2025-06-04 07:32

NEW DELHI, June 4 (Reuters) - India's finance ministry wants green hydrogen prices to soften before deciding on financial support for production of steel using clean energy, two sources familiar with the matter said, as New Delhi seeks to control inflation and its expenditure. Indian steel producers have been asking for federal incentives as the nation considers mandating the use of a certain percentage of green steel in government projects. Sign up here. India, the world's biggest steel producer after China and a key green house gas emitter, has been working on a green steel policy to decarbonise production of the alloy. A delay in the launch of federal financial support could slow India's energy transition plans to meet 2070 net zero goal. The steel ministry is seeking incentives from the finance ministry for decarbonisation efforts. The finance ministry has argued that high green hydrogen costs would make use of green steel unviable and 'potentially inflationary', the sources told Reuters. The deliberations between the two ministries have been slowed, as the finance ministry has cautioned against a "hasty approach," one of the sources said, declining to be identified as discussions are not public. "Steel is an intermediate product and manufacturing green steel would be costly and there is a need to have a balanced approach between growth and sustainability," the source said, referring to the finance ministry's thinking. India's finance and steel ministries did not respond to Reuters' emails seeking comments. Currently, a majority of Indian steel mills depend on coal for their blast furnace operations. The steel ministry has touted the use of green hydrogen as an alternative but high costs are a deterrent. In December, India said steel produced with carbon dioxide emissions of less than 2.2 tonne per tonne of finished steel would be defined as "green steel". Steel producers in India, the world's fastest-growing major economy, generate 2.55 metric tons of carbon dioxide per ton of crude steel produced, 38% higher than the global average of 1.85 tons, according to Global Energy Monitor. https://www.reuters.com/sustainability/boards-policy-regulation/indias-finance-ministry-wants-lower-energy-prices-green-steel-incentives-sources-2025-06-04/

