a group like that."
Drawing attention to the global ramifications, Asselborn highlighted Russia's possession of approximately 6,000 nuclear warheads. He warned that complete destabilisation of Russia would pose the greatest danger to the world.
'Putin is destabilised'
The European Union considers these developments as internal to Russia, viewing them as a domestic evolution. As a result, "there is no need for Russia to caution Western countries against interference." EU foreign ministers are scheduled to convene on Monday to discuss the situation.
Asselborn acknowledged Putin's weakened position, attributing it to Yevgeny Prigozhin's discrediting of the narrative surrounding the Ukraine war, which claimed that NATO and the West were on the verge of invading Russia.
"Should Putin be the one to come out on top," Asselborn went on to say, "I hope that this won't make the already existing dictatorship in Russia even worse or lead to the use of more dangerous weaponry."
Asselborn stressed that the outcome largely depends on domestic sentiments towards Putin and the potential actions of the Wagner Group, should they make it to Moscow.
*This interview was conducted at 7.30pm on Saturday. Shortly thereafter, news broke that Prigozhin had temporarily halted the advance towards Moscow.
Full interview (in Luxembourgish):
Renewables growth did not dent fossil fuel dominance in 2022, a report has revealed.
Renewable energy failed to shift the dominance of fossil fuels in 2022, a new report has shown, despite a massive growth in wind and solar capacity.
Global energy demand rose 1 percent last year, the Statistical Review of World Energy report revealed on Monday - and the 82 percent of total supply was provided by oil and gas generation.
This is despite a massive increases in renewable capacity, which grew by a whopping 266 gigawatts.
"Despite further strong growth in wind and solar in the power sector, overall global energy-related greenhouse gas emissions increased again," said the president of the UK-based global industry body Energy Institute, Juliet Davenport.
"We are still heading in the opposite direction to that required by the Paris Agreement."
Which fossil fuels dominated energy supply in 2022?
Last year was marked by turmoil in the energy markets after Russia's invasion of Ukraine, which helped to boost gas and coal prices to record levels in Europe and Asia.
But despite the turmoil, energy demand increased. Global primary energy demand grew around 1 percent, slowing from the previous year's 5.5 percent, but demand was still around 3 percent above pre-coronavirus levels in 2019.
The stubborn lead of oil, gas and coal products in covering most energy demand cemented itself.
Renewable capacity grew last year - but not nearly enough to displace fossil fuels as the dominant energy provider. canva
Renewables, excluding hydropower, accounted for 7.5 per cent of global energy consumption, around 1 per cent higher than the previous year
Meanwhile, oil consumption increased by 2.9 million barrels per day to 97.3 million bpd. The overall trend was slightly downward, however, with oil consumption down 0.7 percent on pre-COVID levels.
The annual report, a benchmark for the industry, was published for the first time by the Energy Institute together with consultancies KPMG and Kearny after they took it over from BP, which had authored the report since the 1950s.
What does fossil fuel growth mean for the climate?
Our continued dependence on fossil fuels is a massive threat to the environment.
Scientists say the world needs to cut greenhouse gas emissions by around 43 percent by 2030 from 2019 levels to have any hope of meeting the international Paris Agreement goal of keeping warming well below 2C above pre-industrial levels.
Fossil fuel extraction and consumption is the biggest cause of global warming.
To limit climate-change induced temperature increases below 2 degrees Celsius, society must rapidly decarbonise.
But last year, Subsidies for oil and ‘natural gas’ (aka fossil gas) soared. Governments spent more than €900 billion on fossil fuel subsidies in 2022, the highest figure ever recorded.
The drop in oil prices shows no sign of ending. WTI crude ended at $69.16 for the week ending June 24, 2023. When will the energy boom resume?
OPEC attempted to catalyze an energy boom earlier this year by cutting supply. It attempted to right-size weaker demand and falling prices. When prices kept falling, OPEC announced another cut, effective July 1, 2023.
Economic figures like CPI, job reports, and GDP contradict reports of weak energy demand. A hot economy would increase energy demand. Investors need to look at global events for a clearer picture.
Russia is exporting record amounts of energy to China, Iran, and India, to fund its war. This takes away those countries from OPEC energy demand, hurting prices.
China’s economic slowdown is worsening. Its exports are weakening, indicating poor demand from Europe and North America. The economic slowdown in the West must end before the energy boom restarts.
Investors may add Exxon (XOM), Shell (SHEL), and Petrobras (PBR) to their energy stock list. Their profit margins will rise, thanks to their low production costs.
Energy investors may broaden their holdings with lithium mining and solar energy stocks. As energy prices rise, demand for clean energy alternatives will increase as well.
ICE Brent and NYMEX WTI jumped higher yesterday after the EIA reported a largely constructive crude oil market report with a sharp inventory decline. However, the market has been trading softer this morning on account of hawkish comments from the US Fed as inflationary concerns continue.
The weekly report from the EIA shows that commercial crude oil inventories in the US fell by 9.6MMbbls (the largest weekly decline since 19 May) over the week to 453.7MMbbls (the lowest since 27 January). The decline was higher when compared to the market expectation of a drawdown of 1.3MMbbls and the decline of 2.4MMbbls reported by API for the week. When factoring in the Strategic Petroleum Reserve (SPR) releases, the decline was even sharper, with total US crude oil inventories falling by around 11MMbbls, as SPR stocks fell by 1.4MMbbls for the week. US crude oil exports increased to 5.3MMbbls/d for the week which has weighed on the inventory.
Meanwhile, crude oil inventories at Cushing, Oklahoma, rose by 1.2MMbbls to 43.2MMbbls, the highest level since June 2021. The EIA reported that US crude oil production was unchanged at 12.2MMbbls/d last week.
As for refined products, gasoline inventories rose by 0.6MMbbls, against a forecast for a marginal build of 0.1MMbbls. Meanwhile, distillate stockpiles rose by 0.1MMbbls last week, slightly lower than expectations for a build of 0.2MMbbls. Refinery utilisation rates dropped from 93.1% to 92.2% for the week.
https://think.ing.com/articles/the-commodities-feed-hawkish-fed-comments-weigh-on-the-complex/
Mass Leads Request to Establish Interregional Transmission Collaborative
BOSTON — The Healey-Driscoll Administration submitted to the U.S. Department of Energy (DOE) a request on behalf of all the New England states, New York, and New Jersey to form a Northeast States Collaborative on Interregional Transmission, a new approach to planning for electric transmission infrastructure across multiple regions.
Under the proposed structure, DOE would lead the states in planning activities that may include investigating opportunities for mutually beneficial options for increasing the flow of electricity between three different planning regions in the Northeast and assessing offshore wind infrastructure needs and solutions. Greater interconnectivity between regions lowers prices for consumers through a larger marketplace for low-cost clean energy generation, bolsters reliability during periods of extreme weather and system stress, and increases access to renewable energy to meet decarbonization requirements.
"One of our first actions upon taking office was to create a team focused solely on regional and federal collaboration on energy issues. Already, we're strengthening our connections with our neighboring states to deliver cleaner, more affordable, and more reliable energy to Massachusetts residents," said Energy and Environmental Affairs (EEA) Secretary Rebecca Tepper, who led the letter. "The Northeast States Collaborative on Interregional Transmission represents how the Healey-Driscoll Administration is looking to pursue innovative new approaches to accelerating our clean energy transition. We're grateful to our neighboring states and regions for joining together to propose this concept."
The Commonwealth's Clean Energy and Climate Plans calls for a modernized and expanded transmission system to achieve our state's transition to a clean energy future. This includes increasing the transmission capacity between Massachusetts and neighboring regions. The establishment of a Northeast States Collaborative on Interregional Transmission, supported by DOE funding and technical expertise, would be a critical step toward unlocking and sharing in the clean energy potential that exists beyond each state's borders and off our shared coastline. The letter is signed by Massachusetts and seven other states: Connecticut, Maine New Hampshire, New Jersey, New York, Rhode Island, and Vermont.
In February, Secretary Tepper established the first-ever Office of Federal and Regional Energy Affairs within the Executive Office of Energy and Environmental Affairs. She appointed Jason Marshall to serve as Deputy Secretary and Special Counsel for Federal and Regional Energy Affairs and Mary Louise "Weezie" Nuara to serve as Assistant Secretary for Federal and Regional Energy Affairs. The positions promote regional cooperation and advocate for advancing the Commonwealth's clean energy transition with federal, state, and other stakeholders.
The suspension, announced by Liz Truss’s government as part of a support package amid skyrocketing prices last September, was meant to last for two years.
But the cost will again be imposed on consumers from next month.
The green levies have been temporarily funded by the Treasury as part of the Government’s Energy Price Guarantee (EPG), which limited annual energy costs to £2,500 for the average household.
But the Exchequer will no longer subsidise people’s energy bills – including covering the cost of the green levies – when the Ofgem price cap falls to below the EPG level.
The regulator will cut its price cap from £3,280 to £2,074 from July 1 following tumbling wholesale prices.
Even as customers again pay energy rates in full, including for green levies, the average energy bill will fall by £426 a year due to the drop in the price cap.
A Treasury source said the Government has not “made an active decision” to saddle consumers with the green levies again.
“That’s how the Energy Price Guarantee (EPG) works,” the said. “It’s part of the design of the scheme announced in September 2022.”
Energy Security Secretary Grant Shapps said householders will not have to pay more on their energy bills to fund hydrogen production (Victoria Jones/PA)
Green and social levies make up around £170 per year per household, the department said, and go towards funding cheap renewable energy and home insulation for pensioners and low-income households.
A Government spokesperson added: “Levies more than pay for themselves by driving investment in renewables and other generation technology and have saved consumers money on their energy bills overall over the past 10 years.”
But the change may raise eyebrows after Grant Shapps on Saturday told the Telegraph he did not want to “see people’s household bills unnecessarily bashed” by the drive to net zero as the cost-of-living crisis continues.
The Energy Security Secretary signalled a U-turn on a Government plan to impose an annual levy on energy consumers in 2025 to fund production of hydrogen.
Meanwhile, the Government has said a complete ban on coal power generation “isn’t appropriate”.
The Government suffered a defeat in the House of Lords earlier this year as peers narrowly backed a change to the Energy Bill banning the opening of new coal mines.
A Department for Energy Security and Net Zero spokesperson said: “While our reliance on coal is rapidly diminishing, there is still a need for it in industries such as steel and cement so now is not the right time to make changes.
“We will continue to listen to representations made by Members as passage of the Bill continues but oppose this amendment because a complete ban isn’t appropriate and risks meeting future demand from our own resources.”
Deputy President Paul Mashatile says the success of the African Continental Free Trade Agreement (AfCFTA) depends on the investment in infrastructure in the areas of electricity generation, transportation, as well as freight and logistics distribution.
“This is because Africa's trade integration has been hampered for decades by the ageing infrastructure and too many regulations which require reforms,” Mashatile said.
Addressing the All Africa Business Leaders Awards on Friday, the Deputy President said investing in infrastructure is crucial to unlocking the potential for Africa to experience growth at faster rates but more importantly, to ensure inclusive diversification.
“In this regard, we welcome the launch by the African Export-Import Bank (Afreximbank) of the Africa Trade Gateway (ATG), a suite of five digital platforms providing critical services to support and promote African trade and the implementation of the African Continental Free Trade Agreement (AfCFTA).
“We must surely invest in infrastructure because it is a critical driver of success across Africa. It makes a substantial contribution to human development and poverty alleviation,” he said.
The Deputy President said Africa is on the right path of development and towards one African market.
“As it stands, the AfCFTA agreement has effectively created the largest free trade area in the world, measured by the number of countries participating. The pact connects 1.3 billion people across 55 countries, with a combined gross domestic product (GDP) valued at US$3.4 trillion.
“It has the potential to lift 30 million people out of extreme poverty and 68 million Africans from moderate poverty. The creation of the vast AfCFTA regional market is a major opportunity to help African countries diversify their exports, accelerate growth, and attract foreign direct investment,” Mashatile said.
He said Africa is brimming with opportunities and the continent has what it takes to be great.
“We must dig into our continent's riches and turn difficulties into possibilities. Africa has a lot of natural resources, which is good news for building value chains. Agriculture and the extraction industries are important parts of value chains at the national, regional and worldwide levels.
“Africa has 60% world’s uncultivated arable land. It makes up 13% of the world's oil. At least half of the world's diamond riches are also in Africa. Cobalt, nickel, lithium, manganese, uranium and rare earth metals, which are important for clean energy and the future, are mostly found in Africa,” the Deputy President said.
The Democratic Republic of the Congo produces 58% of the world's cobalt, which is used to make electronics, and South Africa produces 69.6% of the world's platinum. – SAnews.gov.za
https://www.sanews.gov.za/south-africa/infrastructure-investment-critical-success-afcfta
(Updates prices) By Polina Devitt LONDON, June 26 (Reuters) - Copper prices edged up on Monday as declining stocks in warehouses registered by the London Metal Exchange (LME) and rain-hit mining operations in Chile offset a firm dollar and concerns about global economic growth. Benchmark copper on the LME was up 0.1% at $8,397.50 a metric ton by 1550 GMT after the metal used in power and construction fell 2% last week.
All other base metals were down as macroeconomic data continued to disappoint. German business morale worsened for the second consecutive month in June after a slump in German manufacturing to a 37-month low while S&P cut its forecast for economic growth in China this year. Official PMIs from China, due this week, should provide some insight into the demand outlook from the world's biggest metals
consumer. "We are seeing a resumption of metal price weakness," said SP Angel metals associate Arthur Parish, citing receding hopes of more substantial economic stimulus in China. "This is being led by the steel sector, with coking coal and coke heading to yearly lows." The premium for LME cash over the three-month copper contract jumped to a seven-month peak after a decline in stocks available to the market. Codelco, the world's largest copper producer, halted some mining operations in Chile due to heavy rain last week, ING analysts said. On the technical front, copper is squeezed between 50-day and 21-day moving averages, with the 200-day moving average coming in between them at $8,417. The dollar retreated slightly on Monday but remains strong after a more than 0.5% gain last week. A strong U.S. currency makes dollar-priced metals less attractive for buyers holding other currencies. In other metals, LME aluminium fell 1.1% to $2,150 a metric ton while tin slid 3.1% to $25,650, zinc lost 1.3% to $2,333 while lead dropped 2.4% to $2,072.50 and nickel tumbled 4.8% to $20,285, the weakest since September last year. (Reporting by Polina Devitt Additional reporting by Siyi Liu in Beijing Editing by David Goodman and Christina Fincher)
LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES ))
SYDNEY, June 27 (Reuters) - Australia's resource-rich Queensland state on Tuesday said it would spend A$245 million ($164 million) to help expand its critical minerals sector, and take steps to lure investments and cut rents on mining exploration leases.
Australia has ramped up funding for critical minerals projects, which are essential to smart technology and clean energy. But the minerals are tricky to mine, process and market, which can make it difficult for developers to line up funding.
The state will set up a one-stop office called Critical Minerals Queensland to oversee the development of the sector in a state rich in metals including zinc, cobalt and vanadium, Premier Annastacia Palaszczuk said at a mining conference in the state's capital, Brisbane.
"I want Queensland to be a global leader, supplier and manufacturer of critical minerals and this strategy will help us achieve that," Palaszczuk said.
She estimated the mineral-producing regions in the state's north alone would be worth about A$500 billion and said the goal of the strategy was to spur processing of minerals in the state, not just digging them out of the ground.
The announcement comes a week after the federal government unfurled a strategy that aims to develop Australia into a major producer by 2030 of raw and processed critical minerals.
Australia has vast reserves of critical minerals and supplies nearly half of the world's lithium. It is also a significant producer of rare earths, cobalt, copper and graphite, though those minerals are largely processed in China.
BHP CEO Mike Henry, during the mining summit, said Australia's critical mineral strategy did not need more subsidies, and urged the federal and state governments to hasten project timeframes and make them attractive for investment.
He said BHP would not invest further in Queensland, where the government held no consultation before hiking coal royalties last year to the highest of any jurisdiction in the world.
($1 = 1.4963 Australian dollars) (Reporting by Renju Jose in Sydney; Editing by Sonali Paul)
Iron-ore rallied along with copper after Chinese Premier Li Qiang said that growth has picked up this quarter and more stimulus was in store, boosting the outlook for consumption in the biggest metals importer.
China will roll out more practical, effective measures to expand domestic demand and stoke market vitality, Premier Li told the World Economic Forum in Tianjin. Iron-ore, used to make steel, surged by almost 4%.
In addition, Mike Henry, head of BHP Group, the world’s largest miner, urged the Chinese government to provide more help for the housing market, acknowledging recent data had been patchy. “We do think there’s room for a little bit more policy that is supportive,” he told reporters in Brisbane.
Industrial metals rallied at the start of the year as China reopened after Covid Zero was ditched, but the upswing stalled this quarter as manufacturing and the property market disappointed. While the central bank cut policy rates this month to aid the economy, investors expect more steps will follow, although it’s unclear if they’ll be enough to significantly revive growth.
“Once again, unbridled expectations of further stimulatory interventions are running rife,” said Atilla Widnell, MD at Navigate Commodities, “We fully expect intermittent upside price shocks to emanate from overly optimistic China and iron ore bulls, though bears will likely use this as an opportunity to sell.”
Iron ore traded 3.8% higher at $113.15 a ton in Singapore at 2:17 p.m., while steel futures in China also climbed. On the London Metal Exchange, copper gained 0.9% to $8 466 a ton as aluminum, zinc, lead, tin and nickel all rose more than 1%. For nickel, the day’s gain came after it closed on Monday at the lowest level since July 2022.
Copper’s upside potential was also in focus after an especially bullish, long-term forecast from billionaire Robert Friedland, who said that prices could ultimately rally tenfold as the global mining industry struggled to meet accelerating demand given the energy transition.
Petrobras (PBR Quick QuotePBR - Free Report) , one of the world's largest energy companies, collaborated with Nauticus Robotics to develop and test the autonomous underwater vehicle (AUV) called Aquanaut. This strategic partnership aims to leverage the advanced capabilities of Aquanaut to enhance Petrobras' offshore activities in Brazil.
With a strong emphasis on robotics and artificial intelligence (AI), PBR is pioneering the application of cutting-edge technology in the offshore sector, and this collaboration with Nauticus Robotics further underscores its commitment toward innovation and efficiency.
Nauticus Robotics and Aquanaut
Nauticus Robotics is a renowned developer of autonomous robots that use AI for data collection and intervention services in ocean industries. Aquanaut, its flagship AUV, is a groundbreaking innovation in subsea robotics.
Equipped with advanced sensors, cameras and intelligent algorithms, the AUV offers unmatched capabilities for underwater inspection and intervention tasks.
The Contract and Its Implications
Under the aforementioned contract, Aquanaut will be deployed in Petrobras' deepwater production field to provide infield inspection services. The contract tenure is expected to be approximately two months. During this period, Aquanaut will operate under supervised autonomy, leveraging its state-of-the-art technology to perform comprehensive subsea inspections.
This contract highlights the significance of Aquanaut's capabilities and Nauticus Robotics' expertise in the field of underwater operations. It also marks a milestone in the application of robotics and AI in the offshore industry.
