2025-07-09 06:58
BEIJING, July 9 (Reuters) - U.S. President Donald Trump said on Tuesday he would announce a 50% tariff on copper imports, sending U.S. Comex copper futures up more than 12% to a record high. Prices on the Shanghai Futures Exchange (SHFE) and London Metal Exchange (LME) fell in the aftermath as the announcement signalled an end to a months-long arbitrage trade that had drawn the metal from global markets. Sign up here. Below is reaction from analysts and smelters in Asia. ANALYSTS AT GOLDMAN SACHS "As with previous tariffs, this higher initial tariff rate could be used as a negotiating anchor, followed by concessions or exemptions. "Given the increased risk of a 50% tariff, we expect a further acceleration in shipments into the U.S. in the coming weeks, as the incentive to front-run the tariff implementation has increased. "We maintain our Dec-25 LME copper price forecast at $9,700 but now see a reduced risk that the price rises above $10,000 in 3Q." ANALYSTS AT CITI "Our base case is now for a 50% headline Section 232 copper import levy and we adjust our expectations for the COMEX-LME arb to price at 25-35% of LME or ~$2,300-$3,300/t versus 15-20% expected previously. "Drawdowns of the accumulated excess of U.S.-based copper have the potential to completely displace U.S. refined copper import requirements for the remainder of 2025." ZHAO YONGCHENG, ANALYST, BENCHMARK MINERAL INTELLIGENCE "Copper prices on the SHFE are currently under pressure, but they will likely rebound after U.S. copper tariffs are finalised as fundamentals remained tight in the short-term. "The widening price differential between COMEX and LME will encourage arbitrage trading, thus prevent price from falling more sharply. But overall, downside risk will be higher in the near term." MATT HUANG, ANALYST, BANDS FINANCIAL "In the short run, the spot market should get a lift: deliverable metal from South America will be in demand, pushing premiums higher. "Chinese holders with physical copper can still rush shipments to the U.S., but arrivals that follow will likely sit on the sidelines, letting premiums slip back. Further out, once the tariff takes effect, the U.S. 'vacuum' fades, demand thins out, and the outlook turns bearish for LME and SHFE". MARCUS GARVEY, HEAD OF COMMODITIES STRATEGY, MACQUARIE "The loss of a physically arbitrageable price difference between CME and LME copper should result in U.S. copper import demand falling back from currently running ~200kt/mth towards something closer to 30kt/mth and stay low for a number of months as excess inventories in the U.S. are worked down. "We would not expect the full tariff to be priced in because the excess inventories in the U.S. mean marginal spot flows would not need to be incentivised by the CME-LME price spread." MICHAEL WU, ANALYST, SHANGHAI METALS MARKET "There is almost nobody in Asia buying copper for delivery to the U.S. right now given how little time there is before the deadline ... shipments from Latin America are likely the only ones able to make the deadline." A MANAGER AT A CHINESE SMELTER "After U.S. copper tariffs land, copper will flow to China and other countries; prices will return to reflect normal fundamentals." https://www.reuters.com/world/china/markets-react-after-trump-announces-50-copper-tariff-2025-07-09/
2025-07-09 06:52
Eternity C sinks off Yemen after attack Six rescued so far, sources and EU naval mission say Crew of 22, plus three armed guards were aboard ATHENS, July 9 (Reuters) - Rescuers pulled six crew members alive from the Red Sea after Houthi militants attacked and sank a second ship this week, while the fate of another 15 was unknown after the Iran-aligned group said they held some of the seafarers. The Houthis claimed responsibility for the assault that maritime officials say killed four of the 25 people aboard the Eternity C before the rest abandoned the cargo ship. Eternity C went down Wednesday morning after attacks on two previous days, sources at security companies involved in a rescue operation said. Sign up here. The six rescued seafarers spent more than 24 hours in the water, those firms said. The United States Mission in Yemen accused the Houthis of kidnapping many surviving crew members from Eternity C and called for their immediate and unconditional safe release. "The Yemeni Navy responded to rescue a number of the ship's crew, provide them with medical care, and transport