2025-06-04 07:02

Seoul to take wait-and-see stance on trade talks, sources say Open to extending deadline, unlikely to ask from the start Japan and China considered references for bargaining power South Korea better positioned than peers to strike favourable deal, analysts say SEOUL, June 4 (Reuters) - The new South Korean administration will likely make efforts to buy time for U.S. trade talks, as it studies the negotiations of bigger neighbours Japan and China for leverage, according to sources familiar with the ruling party's thinking. President Lee Jae-myung, who took office hours after winning the June 3 snap presidential election without a usual two-month transition period, said on the eve of the elections that "the most pressing matter is trade negotiations with the United States." Sign up here. The future of South Korea's export-oriented economy will hinge on what kind of deal Lee can strike, with all of his country's key sectors from chips to autos and shipbuilding heavily exposed to global trade. The new president and his liberal Democratic Party government inherit an economy that is expected to grow this year by a grim 0.8%, the weakest since 2020, and will need to unify a country deeply polarised by ousted President Yoon Suk Yeol's botched martial law attempt. South Korea and other countries may face further pressure, as a draft letter seen by Reuters showed the Trump administration wanted countries to provide their best offer on trade negotiations by Wednesday. A trade ministry official declined to confirm if Seoul had received the letter. But the transition of power after a six-month leadership vacuum provides Seoul with an excuse to slow down its negotiations and observe Washington's tariff talks with other countries, lawmakers, officials and trade experts from the Democratic Party said. "The new administration will need to take a fresh look at the overall framework of the negotiations and that will be a buffer to buy time, which the U.S. cannot reject," said a trade expert who took part in brainstorming for Lee's trade strategies. The sources added the administration may not be able to immediately ask Trump for an extension, and Lee's top diplomacy adviser has said he sees such a request being considered only after reviewing the progress. Still, prolonged negotiations by other countries may help to buy Seoul time. "It will be strategically right to take a wait-and-see stance because the situation is changing within the United States and around negotiations of other countries," one lawmaker said. STRATEGIC SILENCE South Korea, a major U.S. ally and one of the first countries to engage with Washington after Japan, agreed in late April to craft a "July package" scrapping levies before the 90-day pause on Trump's reciprocal tariffs is lifted, but progress was disrupted by continued upheavals in South Korea's leadership. Lee has since stressed there is no need to rush into clinching a deal and the deadline of July 8 set between Seoul and Washington should be reconsidered. During his election campaign, Lee did not make specific comments about contentious issues around the trade talks. That "silence" was a strategic move, a party official said. In a statement after his victory, the Korea International Trade Association called for Lee to "respond quickly to the rapidly changing foreign trade order" and use all of the government's diplomatic and trade resources to pursue a practical negotiation strategy. Trump's across-the-board tariffs on trading partners, including 25% duties on South Korea, have been the subject of ongoing litigation, but remain in place. "For different reasons, China and Japan will be references for us, with the former on the possibility of U.S. policy changes and the latter on how to make moves under a similar circumstance," another trade expert said. Heo Yoon, an economics professor at Sogang University, says Lee's best bet to win an extension would be by joining the meeting of the Group of Seven advanced economies. "There is a G7 meeting in Canada in mid-June, where South Korea could be invited to join and use it as a chance to extend the tariff-pause deadline," Heo said, adding an extension could also help Washington, as it would sway Lee towards the U.S. and away from China. Japan, another U.S. ally slapped with 24% tariffs, no longer sees merit in striking a quick deal, unless it is granted an exemption from 25% product-specific duties on its key industry of automobiles, also a major sector for South Korea. China agreed with the U.S. to significantly unwind their tariffs on each other in a 90-day truce signed in mid-May, but Trump last week accused Beijing of violating the agreement and threatened to take tougher actions. When it comes to joint responses to U.S. tariffs, there is a higher possibility with Japan than China, two sources said, citing shared interest in energy purchases and auto tariffs. Lee's party expects there to be some "two-track" transitional period, with current officials continuing negotiations as the new administration formulates its strategies, according to the official. BETTER POSITIONED Given its strength in key sectors of U.S. interest, such as shipbuilding and technology, some analysts see South Korea as better positioned than others in the region, as Seoul prepares a separate package of industrial cooperation for bargaining power. "Successful outcomes require offers that support the president's domestic agenda, and this will be comparatively easy for Korea given its importance in politically sensitive industries," said Jay Truesdale, a former U.S. diplomat and CEO of TD International, an advisory firm in Washington, D.C. Kathleen Oh, Morgan Stanley's chief Korea and Taiwan economist, said: "We believe there may be more channels and enough scope for Korea to work out a deal compared to, let's say, its exporting peer Taiwan." South Korea has the scope to decrease its trade surplus with the U.S. via more import purchases, while it can also offer lower tariffs on agricultural products, particularly rice, quoted by Trump as a high tariff example, Oh said. But, for the Lee administration, that is more the reason it does not have to rush, the second trade expert said. "In the worst-case scenario, if tariffs are adjusted after we sign an agreement, that might mean we made unnecessary concessions," the source said, adding "it's not like we don't have any leverage". https://www.reuters.com/business/autos-transportation/south-koreas-new-leader-seek-more-time-us-trade-talks-2025-06-03/