Advantages of Aquanaut
Aquanaut offers several key advantages that make it an ideal choice for Petrobras' offshore activities. First, its autonomous operation reduces the need for human intervention, resulting in cost savings and enhanced operational efficiency.
Second, the AUV’s advanced sensor suite enables high-quality data collection, providing accurate and detailed insight into subsea environments.
Lastly, the intelligent algorithms integrated into Aquanaut's system facilitate efficient decision-making and precise navigation, ensuring optimal performance under complex underwater conditions.
Petrobras' Commitment to Innovation
Petrobras has been actively pursuing the integration of robotics and AI in its operations, with a particular focus on the offshore sectors. By embracing cutting-edge technologies, the company aims to enhance safety, productivity and cost-effectiveness of its operations. The partnership with Nauticus Robotics represents a significant step toward achieving these objectives.
Furthermore, the potential market worth more than $100 million per year (resulting from the collaboration) showcases the strategic value that PBR places on embracing innovative solutions.
Implications for the Offshore Industry
The successful integration of Aquanaut into Petrobras' operations serves as an impetus for other companies to explore and adopt advanced robotics technology. The potential market expansion to South America further emphasizes the global impact of this collaboration and the growing importance of autonomous systems in the offshore sector.
https://www.zacks.com/stock/news/2113616/petrobras-pbr-partners-with-nauticus-robotics-for-aquanaut
Mineral Resources and Energy Minister Gwede Mantashe reports that government is in the process of developing a critical minerals strategy for South Africa, which will seek to support green-economy value chains domestically and abroad.
Speaking at the Northern Cape Mining and Energy Investment Conference, Mantashe reported that government was monitoring global developments around critical minerals, which he termed a “new theatre of global economic struggle” to ensure that the strategy supported South Africa’s industrialisation aspirations.
“It is no secret that our country is well endowed with these critical minerals and can use them not only for beneficiation but also to position our country to be a strategic partner,” Mantashe said.
Several other large commodity producing countries, including Australia and Canada, have already developed elaborate critical minerals strategies as the pressure to decarbonise increases globally.
Likewise, key consuming countries are mapping out how they intend to ensure security of supply of those metals and minerals – from antimony to zinc, and with everything from lithium, copper and platinum in between – that will be required for the transition of electricity systems to renewables, as well as to support a shift to battery electric and fuel-cell electric mobility.
“To ensure that South Africa reaps maximum benefit from these critical commodities, we are currently developing a critical minerals strategy for the country which will enable us to support the development of domestic and global value chains for the green economy,” Mantashe said.
He added that the exploration fund being established in partnership with the Industrial Development Corporation would prioritise critical minerals projects “as these will support our green economy trajectory and support our just energy transition”.
Mantashe also used the platform to highlight the fact that the Northern Cape held significant reserves of several critical minerals, including zinc, copper, manganese and some rare earth elements.
“There can be no ambiguity in saying, the full potential of the Northern Cape mineral wealth remains largely untapped.
“We therefore call on investors to look to this province for investments into more exploration projects,” Mantashe said, while again promising that a new cadastral system, which is seen as key to revitalising exploration, would be procured soon.
“It is expected that the adjudication process will be finalised in the near future and therefore take us a step closer to the finalisation of this [procurement] process.”
An analyst with Kpler, a major international energy data and analytics group, Homayoun Falakshahi said in remarks published on Saturday that China “will become thirstier for Iranian oil” in the coming months mainly because of a potential drop in Russian supplies.
“Our estimate is that Russia’s domestic demand will increase over summer months and this can negatively impact this country’s exports, including to China,” Falakshahi noted.
The comments come as statements by Iranian Oil Ministry authorities and reports from international tanker-tracking services, including Kpler, have suggested that Iran’s oil exports reached an average of at least 1.6 million barrels per day (bpd) in May, a figure not seen since October 2018 when Iranian shipments dropped to record lows because of US sanctions, Press TV reported.
Private refiners in China buy a bulk of Iranian oil shipments with estimates suggesting that nearly 1.5 million bpd of Iran’s oil exports ends up in China.
Falakshahi said Saudi Arabia’s desire to deepen cuts to its oil exports, a policy meant to affect international oil prices, would also allow Iran to increase its supply of crude oil to Chinese buyers in the next few months.
That comes as Saudi Arabia’s oil supplies to China reached 1.75 million bpd in May and has remained at the same levels in June, he said.
Experts say the increase in Iranian oil exports in recent months have been a major sign that US sanctions on Iran’s petroleum sector have failed for good.
China National Offshore Petroleum Corporation (CNOOC) has completed the longest oil and gas pipeline through great depths in China. In this respect informs Zhongguo xinwenwang portal.
According to the portal, the new oil and gas pipeline connects Hainan province to the Shenhai-1 semi-submersible floating platform. The last section of the pipeline is located in Lingshui Liskom Autonomous County (south coast of the island).
The report states that the maximum depth of the pipeline is 1,000 meters. The discovered reserves of the deposit are estimated at 50 billion cubic meters.
At the end of March, Business Times cited a statement from the Shanghai Oil and Gas Exchange. WroteFor the first time, CNOOC paid for shipments of liquefied natural gas (LNG) in yuan and sold it to TotalEnergies (France), one of the world’s largest oil and gas companies.
in advance CNOOC to create Large oil field in Bohai Bay. CNOOC noted that oil reserves in this area are about 100 million tons. At the same time, the existing well can produce 2040 barrels of crude oil and 320 thousand cubic meters of gas per day.
A US agency, Energy Information Administration has disclosed that Nigeria was no longer Africa’s highest crude oil producer due to disruptions, such threaten its production outputs.
According to its latest report on ‘Country Analysis Brief: Nigeria, EIA said Angola had overtaken Nigeria due to unplanned production outages.
“For many years, more crude oil was produced in Nigeria than in any other country in Africa. However, unplanned production outages—or disruptions—in Nigeria have, at times, resulted in its crude oil production falling below that of Angola, the second-highest producing country in Africa. Disruptions remain a significant and persistent downside risk to Nigeria’s crude oil production.”
The report further explained, “In the third quarter of 2022, operators of the Trans Niger pipeline and the Forcados export terminal closed their facilities for repairs. The closures triggered a sharp drop in Nigeria’s crude oil output, from 1.1 million barrels per day (b/d) in the second quarter to below 1 million b/d in the third quarter. Nigeria’s production recovered by the beginning of 2023, but the oil workers’ strike disrupted production again in April 2023. Crude oil production in Nigeria fell to slightly more than 1 million b/d in April of this year, dropping below Angola’s production, which was estimated at 1.1 million b/d that month.”
Also, the agency highlighted steps already taken by the Nigerian government to make the country more attractive for oil and natural gas investment.
It saud, “On August 16, 2021, the Petroleum Industry Act was passed in Nigeria. The legislation is the culmination of a 20-year effort to overhaul the hydrocarbon industry’s legal framework, attract investor interest in upstream development, and address grievances of communities affected by oil extraction.”
TEMPO.CO, Jakarta - Coordinating Minister for Maritime and Investment Affairs Luhut Binsar Pandjaitan revealed that state-owned oil and gas company Pertamina plans to expand its business to East Africa by establishing an oil refinery in Kenya.
"Pertamina will enter Kenya after being asked to establish an oil refinery there. We also see an opportunity to bring their crude oil to Indonesia," Pandjaitan stated here on Friday.
Following a meeting with Pertamina's President Director Nicke Widyawati, the coordinating minister remarked that the option to bring Kenya's oil to Indonesia aims to cater to the high demand for the commodity in Indonesia.
"It is their oil that will go to us because we still need it," he stressed.
However, he admitted to having no idea about the production capacity potentials in the planned oil refinery in Kenya, as the planning is underway.
"We are still finalizing it, and there will be more meetings (about it) if I am not mistaken," Pandjaitan noted.
During his earlier visit to Kenya's capital Nairobi last January, Pandjaitan invited President William Ruto to bolster strategic economic cooperation between Indonesia and Kenya.
The coordinating minister echoed Indonesia's aspirations to work more closely with African countries on strategic issues, such as energy transition, digital transformation, sustainable development, and industrialization.
Pandjaitan highlighted that strengthening bilateral cooperation will be consistent with the framework of South-South cooperation, conceived during the Asian-African Conference in Bandung in 1955.
Indonesia is also ready to collaborate with Kenya in various aspects, primarily in the transition to renewable energy, development of green and smart ports, digitization in governance, strategic infrastructure development, and palm and food industry development, he affirmed.
Kenya is also expected to be the hub for the production and distribution of Indonesian products, for not only oil, in the Eastern African region, he noted.
A report from workers’ body the Energy Institute has stated that despite a 13% increase in renewable energy consumption, global fossil fuel dominance is “largely unchanged”.
The Statistical Review of World Energy report revealed that renewable usage in the power sector maintained its strong growth over the last few years. Renewable energies, with the exception of hydropower, accounted for 84% of net electricity growth in the calendar year of 2022.
Likewise, solar capacity construction increased more than ever in 2022, with a 25% increase in generation alongside it. Wind generation too grew by 13.5% over the year. Together, the two renewable sources accounted for 12% of total power generation, a record figure.
Despite this, fossil fuels still accounted for almost 82% of total energy consumption. Furthermore, global greenhouse gas emissions from energy-related industries grew by 0.8%. Energy Institute president Juliet Davenport admitted: “The year 2022 saw some of the worst ever impacts of climate change: the devastating floods affecting millions in Pakistan, the record heat events across Europe and North America. Yet we have to look hard for positive news on the energy transition in this new data.
“Despite further strong growth in wind and solar in the power sector, overall global energy-related greenhouse gas emissions increased again. We are still heading in the opposite direction to that required by the Paris Agreement.”
Coal consumption also saw a boost in the report. While prices reached record levels in 2022, coal consumption rose 0.6% to 161 exajoules (44,722 terawatt-hours), the highest tally since 2014. It was the dominant fuel for generation, with 35.4% of all power coming from coal-firing. This was driven by demand increases of 1% and 4% in China and India, respectively, which offset a decrease in consumption in both North America and Europe, of 6.8% and 3.1% respectively.
The report also examined a 21% increase in lithium and cobalt production. Essential components of electric vehicle batteries, the two minerals are playing a vital role in the energy transition and the increased production of both is indicative of the increase in renewable power generation.
https://www.mining-technology.com/news/energy-transition-report-unchanged-growth/
Crude oil demand is expected to witness strong growth this year, benefiting upstream oil and gas companies from high realisation of at least $75 per barrel over FY 2024-25, according to a brokerage research report. The crude oil demand is estimated to remain at 1-2.3 million barrels per day this year, ICICI Securities said in the report, citing recent updates from the OPEC and IEA. Further, India’s OMCs (oil marketing companies) are also likely to see steadier GRMs (gross refining margins) and stronger marketing margins, on the back of a strong product demand.
IEA, OPEC hope for strong growth in world oil demand
The world oil demand estimates from the IEA and the OPEC suggest strong growth for CY23, despite near-term weakness in demand as reflected in crude price trends. The report suggests that global oil demand, which was 99.8 million bpd in CY22, is expected to grow to 102.3 million bpd in CY23 and 103.1 million bpd in CY24.
“Economic signals from China and the US (the second and largest consumers of oil, respectively) have shown weakness in demand in the first 4 months of CY23. However, some recovery is visible in Chinese demand since the last 2 months, and we believe US inventory replenishment is a strong driver for crude demand growth over H2FY24E. In addition, stronger growth in demand in other Asia-Pacific countries (India) and parts of Africa should lead to overall growth in CY23E oil demand,” said the ICICI report.
Oil supply uncertainty
Further, the apparent reduction in supply from the OPEC countries and the heightening reluctance from countries other than Saudi Arabia to take cuts may lead to uncertainty in the crude supply prospects, the report said. Moreover, the potential leverage of the restrictions on Venezuelan output and Brazilian efforts to magnify their production output may also contribute to this, whereas the revival of the Iran nuclear deal gives some hope to influence the supply estimates.
Crude prices are likely to rise over H2FY24
The global supply is expected to tighten, with nominal demand growth, and recovery in Chinese demand, resulting in a large supply deficit, crude prices are likely to rise over H2FY24. “We do not see the bearish environment sustaining crude prices for a longer period and would expect prices to revert to US$80–85/bbl levels by the end of FY24. We note futures prices indicate a much softer price environment vs. estimates, and hence, there could be some downside risk to our base case estimates of US$80–85/bbl for FY24/25E,” said the report.
Saudi Arabia could be looking to slash crude oil shipments to the United States from next month to effect a tightening of the world’s most transparent oil market.
As the Kingdom prepares to cut unilaterally 1 million barrels per day (bpd) from its crude oil production in July, its crude shipments to the west could be much more affected than exports to its primary market, Asia, which lacks transparent oil inventory reporting like the U.S. does, Bloomberg Opinion columnist Javier Blas argues.
On several occasions in recent years, Saudi Arabia has significantly lowered crude shipments to the United States in attempts to tighten the U.S. market, which reports oil and products data on a weekly basis, unlike China and India, which rarely – if at all – report commercial or strategic oil stockpiles.
Early this month, the OPEC+ producers decided to keep the current cuts until the end of 2024, but OPEC’s top producer, Saudi Arabia, said it would voluntarily reduce its production by 1 million bpd in July, to around 9 million bpd. The cut could be extended beyond July, Saudi Energy Minister Prince Abdulaziz bin Salman said.
The production level in July would be Saudi Arabia’s lowest since 2011, excluding the initial cuts after the Covid outbreak in 2020 and the lowered production after the attack on Aramco’s facilities in September 2019.
Even after the production cut Saudi Arabia announced for July 2023, Aramco, the world’s largest crude oil exporter, reportedly assured at least five North Asian refiners they would get the full crude volumes they had asked for in July.
Prioritizing supply to its prized Asian markets, Aramco could lower shipments to the U.S., to force a tightening of the market that would be evident in inventory reports. Moreover, Aramco controls the largest refinery by capacity in the U.S., Motiva, and could influence supply to the 630,000-bpd facility in Port Arthur, too, Bloomberg’s Blas notes.
By Charles Kennedy for Oilprice.com
Saudi Output Cuts Tighten Market
Investors had already been considering the impact of reduced supply, as Saudi Arabia pledged to cut output starting in July. The additional unilateral cut of 1 million barrels per day (bpd) by Saudi Arabia, combined with the anticipated seasonally stronger demand, is expected to tighten the market during the third quarter, according to BMI Research analysts.
Delicate Market Sentiment Dampens Prices
However, BMI Research analysts also cautioned that market sentiment remains delicate, which may limit significant price increases. Last week, oil prices dropped around 3.6% amid worries that rising interest rates by the U.S. Federal Reserve could dampen demand, while China’s economic recovery fell short of expectations.
Rising US Demand Fuels Optimism
Market participants are closely monitoring signs of increased demand for transportation fuels, especially gasoline, in the United States as the peak summer driving season approaches. The American Automobile Association estimates that 43 million motorists, a 4% increase from 2019, will travel significant distances during the upcoming Independence Day weekend, as highlighted by ANZ analysts.
Global Gasoline Demand Soars Higher
JP Morgan analysts reported a year-on-year growth of 365,000 bpd in global gasoline demand. They also said consumption reached an eight-week high of 9.4 million bpd in the week of June 17. Additionally, a Reuters poll revealed a decline in both crude and gasoline inventories during the week ending June 23.
Investors Anticipate API, EIA Oil Data
Investors eagerly await the release of official U.S. oil inventory data by the American Petroleum Institute (API) on Tuesday, followed by the Energy Information Administration’s (EIA) report the next day. These reports will provide further insights into supply-demand dynamics and significantly influence market sentiment in the short term.
Trader Focus on Political Instability, Potential Supply Disruptions
In summary, oil prices rose due to concerns over political instability in Russia and potential supply disruptions. Market participants closely monitor developments in Russia, Saudi Arabia’s output cuts, and the growing demand for transportation fuels in the United States. Despite fragile market sentiment, there is anticipation of a tighter oil market in the third quarter.
NEW YORK, June 27 (Reuters) - Oil prices fell over 1% on Tuesday on signals that the European Central Bank is not done with interest rate hikes, while investors awaited data that could shed light on U.S. fuel consumption during the peak summer driving season.
Brent crude futures were down $1.22, or 1.6%, at $72.96 a barrel by 12:46 p.m. EDT (1646 GMT). U.S. West Texas Intermediate (WTI) futures fell $1.10, or 1.6%, to $68.27.
Both contracts are trading broadly within a $10 range traced since early May. Oanda analyst Craig Erlam said prices were mainly at the mercy of "the ever-changing expectations for interest rates".
European Central Bank President Christine Lagarde on Tuesday said that stubbornly high inflation will require the bank to avoid declaring an end to rate hikes. Higher interest rates can weigh on economic activity and oil demand.
"Despite concerns for the slowing economy in Europe, they are going to put the petal to the metal with interest rates and that puts pressure to the downside," said Phil Flynn, an analyst at Price Futures Group.
European equities were also down.
U.S. inventory data from the American Petroleum Institute industry group is expected at 4:30 p.m. EDT, followed by government data on Wednesday. A Reuters poll indicated that U.S. inventories probably fell in the week to June 23.
Brent's six-month backwardation - a price structure whereby sooner-loading contracts trade above later-loading ones - reached its lowest since December and barely positive, indicating shrinking concern about supply crunches.
For the two-month spread , the market is in shallow contango, the opposite price structure, indicating that traders are factoring in a slightly oversupplied market.
The market, meanwhile, has shrugged off the aborted mutiny by mercenary group Wagner in Russia at the weekend, with Russian oil loadings having remained on schedule.
"The latest geopolitical flare-up quickly pales into insignificance compared to persistent macroeconomic considerations," said PVM's Tamas Varga.
This is the case despite Saudi Arabia's pledge to reduce output from July.
Much depends on whether Chinese oil demand picks up in the second half, with Premier Li Qiang saying that China will take steps to invigorate markets but providing details.
Energy markets largely shrugged off events over the weekend in Russia. Oil opened strongly yesterday, but gave back a lot of these gains as the day progressed. As a result, ICE Brent settled just 0.45% higher on the day. The more hawkish tone from the US Fed appears to be capping oil prices and the broader commodities complex, while there remain broader concerns over China’s economic recovery. Up until now, oil demand indicators for China have been good, with stronger crude oil imports and higher apparent domestic demand. The concern is whether this can continue as there are clearly still some weak spots within the Chinese economy – specifically with industrial production and the property sector.
For the oil market, there is little on the calendar for today. ICE Brent August options expire today, which will be followed by the August futures expiring on Friday. The latest open interest data (which is up until Friday) shows that there is still open interest of more than 17k lots at the $75 strike for August call options. Meanwhile, we will also get US inventory numbers from the American Petroleum Institute (API) later in the day.
The European natural gas market had a volatile trading session yesterday with TTF trading in a range of EUR5.40/MWh over the day. Obviously, there would have been concerns over the remaining Russian pipeline flows to Europe following developments in Russia over the weekend. However, fundamentals for the European gas market are still bearish in the short term.