them to a safe location," the group's military spokesperson said in a televised address. The Houthis released a video they said depicted their attack on Eternity C. It included sound of a Yemen naval forces' call for the crew to evacuate for rescue and showed explosions on the ship before it sank. Reuters could not independently verify the audio or the location of the ship, which it verified was the Eternity C. The Houthis also have claimed responsibility for a similar assault on Sunday targeting another ship, the Magic Seas. All crew from the Magic Seas were rescued before it sank. The strikes on the two ships revive a campaign by the Iran-aligned fighters who had attacked more than 100 ships from November 2023 to December 2024 in what they said was solidarity with the Palestinians. In May, the U.S. announced a surprise deal with the Houthis where it agreed to stop a bombing campaign against them in return for an end to shipping attacks, though the Houthis said the deal did not include sparing Israel. Leading shipping industry associations, including the International Chamber of Shipping and BIMCO, denounced the deadly operation and called for robust maritime security in the region via a joint statement on Wednesday. "These vessels have been attacked with callous disregard for the lives of innocent civilian seafarers," they said. "This tragedy illuminates the need for nations to maintain robust support in protecting shipping and vital sea lanes." RESCUE SEARCH The Eternity C and the Magic Seas both flew Liberia flags and were operated by Greek firms. Some of the sister vessels in each of their wider fleets had made calls to Israeli ports in the past year, shipping data analysis showed. "We will continue to search for the remaining crew until the last light," said an official at Greece-based maritime risk management firm Diaplous. The EU's Aspides naval mission, which protects Red Sea shipping, confirmed in a statement that six people had been pulled from the sea. The Red Sea, which passes Yemen's coast, has long been a critical waterway for the world's oil and commodities but traffic has dropped sharply since the Houthi attacks began. The number of daily sailings through the narrow Bab al-Mandab strait, at the southern tip of the Red Sea and a gateway to the Gulf of Aden, numbered 30 vessels on July 8, from 34 ships on July 6 and 43 on July 1, according to data from maritime data group Lloyd’s List Intelligence. Oil prices rose on Wednesday, maintaining their highest levels since June 23, also due to the recent attacks on ships in the Red Sea. MULTIPLE ATTACKS Eternity C was first attacked on Monday afternoon with sea drones and rocket-propelled grenades fired from speed boats by suspected Houthi militants, maritime security sources said. Lifeboats were destroyed during the raid. By Tuesday morning the vessel was adrift and listing. Two security sources told Reuters that the vessel was hit again with sea drones on Tuesday, forcing the crew and armed guards to abandon it. The Houthis stayed with the vessel until the early hours of Wednesday, one of the sources said. Skiffs were in the area as rescue efforts were underway. The crew comprised 21 Filipinos and one Russian. Three armed guards were also on board, including one Greek and one Indian, who was one of those rescued. The vessel's operator, Cosmoship Management, has not responded to requests for confirmation of casualties or injuries. If confirmed, the four reported deaths would be the first fatalities from attacks on shipping in the Red Sea since June 2024. Greece has been in talks with Saudi Arabia, a key player in the region, over the latest incident, according to sources. https://www.reuters.com/world/maritime-security-firms-launch-mission-save-crew-greek-vessel-hit-by-houthis-2025-07-09/
2025-07-09 06:50