2025-06-04 06:54

DUBAI, June 4 (Reuters) - Iran's Supreme Leader Ayatollah Ali Khamenei said on Wednesday Tehran will not abandon its uranium enrichment, rejecting a key U.S. demand aimed at resolving a decades-long nuclear dispute, that he said was against the Islamic Republic’s interests. The U.S. proposal for a new nuclear deal was presented to Iran on Saturday by Oman, which has mediated talks between Iranian Foreign Minister Abbas Araqchi and President Donald Trump's Middle East envoy, Steve Witkoff. Sign up here. After five round of talks, several hard-to-bridge issues remain, including Iran's insistence on maintaining uranium enrichment on its soil and Tehran's refusal to ship abroad its entire existing stockpile of highly enriched uranium - possible raw material for nuclear bombs. "Uranium enrichment is the key to our nuclear programme and the enemies have focused on the enrichment," Khamenei said in a televised speech. The U.S. proposal "contradicts our nation's belief in self-reliance and the principle of 'We Can'," he said. "The rude and arrogant leaders of America repeatedly demand that we should not have a nuclear programme. Who are you to decide whether Iran should have an enrichment?," he added. Tehran says it wants to master nuclear technology for peaceful purposes and has long denied accusations by Western powers that it is seeking to develop nuclear weapons. On Monday, Reuters reported Tehran was poised to reject the U.S. proposal on the grounds that it was a "non-starter" that failed to soften Washington's stance on uranium enrichment or to address Tehran's interests. Trump has revived his "maximum pressure" campaign against Tehran since his return to the White House in January, which included tightening sanctions and threatening to bomb Iran if the negotiations yield no deal. During his first term in 2018, Trump ditched Tehran's 2015 nuclear pact with six powers and reimposed sanctions that have crippled Iran's economy. Iran responded by escalating enrichment far beyond the pact's limits. Iran's arch-foe Israel, which sees Iran's nuclear programme as an existential threat, has repeatedly threatened to bomb the Islamic Republic's nuclear facilities to prevent Tehran from acquiring nuclear weapons. https://www.reuters.com/world/middle-east/irans-supreme-leader-says-us-nuclear-proposal-undermines-its-national-power-2025-06-04/

2025-06-04 06:52

MUMBAI, June 4 (Reuters) - The Indian rupee slipped on Thursday as a combination of bullish position unwinding and dollar strength pushed the local currency to near the 86 level against the U.S. dollar. The rupee slipped to 85.9125 against the U.S. dollar before paring losses to an extent. It was last quoted at 85.85, down 0.3% on the day. Sign up here. The currency is now on track for its sixth decline in seven sessions, having hit 84.78 last Monday. "The market is backing off earlier long rupee bets," said a currency trader at a bank. "You can see that in the price action. Its not helping that the dollar overall has found a bit of footing and we are seeing equity outflows.” Foreign investors pulled out more than $300 million from domestic equities on Wednesday, according to preliminary data, adding to outflows of more than $1 billion in the previous three sessions. Meanwhile, the dollar index inched higher, extending Tuesday’s advance that was underpinned by an unexpected rise in U.S. job openings. More labour market data is due through the week, with the key highlight being Friday’s non-farm payrolls report for May — a key input for assessing the Federal Reserve’s interest rate path. Asian currencies were mostly weaker, with sentiment dominated by developments around trade negotiations between the U.S. and its partners. The Trump administration has set a Wednesday deadline for countries to submit their best trade offers. President Donald Trump is expected to speak with Chinese President Xi Jinping this week, according to the White House. The call comes amid renewed tensions, with both sides accusing each other of breaching last month’s agreement to roll back certain tariffs. https://www.reuters.com/world/india/rupee-falters-bullish-exits-dollar-strength-collide-2025-06-04/