EU gas storage continues to fill up and is now more than 76% full, well above the 57% seen at the same stage last year and also higher than the five-year average of 60%. In the absence of any significant supply shocks, EU gas storage will hit the European Commission’s target of 90% full well before 1 November. This suggests that later in the summer we could see further pressure on prices and a deeper contango along the forward curve – there is already an almost €20/MWh contango between the August 2023 and December 2023 TTF contract.
https://think.ing.com/articles/the-commodities-feed-supply-risks-vs-demand-concerns270623/
Russian oil company Roszarubezhneft is seeking permission from Venezuela's state-run company PDVSA to control exports from their joint ventures, akin to a deal PDVSA struck with U.S. oil producer Chevron Corp (NYSE: CVX) last year.
This proposal faces significant obstacles as it would require changes to Venezuelan law governing its oil exports.
The intent is to revive the cash flow from the five companies that U.S. sanctions have negatively impacted.
Roszarubezhneft's five joint ventures currently rely on PDVSA-designated intermediaries who take a substantial portion of the revenues for their services.
Also Read: Chevron's Defenses Stand Strong Amidst Volatile Market Dynamics: JP Morgan Analyst.
The joint ventures are owed around $3.2 billion from sales managed by PDVSA, Reuters reported. PDVSA also owes Roszarubezhneft approximately $1.4 billion from previously extended loans, which PDVSA is disputing.
If Roszarubezhneft's request is approved, it could provide Russia with additional cash flow, particularly as Western sanctions related to the war in Ukraine have heavily affected its oil revenues.
It could also aid PDVSA in achieving its goal of increasing Venezuela's oil output by 40% this year.
Roszarubezhneft's similar proposal to PDVSA last year was ignored.
The current request might not be granted if export proceeds are solely used for debt repayment, as PDVSA and the oil ministry also focus on generating cash flows.
Roszarubezhneft took over the stakes in the joint ventures from Rosneft in 2020, following U.S. sanctions on two Rosneft trading arms for alleged involvement in the sale of Venezuelan crude, which Rosneft denied.
Price Action: CVX shares closed at $153.53 on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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This article Russian Oil Company Roszarubezhneft Seeks Control of Venezuelan Oil Exports Amid US Sanctions originally appeared on Benzinga.com
https://finance.yahoo.com/news/russian-oil-company-roszarubezhneft-seeks-142038975.html
LONDON (Reuters) -Oil edged up on Wednesday after a larger-than-expected drop in U.S. inventories suggested robust demand and helped offset worries over interest rate hikes.
Crude stocks fell by about 2.4 million barrels, market sources said, citing data from industry group American Petroleum Institute (API).
The Energy Information Administration’s official supply report is due out at 1430 GMT.
Brent crude was up 9 cents, or 0.1%, to $72.35 a barrel at 0806 GMT, while West Texas Intermediate (WTI) U.S. crude gained 26 cents, or 0.4%, to $67.96.
“This morning relief comes from last night’s API stats,” said Tamas Varga of oil broker PVM.
While outright prices gained on Wednesday, the discount of the prompt Brent contract to the next month has deepened, a structure called contango which indicates ample supply.
Brent is down about 15% this year as rising interest rates hit investor appetite, while China’s economic recovery has faltered after several months of softer-than-expected consumption and other data.
European Central Bank President Christine Lagarde said on Tuesday stubbornly high inflation will require the bank to avoid declaring an end to rate hikes.
A rise in U.S. consumer confidence in June also led to market concerns that the Federal Reserve would likely have to continue raising interest rates.
Still, some analysts expect the market to tighten in the second half of 2023 partly due to ongoing OPEC+ supply cuts and Saudi Arabia’s voluntary reduction for July.
Saudi Aramco, the world’s biggest oil company, said this week it believes market fundamentals remain “sound” for the second half of the year.
https://theprint.in/economy/oil-rises-as-us-inventory-drop-offsets-rate-hike-fears/1645804/
Vitol and Gunvor rake in Russian oil profits a year after Ukraine invasion
Energy traders Vitol and Gunvor are still buying vast quantities of refined Russian oil, despite pledging over a year ago to significantly cut business with Kremlin-backed firms following the country’s invasion of Ukraine.
They are the only two Western companies to remain among the top 10 buyers of Russia’s refined products, including petrol and diesel.
According to The Financial Times’ analysis of the country’s export records for the first four months of the year, Gunvor was the eighth largest buyer by value while Vitol was the tenth biggest purchaser.
The other eight largest buyers consist of Russian traders and new firms in the United Arab Emirates, Hong Kong and Singapore – taking advantage of sanctions on oil and gas.
Topping the ranking is Litasco, which is the trading arm of Russia’s Lukoil.
Gunvor shipped 1m tonnes, worth an estimated $540m, while Vitol bought in 600,000 tonnes over the same period – priced at $400m .
In total, 50 companies exported a combined $16bn worth of refined petroleum from Russia over the first four months of this year, with the market highly lucrative amid sustained volatility in the sector.
Trading in Russian refined fuels including oil is not prohibited by western sanctions, and has been supported by the White House to limit supply restrictions – provided traders comply with restrictions imposed on Russia by the US and its allies.
This includes the G7 price cap, which was introduced in February to limit the price Moscow gets for its refined oil products.
Nevertheless, the vast majority of European traders have backed out including Shell and BP – concerned over the risk to their reputations, ceasing deals with Russian supplies entirely.
Moscow stopped publishing its aggregated customs statistics last year – meaning exporters’ customers declarations are one of the few options left for analysing Russian trade flows of oil and gas.
When approached for comment, Gunvor and Vitol confirmed to City A.M. they were regular buyers of Russian refined fuels but disputed the accuracy of the data.
Gunvor revealed its own records showed it had purchased just over 700,000 tonnes in the period with a value of about $330m.
Vitol said the customs declarations did not match its internal figures but did not provide its own data.
https://www.cityam.com/vitol-and-gunvor-rake-in-russian-oil-profits-a-year-after-ukraine-invasion/
Dubai crude bulls seen on top as Brent/Dubai spread inverts
Quantum Commodity Intelligence – The huge Dubai crude play that has pitted some of the world's oil trading giants against each this month is entering its final stage, with those backing the relative strength of the Middle East benchmark seen coming out on top, at least as it stands.
The chief indicator is the value of Dubai soaring above Brent, with Quantum's Brent/Dubai cash spread for balance of June (for August loading) assessed Wednesday at minus $1.40/b, with Brent now pricing at the largest discount on record to medium sour barrels outside of expiry-day anomalies.
Other indicators pointing to a relatively firm Dubai include the M1/M3 (Aug23/Oct23) structure pricing at around +$1.50/b, whereas the corresponding Brent timespread has moved into contango.
Over 1300 partials have traded so far this month in the Platts-operated Dubai/Oman crude oil trading window, resulting in some 65 August-delivery convergences, made up of 54 Oman and 11 Upper Zakum. The total also includes convergences from trading Oman partials.
With just one more Dubai trading window to come after Thursday's Singapore holiday, market watchers expect total deliveries to top out at around 70 cargoes, comfortably the second highest on record but falling just short of the all-time high of 78 Dubai convergences in August 2015.
China's Unipec has been the primary seller, with support from Vitol, while PetroChina heads the list of buyers, closely followed by Totsa.
Behind the 'window' volume is around 175 million barrels of Dubai-linked derivatives, according to data published by ICE, far exceeding the 27.5 million barrels so far delivered via the Platts MOC window.
Exchange data as of 26 June revealed there were still over 101,000 lots of balance-June Dubai (DBI) open interest - one lot is equal to 1,000 barrels – while the Brent/Dubai contract (BOD) still had nearly 74,000 lots of open interest. Dubai positions are settled against the Platts Dubai print.
Fundamentals
Analysts said there had been a major shift in favour of medium sour crudes this month, not least because of Saudi's 1 million bpd output reduction in July, which could be extended into August.
Lighter barrels, on the other hand, have come under pressure following a slump in naphtha cracks, with Asian refiners said to be cutting flows of Atlantic basin light crudes despite the crunch in the Brent/Dubai EFS, which is used for calculating arbitrage flows.
The notional Aug23 EFS at one point tipped into negative territory on Wednesday for the first time since 2020, while the Sep23 EFS was trading at $0.50-$60/b on the Asia market close.
In turn, the WTI Midland export grade has largely been setting the Dated Brent print this month, which is weighing on the entire Brent complex.
Brent weakness has also spilled over into next month, with the Sep23 Brent/Dubai cash trading negative Wednesday.
Oil prices fell on Thursday, paring some of the previous day’s gains, as investors took profits on concerns of further interest rate hikes dampening economic growth and global fuel demand while weak economic data in China also weighed on sentiment.
Brent crude futures declined 40 cents, or 0.5%, to $73.63 a barrel by 0444 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 32 cents, or 0.5%, to $69.24 a barrel.
Both benchmarks climbed about 3% on Wednesday after the U.S. Energy Information Administration (EIA) said crude inventories dropped by 9.6 million barrels in the week ended June 23, far exceeding the 1.8-million barrel draw analysts had forecast in a Reuters poll.
“The market turned around on renewed worries about further rate hikes in the U.S. and Europe, which will reduce global oil demand,” said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.
Leaders of the world’s top central banks reaffirmed on Wednesday they think further policy tightening will be needed to tame stubbornly high inflation but still believe they can achieve that without triggering outright recessions.
The U.S. Federal Reserve Chair Jerome Powell did not rule out further hikes at the central bank’s next meeting while European Central Bank President Christine Lagarde cemented expectations for a ninth consecutive rise in euro zone rates in July.
Adding to pressure, annual profits at industrial firms in China, the world’s second-biggest oil consumer, extended a double-digit decline in the first five months as softening demand squeezed margins.
“The lack of prospects for fuel demand growth has limited the gain in oil prices, even with supply curbs by oil producers,” said Tetsu Emori, CEO of Emori Fund Management Inc.
“The impact of the spread of electric vehicles and improvements in energy efficiency in many industries to tackle climate change may be beginning to affect the underlying demand structure itself,” he said.
Facing falling prices, Saudi Arabia this month pledged to sharply cut its output in July, on top of a broader OPEC+ deal to limit supply into 2024. U.S. energy firms last week cut the number of oil and natural gas rigs operating for an eighth week in a row for the first time since July 2020.
Brent’s six-month backwardation – a price structure whereby sooner-loading contracts trade at higher prices than later-loading ones – reached its lowest since December, but still indicated higher demand for immediate delivery.
“Behind the backwardation is the expectation that the immediate demand for fuels will stay firm as the United States has entered the driving season, but the global economy will slow down toward the second half of this year, reducing oil demand,” NS Trading’s Kikukawa said.
https://boereport.com/2023/06/28/oil-prices-fall-on-concerns-of-slow-fuel-demand-weak-china-data/
Highlights
Tamboran has entered into two non-binding Memorandum of Understandings (MOU) with BP Singapore Pte. Limited (bp), a subsidiary of BP plc., and Shell Eastern Trading (Pte) Ltd. (Shell), a subsidiary of Shell plc. regarding the potential purchase of liquefied natural gas (LNG) from Tamboran’s proposed NTLNG project at Middle Arm.
The two MOUs include volumes for bp and Shell to each purchase up to 2.2 million tonnes of LNG per annum (MTPA) over a 20-year period.
Gas volumes have the potential to be supplied from Tamboran’s Beetaloo Basin gas assets, subject to completion of the Concept Select studies, successful Beetaloo appraisal drilling and Government approvals.
Tamboran to progress discussions with both bp and Shell prior to the completion of the FEED in 2024 and aim for formal execution of the LNG Sale and Purchase Agreements (SPA) in 2025.
Tamboran Resources Managing Director and Chief Executive Officer, Mr Joel Riddle, said:
'Securing these MOUs with bp and Shell is a significant step in progressing the proposed NTLNG development at Middle Arm.
'bp and Shell are two of the world’s largest LNG portfolio trading and energy companies and provide important and credible counterparties for Tamboran to progress financing discussions to support the sanctioning of the NTLNG project, capable of producing up to 6.6 MTPA.
'We look forward to progressing our agreements with both parties, who have both shown significant support to Tamboran through the accelerated discussions, which further emphasise the importance of LNG demand growth in the Asia-Pacific region.'
RIYADH: South Korea’s Hyundai Engineering & Construction has won a contract worth $5 billion for the planned Amiral petrochemicals complex that the Saudi Arabian Oil Co. is building in partnership with TotalEnergies in Jubail.
Hyundai E&C has received the engineering, procurement and construction contract for a mixed feed cracker and utility system with an installed capacity of 1,650 kilotons per annum of ethylene and related industrial gases.
According to a press release, the scope of work involves building utilities, flares and interconnecting systems that support the facilities.
The deal is part of the EPC contracts for the $11 billion Amiral project that the energy giants plan to build at the Saudi Aramco Total Refining and Petrochemical Co.’s refinery in the Kingdom’s east coast.
South Korean Land Minister Won Hee-ryong, who attended the contract signing ceremony in Saudi Arabia, said the deal would expand energy cooperation between both countries.
The construction work for the project is scheduled to begin in 2023, with commercial operation planned for 2027.
The minister noted that this is the largest order a South Korean firm has won for plant construction in the Kingdom.
South Korean President Yoon Suk Yeol also lauded the Amiral project and said it would help strengthen the bilateral relationship, Yonhap News Agency reported, citing presidential spokesperson Lee Do-woon.
Earlier in March, Saudi Aramco inked a deal with Hyundai E&C to develop the $7 billion Shaheen project in the South Korean city of Ulsan.
According to the agreement, Hyundai E&C is the project lead of the Shaheen project and will work along with its key subsidiary Hyundai Engineering, Lotte E&C and DL E&C on the construction.
“Shaheen is among Aramco’s biggest international downstream investments, representing a significant and sizeable step forward in our liquids-to-chemicals expansion and another major milestone in further strengthening our presence in Korea,” said Saudi Aramco CEO Amin Nasser in March.
The two nations further strengthened their partnership when Saudi Minister of Municipal, Rural Affairs and Housing Majid Al-Hogail met South Korea’s Hee-ryong in Riyadh on June 22 to cooperate on smart city planning and housing.
The ministers also discussed the business opportunities available for South Korea in the Cityscape Global exhibition in Riyadh from Sept. 10-13.
Sasol Limited (NYSE:SSL – Get Rating) shares saw unusually-high trading volume on Friday . Approximately 163,561 shares traded hands during trading, a decline of 40% from the previous session’s volume of 270,690 shares.The stock last traded at $12.36 and had previously closed at $13.07.
Wall Street Analysts Forecast Growth
Separately, StockNews.com lowered shares of Sasol from a “buy” rating to a “hold” rating in a research note on Thursday.
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Sasol Stock Down 4.7 %
The company has a current ratio of 2.12, a quick ratio of 1.34 and a debt-to-equity ratio of 0.60. The firm’s 50 day simple moving average is $12.78 and its 200-day simple moving average is $14.47. The stock has a market capitalization of $7.92 billion, a price-to-earnings ratio of 4.07 and a beta of 2.53.
Institutional Investors Weigh In On Sasol
About Sasol
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Raymond James & Associates bought a new position in shares of Sasol in the 1st quarter valued at about $595,000. BlackRock Inc. grew its position in shares of Sasol by 3.2% in the 1st quarter. BlackRock Inc. now owns 323,713 shares of the oil and gas company’s stock valued at $7,828,000 after acquiring an additional 9,940 shares during the period. Yousif Capital Management LLC bought a new position in shares of Sasol in the 1st quarter valued at about $235,000. Cibc World Market Inc. bought a new position in shares of Sasol in the 1st quarter valued at about $598,000. Finally, Renaissance Technologies LLC grew its position in shares of Sasol by 342.0% in the 1st quarter. Renaissance Technologies LLC now owns 61,000 shares of the oil and gas company’s stock valued at $1,475,000 after acquiring an additional 47,200 shares during the period. 1.03% of the stock is currently owned by institutional investors and hedge funds.
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Sasol Limited, together with its subsidiaries, operates as an integrated chemical and energy company in South Africa. The company operates through six segments: Mining, Gas, Fuels, Chemicals Africa, Chemicals America, and Chemicals Eurasia. It offers acetate, acrylate monomer, ammonia, carbon, chlor alkali, explosive, fertilizer, glycol ether, hydrocarbon blend, inorganic, ketone, mining, polymer, and wax chemicals, as well as lacquer thinners, light alcohols, and phenolics or cresylic acids.
https://www.defenseworld.net/2023/06/25/sasol-nysessl-sees-large-volume-increase.html
Prices of WTI rebounded from the $67.00 region to close with marginal losses on Friday. The rebound was in tandem with shrinking open interest and volume and removes strength from a probable move higher in the very near term. That said, another pullback to the monthly lows near the $67.00 mark per barrel remains on the cards.
Considering advanced prints from CME Group for crude oil futures, open interest shrank by around 2.3K contracts after three consecutive daily builds. In the same line, volume remained choppy and drop by nearly 397K contracts.
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MOSCOW, June 26. /TASS/. Gazprom supplies gas for Europe through Ukraine in the volume of 41.4 mln cubic meters per day via the Sudzha gas pumping station in Russia’s Kursk Region, a Gazprom representative told reporters.
"Gazprom supplies Russian gas for transit through Ukrainian territory in the volume confirmed by the Ukrainian side via the Sudzha gas pumping station of 41.4 mln cubic meters as of June 26. The request for the Sokhranovka gas pumping station has been rejected," he said. On Sunday, June 25, the pumping equaled 40.9 mln cubic meters.
Earlier it was reported on the website of the Gas Transmission System Operator of Ukraine (GTSOU) that requests for transit of Russian gas to Europe through Ukrainian territory on June 26 totaled 41.4 mln cubic meters. The transit line through Ukraine remains the only route to supply Russian gas to western and central European countries. The pumping through Nord Stream has been fully suspended.
Gas withdrawal from European underground gas storage (UGS) facilities amounted to 14 mln cubic meters on June 24, according to data provided by Gas Infrastructure Europe (GIE). Meanwhile pumping totaled 373 mln cubic meters.
The heating season in Europe ended on April 6. European UGS facilities are currently 75.78% full (16.32 percentage points higher than the average as of this date in the past five years), with 82.54 bln cubic meters of gas stored in them.
LNG supplies from terminals to Europe’s gas transport system hit a fresh all-time high of 12.16 bln cubic meters in May. Record LNG flows have persisted in Europe in June as well.
Riyadh: Oil and gas production in the US is slowing down at a time when demand is beginning to rebound, according to research from the Federal Reserve Bank of Dallas, which is being driven by a decline in the price of crude and other commodities.
The survey reported a score of zero for business activity growth in the second quarter of 2023 among 150 oil and gas groups in its region, the lowest since 2020 when oil prices crashed due to the pandemic, ultimately forcing operators to close rigs and reduce headcount.
In the second quarter, "weak oil and gas prices" and "high costs" had "brought growth in oil and gas activity to a standstill," according to Michael Plante, senior research economist and adviser at the Dallas Fed, as reported by the Financial Times.
Also Read: Legal setback for Russia in Australian embassy standoff
"We don't know what to anticipate. The peaks were excessive. The lows are too low," said one participant in the Dallas Fed survey.