Lockdown lifted on Wednesday and residents allowed out Officials say fire under control but flare-ups possible No fatalities, 10 homes destroyed, many damaged MARSEILLE, July 9 (Reuters) - A wildfire that reached the northwestern outskirts of France's second-biggest city of Marseille was under control on Wednesday, but not over, officials said, warning that it could flare up again. Officials told residents they were no longer in lockdown, though some who were evacuated were likely to find their homes in ashes. Ten houses were completely destroyed and dozens damaged, they said, though no fatalities were reported. Sign up here. "Everything on my grandmother's property was destroyed," resident Melanie Basques said, adding that her grandmother was safe after being evacuated on Tuesday. But the destruction was extensive, she said. "There are three families on that land, and on our side, everything was destroyed - sheds, homes, everything. Photos that were sent show her house is completely destroyed." Marseille firefighters' chief, Lionel Mathieu, said around 700 crew, assisted by helicopters dropping water, were trying to control fires north of the city and prevent them from being rekindled. "It is clear that with such a major fire, there may be new flare-ups," Marseille Prefect Georges-Francois Leclerc told reporters. Later in the day, the prefecture said on X that the fire was contained. "A contained fire is one that is no longer spreading. This does not mean that the interventions are over," the prefect said, after the wildfire, which started on Tuesday, burnt through at least 750 hectares (1,853 acres). Mediterranean countries are in a "wildfire hotspot", scientists say, with blazes common in hot and dry weather that have become more destructive in recent years due to a fast-changing climate. Over the past two weeks, fires have also raged in northeastern Spain and in parts of Greece, including Athens and the island of Crete. FROM MARVEL TO DESTRUCTION Another Marseille local resident, Pascale Reigner, said the fire should lead to a change in the way people think and live. "I no longer have a terrace or a kitchen. My next-door neighbours no longer have a house," she said. "We are in a district which has been painted by Cezanne, by Braque, which was a marvel, and now as you see it currently, we're going to be living on the moon (referring to destruction)." Other Marseille residents who were evacuated were trying to get news of their homes. Djenna Boualia said her parents' house on the northern outskirts of the city was still standing. "The fire was really close. There were even flames in the garden," Boualia told Reuters. "My mother was panicking. There have been fires in the area before, several times, but never of this scale; never like this ... My parents have lived there for 25 years, and we had never seen a house burn." The airport serving Marseille was reopened, but could close again to prioritise airspace if the fire flares up again. Roads were reopened too, as were some train routes. On Tuesday, the blaze, which officials said was caused by a car that caught fire on a highway, was fanned by winds of up to 70 kph (43 mph). The fire in Marseille and a separate blaze near the city of Narbonne were the first major ones of the summer, Sophie Primas, a government spokesperson, said in an interview with RTL on Wednesday, adding that the wildfire season had started earlier this year. https://www.reuters.com/business/environment/marseille-airport-closed-firefighters-continue-battle-wildfire-2025-07-09/
2025-07-09 06:50
EIA reports US crude stocks rose, fuel stocks fell last week Rescue mission under way in latest Red Sea attack Trump's copper tariffs are steeper and sooner than expected UAE energy minister says markets absorbing OPEC+ output boosts HOUSTON, July 9 (Reuters) - Oil prices were steady on Wednesday as investors weighed strong U.S. gasoline demand data and attacks on shipping in the Red Sea, while U.S. copper tariffs loomed. Brent crude futures settled up 4 cents, or 0.06%, to $70.19 a barrel. U.S. West Texas Intermediate crude settled up 5 cents, or 0.07%, to $68.38 a barrel. Sign up here. U.S. crude stocks rose while gasoline and distillate inventories fell last week, the Energy Information Administration said on Wednesday. Crude inventories rose by 7.1 million barrels to 426 million barrels in the week ended July 4, the EIA said, compared with analysts' expectations in a Reuters poll for a draw of 2.1 million barrels. Gasoline demand rose 6% to 9.2 million barrels per day last week, the EIA said. "Demand seems to be solid and not slowing down," said Phil Flynn, senior market analyst with Price Futures Group. After months of calm in the Red Sea, attacks in the major global shipping lane were renewed in the past week. Rescuers pulled six crew members alive from the Red Sea on Wednesday and 15 were still missing from the second of two ships sunk in recent days in attacks claimed by Yemen's Iran-aligned Houthi militia after months of calm. Oil prices were also supported