2025-06-04 06:52

US gasoline, distillate stocks post big weekly builds OPEC+ supply rises weigh on sentiment Persistent tariff tensions stalk market HOUSTON, June 4 (Reuters) - Oil prices settled down just over 1% on Wednesday after U.S. data showed surprisingly large build in gasoline and diesel inventories, swelling fuel supplies with OPEC+ planning more output and trade tensions clouding the energy demand outlook. Brent crude futures closed down 77 cents, or 1.2%, at $64.86 a barrel. U.S. West Texas Intermediate crude settled 56 cents, or 0.9% lower at $62.85. Sign up here. U.S. gasoline stocks swelled by 5.2 million barrels, the Energy Information Administration said. Analysts polled by Reuters had expected a rise of 600,000 barrels. Distillate stockpiles rose by 4.2 million barrels compared with expectations for a rise of 1 million barrels. Crude inventories dropped by 4.3 million barrels. Analysts polled by Reuters had expected a draw of 1 million barrels. "The report is in my view bearish, due to large builds in refined products," Giovanni Staunovo, an analyst with UBS. "There was a strong increase in refinery demand for crude, resulting in a large crude draw. But post-Memorial Day, the strong supply increase with weaker implied demand resulted in large refined product inventory increases," he added. Plans by OPEC+ producers to increase output by 411,000 barrels per day (bpd) in July were also weighing on investors. On Tuesday, both benchmarks climbed about 2% to a two-week high, driven by worries about supply disruptions and expectations that OPEC member Iran would reject a U.S. nuclear deal proposal key to easing sanctions. Russia posted a 35% decline in May oil and gas revenue, which could make Moscow more resistant to further OPEC+ output hikes, as such moves weigh on crude prices. On Tuesday, the Organisation for Economic Co-operation and Development (OECD) cut its global growth forecast as the fallout from Trump's trade policies takes a bigger toll on the U.S. economy, which would in turn impact oil demand. Meanwhile, U.S. President Donald Trump and Chinese leader Xi Jinping are likely to speak this week, days after Trump accused China of violating a deal to roll back tariffs and trade curbs. U.S. economic activity has declined and higher tariff rates have put upward pressure on costs and prices in the weeks since Federal Reserve policymakers last met to set interest rates, the central bank said in its latest snapshot of the economy. Geopolitical tensions continued to escalate. Russian President Vladimir Putin told Trump that he must respond to high-profile Ukrainian drone attacks on Russia's nuclear-capable bomber fleet and a deadly bridge bombing that Moscow blamed on Kyiv. "Overall, we see limited upside potential amid ongoing concerns about a supply glut and softening demand growth," analyst Ole Hansen at Saxo Bank said in a note. Meanwhile, production operations in Canada, some of which was shut-in due to wildfires, were restarting on Wednesday. Canadian Natural Resources (CNQ.TO) , opens new tab said it has restarted its Jackfish 1 oil sands site in northern Alberta after determining wildfires in the region were a safe distance away. Wildfires in Canada had reduced the country's output by some 344,000 bpd, according to Reuters calculations on Tuesday. https://www.reuters.com/business/energy/oil-prices-slip-rising-opec-output-tariff-fears-weigh-outlook-2025-06-04/

2025-06-04 06:51

June 4 (Reuters) - The crew of a cargo ship carrying around 3,000 vehicles, including 800 electric vehicles, abandoned it off the coast of Alaska after a fire broke out onboard, its operator Zodiac Maritime said on Wednesday. The 22 crew members were safely evacuated from the ship after they failed to put out the fire, Zodiac said as it focuses on salvaging the vessel. Sign up here. They were evacuated via lifeboat and were being transferred to a nearby merchant vessel in tandem with the U.S. Coast Guard. The vessel, Morning Midas, was located 300 miles (482.8 km) southwest of Adak in Alaska, the Coast Guard said on its X account. The Liberia-flagged ship left China's Yantai port on May 26 and was on the way to Lazaro Cardenas, Mexico, according to LSEG data. Smoke was initially seen rising from a deck loaded with EVs, the company said. It is not clear what brand of vehicles the ship was carrying. EV-related fires on ships are challenging to extinguish due to the heat generated and risk of reignition, which could persist for days. The Coast Guard said aircrew and a cutter ship have been sent to assist with the situation and three vessels were already on the scene. In 2022, a ship carrying 4,000 luxury cars, including Porsches and Bentleys, sank off the Portuguese Azores archipelago nearly two weeks after it caught fire. Fires onboard vessels, particularly on container ships, car carriers and roll-on/roll-off ships are a big concern for insurers. Steamship Mutual, one of the insurers of Morning Midas, did not respond to a Reuters request for comment. Such incidents across all vessel segments hit the highest level in a decade in 2024, according to insurer Allianz Commercial. "The reality is the risk remains significant due to the size of these ships and the complexities involved in firefighting and salvage," Allianz said in its 2025 safety and shipping review report. https://www.reuters.com/world/us-coast-guard-responding-cargo-ship-fire-near-alaska-no-injuries-reported-2025-06-04/