By the end of 2023, survey participants anticipate that the price of West Texas Intermediate oil will be $77 per barrel on average.
On the other hand, respondents to the survey anticipate that by the end of this year, the Henry Hub natural gas price will be $2.97 per million Btu.
Energy services company Baker Hughes Co. expressed similar opinions earlier in June and pointed out that US energy firms reduced the number of oil and natural gas rigs operating for an eighth week in a row for the first time since July 2020 during the week ended on 23 June.
Also Read: UK: Deporting a single asylum seeker to Rwanda costs $215,035
The oil and gas rig count, a leading indicator of future output, decreased by five to 682 at the end of the previous week, the lowest level since April 2022, according to the report.
That reduces the overall rig count by 71, or 9%, from this time last year, according to Baker Hughes.
The FT report also stated that how the world economy performs over the next few months will have an impact on the prospects for shale oil production in the US.
Also Read: London picnics for Palestine help activists spread the word
If the world economy recovers and growing demand accelerates, oil prices will rise and drilling will once more be profitable.
As of the week ending June 22, US crude inventories had decreased by 3.8 million barrels to 463.3 million barrels, according to the Energy Information Administration.
POSCO International Vice Chairman Jeong Tak, right, and Copenhagen Infrastructure Partners Vice Chairman Torsten Rodberg Smed hold copies of a signed memorandum of agreement in Seoul, Tuesday. Courtesy of POSCO International
By Lee Kyung-min
POSCO International, a general trading subsidiary of the country's steel titan POSCO, will partner with Copenhagen Infrastructure Partners (CIP), one of the world's largest green energy asset managers, to advance offshore wind power and green hydrogen businesses in Pohang, North Gyeongsang Province, according to the firm, Tuesday.
POSCO International Vice Chairman Jeong Tak and CIP Vice Chairman Torsten Rodberg Smed signed a memorandum of agreement whereby the two firms will fortify cooperation to bolster businesses in Pohang, where POSCO steel mills and POSCO Future M, a chemical subsidiary of POSCO, are located.
POSCO International is reorienting its business portfolio to foster sustainable growth and future competitiveness in energy, steel, food and new businesses.
It plans to expand its renewable energy business to include offshore wind power, as underpinned by profitable liquefied natural gas (LNG) business.
The ultimate goal is to become a leading local offshore wind business to partner with Korea-based overseas wind businesses for nurturing of promising new wind power players.
POSCO International plans to develop a 300-megawatt (MW) offshore wind farm by 2027 near Sinan County, South Jeolla Province, where a wind farm is located on land.
It then will speed up offshore wind projects in the East Sea, and push up the total wind power energy production to 2 gigawatts (GW).
Jeong said POSCO International is redefining itself as a global green comprehensive business.
"We are driving qualitative growth of the energy business, as bridged by the business agreement with CIP," he said.
CIP was established in Denmark in 2012. Its assets under management stand at about 28 billion euros (40 trillion won).
CIP has joint offshore wind power business projects with 14 countries.
https://www.koreatimes.co.kr/www/tech/2023/06/419_353775.html
Adani Total Gas Ltd (ATGL) plans to construct more than 1,800 Compressed Natural Gas (CNG) stations in the next 7 to 10 years, Suresh P Manglani, CEO, ATGL said in the firm’s annual report for the financial year 2022-23 (FY23). ATGL is a joint venture between Adani Group and TotalEnergies.
Manglani added that ATGL is expanding its presence across India. He said that with the addition of 19 GAs through its joint venture with Indian Oil Adani Gas Private Limited (IOAGPL), the company now has a presence in 124 districts.
The company has laid a total of 10,888 inch-kilometers of steel pipeline and added 1,951 inch-kilometers in FY23. The company's CNG station footprint has risen to 460, with 126 new stations added in the last year. Of the 460 stations, 87 are company-owned-dealer-operated (CODO) and the remaining 373 are dealer-owned-dealer-operated (DODO).
ATGL will also diversify its offerings to CNG, compressed biogas (CBG), and electric vehicle (EV) charging along with scaling its gas distribution business. Manglani added that ATGL plans to expand its service portfolio to include a range of clean fuels. He said that this will allow the company to meet the needs of a wider range of consumers and reinforce its position as a one-stop comprehensive service provider.
To expand its clean fuel portfolio, ATGL has created a wholly-owned subsidiary, Adani TotalEnergies E-mobility Limited (ATEL). ATEL is currently setting up EV charging infrastructure for all types of vehicles. Adani TotalEnergies Biomass Limited (ATBL), another subsidiary, will produce and distribute bio-mass-derived energy across the country.
ATEBL is constructing one of India’s largest Compressed Biogas (CBG) plants at Barsana in Uttar Pradesh with a feedstock processing capacity of 600 tonnes per day(TPD). ATGL has also commissioned its first CBG station at Varanasi.
Also Read Stepping on the gas: CNG fuel of choice in green mobility quest CNG cars could account for 25% of industry by end of decade: Tata Motors MD Tata Altroz CNG launched at a starting price of Rs 7.55 lakh; check details CNG vehicles gear up for a long ride with regulated prices, strong demand Q4 results: Adani Total Gas logs 21% rise in net profit over CNG sales West Asian carriers vs Air India & IndiGo: A dogfight in the global skies Liquor sales volume grows 14% in FY23, premium segment over Rs 1k grows 48% Supply of commercial real estate halved in March quarter: PropEquity How better cyber sense, zero trust can help overcome the new 'CEO scam' Softer commodity prices to lift road units' margins: CRISIL SME Tracker
Manglani added that the company is also looking for opportunities to expand its CBG production footprint in the Municipal Solid Waste (MSW) segment, in addition to using agricultural and livestock waste as feedstock.
ConocoPhillips (COP Quick QuoteCOP - Free Report) is a leading upstream energy firm in the world on the basis of production and reserves. Currently, the firm carries a Zacks Rank #3 (Hold).
Factors Working in Favor
West Texas Intermediate crude price, trading at more than $65 per barrel, is still favorable for upstream activities. Being a leading exploration and production company globally, ConocoPhillips is well-positioned to capitalize on handsome crude prices. It has a strong footprint in prolific oil-rich plays like the Permian Basin, Eagle Ford and Bakken, brightening the company’s production outlook. For 2023, ConocoPhillips expects production at 1.78 to 1.80 million barrels of oil equivalent per day (MMBoE/D), suggesting an improvement from 1.74 MMBoE/D for 2022.
COP is strongly focused on returning capital to shareholders. Last year, the upstream firm returned as high as $15 billion to shareholders. The company employed a three-tier framework that comprised $5.7 billion in cash distributions through the ordinary dividend and variable return of cash route, while the remaining $9.3 billion was distributed through share repurchases.
ConocoPhillips is currently paying a dividend yield of 2.01%, higher than 1.97% yield of the composite stocks belonging to the industry.
Risks
Being an upstream energy player, the overall operations of the company are exposed to volatility in oil and natural gas prices. Moreover, increasing production and operating expenses are hurting its bottom line.
https://www.zacks.com/stock/news/2113458/heres-why-hold-strategy-is-apt-for-conocophillips-cop-now
The oil project is located in Uganda’s Lake Albert oilfields. Credit: huyangshu via Shutterstock.
Tilenga oil project in Uganda is expected to start production in the first half of 2025, reported Reuters, citing Uganda National Oil Company (UNOC) CEO Proscovia Nabbanja.
“The drill kits have been put up and the drilling has started,” Nabbanja told the news agency.
The UNOC executive, who was speaking on the sidelines of an Energy Asia conference, added: “We are on track for first oil in H1 2025.”
The project is operated by French energy giant TotalEnergies in partnership with China National Offshore Oil Corporation (CNOOC) and UNOC.
It is located in the Buliisa and Nwoya districts in the East African country’s Lake Albert oilfields.
The final investment decision (FID) of the project was approved in 2022 and the development cost is expected to be $4bn.
According to GlobalData, at its peak in 2028, the project is estimated to produce nearly 190,000 barrels per day (bpd) of crude oil and condensate.
The East African Crude Oil Pipeline (EACOP), worth $3.5bn, will carry oil from the Tilenga facility to the Tanzanian port of Tanga for export.
By as early as 2025, the EACOP will be able to export up to 246,000bpd of petroleum to international markets.
With a 62% ownership interest, TotalEnergies is EACOP’s major shareholder.
Tanzania Petroleum Development Corporation and the state-run UNOC are two other investors, each holding 15%, while China’s CNOOC has an 8% stake.
Earlier this week, five groups of activists sued TotalEnergies for the second time over Tilenga oil development and EACOP.
https://www.offshore-technology.com/news/tilenga-project-oil-production/
(Bloomberg) -- The European Union may need to rely on sanctions to tackle rising imports of Russian liquefied natural gas in order to meet its ban on all fossil-fuel shipments from Moscow by 2027, according to a leading think tank.
An outright embargo on flows from Russia’s Yamal LNG plant has so far been politically unpalatable in Brussels, but the EU has several paths to curb imports including using its new mechanism for coordinating joint purchases of the fuel, analysts at Brussels-based Bruegel said in a report. Other options include soft sanctions that discourage new purchases but don’t break existing supply contracts, or even doing nothing.
LNG has become a hurdle in the bloc’s efforts to wean itself off Russian energy, with Belgium, Spain and France receiving record volumes of the fuel in 2022 and deliveries holding strong this year. Unlike coal and oil, the EU has yet to apply any sanctions on gas. Kadri Simson, the bloc’s energy commissioner, has instead called for companies to not renew expiring contracts for the fuel.
Bruegel says the EU could adapt its newly created Energy Platform to handle limited Russian LNG supplies. It would do this by sanctioning imports, forcing the termination of long-term contracts and allowing the EU to offer to buy the LNG at a lower-than-market price via the platform, the analysts wrote.
Implementing such a move would also likely require unanimity among member states, some that may not wish to stop the imports. Bruegel estimates that Spain and Portugal would be hardest hit by such an embargo, which have the highest share of Russian LNG in their total gas supply.
In addition, “there is no guarantee that Russia would wish to engage with such a strategy, and Russia might prefer to refuse any LNG exports to the EU,” Bruegel said.
Even so, the embargo and the offer to purchase Russian LNG would only partially risk tightening the global market. And the EU could manage without that source of supply, the analysts wrote.
Read more: EU Is Hooked on Russia LNG and Paying Billions to Keep It Coming
“The EU has a toxic addiction to Russian LNG, which must be promptly treated,” said Simone Tagliapietra, co-author of the report. “The good news is that, with the necessary preparations, the EU can well live without it.”
In March, EU energy ministers endorsed a proposal that would allow member governments to temporarily prevent Russian exporters from booking the facilities needed for the shipments. The approach also calls for a price cap on Russian LNG cargoes that use the EU or Group of Seven countries for trans-shipment, insurance or shipping services. The position still needs to be negotiated with the bloc’s parliament.
https://www.bnnbloomberg.ca/eu-should-sanction-russian-lng-imports-bruegel-recommends-1.1938935
Europe is “likely” to reach its 90 per cent gas storage target far before the November 1 deadline, Rystad Energy has said.
As of June 25, European gas storage sites are about 76 per cent full, up from 56 per cent in the same period last year, the Norway-based consultancy said.
“Considering historical demand, and assuming different supply scenarios, storage facilities could even be full ahead of winter this year, resulting in gas flows having to be diverted elsewhere,” said Lu Ming Pang, a senior analyst at Rystad.
The EU set gas storage targets last year after Russia slashed its exports to the region in response to economic sanctions levied due to Moscow's invasion of Ukraine.
After banning imports of Russian crude oil and refined products and sharply reducing gas transported though pipelines, the EU is now considering halting shipments of liquefied natural gas from the country.
Rising LNG imports from the US and Gulf countries have helped Europe to replace Russian supplies.
Global LNG trade hit a high of $450 billion in 2022 as Europe scrambled to secure supplies to replace Russian gas, according to the International Energy Agency.
Despite a rise in demand, LNG supply grew by only 5.5 per cent last year, mostly due to maintenance at large export terminals and the closure of Freeport LNG’s Texas-based plant – one of the world’s largest export centres of the supercooled fuel – after a fire in June 2022.
Meanwhile, European natural gas prices have been volatile this week following an attempted mutiny in Russia.
Dutch Title Transfer Facility (TTF) gas futures, the benchmark European contract, was last trading at nearly €34 ($37) per megawatt hour on Wednesday.
On Saturday, Russian mercenary forces, the Wagner Group, withdrew from the southern Russian city of Rostov-on-Don and halted their march on Moscow following a deal, ending what could have been the first coup attempt in the country for three decades.
Russian President Vladimir Putin said “devastating consequences” had been avoided after the mutiny ended as abruptly as it started.
“Despite the quick resolution, increased geopolitical risk remains with fears that prices could escalate if there is any impact on Russia’s remaining gas pipeline flows through Ukraine,” Mr Pang said.
Natural gas prices have soared about 38 per cent since the beginning of the month, in part due to production outages in Norway.
Norwegian gas flows stood at about 232 million cubic metres per day (MMcmd) on June 26, lower than the 256 MMcmd recorded on June 19, Rystad Energy said.
Ongoing maintenance at Norway's Oseberg natural gas field, which was expected to be completed on June 27, has been extended to July 5.
The Scandinavian country exported more than 120 billion cubic metres (bcm) of gas in 2022, mainly through pipelines, making it Europe's largest gas supplier.
Top oil and gas companies have made little progress in turning away from hydrocarbons and towards the goals of the 2015 Paris climate deal, multinational non-profit platform CDP said on Thursday.
Scientists say that by 2030 the world needs to cut greenhouse gas emissions by around 43 per cent from 2019 levels to stand any chance of meeting the 2015 Paris Agreement goal of keeping warming well below 2 degrees Celsius (3.6 Fahrenheit) above pre-industrial levels.
The CDP’s Oil and Gas Benchmark report, published together with the World Benchmarking Alliance, said its latest assessment had shown the oil and gas sector “has made almost no progress towards the Paris Agreement goals since 2021.”
None of the 100 oil and gas companies it had assessed is set to cut its overall emissions “at a rate sufficient to align with a 1.5°C pathway over the next five years,” it said.
CDP has emerged as the world’s biggest repository of environmental data submitted on a voluntary basis by companies, which are under pressure from some shareholders to disclose how they plan to navigate the transition to a lower-carbon future.
The CDP said 81 oil and gas companies with extraction activities show “no significant reduction” in production before 2030, with production not expected to peak until 2028.
The world’s biggest Western oil and gas companies have set varying targets to cut greenhouse gas emissions from their operations and the combustion of the products they sell, with the latter, known as Scope 3, accounting for the lion’s share.
Less than a third of companies in the report had any Scope 3 targets.
Only three European companies assessed – Neste, Naturgy and Engie – are investing more than 50 per cent of their budget in low-carbon technologies.
TotalEnergies, which sees no big cut to its emissions by 2030, Eni and Repsol are in the top 10, and Shell and BP in the top 20.
Big U.S. producers Chevron, Conoco and Exxon are in the top 40.
The lower ranks are dominated by state-owned firms from Russia, the Arab Gulf, Nigeria, Algeria, Libya, Venezuela, Iraq and Iran.
June 29 (Reuters) - TRP Energy is exploring a possible sale of its oil and gas operations in the Permian basin that could fetch more than $1.5 billion, the latest company to do so at a time of high demand for acreage in the heart of U.S. shale country, people familiar with the matter said.
TRP, in which Greenbelt Capital Partners owns a controlling stake, holds around 15,000 net acres in the Midland portion of the Permian and produces about 25,000 barrels of oil equivalent per day, said the sources.
An investment bank is advising TRP on the process, added the sources, who cautioned a deal is not guaranteed and spoke on condition of anonymity to discuss confidential information.
TRP and Greenbelt did not respond to requests for comment.
Private operators of oil and gas assets in the Permian, which stretches across parts of Texas and New Mexico, are securing profitable exits as listed companies pursue deals to expand there.
Buoyed by earnings from elevated crude prices in the last 18 months, buyers have been seeking deals to boost their land reserves and cash flow generation. This in turn strengthens their shareholder returns, such as dividend payouts, making them more attractive to investors.
More than $10 billion of such deals have been struck in the Permian so far in 2023, according to data provider Enverus.
"As we reach the later innings of private businesses being consolidated, private equity is finding itself having a significant role, providing public companies with the opportunity to improve their portfolios and increase their scale, relevance and inventory," said Alex Burpee, senior managing director at Guggenheim Securities.
The bank advised Civitas Resources (CIVI.N), which agreed last week a $4.7 billion purchase of Permian operations from buyout firm NGP Energy Capital Management. The deal included Hibernia Energy III, situated close to TRP's operations.
Greenbelt, an energy-focused investment firm, was spun out of Trilantic North America in early 2022. Trilantic first backed TRP with a $250 million investment in 2015.
More China EV makers seen eying Thailand as production base
More major Chinese electric vehicle (EV) makers are eyeing Thailand as a manufacturing and distribution base to neighbouring economies, according to the Thai-Chinese Chamber of Commerce.
Prospects are backed by recent investment incentives in the kingdom for Chinese automakers, and investments are pouring in, the chamber’s Chairman Narongsak Putthapornmongkol said Sunday.
China’s Hozon New Energy Automobile Co will start production in Thailand to sell to Southeast Asia in 2024, becoming the latest EV maker to begin building a supply chain in the region’s top auto-manufacturing hub.
Chongqing Changan Automobile and GAC Aion have also announced plans to invest a total of 16.2 billion baht in EV production facilities in the country. Great Wall Motor and BYD Co have already established production plants in eastern Rayong province.
“EV is the most trailblazing industry right now as seen through investments from MG, Great Wall Motor and BYD,” Mr Narongsak said.
The chamber is hosting the 16th World Chinese Entrepreneurs Conference in Bangkok from June 24-26. About 4,000 entrepreneurs from 50 countries are attending. Li Chuyuan, chairman of Guangzhou Pharmaceutical Holdings, and Hui Yuan, chairman of Xiao i Corporation are among prominent Chinese businessmen participating in the event.
Thailand saw foreign investment applications more than double to 155.3 billion baht in the three months through March from a year ago, led by companies from South Korea, Singapore and China, according to the Board of Investment.
Chinese firms sought to invest 25 billion baht during the period, up 87% from a year ago, in industries such as battery production, electronics, petrochemicals and solar cell, data showed.
WHA Corp, Thailand’s largest industrial estate developer, expects a pick-up in Chinese investors with demand coming from companies setting up units to manufacture EVs, automobile parts and electronics, according to Chief Executive Officer Jareeporn Jarukornsakul.
Daily minimum wages should be raised because of higher costs of living, but the hike shouldn’t exceed comparable salaries in neighbouring countries considered as competitors, said Mr Narongsak.
A coalition of pro-democracy parties led by the progressive Move Forward Party, which is seeking to form a new government after sweeping the May 14 elections, plans to raise minimum wages in line with inflation and economic growth.
SAN ANTONIO — With the extreme heat already here, Texas’ energy usage is rising. But there’s plenty of sunlight being converted into solar energy.
“The great thing about solar is the sun is shining typically when our overall statewide electricity needs are the greatest,” said Robert Miggins.