by an EIA forecast on Tuesday that the U.S. will produce less oil in 2025 than previously expected, as declining prices have prompted U.S. producers to slow activity. On Tuesday, U.S. President Donald Trump said he would impose a 50% tariff on copper, aiming to boost U.S. production of a metal critical to electric vehicles, military hardware, the power grid and many consumer goods. Trump made the announcement as he delayed a deadline for some tariffs to August 1, spurring hopes among major trade partners that deals to ease duties could still be reached, though many remain uncertain. Elsewhere, OPEC+ oil producers were set for another big output boost for September as they complete both the unwinding of voluntary production cuts by eight members, and the United Arab Emirates' move to a larger quota, five sources said. On Saturday, OPEC+ approved a supply increase of 548,000 barrels per day for August. "Oil prices have stayed surprisingly resilient in the face of accelerated OPEC+ supply additions," said Suvro Sarkar, energy sector team lead at DBS Bank. UAE Energy Minister Suhail al-Mazrouei said on Wednesday that oil markets were absorbing OPEC+ production increases without building inventories, which means they are thirsty for more oil. "You can see that even with the increases for several months we haven't seen a major buildup in inventories, which means the market needed those barrels," he said. https://www.reuters.com/business/energy/oil-prices-ease-two-week-highs-investors-await-tariff-clarity-2025-07-09/
2025-07-09 06:44
HAMBURG, July 9 (Reuters) - Low water levels following a drought and heatwave in western Europe continue to hinder shipping through the Rhine river in Germany, commodity traders said on Wednesday, with rain in past days generating only a moderate rise in water levels. Low water is hampering shipping on all the river south of Duisburg and Cologne, including the chokepoint of Kaub. Vessels are generally only able to sail about half full, although the volumes they can load have risen slightly, traders said. Sign up here. But cargo is still being delivered, with loads being carried by several vessels instead of one, traders said. Shallow water means vessel operators impose surcharges on freight rates to compensate for vessels not sailing fully loaded, increasing costs for cargo owners. Only moderate rainfall is forecast in the coming days in river catchment areas, so no major improvement is expected, traders said. The Rhine is an important shipping route for commodities such as grains, minerals, ores, coal and oil products, including heating oil. German companies faced supply bottlenecks and production problems in summer 2022 after a drought and heat wave led to unusually low water levels on the Rhine. https://www.reuters.com/business/environment/low-water-still-hindering-rhine-river-shipping-germany-after-rain-2025-07-09/
2025-07-09 06:43
DUBAI, July 9 (Reuters) - Saudi chemicals group SABIC (2020.SE) , opens new tab said on Wednesday it was studying strategic options for its National Industrial Gases Company, including an initial public offering, amid a broad review of its business. SABIC said in a statement that the move was in line with its portfolio optimization and core business focus strategy, adding that an IPO of GAS would be aimed at improving the group's "financial position and the value added for shareholders". Sign up here. The chemicals industry has been grappling with weak demand and high input costs, leading to lower prices and squeezed margins. SABIC, one of the world's largest petrochemicals companies and 70%-owned by oil major Saudi Aramco (2223.SE) , opens new tab, reported in May a first-quarter net loss of $323 million, citing a rise in operating costs and high feedstock costs. Earlier this year it also said it planned to cut costs and find new investment opportunities, while restructuring some core assets and offloading non-core businesses. It has already divested its stakes in Aluminum Bahrain (Alba) and steel business Hadeed, selling both to other state-backed Saudi entities. SABIC said on Wednesday that "the study remains ongoing, with each option subject to the necessary financial, technical, regulatory and economic assessments". Its shares have fallen 16.3% since the beginning of the year, according to LSEG data. https://www.reuters.com/business/energy/saudi-chemicals-group-sabic-studying-ipo-its-gas-unit-2025-07-09/