This is a busy time for energy providers like Robert Miggins. He’s the co-founder and CEO of Big Sun Solar in San Antonio. He says they want to get as many businesses as possible to convert to solar energy.
“This one’s made by Mission solar,” Miggins said. “So supporting local jobs.”
He’s very optimistic about the opportunities renewable energy has created. In just a few short years, the solar energy industry has grown in Texas. Miggins says incentive programs from the local energy company have allowed solar to soar.
“The heat is going getting worse,” Miggins said. “Our population is growing a great deal in Texas. So our energy needs are really expanding greatly.”
The U.S. Energy Information Administration says less than 5% of Texas energy is generated from solar panels. Robert says for a state that gets a lot of sun, solar is a commonsense investment for Texas.
“Becoming a really important part of our overall energy mix,” Miggins said. “Between all the other ways, electricity is created statewide.”
It takes years to get gas-powered plants approved and built. But Miggins says solar projects are becoming easier and faster to complete.
“More and more affordable,” Miggins said. “It can be deployed quickly. And it produces electricity when we need it the most. Which is the hottest part of the day.”
Even though natural gas makes up more than half the state’s power generation, this year Texas is expected to lead the nation in solar growth.
“Listen, we’re in for a long hot summer,” Miggins said. “Solar is a really important part of how we’re meeting our overall statewide, ERCOT grid energy requirements.”
https://spectrumlocalnews.com/tx/south-texas-el-paso/news/2023/06/21/powered-by-solar
(Yicai Global) June 26 -- Huayou Cobalt, a leading Chinese cobalt supplier, and CNGR Advanced Material, a Chinese maker of lithium-ion battery cathode precursors, have unveiled plans to expand overseas.
Huayou will invest nearly EUR1.3 billion (USD1.4 billion) to build a nickel-rich ternary lithium battery cathode material plant in Komárom-Esztergom county in Hungary, the Tongxiang-based firm said on June 21, before a three-day holiday in China. The first phase of the project will cost EUR252 million (USD274 million) and have an annual output of 25,000 metric tons.
CNGR, which has a nickel ore processing plant in Indonesia, announced on the same day that it intends to spend CNY8.3 billion (USD1.1 billion) to set up two joint ventures with Posco Holdings, South Korea’s largest steelmaker, to build two lithium battery material plants in Pohang, South Korea.
The first JV, of which CNGR will own 80 percent and Posco the rest, will build a CNY6.1 billion ternary lithium battery precursor plant with an annual output of 110,000 mt. The other JV, of which Posco will own 60 percent and CNGR the rest, will build a plant to make nickel sulfate refined products, with fixed assets investment of about CNY2.2 billion.
Nickel sulfate is one of the main component chemicals of battery precursor, a raw material used for producing cathode materials for ternary lithium batteries.
These projects were not Hayou’s and CNGR’s first overseas expansion plans to mitigate the impact of tightening import rules in the United States and Europe.
In April, Huayou teamed up with Seoul-based battery giant LG Chem to build a battery cathode material plant in Gunsan, South Korea. CNGR announced last September that it would set up in South Korea a JV with SK Group, the owner of battery developer SK Innovation, to carry out lithium battery material production as well as research and development projects.
Shares of Huayou [SHA: 603799] closed down 1 percent at CNY45.70 (USD6.33) in Shanghai today. CNGR’s stock [SHE: 300919] ended little changed in Shenzhen, falling 0.2 percent to CNY58.51.
Editor: Futura Costaglione
General Motors (GM) announced a new deal with Australian-based supplier Element 25 on Monday to expand manganese sulfate production in the US, a key EV battery component.
Under the supply agreement, Element 25 will provide GM with up to 32,500 metric tons of manganese sulfate annually to help the automaker hit its goal of producing over one million EVs in North America by 2025.
The deal also includes an $85 million GM-funded loan to help Element 25 fund the construction of a new battery-grade manganese sulfate facility in Lousiana, expected to be the first of its kind.
Starting in 2025, Element will produce manganese sulfate at the facility by processing manganese concentrate from its mining business in Australia.
Doug Parks, GM executive vice president of global product development, says the Lousiana plant is significant as it’s expected to be the first of its kind in the US to produce battery-grade manganese sulfate. Parks added:
GM is scaling EV production in North America well past 1 million units annually and our direct investments in battery raw materials, processing and components for EVs are providing certainty of supply, favorable commercial terms and thousands of new jobs, especially in the U.S., Canada and free trade agreement countries like Australia.
Element 25 expects to begin site preparation for the 230,000 square-feet facility in the third quarter of 2023, creating around 200 permanent jobs once opened in 2025.
2024 Chevy Silverado EV RST (source: Chevrolet)
GM expands North American EV battery supply chain
The news comes weeks after GM revealed it would increase its investment (to over $1 billion) in its new cathode factory in Ontario, Canada.
GM says the new funding will help increase cathode active material (CAM) production and its precursor materials (pCAM) needed to manufacture it in North America.
2024 Chevrolet Equinox EV 3RS (Source: GM)
CAM is a key EV battery material consisting of lithium and a secondary metal (or metals) that drives around 40% of EV battery costs. The two most popular today include nickel-cobalt-manganese (NCM) and lithium-iron-phosphate (LFP).
In addition to manganese, GM also secured nickel and cobalt supply after a strategic investment in Queensland Pacific Metals last October, another Australian-based supplier.
2024 Chevy Blazer EV (Source GM)
After announcing plans for its fourth EV battery plant in the US earlier this month, GM and its JV partners are installing 160 GWh of domestic battery cell manufacturing capacity.
After selling over 20,000 EVs for the first time in a three month-span in Q1, GM forecasts to be on track to build another 150,000 in North America by the end of the year. By mid-2024, GM expects to make around 400,000 EVs in North America as it looks to reach one million annual production in 2025.
The automaker expects a breakout year with the launch of the Silverado EV, Blazer EV, and Equinox EV by the end of 2023.
https://electrek.co/2023/06/26/gm-element-25-to-supercharge-the-us-ev-battery-supply-chain/
Published Jun 27, 2023 07:48
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Jacobs (J) has signed an Engineering Partnering Agreement (EPA) with Fortescue Future Industries (FFI) to support its global ammonia, green hydrogen and renewable energy project targets.
FFI, a global green energy company committed to producing zero-carbon green hydrogen from renewable sources, is leading a global effort to decarbonize difficult-to-abate industries and is developing the technology and energy supply to help decarbonize one of the world's largest producers of iron ore – its parent company, Fortescue Metals Group, which has zero emission targets for its operations. Through a three-year framework agreement, with two one-year renewal options, Jacobs will support FFI on a variety of decarbonization projects from concept through Final Investment Decision (FID).
"With a portfolio spanning 25 countries and ambitious plans to move to a decarbonized future, FFI will benefit from our global footprint and integrated programmatic approach to accelerate their energy transition efforts," said Jacobs Executive Vice President and President of People & Places Solutions Patrick Hill . "Further, it aligns with our commitment to respond to climate challenge impacts holistically, rather than each market in isolation, especially when it comes to green energy and power."
"In 2022, we announced a $6.2 billion capital investment that will help our iron ore business reduce its carbon emissions by eliminating the use of fossil fuels by 2030, providing energy cost savings and removing our exposure to carbon regulatory risk. We are planning to turn Fortescue Metals Group, the highly successful company that has been built over 20 years, into a green energy and resources global powerhouse that is helping heavy industry to step beyond fossil fuels," said FFI CEO Mark Hutchinson . "With Jacobs' technical and program management expertise, we're accelerating our transition to the post fossil fuel era, setting an example for the rest of the traditional minerals and mining industry that prioritizing energy transition efforts now will, in the future, not only help eliminate exposure to fossil fuel risk but also assist in reducing operating costs."
Jacobs was ranked the No. 1 in the Top 500 Design Firms by Engineering News-Record's 2023 ranking for the sixth consecutive year, ranking No. 2 in Power, up from No. 4 in 2022. These rankings, and Jacobs' growing portfolio of engineering partnering and framework agreements shows how the company is addressing and shaping energy trilemma solutions and partnering with global energy clients to achieve clean, low carbon, resilient and affordable outcomes now and in generations to come.
We have all seen news headlines for lithium, cobalt, nickel, and other rare-earth metals needed for electric vehicle batteries and the entire electricity infrastructure. The Biden administration has announced a series of moves to secure America's 'supply chain for critical minerals.' Rarely discussed, however, is copper, one essential metal at the heart of the energy transition.
In an interview on Monday, billionaire mining investor Robert Friedland told Bloomberg TV that the mining industry is failing to increase supply ahead of 'accelerating demand.' He said deposits are getting more expensive and harder to find, funding is limited, and economies have to prepare for the importance of the mining industry to lead the energy transition.
"We're heading for a train wreck here," Friedland said at Bloomberg's New York headquarters. He's the founder of Ivanhoe Mines Ltd. and warned: "My fear is that when push finally comes to shove," copper prices might explode ten times.
Long-term of Copper futures
The world is facing a crisis of supply in copper, with not enough mines being built to satisfy future demand, he said. Ivanhoe has mines in South Africa and the Democratic Republic of the Congo.
Copper is essential in electric vehicle motors and batteries, as well as cabling and transformers, to build out the nationwide electric vehicle charging infrastructure in the US and worldwide.
According to a recent S&P Global report, EVs require twice as much copper as an internal combustion engine vehicle. The report said copper demand will double to 50,000,000 metric tons annually by 2035, more than all the copper consumed worldwide between 1900 and 2021.
Friedland's longer-term view of higher copper prices is supported by a combination of decarbonization efforts globally, rising China demand, the emergence of India, and the modernization of militaries after the Ukraine war.
He said the market has yet to realize the significance of copper and how it is essential to decarbonization efforts. He noted there are very low physical inventories of copper with historically low relative valuations of mining companies.
Friedland pointed out that recent acquisitions of mines at high premiums indicate the mining industry is aware prices of the metal are headed higher. He said the tightening of the copper market could increase prices like other commodities in recent years.
"When metals are required, the prices go crazy and nobody's willing to sell them," he said. "We're heading into that sort of situation."
Even with increasing gloom about the global economy as global central banks tighten interest rates, Friedland remains very bullish on copper.
With offshore wind, we could produce all the renewable hydrogen needed to decarbonise heavy industry and transport. The bloc’s RePowerEU plan sets a 10m tonne/year output target onshore but we could add 10-15m tonnes offshore. Offshore can be a game-changer for production and European sovereignty.At sea, you have all the wind, space and water you need to produce massive quantities of hydrogen. According to the International Energy Agency, the EU has the potential to generate more than 11 times its current power demand from offshore wind.Many states are taking this path, including Belgium, Denmark, the Netherlands and Germany, which together plan to generate the equivalent of 20 GW of hydrogen from offshore wind energy by 2030.Hydrogen offshore wind farms will complement power wind farms and use resources that would otherwise go unused.Many onshore or offshore sites are too small or too far from the power network for a viable grid connection. However, it is much cheaper to send hydrogen onshore using existing gas infrastructure or by building pipelines, which cost 3-15 times less than an undersea power cable.With a 1 GW offshore wind farm, we could connect 500 MW to the grid and use the rest to produce hydrogen.People should be aware that if we don't take the plunge now, we are dead. In France, it took 11 years to start the first offshore wind farm last year. In Germany, the Netherlands, around the Baltic Sea it takes about seven years – yet that is still a lot.I expect major hydrogen projects to come around 2030 but we must focus now on mature technologies, otherwise it is science fiction.To date, Lhyfe has a 10 GW portfolio of projects in Europe. We are targeting more than 3 GW onshore and another 3 GW offshore by 2030-35.It will not necessarily be cheaper than importing. I think the overall cost of production will vary, as it does for wind, oil or gas. There will be a market price but because of the 1973 oil shock or the war in Ukraine today, states will always have an eye on sovereignty.Green hydrogen – typically produced from excess renewables – will probably need subsidies for about a dozen years. The European Commission has announced the creation of the European Hydrogen Bank to guarantee or reduce risk and encourage investment.
https://www.montelnews.com/news/1507975/offshore-wind-is-the-game-changer-for-green-h2--interview
Purepoint Uranium Group Inc. (CVE:PTU – Get Rating)’s share price reached a new 52-week low during trading on Friday . The company traded as low as C$0.04 and last traded at C$0.04, with a volume of 42674 shares. The stock had previously closed at C$0.05.
Purepoint Uranium Group Trading Down 11.1 %
The company has a debt-to-equity ratio of 4.65, a current ratio of 4.55 and a quick ratio of 9.30. The company has a market cap of C$16.70 million, a price-to-earnings ratio of -1.33 and a beta of 1.97. The business has a 50 day simple moving average of C$0.05 and a 200 day simple moving average of C$0.06.
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Purepoint Uranium Group (CVE:PTU – Get Rating) last released its earnings results on Tuesday, May 30th. The company reported C($0.01) earnings per share for the quarter.
About Purepoint Uranium Group
Purepoint Uranium Group Inc, a uranium exploration company, engages in the acquisition, exploration, and development of uranium properties in Canada. Its flagship project is the Hook Lake uranium project that consists of 9 claims covers an area of 28,598 hectares located in the Athabasca Basin, Northern Saskatchewan.
BHP Group is calling for Australia to lift a longstanding ban on nuclear power as the country moves to decarbonize its electricity system.
Nuclear “must be part of the conversation” in Australia, Laura Tyler, chief technical officer at the world’s biggest miner, said in an interview on Wednesday.
“To make sure we have that safe, reliable energy mix, we need to be able to mix it up” with nuclear complementing wind, solar, batteries and other sources of electricity, she said. “Everything needs to be on the table.”
The bulk of BHP’s earnings come from its Australian iron ore and coal mines, but the company also produces uranium, the fuel for nuclear reactors, at its Olympic Dam site in South Australia.
After being shunned due to safety concerns, nuclear energy is enjoying a resurgence in global popularity due to a shortage of natural gas following Russia’s invasion of Ukraine. The need to decarbonize electricity grids and the development of smaller and cheaper reactors is also making it more attractive.
Australia has never had nuclear power and there’s been a prohibition on its use in place since the 1990s. The Labor government supports the ban, arguing the country’s wealth of renewable resources means it’s not needed.
However, the opposition Liberal-National coalition wants it overturned, on the grounds that wind, solar and batteries can’t provide reliable baseload power to replace coal plants that are being phased out.
BHP aims to get to net zero across its operations by 2050, but warned last week that its emissions might rise in the short term.
AHMEDABAD: The acreage sown with cotton in the state this year has risen by 18%, reaching 6.90 lakh hectares as of June 19 against 5.89 lakh hectares on June 19, 2022.Officials in the state agriculture department said that the ten-year average acreage for cotton during the kharif season in the state is 23.60 lakh hectares.Experts say the acreage sown with cotton is increasing because cotton prices, while lower than last year, are still firm compared to previous years. The higher minimum support (MSP) price for cotton has also played a role in boosting cotton acreage.Officials said there has simultaneously been a 17% decrease in the area sown with groundnut, reaching just 3.04 lakh hectares on June 19, compared to 3.66 lakh hectares on June 19, 2022.Bhikha Jadhav, a farmer from Bhavnagar district, said the increase in the MSP is leading farmers to opt for cotton rather than the groundnut. The government on June 7 increased the MSP for medium staple cotton by Rs 540 per quintal to Rs 6,620 from Rs 6,080 on June 7. The MSP for long staple cotton has been raised to Rs 7,020 from Rs 6,380 per quintal, while that of groundnut has risen to Rs 6,377 from Rs 5,860. Agriculture department officials said these are early trends, but they expect more farmers to move to cotton this year. Cotton and groundnut are mainly grown in Saurashtra. “We expect the acreage sown to increase in the coming week, because of the rain produced by the cyclone.”Ajay Shah, secretary, GujCot Association said, “The initial cotton sowing trend is encouraging. We believe that this year, Gujarat will see pressing of around 92 lakh bales, while farmers will have a stock of around 10 lakh bales carried forward at the end of the current season in September 2023. The new MSP rates will ensure that cotton prices will remain firm.”Experts from the textile industry say India must improve cotton productivity. Even though India has the highest cotton acreage of 120.69 lakh hectares, 36% of the global acreage of 333 lakh hectares, the country doesn’t even figure in the Top 30 countries in terms of cotton output. According to data from the Cotton Corporation of India (CCI), India’s cotton yield per hectare was 566kg in 2013-14, which decreased to 412kg in 2021-22.“We have not seen any new seeds introduced for more than 15 years. To improve productivity, we need new seeds, like the way in which BT Cotton improved our yield,” said a member of the GCCI textiles taskforce.
https://m.timesofindia.com/city/ahmedabad/states-cotton-acreage-up-by-18/articleshow/101250222.cms
Posted 08:39 -- December corn is down 1 cent per bushel, November soybeans are up 14 1/2 cents, September KC wheat is up 15 cents, September Chicago wheat is up 9 3/4 cents and September Minneapolis wheat is up 13 cents. The Dow Jones Industrial Average is up 1.46 points and August crude oil is down $0.17 per barrel. The U.S. Dollar Index is down 0.160 and August gold is up $7.00 per ounce. December corn is now slightly lower, while soybeans, soy products and wheat are sharply higher. Uncertainty over the political situation in Russia and its possible impact on wheat exports has each wheat market higher. Corn and soy conditions are again expected to fall on Monday's crop progress report.
Posted Sunday, June 26 at 08:38 -- After the Sunday evening open, row crop prices are actively trading lower after several parts of the northwestern Plains and northern Midwest received beneficial rains, including Iowa and parts of northern Illinois. December corn is down 11 3/4 cents and November soybeans are down 10 cents. For the next five days, there are only spotty areas of light to moderate amounts with Missouri, Illinois and Indiana staying mostly dry as temperatures turn hotter later this week. September KC wheat is down 5 1/2 cents and September Minneapolis wheat is down 6 3/4 cents. August crude oil is up $0.76 and Dow Jones futures are up 50 points. The U.S. Dollar Index is down 0.15 and August gold is up $6.20. Russia's leadership appears to be in turmoil after President Putin negotiated away a threat of rebellion by the Wagner mercenary group over the weekend.
Livestock
OMAHA (DTN) -- August live cattle are up $0.03 at $170.8, August feeder cattle are up $0.20 at $234.15, August lean hogs are up $1.18 at $90.85, December corn is down 1 1/2 cents per bushel and December soybean meal is down $0.60. The Dow Jones Industrial Average is up 41.58 points. The livestock complex is trading mixed into Monday's noon hour as the cattle contracts see mixed interest while the lean hog complex trades fully higher. The lean hog complex is anxious to see what Thursday's Quarterly Hogs and Pigs Report unveils.
Posted 08:38 -- August live cattle are down $0.55 at $170.225, August feeder cattle are down $1.70 at $232.25, August lean hogs are up $1.30 at $90.975, December corn is up 3 1/4 cents per bushel and December soybean meal is up $4.30. The Dow Jones Industrial Average is up 21.52 points. The livestock complex is trading mixed as the cattle complex wrestles with last Friday's Cattle on Feed report, but the lean hog complex is trading higher. Thankfully, for feeder's sake, corn prices are trading lower which shouldn't add to the pressure already being seen in the feeder cattle complex.
https://www.dtnpf.com/agriculture/web/ag/news/article/2023/06/26/periodic-updates-grains-livestock-2
According to the World Meteorological Organisation, the El Nino weather pattern is likely to emerge later this year, potentially leading to a global temperature increase. There is a 60 per cent chance that the La Nina weather pattern, which typically causes a minor decrease in global temperatures, will transition to El Nino, a warmer variation, between May and July of this year.
What is El Nino?
El Nino is a rare weather phenomenon that has a major effect on India's agriculture. It is caused by the Pacific Ocean warming between South America and the Date Line and the associated increase in the western Pacific's air surface pressure. This phenomenon arises when the trade winds in the Pacific Ocean stop blowing and the ocean temperatures become extremely high. The second half of the monsoon, or a decrease in the monsoon, has been predicted by the Indian Meteorological Department (IMD), which is bad news for Indian agriculture.
Impact On Indian Agriculture
India has an agrarian economy; thus, a successful monsoon is essential for its crops because most of its farmland is rain-fed. It is expected that El Nino's reduced rainfall can result in crop failure, water scarcity, increased food costs, and decreased yields, ultimately lowering farmer income and affecting millions of people. India's food security encounters a significant challenge during the wheat harvest. Although the rabi seeding showed promise, if early rains occur before harvest as predicted by El Nino experts, it could lead to a rise in wheat prices. A further 20 per cent drop in production would contribute to malnutrition and food inflation.
Initiatives Taken by Government
The Indian government has launched many efforts to promote/support climate-resilient agriculture in an effort to combat the problems caused by El Nino. In order to ensure that farmers have access to water even during droughts, one of the major tactics is to encourage rainwater gathering and groundwater recharging. To support these activities, the government has introduced a number of programmes, including the Pradhan Mantri Krishi Sinchai Yojana (PMKSY), Pradhan Mantri Gramme Sinchai Yojana (PMGSY), and the National Groundwater Management Improvement Scheme (NGMIS).
Is India prepared for El Nino?
Usually, India is prepared for such eventualities. This is particularly true today, given the existence of a Crop Weather Watch Group that monitors rainfall, crop planting, and the volume of water held in huge reservoirs. In the past, the government has advised growers to shift from paddy to coarse cereals due to limited rainfall.
The government can ensure that there are enough food supplies in its granaries to protect the economy. As of June, it has already purchased 47 million tonnes (mt) out of the 52.1 million tonnes (mt) of rice intended for this crop year. Once wheat starts appearing in marketplaces following the harvest, it will likely begin purchasing on April 1.
https://www.businessworld.in/article/El-Nino-It-s-Impact-On-Indian-Agriculture/27-06-2023-481981
SINGAPORE: Chicago soybean futures slid nearly 1% on Tuesday, while corn lost ground as expectations of much-needed rains in parts of the US Midwest eased concerns over dry weather which has threatened yields. Wheat fell for a third consecutive session.
“There is some relief for corn and soybean crops with rains over the weekend in the US Midwest,” said one Singapore-based grains trader.
“More rains is expected next week which should help crops recover.”
The most-active corn contract on the Chicago Board of Trade (CBOT) lost 0.2% to $5.87-1/4 a bushel, as of 0316 GMT.
Wheat fell 1.1% to $7.30-1/2 a bushel and soybeans gave up 0.9% to $13.11-1/4 a bushel.
The condition of US corn and soybean crops deteriorated to the worst in decades, US government data showed on Monday, as major producing areas missed out on much-needed rains.
The weekly crop progress report from the US Department of Agriculture (USDA) showed that good-to-excellent ratings for corn stood at 50% as of June 25, below the average of 11 estimates given by analysts in a Reuters poll that had predicted 52%.
Just 51% of soybeans were in good-to-excellent condition, in line with analyst expectations.
The ratings for both corn and soybeans were the lowest for this time of the year since 1988, the year of a historic crop-wasting drought.
In the wheat market, focus is on supplies from the Black Sea region after concerns about political stability in major exporter Russia eased and prices fell from multi-month highs.
An end to the Black Sea grains deal would hit the Horn of Africa hard, aid officials said on Monday, warning that another hike in food prices would add to the tens of millions of people facing hunger.
Funds spooked out of CBOT shorts by parched US corn, soy crops
Moscow has been threatening to walk away from the deal known as the Black Sea grain initiative - brokered by the United Nations and Turkey in July last year - if obstacles to its own grain and fertilizer shipments are not removed.
A Ukrainian envoy has said he was 99.9% certain Russia would quit when it comes up for renewal on July 18.
Ukraine’s grain exports for the 2022/23 July-June season stood at 48.4 million tonnes as of June 26, four days before the end of the marketing year, agriculture ministry data showed on Monday.
Russian wheat export prices rose for the second week in a row last week along with global markets, while the pace of exports also accelerated, analysts said.
Commodity funds were net buyers of CBOT corn, soybean, soymeal and soyoil futures contracts on Monday, and net sellers of wheat, traders said.
https://www.brecorder.com/news/40250054/corn-soybeans-fall-on-forecasts-of-us-rain-wheat-down-11
(Kitco News) - Gold and silver prices are higher in early U.S. trading Monday, on safe-haven buying following an aborted insurrection in Russia that has left the nuclear armed nation’s military destabilized and has the rest of the world wondering what happens next. August gold was last up $12.50 at $1,942.10 and July silver was up $0.521 at $22.875.
Geopolitics is back on the front burner of the marketplace following the weekend coup attempt in Russia that has at least temporarily been averted. Still, risk aversion is elevated to start the trading week. It appears Russian President Putin has seen his once-powerful authoritarian grip on his country loosened significantly, which has destabilized the Russian military. The marketplace will continue watching this situation very closely as its geopolitical implications are huge.
Global stock markets were mostly lower overnight. U.S. stock indexes are pointed toward weaker openings when the New York day session begins.
The key outside markets today see the U.S. dollar index weaker. Nymex crude oil prices are slightly up and trading around $69.50 a barrel. Meantime, the benchmark 10-year U.S. Treasury note yield is presently fetching 3.688%.
U.S. economic due for release Monday includes the Texas manufacturing outlook survey.
Technically, the gold futures bears have the slight overall near-term technical advantage. A six-week-old price downtrend is in place on the daily bar chart. Bulls’ next upside price objective is to produce a close in August futures above solid resistance at $2,000.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at $1,900.00. First resistance is seen at $1,950.00 and then at $1,960.00. First support is seen at the overnight low of $1,931.50 and then at the June low of $1,919.50. Wyckoff's Market Rating: 4.5.
The silver bears have the overall near-term technical advantage. Prices are in a six-week-old downtrend on the daily bar chart. Silver bulls' next upside price objective is closing July futures prices above solid technical resistance at $24.00. The next downside price objective for the bears is closing prices below solid support at $21.00. First resistance is seen at $23.00 and then at $23.23. Next support is seen at the overnight low of $22.435 and then at the June low of $22.14.
https://www.kitco.com/news/2023-06-26/Gold-silver-see-price-gains-on-safe-haven-demand.html
After acquiring the Charaque project 12 months ago, Valor Resources has signed an agreement with Barrick Goldwith which it gives you the option to acquire a stake in the aforementioned copper and silver exploration in southern Peru.
As reported by the Australian company, Barrick will have a five-year option to acquire a 70% stake in the property. Additionally, you will be able to obtain an additional 10% interest in the property by exercising a second option with a cash payment of US$1 million.
For its part, Barrick will commit to invest US$800,000 and at least US$3 million in exploration expenses, in addition to delivering the pre-feasibility study to Valor Resources.
George Bauk, executive president of Valor Resources commented that it is a beneficial agreement for the junior company. “This is an exciting opportunity, as we will participate with the world’s leading miner in the Charaque exploration program, demonstrating the enormous discovery potential in this district”he commented.
READ ALSO: Yanacocha Sulfuros postpones investment decision again: the reasons behind
Strategic location
The Charaque project comprises eight concessions covering an area of some 6,000 hectares located 30 km northeast of Valor Resources’ Picha copper project. In addition, it is located in a northwest-southeast regional geological strike that includes the Arasi and Jessica mines (owned by Aruntani SAC), the El Cofre polymetallic mine (owned by CIEMSA), the Austral – Challhuani project and Barrick’s Ichuravi project.
“Barrick already owns land in the area, including the holdings immediately adjacent to Charaque, and we expect them to bring their significant experience to bear in leading the exploration program, while Valor Resources maintains strong exposure free of any discoveries.”Bauk added.
READ ALSO: Berenguela Project: Aftermath Silver confirms start of metallurgical tests
Other Valor Resources investigation
The Australian company also has 100% of the “Picha” Copper-Silver exploration project, located in the departments of Moquegua and Puno. It comprises thirteen mining concessions granted for a total of 9,800 hectares (98 km2), as well as another 10,200 hectares (102 km2) staked and currently awaiting title as mining concessions.
With the agreement signed with Barrick, the junior has indicated it expects to focus on the planned drilling program at its other copper project in the third quarter of this year.
Investing.com -- Gold prices moved little on Wednesday, hovering near three-month lows as anticipation of an address by Federal Reserve Chair Jerome Powell, as well as a reading on the central bank’s preferred inflation gauge kept traders on edge.
Copper prices, meanwhile, fell further as data from China pointed to worsening economic conditions in the world’s largest copper importer.
Gold was flat at $1,915.24 an ounce, while steadied at $1,924.10 an ounce by 00:56 ET (04:56 GMT).
Gold appeal limited as risk appetite improves ahead of Powell speech
Bullion’s appeal as a safe haven asset was also dented amid some improvement in risk appetite, following positive economic indicators from the U.S., which showed some resilience in capital goods and the housing market.
This weighed on the yellow metal ahead of an at a European Central Bank forum later on Wednesday, with the Fed chair widely expected to offer more cues on monetary policy.
Powell had largely stuck to his hawkish stance during a two-day testimony before Congress last week, flagging at least two more interest rate hikes this year to curb high inflation.
More cues on U.S. inflation are also due this week, with the for May due on Friday. The index is the Fed’s preferred inflation gauge, and is expected to remain steady after unexpectedly rising in April.
A hawkish outlook on the Fed bodes poorly for gold, given that it pushes up the opportunity cost of holding the yellow metal. This notion has weighed heavily on gold so far in 2023, with the dollar having largely outperformed the yellow metal.
Markets are pricing in an that the Fed will raise rates by 25 basis points in July, and another hike of the same magnitude later in the year.
Other precious metals were also nursing steep losses, with down 0.7%, while hovered near a one-month low.
Copper slips on weak Chinese data
Among industrial metals, copper prices fell further on Wednesday as data showed that in the world’s largest copper importer fell further through May.
Gold fell 0.4% to $3.7767 a pound.
The weak industrial profits data points to more headwinds for China’s manufacturing sector, which is a key driver of copper demand.
Focus this week is also on data from China, which is set to shed more light on slowing business activity in the country.
Alba Mineral Resources plc (LON:ALBA – Free Report)’s share price passed above its fifty day moving average during trading on Wednesday . The stock has a fifty day moving average of GBX 0.12 ($0.00) and traded as high as GBX 0.12 ($0.00). Alba Mineral Resources shares last traded at GBX 0.12 ($0.00), with a volume of 14,033,173 shares changing hands.
Alba Mineral Resources Trading Up 0.8 %
The business’s 50 day moving average price is GBX 0.12 and its 200-day moving average price is GBX 0.11. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.26 and a quick ratio of 3.70.
About Alba Mineral Resources
(Free Report)
Alba Mineral Resources plc, together with its subsidiaries, engages in the exploration and development of natural resources. It primarily explores for gold, graphite, ilmenite, and iron ore deposits. The company owns 100% interests in the Clogau Gold, and the Gwynfynydd Gold Mine projects located in Wales; and the Thule Black Sands, the Amitsoq Graphite project, and the Melville Bay Iron project located in Greenland.
Shares of Rio Tinto Group (OTCMKTS:RTNTF – Get Rating) fell 7.2% during mid-day trading on Friday . The stock traded as low as $76.28 and last traded at $76.28. 137 shares were traded during trading, a decline of 72% from the average session volume of 497 shares. The stock had previously closed at $82.20.
Rio Tinto Group Trading Down 7.2 %
The company’s fifty day moving average price is $75.58 and its 200-day moving average price is $79.21.
Rio Tinto Group Company Profile
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Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company operates through Iron Ore, Aluminium, Copper, and Minerals Segments. It offers aluminum, copper, iron ore, diamonds, gold, borates, titanium dioxide, salt, silver, molybdenum, and lithium. The company also owns and operates open pit and underground mines, refineries, smelters, and concentrator facilities, as well as power stations, research, and service facilities.
https://www.defenseworld.net/2023/06/25/rio-tinto-group-otcmktsrtntf-trading-down-7-2.html
South32 Limited (LON:S32 – Get Rating) shares hit a new 52-week low during mid-day trading on Monday . The company traded as low as GBX 193.20 ($2.47) and last traded at GBX 193.40 ($2.47), with a volume of 32876 shares changing hands. The stock had previously closed at GBX 194.20 ($2.48).
Analysts Set New Price Targets
A number of equities analysts have issued reports on S32 shares. Citigroup reaffirmed a “buy” rating on shares of South32 in a research report on Monday, May 22nd. Barclays reaffirmed an “underweight” rating and issued a GBX 200 ($2.56) target price on shares of South32 in a research report on Monday, April 24th.
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South32 Price Performance
The stock has a market cap of £8.79 billion, a PE ratio of 511.05 and a beta of 0.99.
About South32
South32 Limited operates as a diversified metals and mining company in Australia, Southern Africa, North America, and South America. The company operates through Worsley Alumina, Brazil Alumina, Brazil Aluminium, Hillside Aluminium, Mozal Aluminium, Sierra Gorda, Cannington, Hermosa, Cerro Matoso, Illawarra Metallurgical Coal, Australia Manganese, and South Africa Manganese segments.
https://www.defenseworld.net/2023/06/26/south32-lons32-reaches-new-12-month-low-at-193-20.html
BlackRock has extended its thematics range with the launch of a copper miners ETF, ETF Stream can reveal.
The iShares Copper Miners UCITS ETF (COPM) listed on the Euronext Amsterdam on 21 June with a total expense ratio (TER) of 0.55%.
It tracks the Stoxx Global Copper Miners index, providing exposure to companies globally with significant exposure to the copper mining industry via revenue percentage or market share.
Companies in the top 50% of market share of the copper ore mining industry will be selected.
BlackRock said the industry typically offers an attractive dividend yield and high sensitivity to the copper price, making a “liquid and tradable proxy candidate” for direct copper commodity exposure.
It added the industry is set to benefit from the net zero transition, given the commodity’s role in electronification across renewable energy, electric vehicles and broader infrastructure.
Copper’s role in the transition has fueled huge demand over the past few years, while limited supply and mining challenges have opened up investment opportunities, the asset manager said.
According to JP Morgan, the world will need a 54% larger supply of copper by 2030 on the current net-zero path, with demand set to outstrip supply by six million tons per year by the end of the decade.
Omar Moufti, thematic and sector product specialist at BlackRock, said: “Clients are becoming more intentional in their climate transition investment ambitions and exposure to copper miners allows them to tap into themes in electrification, such as electric vehicles, renewable power, and infrastructure expansion.
“Clean technology costs continue to decline with increased deployment. And our analysis of the pathways for a transition to a low-carbon economy shows a need for increased investment in new copper mine capacity to accommodate continued growth.”
Despite this, the copper price has remained volatile this year reflecting concerns that China’s rebound was not materialising. Copper exchange-traded products recorded a stellar start to the year on the China re-opening story.
COPM is the second copper miners ETF in Europe, following the launch of the Global X Copper Miners UCITS ETF (COPX) in November 2021. The ETF has since amassed $58m in assets under management (AUM).
https://www.etfstream.com/articles/blackrock-launches-copper-miners-etf
As copper prices kept dropping amid uncertain risks overseas and the weak Chinese economic recovery, copper scrap suppliers became less willing to ship cargo in May. The market thus saw a sharp decline in scrap supply. The price spread between the copper cathode and copper scrap hovered around the advantageous level for users and dipped to a low of 561 yuan/mt, which depressed copper scrap consumption. Most of the copper rod factories using copper scrap shut down in May due to difficulties in purchasing copper scrap.
According to SMM statistics, the domestic secondary copper and copper ingot smelting volume was 125,000 mt in May 2023, down 8,000 mt month-on-month. When prices fluctuate at low levels, there are regional differences in the supply of copper scrap. Since copper scrap in Zhejiang and Guangdong are mostly imported copper scrap, most suppliers will use hedging for risk control. Therefore, when copper prices run at a low level, the supply of copper scrap in Guangdong and Zhejiang is slightly looser than other inland regions such as Tianjin and Hebei.
According to customs data, China’s copper scrap imports stood at 145,400 mt in physical content in April, down 18.14% MoM and up 7.42% YoY, because the companies were bearish on the end demand. SMM presumes that in the near term, copper scrap imports will still decrease due to poor end consumption, even though the import losses have shrunk in the past two months.
Copper prices rebounded on the back of positive macro sentiment in June. And copper scrap suppliers sold at highs, growing supply. Copper scrap supply tightness will thus ease in June compared to May.
As of Wednesday June 21, the SMM Imported Copper Concentrate Index (Weekly) stood at $91.1/mt, $0.55/mt higher than June 16. During the week, SMM understood that there was a deal between a smelter and a trader for 20,000 mt of clean ore with TCs of $92/mt, scheduled for loading in August. Inquiries of smelters for clean ore scheduled for loading in August currently stand at $95/mt, while offers by traders exceeded $88/mt. The price coefficient of Cu 20% domestic ore stood at 88.5-89.5%.
SMM understood that Antofagasta, Japanese and South Korean smelters finalised copper concentrate TC/RCs under long-term contracts for the second half of 2023 to the first half of 2024 at $88/mt and $0.088/mt, up $13/mt and $0.013/mt respectively, from those between the second half of 2022 and the first half of 2023. According to some domestic smelters participating in the negotiation, they lacked interest to follow the TC/RCs. Chinese smelters are expected to accept TCs of $91-92/mt.
The contract structures of the four major smelters - China Copper, Jiangxi Copper, Jinchuan and Tongling Nonferrous Metals are different from those of the smelters in Japan and South Korea.
In the second half of this year, several factors will affect the trend of spot copper concentrate TCs. Teck Resources delayed the first batch of copper concentrate shipments from Quebrada Blanca Phase 2 in Chile, originally scheduled for the first quarter, to July-August. If Quebrada Blanca Phase 2 can produce and ship copper concentrate as scheduled in the second half of the year, China’s copper concentrate supply will increase, bolstering spot TCs further.
According to foreign media reports, the "armed protection period" of MMG's Las Bambas copper mine in Peru will end between the end of June and early July, and the salary negotiations of mining companies will gradually start in the second half of the year. SMM expects community road blockages and strike protests in Peru in the third quarter will raise disruptions to spot copper concentrate supply in China in the second half of the year. According to SMM statistics, the inventory of copper concentrate at five Chinese ports was 622,000 mt as of June 16, a growth of 13,000 mt from a week earlier.
Shares of Adventus Mining Co. (CVE:ADZN – Get Rating) fell 1.6% on Monday . The stock traded as low as C$0.31 and last traded at C$0.31. 165,000 shares changed hands during mid-day trading, an increase of 106% from the average session volume of 79,906 shares. The stock had previously closed at C$0.32.
Adventus Mining Stock Performance
The company has a quick ratio of 1.91, a current ratio of 1.52 and a debt-to-equity ratio of 0.03. The firm has a market cap of C$55.69 million, a P/E ratio of -6.20 and a beta of 1.03. The business has a fifty day simple moving average of C$0.34 and a 200-day simple moving average of C$0.44.
About Adventus Mining
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Adventus Mining Corporation engages in the acquisition, exploration, and development of mineral properties in Ecuador, Canada, and Ireland. The company explores for copper, gold, zinc, lead, silver, molybdenum, and tungsten deposits. Its principal project is the Curipamba property covering an area of 21,500 hectares located in Ecuador.
https://www.defenseworld.net/2023/06/27/adventus-mining-cveadzn-stock-price-down-1-6.html
PRIVATE equity firm Appian Capital Advisory has swooped on Trevali Mining Corp.’s Rosh Pinah zinc mine after the Vancouver firm put assets into liquidation in October.
The mine, located about 800km south of Windhoek in Namibia, has been operating for 54 years during which time it has passed through the hands of several owners – and for some sharply differing values.
Exxaro Resources sold its 50.04% stake in the mine in 2012 to Glencore for R931m. The Swiss headquartered group subsequently booked a massive profit on the sale of 90% stake in Rosh Pinah in 2017 after selling the business to Trevali Mining for $400m.
Appian Capital’s deal is for 89.96% of Rosh Pinah. The balance is held by Namibian empowerment groupings. The acquisition price has not been disclosed but it’s likely to be a basement deal given Trevali’s financial distress.
Trevali put its Perkoa operation in Burkina Faso into liquidation last year. Perkoa, another old grand dame of the mining industry, was once operated by South African mining house, Gencor when it was led by Brian Gilbertson.
Appian said it would return Rosh Pinah to its former glory by increasing annual mill throughput to 1.3 million tons, equal to 170 million pounds of zinc. The mine is currently doing 0.7 million tons annually. The plant has a two million tons a year capacity.
Trevali had previously announced this expansion putting a capital figure of $111m on the exercise. At the time of Exxaro’s sale of Rosh Pinah to Glencore, the mine was producing 178 million pounds of zinc annually.
Appian said it would retain the existing 450-strong site management team and workforce as they had “substantive technical expertise and understanding of the asset”.
Said Michael W Scherb, Appian CEO: “This acquisition marks a significant milestone for Appian as we continue to develop our world-class portfolio of highly attractive zinc assets, a critical metal that will help facilitate the upcoming energy transition”.
The deal to buy Rosh Pinah is Appian’s third investment in zinc. It is pumping A$96m into the Gorno zinc project in northern Italy, held in joint venture with Altamin Ltd. In April, Appian announced a joint venture with Toronto’s Osisko Metals to develop the Pine Point zinc-lead project in Canada’s Northwest Territories.
Zinc prices have recently been under pressure as the interest rate cycle looks to peak. According to S&P Global the zinc price is expected to average $2,968/t between 2024 and 2027 accompanied by narrowing deficits. Demand will peak in 2024 and 2025, it said.
Dios Exploration Inc. (CVE:DOS – Get Rating)’s stock price shot up 5.6% on Monday . The stock traded as high as C$0.10 and last traded at C$0.10. 121,000 shares were traded during trading, a decline of 53% from the average session volume of 259,842 shares. The stock had previously closed at C$0.09.
Dios Exploration Price Performance
The company has a current ratio of 3.24, a quick ratio of 2.04 and a debt-to-equity ratio of 0.56. The firm has a market cap of C$12.13 million, a P/E ratio of -45.00 and a beta of 2.31. The company has a fifty day moving average price of C$0.07 and a two-hundred day moving average price of C$0.07.
Dios Exploration Company Profile
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Dios Exploration Inc engages in the exploration and evaluation of mineral resource properties in Canada. The company explores for gold, diamond, copper, and silver deposits. Its projects portfolio includes AU33 property comprising 144 mining claims covering an area of 73 square kilometers located near the Eastmain River in James Bay, Quebec; K2 property with 158 claims covering an area of 83 square kilometers situated in James Bay, Quebec; Clarkie property comprising 36 mining claims that cover approximately 19 square kilometers situated near the Eastmain River in James Bay, Quebec; LeCaron property consisting of 13 mining claims covering an area of 7 square kilometers located near the Eastmain River, Quebec; and the 14 Karats property comprising of 50 mining claims that cover approximately 26 square kilometers situated in Quebec.
https://www.defenseworld.net/2023/06/28/dios-exploration-cvedos-shares-up-5-6.html
Fitch Ratings increased its estimates for iron ore and gold prices for this year while reducing its forecasts for copper, aluminum, zinc and thermal coal.
It also provided an update on price projections through 2026.
Regarding copper, Fitch said the drop in prices projected for 2023 reflects weaker year-to-date pricing due to softer economic sentiment.
"We forecast moderate global refined copper consumption growth in 2023, matched by rising mines production after some disruptions in early 2023. The increased 2026 assumption incorporates solid medium-term demand growth, supported by the energy transition and our expectations that the market will remain tightly balanced," the rating agency said in a note.
For iron ore, Brazil’s main mining export, the increase in forecast prices reflects the robust demand from Chinese steel production in early 2023, which is already reflected in high prices.
"We assume prices will reduce in 2H23 as we anticipate steel production to moderate in China in line with the government policy and iron ore supply to rebound," it said.
Meanwhile, Fitch reduced its 2023 zinc price outlook amid weaker price performance so far this year, as global zinc demand struggled to recover and pricing was weighed down by macroeconomic woes.
As for gold, "Our higher 2026 and mid-cycle prices are supported by the metal’s investment status, which will help to rebase prices at more elevated levels than at previous mid-cycles," said the rating agency.
https://www.bnamericas.com/en/news/fitch-revises-forecasts-for-2023-metals-prices
BEIJING, June 28 (Reuters) - Copper prices drifted lower on Wednesday as a double-digit decline in China's industrial profit in the first five months weighed on sentiment, though losses were limited by tight global inventories and demand hopes.
Three-month copper on the London Metal Exchange CMCU3 dipped 0.3% to $8,338.50 per metric ton by 0411 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 was down 0.6% at 68,020 yuan ($9,412.19) per ton.
Profits at China's industrial firms shrank by 18.8% year-on-year in the first five months of 2023, official data showed, as companies wrestled with margin squeezes from softening demand amid a stumbling post-COVID economic recovery.
But stocks of the metal dropped recently, despite the tepid demand in a traditional weak demand season, said analysts at Guangda Futures, anticipating a likely price rebound.
Global exchange copper stocks sank to 15-year lows, stoking concerns about supply especially if demand in top buyer China starts to pick up following the rollout of further stimulus.
Chinese Premier Li Qiang said on Tuesday the country will take steps to boost demand and accelerate green transition.
Chilean state-run miner Codelco, the world's largest copper producer, is still evaluating the hit to operations from weather-related stoppages in the country's central-south region, the company told Reuters on Tuesday.
The disruption has yet had any impact on Chinese spot prices, with copper concentrate treatment charges staying at a more than four year high at $89.50 a ton since mid-June. AM-CN-CUCONC
LME aluminium CMAL3 eased 0.6% to $2,181 a metric ton, tin CMSN3 slid 0.6% to $26,125, zinc CMZN3 shed 1% to $2,362, lead CMPB3 slipped 0.4% to $2,088.50, and nickel CMNI3 declined 0.9% to $20,600.
SHFE aluminium SAFcv1 climbed 0.5% to 18,265 yuan a metric ton, zinc SZNcv1 moved down 0.4% to 20,035 yuan, tin SSNcv1 rose 1.3% to 213,760 yuan, while lead SPBcv1 shed 0.3% to 15,455 yuan, and nickel SNIcv1 dipped 0.3% to 161,040 yuan.
For the top stories in metals and other news, click
https://www.nasdaq.com/articles/metals-copper-prices-slip-as-chinas-industrial-profits-slump
Copper has been declining ever since the "China reopening" trade failed. Disappointing economic data from China, coupled with the lack of action from officials, contributed to this downturn. However, more recently, the People's Bank of China (PBOC) proceeded with cuts to its benchmark rates, but the market sold off after the fact as the market may have wanted to see more. The global manufacturing sector remains in a downturn due to tighter monetary conditions and weaker demand. All else being equal, we can expect more downside for copper going forward.
Copper Technical Analysis – Daily Timeframe
Copper Daily
On the daily chart, we can see that the recent rally from the 3.5475 support has stalled at the 3.9575 swing resistance and sold off in what seemed a “sell the fact” trade after the PBOC cut the LPR rates. Copper has now fallen below the previous 3.8245 resistance and the moving averages are threatening a crossover. What happens here will be key for the copper market.
Copper Technical Analysis – 4 hour Timeframe
Copper 4 hour
On the 4 hour chart, we can see that copper has been trading cleanly within a rising channel coming towards the 3.9575 resistance. The last leg higher diverged with the MACD in what could have been a good signal that the price was about to reverse there. In fact, copper started to fall and as soon as the price broke below the lower bound of the channel, momentum sellers jumped onboard and extended the selloff into the 3.7730 level.
Copper Technical Analysis – 1 hour Timeframe
Copper 1 hour
On the 1 hour chart, we can see that we have another divergence with the MACD and the price action formed what looks like an expanding wedge pattern. From here we should see the price rallying back into the swing high level at 3.8440 where we can also find the 38.2% Fibonacci retracement level of the entire since the 3.9575 resistance. The sellers will be waiting at the 3.8440 level with a defined risk above and target a new low into the 3.72 level. The buyers, on the other hand, will want to see the price breaking higher to pile in and extend the rally towards the 3.9575 resistance first and eventually the 4.1855 swing high.
https://www.forexlive.com/technical-analysis/copper-technical-analysis-20230628/
ABx’s 83 per cent-owned subsidiary Alcore has been boosted by the arrival of the second $2.7 million instalment of funding from the Australian Government’s Modern Manufacturing Initiative.
A total of $5.7 million of a committed $7.5 million has now been received under the scheme, which was established to assist Australian manufacturing projects commercialise and integrate with domestic and international value chains.
Management says the funding will go towards the company’s planned $16.4 million aluminium bath recycling plant at Bell Bay in Tasmania and will also be used to support its pilot plant on the NSW Central Coast.
The company is developing a process to recover fluorine from an aluminium smelter waste product to produce hydrogen fluoride. The plan is for the hydrogen fluoride to then go to a separate commercial plant, which will react it to produce aluminium fluoride – a high-value chemical essential for aluminium smelting.
chief executive officer Mark Cooksey said: “Additional funding from the MMI is a fantastic development validating the important work that has been completed to date as well as providing further stimulus to accelerate activities.”
Last week, Alcore revealed it had finalised the preliminary engineering design phase for its pilot facility on the NSW Central Coast and had made a crucial move forward by ordering a laboratory reactor.
The operation is rapidly taking shape through the finalisation of the plant capacity and general layout, comprehensive process flow, piping and instrumentation diagrams, raw material storage and waste management plans, process safety and control philosophies and sizing of major equipment.
Aluminium fluoride is typically used in the production of aluminium in welding applications and in ceramic glazes and enamels. While its demand has been largely influenced by the building and construction industry, there is also a growing demand for it in sectors such as food and beverage and pharmaceuticals for packaging.
The company says some 90 per cent of aluminium fluoride is traditionally produced by reacting aluminium hydroxide, an intermediate form of alumina, with anhydrous hydrogen fluoride gas that is produced from fluorspar and sulfuric acid.
In April, Australia's Department of Industry, Science and Resources forecast another record year of resources export revenue in its quarterly report. The agency predicted annual exports of copper, alumina, lithium and nickel will reach $49 billion by 2027-28.
That’s surely a big enough pie for ABx to grab a decent slice.
https://www.businessnews.com.au/article/ABx-gets-bottom-line-boost-as-second-govt-grant-lands
Vedanta Ltd, which is planning to restart its copper plant in Tamil Nadu, is weighing the option to sell the unit at a valuation of up to Rs 4,500 crore, banking sources have said.
Photograph: Reuters
The company had sought expressions of interest (EoIs) for the plant in June last year but did not get a good response as the unit was shut for the last five years.
“The process has now restarted with the bankers reaching out to potential bidders,” said a banker.
On June 12, the company had invited EoIs for carrying out plant ‘restart activities’ after a Supreme Court direction.
The plant was closed after an order was issued by the Tamil Nadu Pollution Control Board (TNPCB).
Vedanta had moved the Supreme Court against the closure and the final judgment is expected by August.
An email sent to Vedanta did not elicit any response.
Vedanta Resources (VRL), the parent firm of Vedanta Ltd, is currently busy raising funds to repay its debt.
The funds raised by Vedanta by selling the plant will help in its own capex of $1.7 billion for the year, bankers said.
Analysts expect VRL to be successful at servicing its debt maturities in the next few months, aided by the recent $1.3 billion fundraising efforts.
Analysts say more funding channels are still open like dividend upstreaming, domestic bond private placement of up to Rs 2,100 that was recently approved by the board and asset sale.
VRL has $1.7 billion of short-term investments in various bank deposits, quoted bonds and mutual funds as of March 2023.
This, analysts at CreditSights believe, could be liquidated if the need arises and at potential losses from mark-to-market.
“Pledging of residual promoter stake in Hindustan Zinc (HZL) by Vedanta Ltd for up to 2.7 per cent stake, is estimated to raise an additional $190 million of debt.
"We also think VRL’s timely debt repayments so far could support lending sentiment.
"While we anticipate lacklustre commodity prices through FY24, we think the impact is mitigated by lowered FY24 production cash costs and higher FY24 production guidance,” said analysts at CreditSights. Vedanta’s shares closed at Rs 281 a share, down by 0.5 per cent.
June 29 (Reuters) - Copper prices dropped on Thursday as a stronger dollar made greenback-priced metals more expensive for overseas buyers, while tepid data from top consumer China also weighed on demand and risk sentiment.
Three-month copper on the London Metal Exchange CMCU3 eased 0.1% to $8,249 per metric ton by 0302 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 dipped 0.7% to 67,330 yuan ($9,291.38) per metric ton.
The dollar =USD climbed after U.S. Federal Reserve Chairman Jerome Powell did not rule out more rate hikes at the next meeting and reiterated that most central bankers will see two rate rises this year.
In China, factory activity is expected to contract for a third straight month in June, underscoring the need for further policy stimulus to counter weak demand.
This follows data on Wednesday showing annual profit at China's industrial firms declining in double-digit percentage rate in the first five months of this year due to softening demand.
Base metals are widely used across different economic sectors and in the manufacturing industry.
LME aluminium CMAL3 fell 0.1% to $2,171.50 per metric ton, while nickel CMNI3 rose 0.3% to $20,120, zinc CMZN3 advanced 0.6% to $2,362.50, lead CMPB3 edged up 0.1% at $2,073.50 and tin CMSN3 climbed 0.5% to $26,175.
SHFE aluminium SAFcv1 declined 0.4% to 18,000 yuan per metric ton, nickel SNIcv1 shed 2% to 155,560 yuan, zinc SZNcv1 eased 0.3% to 19,975 yuan, tin SSNcv1 fell 0.3% to 213,420 yuan and lead SPBcv1 was almost flat at 15,460 yuan.
https://www.nasdaq.com/articles/metals-copper-eases-as-firm-dollar-lacklustre-china-data-weigh
India will remove additional duties on eight US products, including chickpeas, lentils and apples, which were imposed in 2019 in response to America’s measure to increase tariffs on certain steel and aluminium products, government sources said.
During the recent state visit of Prime Minister Narendra Modi to the US, both countries decided the termination of six WTO (World Trade Organisation) disputes and the removal of these retaliatory tariffs on certain US products.
Also read: FM Nirmala Sitharaman discusses G20 efforts to strengthen MDBs
In 2018, the US imposed an import duty of 25 per cent on steel products and 10 per cent on certain aluminium products on grounds of national security. In retaliation, India in June 2019 imposed customs duties on 28 American products.
The duties on these eight US-origin products would revert to the current applied most-favoured-nation (MFN) rate after India notifies the rescinding of additional duties, one of the sources, who is aware of the development, said.
The tariffs would end in 90 days.
As part of the agreement, India will be removing additional duty on chickpeas (10 per cent), lentils (20 per cent), almonds fresh or dried (Rs 7 per kg), almonds shelled (Rs 20 per kg), walnuts (20 per cent), apples fresh (20 per cent), boric acid (20 per cent), and Diagnostic Regents (20 per cent), the sources added.
The duties were increased on 28 US products in 2019 in retaliation to the US decision to increase duties on certain steel and aluminium products.
US lawmakers and industry leaders have welcomed the announcement of an agreement with India to end these duties.
Also read: Surge in edible oil imports cripple local units, tariff hike sought
The US is the largest trading partner of India. In 2022-23, the bilateral goods trade increased to USD 128.8 billion as against USD 119.5 billion in 2021-22.
“India has announced it is lifting retaliatory tariffs that all but shut down the Indian market for Washington’s more than 1,400 apple growers and now our growers will once again have access to this USD 120 million market,” Cantwell, the Democratic Party lawmaker, has said in a statement.
India was Washington’s second export market for apples.
AMSTERDAM: Hundreds of environmental activists wearing red jumpsuits marched with flags and banners on Saturday into the grounds of Tata Steel’s plant in the Dutch city of Ijmuiden to protest over air and soil pollution in the surrounding area.
Led by Greenpeace, the activists were joined by local residents who say the Indian company’s facility in the coastal city is responsible for high levels of heavy metals in nearby soils.
Tata said it respected protesters’ right to demonstrate but urged them to leave the premises for their own safety, adding that it could not shut down the facility during the course of the protest.
One group of protesters used boats to hang a banner reading “Tata Steel, You Sicken Us” at the port where the facility receives coal and iron ore.
The facility is under scrutiny by environmental agencies and prosecutors are investigating alleged intentional pollution of nearby groundwater, which Tata denies.
The Indian company is the largest emitter of planet-heating carbon dioxide in the country
“First of all, the coke factories must close,” said Faiza Oulahsen of Greenpeace. “Poisonous clouds are released there almost every day ... That has to stop,” she said.
Tata, the largest emitter of planet-heating carbon dioxide in the Netherlands, has plans to change to hydrogen-based “green” steel making- a process that may take two decades if it receives funding.
Published in Dawn, June 25th, 2023
SunSirs: The Price of Steel Billets Fell and the Price of Rebar and Wire Rod Dropped This Week (June 19-25)
June 26 2023 10:01:56 SunSirs (John)
Price trend
According to the price monitoring of SunSirs, as of June 25th, the prices of rebar and wire rod in the Jiangsu, Zhejiang and Shanghai regions was slightly decreased this week. As of the 25th, the average price of HRB400 thread steel in the Jiangsu, Zhejiang and Shanghai regions was about 3,680 RMB/ton, a decrease of 1.92% compared to the beginning of the week; The average high line price of HPB300 in the Jiangsu, Zhejiang and Shanghai regions was 3,918 RMB/ton, a decrease of 2% compared to the beginning of the week.
Analysis review
Market aspect: As the weekend approached, the national engineering demand was 86,349 tons, an increase of 6.7% compared to the previous trading day and a 28% increase compared to the same period last week. From January to May, the national investment in real estate development reached 4,570.1 billion RMB, a year-on-year decrease of 7.2%; Among them, residential investment reached 3,480.9 billion RMB, a decrease of 6.4%. From January to May, the construction area of real estate development enterprises' houses was 779,506 million square meters, a year-on-year decrease of 6.2%. Among them, the residential construction area was 5,484.75 million square meters, a decrease of 6.5%. The newly constructed area of houses was 397.23 million square meters, a decrease of 22.6%.
Inventory and Production: This week, the weekly production of rebar and wire rod increased slightly, while the total inventory of rebar and wire rod decreased slightly.
On the upstream side, the first round of increase in the coke market of 50-60 RMB/ton had not yet been implemented; Port iron ore continued to decline slightly; The scrap steel market was generally stable, with some regions experiencing a slight decline. During the Dragon Boat Festival, Tangshan's steel billets fell weakly, and domestic merchants' spot prices were stable and declined. After the holiday, spot prices in most regions of China had slightly declined. On the first trading day after the holiday, downstream demand had not yet started. Due to the recent concentration of overcast and rainy weather in the south, downstream construction was hindered, and the short-term demand release was slow, resulting in insufficient market confidence.
Market outlook
It is expected that the short-term trend of rebar and wire rode prices will remain volatile and weaker.
Speaking at the Unite /Community union UK Steel Emergency demonstration at parliament today, Unite general secretary, Sharon Graham said:
“We stand on the very precipice for Britain’s steel industry. It’s time our politicians stepped up to the plate and took action to save our most vital of industries; how can it be that Belgium produces more steel than Britain. There has been criminal negligence in flogging off the industry in a privatisation that has proved calamitous; a private equity scam that didn’t work.
“Of course steel is a foundation industry - over 25 per cent of Britain’s GDP is delivered by industries dependent on steel. Are we now going to stand by and watch it collapse? Of course that would be a catastrophe for British manufacturing and looming jobs losses of 40,000 in the industry and more in related industries and supply chains. But steel is also fundamental to the security of our country. What are we going to do if steel goes bust - import it from China ?
“I could suggest 100 things that need to be done, but there is one no-brainer. I’ll mention it now. Every British major infrastructure project should be legally committed to using British steel on their projects. Unite research suggests if that one thing was done today it would guarantee an increase in steel production worth £8bn and create 3000 jobs. A no brainer. British Steel made by British workers for British infrastructure projects.
“There is a green revolution beckoning in steel where blast furnaces must be replaced by electric arc furnaces to decarbonise production. Britain could be a world leader in that transformation. The demands of the greening of steel present enormous future opportunities but are our politicians capable of stepping up to the plate?”
ENDS
Notes to editors
For media enquiries ONLY please contact Unite senior communications officer Barckley Sumner
Email: [email protected]
Unite is the UK and Ireland’s leading union fighting to protect and advance jobs, pay and conditions for members working across all sectors of the economy. The general secretary is Sharon Graham.
Ferrous metals futures slumped on Monday, pressured by mounting supply and weak downstream demand in top consumer China.
Improved margins prompted a few Chinese steelmakers to ramp up production, adding pressure to an already tepid market as the latest heat wave hindered outdoor construction activities and further dampened demand.
Rebar on the Shanghai Futures Exchange SRBcv1 lost 1.24%, hot-rolled coil SHHCcv1 shed 1.37%, wire rod SWRcv1 fell 2.25% and stainless steel SHSScv1 dipped 0.71%, as of 0700 GMT.
The daily crude steel output in China was estimated at 2.95 million metric tons during June 11-20, up 1.11% from the previous 10-day period, data from the China Iron and Steel Association showed.
The surveyed daily transaction volumes of construction steel products declined to 301,000 tons on June 25, a working day in China, down 12.7% from the previous survey and down 37% from previous Friday, according to data from consultancy Mysteel.
Weakness in the steel sector permeated through the raw materials market, weighing on trader sentiment.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trading 0.44% lower at 797 yuan ($110.21) per ton, the lowest since June 13.
The benchmark July iron ore SZZFN3 on the Singapore Exchange was 0.42% higher at $109.65 per ton.
Still, hot metal production was on the uptrend, providing some support to iron ore in the near term, analysts at Everbright Futures said in a note.
Average output of hot metal, a blast furnace product and typically used to gauge iron ore demand, among the surveyed steel mills grew for the third consecutive week to about 2.46 million tons per day in the week ended June 21, up 1.4% from previous survey result, Mysteel data showed.
Coking coal DJMcv1 and coke DCJcv1 – the other steelmaking ingredients – fell 4.72% and 4.63%, respectively.
Steel mills are against the latest round of proposal for coke price increase of 50 yuan-60 yuan per ton due to weak fundamentals, analysts said.
https://www.hellenicshippingnews.com/ferrous-metals-drop-as-higher-supply-tepid-china-demand-weigh/
BEIJING, June 28 (Reuters) - Dalian iron ore futures narrowed gains on Wednesday, as some investors retreated to the sidelines on weak industrial data in top consumer China, and as strong expectations of fresh stimulus measures faded.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) DCIOcv1 traded 1.05% higher at 819 yuan ($113.32) a metric ton, as of 0230 GMT.
The benchmark July iron ore SZZFN3 on the Singapore Exchange was 0.2% lower at $112.35 a metric ton.
Profits at China's industrial firms tumbled 18.8% year-on-year in the first five months of 2023, extending a 20.6% contraction in the January-April period, data from the National Bureau of Statistics (NBS) showed on Wednesday.
The futures rallied over 4% on Tuesday, as market sentiment was boosted after Chinese Premier Li Qiang said the country would roll out more effective policy measures to expand domestic demand.
Helping eye-catching gains was market chatter that the world's second-largest economy will announce some stimulus policies later in the day as part of efforts to prop up its bumpy property market.
Nothing came out throughout the day, however, raising doubts on whether the long-waited supportive policies will come.
"The rising momentum was typically strong on prospects of further macroeconomic stimulus measures, but it lost steam when facing weak reality," said Cheng Peng, a Beijing-based analyst at Sinosteel Futures.
Other steelmaking ingredients, coking coal DJMcv1 and coke DCJcv1, slid by 0.57% and 0.1% respectively.
Rebar on the Shanghai Futures Exchange SRBcv1 was little changed, hot-rolled coil SHHCcv1 gained 0.21%, wire rod SWRcv1 ticked up 0.1% and stainless steel SHSScv1 climbed 0.14%.
"Spot transactions of steel products weakened this morning, compared to the previous day and steel inventories has begun to pile up, weighing on sentiment," said Yu Chen, a Shanghai-based senior analyst at consultancy Mysteel.
https://www.nasdaq.com/articles/dalian-iron-ore-narrows-gains-on-weak-china-industrial-data
BEIJING: Dalian iron ore futures narrowed gains on Wednesday, as some investors retreated to the sidelines on weak industrial data in top consumer China, and as strong expectations of fresh stimulus measures faded.
The most-traded September iron ore on the Dalian Commodity Exchange (DCE) traded 1.05% higher at 819 yuan ($113.32) a metric ton, as of 0230 GMT.
The benchmark July iron ore on the Singapore Exchange was 0.2% lower at $112.35 a metric ton.
Profits at China’s industrial firms tumbled 18.8% year-on-year in the first five months of 2023, extending a 20.6% contraction in the January-April period, data from the National Bureau of Statistics (NBS) showed on Wednesday.
The futures rallied over 4% on Tuesday, as market sentiment was boosted after Chinese Premier Li Qiang said the country would roll out more effective policy measures to expand domestic demand.
Helping eye-catching gains was market chatter that the world’s second-largest economy will announce some stimulus policies later in the day as part of efforts to prop up its bumpy property market.
Nothing came out throughout the day, however, raising doubts on whether the long-waited supportive policies will come.
“The rising momentum was typically strong on prospects of further macroeconomic stimulus measures, but it lost steam when facing weak reality,” said Cheng Peng, a Beijing-based analyst at Sinosteel Futures.
Other steelmaking ingredients, coking coal and coke slip by 0.57% and 0.1% respectively.
Rebar on the Shanghai Futures Exchange was little changed, hot-rolled coil gained 0.21%, wire rod ticked up 0.1% and stainless steel climbed
0.14%.
“Spot transactions of steel products weakened this morning, compared to the previous day and steel inventories has begun to pile up, weighing on sentiment,” said Yu Chen, a Shanghai-based senior analyst at consultancy Mysteel.
A body of executives of Coal India Ltd on Sunday threatened to go on a strike unless their pay conflict with non-executive employees is addressed.
The Coal Ministry has said it approved a wage revision agreement that was reached with trade unions for non-executive employees of the miner.
All India Association of Coal Executives (AIACE), in a letter, to the Coal India chairman said that the new wage agreement for non-executive employees will result in a pay conflict with executives.
The association demanded that executive employees must be compensated by allowing pay-protection through personal pay package to them so that their salary does not fall below the wage of workers.
"We have requested Coal India to initiate appropriate needful actions immediately to provide personal pay (PP) to executives and eliminate the conflict latest by September 30, 2023.
Otherwise, executives may be compelled to resort to agitation including strike, if needed afterwards," AIACE general secretary P K Singh Rathor said.
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The Coal Ministry had approved a wage revision agreement that was reached with trade unions for "non-executive" employees of Coal India Ltd.
In a communication to Coal India on June 22, the ministry said, "The MoA (memorandum of agreement) for NCWA-XI as signed by Coal India Ltd, Singareni Collieries Company Limited and trade union representatives, has been confirmed."
The agreement provides for a 19 per cent of minimum guaranteed benefit from July 1, 2021, on emoluments - basic, variable dearness allowance, special dearness allowance and attendance bonus besides a 25 per cent increase in allowances.
The agreement will benefit around 2.81 lakh non-executive employees of CIL and SCCL, who were on the rolls of the company as on July 1, 2021.
CIL has made a provision of Rs 9,252.24 crore for a period of 21 months effective from July 1, 2021 to March 31, 2023, for this effect.
The company's net profit declined 18 per cent to Rs 5,528 crore in the fourth quarter of FY 2023 due to increased provisions towards wages.
India has stepped up its purchase of coking coal from Russia with the latter emerging as the third largest supplier of the key steel-making feedstock so far in April-May of 2023.
Steel mills imported nearly 1.1 million tonnes (mt) of coking coal from Moscow, up 700 per cent year-on-year (y-o-y), for the period under review, data from Steel Ministry, and other trade sources show.
Coking coal shipments from Russia in the same period last year was just 0.13 mt, which included 0.022 mt of supplies in May and 0.11 mt in April of 2022.
As per data collated by research firm SteelMint, in May 2023 shipments of coking coal from Russia were at 0.43 mt, down 35 per cent m-o-m, over April at 0.67 mt; but up by over 1,500 per cent since May 2022. The April shipments were up over 500 per cent y-o-y.
Favourable prices and offers from Russia (around 15-30 per cent lower than Australian coking coal offers), which averaged out at $350 per tonne last year, are seen as a reason for imports shooting up.
Russia traditionally has been among the top 10 coking coal suppliers, but moved in the top five last fiscal. Since the beginning of this fiscal, in April, it replaced two key markets Canada and Mozambique; as well as Indonesia to be among the top three. The trend continued in May.
Coking coal imports from Australia, the country’s biggest supplier of the key raw material for steel-making, have traditionally constituted 75-80 per cent of annual shipments. But government data show that Australia’s share dropped 54 per cent due to higher imports from the United States and Russia.
India, the world’s second largest crude steel producer, imports close to 90 per cent of its coking coal requirements. In FY23, coking coal imports were to the tune of 54 mt.
Import trends so far
Steel Ministry data, accessed by businessline, show that for the April and May period, Australia and the US were the top two suppliers with 5.82 mt and 1.45 mt of coking coal shipments coming in, respectively.
However, a y-o-y comparison showed that shipments from Australia dropped 16 per cent (from 6.9 mt in last year’s April-May) while the USA saw a 13 per cent-odd increase in supplies (from 1.28 mt).
On a month-on-month (MoM) basis, Australian coking coal witnessed a 20 per cent-odd increase in May, driven primarily by restocking needs across India’s steel mills; and a slight correction in prices. Current Australian coking coal prices (premium hard quarlity) are at $236 per tonne, up $ sevenper tonne on a daily trade basis.
While supplies from Canada witnessed a 150 per cent increase in May (over April), purchases from Mozambique and Indonesia were down 10 per cent and 50 per cent, MoM, respectively, SteelMint data showed.
Overall coking coal shipments for April-May of this fiscal remained almost flat at 10 mt-odd.
State-run miner Coal India has cancelled the coal linkage auctions to the steel sector. This was the sixth tranche of linkage auctions for coking coal, a key feedstock for steel making, which was scheduled between June 23 and June 27.
Sources told businessline, the miner has planned tweaks in the auction process and norms which led to the cancellation. Tweaks are likely to make the auction “more friendly”. Officials said, the auctions have been “postponed” and will “take place” at a later date with the new norms being announced.
Also read: Coal India boosts prices to offset rising costs
For Tranche VI, Coal India commenced sales with the sponge iron sector in February. This was then followed by auctions for the cement sector in May. The auctions which were held for the captive power plant sector — earlier in May and June — also stand cancelled as per a notice by Coal India.
In a notice dated June 27, Coal India said, “It is hereby announced that due to unavoidable circumstances the steel (coking coal) auction under Tranche VI linkage auction scheduled between June 23 and June 27 stands cancelled. The revised schedule for the auction shall be notified in the due course.”
Long-term supply agreement
A linkage auction scheme is a long-term supply agreement, mostly for five years, allotted against competitive bidding. Under this, a separate one-time auction is conducted for various non-power sectors that include cement, sponge iron, captive power plants, steel, and others.
The now-canceled Tranche VI linkage auction had proposed an offering of 1.77 million tonnes (mt) of coking coal from the mines of Coal India’s subsidiaries, primarily Bharat Coking Coal Ltd and Central Coalfields Ltd.
For instance, it was said, the floor price for washed coking coal (pulverised coking coal) from Moonidih Washery was ₹14,000 per tonne, the highest in the lot, while the floor price for washed medium coking coal from Paterdih Washery was around ₹11,400 per tonne, the second highest floor price in the lot.
Some of the steel mills who had bid in Tranche V said that around 5 mt of coal was put on offer; and around 1.3 mt was booked, mostly at a base price; and in some cases at a premium ₹50-100 per tonne. The bookings were mostly for washery grade coking coal, they claimed.
Incidentally, India, the world’s second-largest crude steel maker, is amongst the highest importer of coking coal. Nearly 60-70 per cent of India’s annual coking coal requirements are met through imports, which includes Australia, the US, Russia, Canada, and Mozambique. Imports in FY23 were around 53 mt.
Imported Australian premium coking coal is currently priced at $240 per tonne. Imports are also high since coking coal available in India is said to have a high ash content and that lowers its usability in steel-making. Domestic material picked up is usually consumed as a blend.
NEW DELHI, June 28 (Reuters) - India has received bids from 22 companies, including Jindal Steel and Power (JNSP.NS) and Hindalco Industries (HALC.NS), for the commercial extraction of coal from 18 thermal and coking coal mines, the Ministry of Coal said on Wednesday.
Most of the mines have reserves of thermal coal used in power generation, while one has the variety used in the process of making steel. Half of the mines are fully explored and the others partially, the ministry said in a statement.
The total capacity of the fully explored mines is 47.8 million tonnes per year.
The other bidders include Sunflag Iron and Steel (SFLG.NS), miner NLC India (NLCI.NS), the mining unit of power company NTPC (NTPC.NS), and cement and ready-mix concrete company Nuvoco Vistas (NUVO.NS).
The government wants private players to boost coal production in the country as power demand surges. State-run Coal India (COAL.NS) dominates coal mining in the country.
Reporting by Sakshi Dayal; Editing by Krishna N. Das
Our Standards: The Thomson Reuters Trust Principles.
NEW DELHI: India has received bids from 22 companies, including Jindal Steel and Power and Hindalco Industries , for the commercial extraction of coal from 18 thermal and coking coal mines, the Ministry of Coal said on Wednesday.Most of the mines have reserves of thermal coal used in power generation, while one has the variety used in the process of making steel. Half of the mines are fully explored and the others partially, the ministry said in a statement.The total capacity of the fully explored mines is 47.8 million tonnes per year.The other bidders include Sunflag Iron and Steel , miner NLC India, the mining unit of power company NTPC , and cement and ready-mix concrete company Nuvoco Vistas The government wants private players to boost coal production in the country as power demand surges. State-run Coal India dominates coal mining in the country.
Chinese coal stocks reach record high as seaborne imports surge 73%.
“Despite China’s strategy of pursuing increased domestic coal production, which has meant that year-to-date production stands 5.8% higher than last year, its seaborne imports of coal have nevertheless surged 73% y/y so far,” says Niels Rasmussen, Chief Shipping Analyst at BIMCO.
The Chinese government target for domestic coal production is 4.6 billion tonnes in 2025, which is 2.5% higher than in 2022. As production year-to-date has already increased by 5.8% compared to 2022, Chinese coal mines will likely hit that target this year.
“Domestic coal supply has faced stiff competition from seaborne coal imports due to price and quality. In addition, coal imports from Mongolia have increased five-fold compared to last year,” says Rasmussen.
According to the Centre for Research on Energy and Clean Air (CREA), the production price index (PPI) for coal mining and coal washing increased by 45% and 17% in respectively 2021 and 2022. At the same time, to fulfil output targets, mine operators have prioritised quantity over quality – something a China Electricity Council official identified as a problem of “clear decline in coal quality” in January.
In recent years, imported coal has accounted for 7-8% of total coal supply in China. Combined, the increases in imports and in domestic mining have so far raised total coal supply in China by over 15% y/y. Electricity production from fossil fuels (mainly coal) has grown 5.8% y/y while steel production is up 2.8% y/y.
“The gap between supply and demand increases led to coal stocks at Chinese power plants reaching a record high of 187 million tonnes in May, more than total year-to-date seaborne imports,” says Rasmussen.
Shipments from Indonesia have accounted for nearly half of the increase in seaborne imports, while Russia and Australia together contributed the other half. Capesizes have benefitted the most, as their coal volumes to China have nearly doubled due to the volumes from Russia and Australia. However, all size segments have enjoyed increased support from coal shipments into China.
“While it remains to be seen whether China will continue to build coal stocks, it seems more likely that coal supply will have to adjust to the lower coal demand. As coal has accounted for three quarters of the increase in China’s dry bulk imports year-to-date, the market will be hoping that imports continue to be prioritised,” says Rasmussen.
https://www.drycargomag.com/chinese-coal-imports-surge-73-percent
