2025-10-24 07:24
India premium unchanged at $25/oz this week China market flips to premium as demand improves Spot gold poised to snap nine-week winning streak Oct 24 (Reuters) - Physical gold demand in India ticked lower this week as buyers held back purchases, anticipating a deeper price correction, while a pullback in rates sparked buying interest in China and Singapore. Indian dealers were this week quoting a premium of up to $25 per ounce over official domestic prices, inclusive of 6% import and 3% sales levies, unchanged from last week. Sign up here. Domestic gold prices were trading around 122,700 rupees per 10 grams on Friday after hitting a record high of 132,294 rupees last week. Meanwhile, spot gold prices were on track for their first weekly drop in 10. "Last week, buyers were snapping up gold at any price available in the market. But this week, the price correction has made them cautious, with some postponing purchases in hopes of a bigger drop," said a Mumbai-based jeweller. Indians were celebrating the Dhanteras and Diwali festivals in the last few days, occasions when buying gold is considered auspicious and which are among the busiest gold-buying days in the country. New import orders are now being placed cautiously and for smaller quantities, as the recent price correction is expected to lower the base import price next week, said a Mumbai-based bullion dealer with a private bank. The base import price of gold, which is used to calculate import duty, is set fortnightly. In top consumer China, bullion changed hands anywhere between discounts of $20 to a premium of $8 an ounce over the global benchmark spot price . "Despite gold prices fluctuating sharply between $4,000 and $4,300/oz, there has been little evidence of traders offloading physical holdings," said Bernard Sin, regional director of Greater China at MKS PAMP. "Sellers remain limited, while investors continue to hold positions amid macroeconomic uncertainty and declining real interest rates." Gold in Hong Kong was sold at par to a premium of $2.20, while in Singapore , gold traded between at-par prices and a $2.50 premium. "We continue to see good demand, especially this week when prices came down, we've seen quite a number of clients coming to buy both gold and silver to take this opportunity to enter the market," said Brian Lan, managing director at Singapore-based GoldSilver Central. In Japan, gold was sold at a $1 premium over spot prices. https://www.reuters.com/world/china/asia-gold-india-demand-cools-after-festive-rush-price-fall-propels-buying-2025-10-24/
2025-10-24 07:21
Satellite Chemical is China's biggest importer of US ethane Project paused amid trade tensions, lack of government and regulatory approvals Ethane cracker is part of multibillion-dollar expansion plan SINGAPORE, Oct 24 (Reuters) - Satellite Chemical (002648.SZ) , opens new tab, China's largest importer of U.S. ethane, has paused plans to build its third ethylene unit amid protracted U.S.-China trade tensions and a lack of required government and regulatory approvals, five industry sources said. The new cracker, costing roughly $1 billion and with a capacity of up to 1.5 million metric tons per year (tpy) would process ethane into ethylene, a key petrochemicals building block. It is part of the company's multibillion-dollar phase 3 expansion in Lianyungang, a city in eastern China. Sign up here. China buys half of U.S. ethane exports and secures nearly all of its ethane imports from the U.S. The delay demonstrates the potential pitfalls of the country's growing reliance on U.S. ethane. The pause, which two sources said occurred around June, followed escalation in the U.S.-China tit-for-tat trade war in April, when Beijing slapped a 125% duty on U.S. goods including ethane, before waiving it later in the month. In late May, the U.S. imposed temporary restrictions on ethane exports after accusing Beijing of slowing rare earths shipments. Satellite was about to start construction of the new cracker after almost completing construction of at least one petrochemical derivative unit in Lianyungang in the second quarter, two of the sources said. However, the company was ordered by the central government to halt construction as Beijing was worried that rising demand for U.S. ethane could hand Washington additional leverage amid trade tensions, three sources added. In addition, authorities found that Satellite did not have necessary regulatory approvals for the cracker, having only been given a green light for the downstream units, two sources said. The sources declined to be identified as the details are not public. Satellite, in response to a query about the government pause order and the status of regulatory approval, said the "company consistently abides by Chinese law and applicable global regulations." Satellite told Reuters it would provide updates on any progress on its projects via stock filings. China's National Development and Reform Commission, responsible for approving large industrial investments, did not respond to a request for comment. In an October 15 client note, JPMorgan analysts said Satellite may have to wait until U.S.-China trade relations stabilise to resume building the third cracker, which would delay the entire phase 3 expansion that had been slated for start-up in the first half of 2027. OTHER PROJECTS CONTINUE Satellite is expected to proceed with several downstream projects, such as alpha-olefin and polyolefin elastomer (POE) units that make high-performance plastics used in automobiles, and packaging, three of the sources said. Key units under the phase 3 project include two 500,000-tpy polyethylene units, five 100,000-tpy alpha-olefin units and three 200,000 tpy of POE facilities, Satellite said in a stock filing in mid-2024. Satellite was one of the earliest Chinese companies to process abundant and cheap U.S. ethane - a by-product of natural gas production - into ethylene. It operates two such crackers capable of producing 2.5 million tpy of ethylene combined, making it the world's largest single importer of U.S. ethane. Compared with oil-based technology, ethane is more cost-efficient and lower in emissions. To secure feedstock, Satellite invested in a 180,000-barrel-per-day terminal in Nederland, Texas, in a joint venture with U.S. firm Energy Transfer (ET.N) , opens new tab in 2018. Satellite and Energy Transfer also agreed a supply deal with annual shipments of over 3 million tons of U.S. ethane that lasts through 2030. https://www.reuters.com/world/asia-pacific/chinas-satellite-chemical-pauses-ethylene-project-amid-us-trade-tensions-sources-2025-10-24/
2025-10-24 07:20
Rhino Resources gathers critical data next year Company aims for first oil title in Namibia Looking at FID by Q1 2027 to fast-track projects CAPE TOWN, Oct 24 (Reuters) - African oil and gas company Rhino Resources plans to drill an appraisal well on a Namibian prospect next year and take a flow test on another as it races TotalEnergies (TTEF.PA) , opens new tab to first oil in the southern African nation, its chief executive said. The appraisal well, potentially part of a block-wide program and subject to government approval, is planned for Capricornus where light oil was found and a flow rate of 11,000 barrels a day tested, while the drill stem test is planned for Volans, its latest high liquid-yield gas condensate find. Sign up here. The new data will help guide the company as it looks to fast-track its discoveries offshore Namibia, where TotalEnergies expects to take a final investment decision (FID) on its Venus field next year. "There's a fair amount of uncertainty at this stage, not because of the quality of discoveries, but more because we have such optionality on our hands we want to make sure we make the right decision for the right reason," CEO Travis Smithard said. He was speaking to Reuters at Rhino Resources' headquarters in Cape Town. Options include possibly co-developing Capricornus and Volans, which are only 15 km (9 miles) apart, he said, as the company also looks at buying new seismic data to the north of its block that could unlock the Sagittarius trend. Rhino Resources, which is in a joint venture partnership with BP-Eni backed Azule Energy, aspires to take its own FID on its fast-track development by the end of 2026 or the first quarter of of 2027, he said. "We're also being told by various Floating Production Storage and Offloading (FPSO) owners and builders that there is a very strong possibility of being able to get an FPSO ready and commissioned for first oil in 2030." Future developments of Rhino's discoveries could be much simpler, Smithard said, as the Capricornus discovery was in shallower waters, possibly requiring less subsea infrastructure, and it has a lower gas-to-oil ratio than Total's Venus. Besides Namibia, Rhino also holds onshore acreage in five blocks across South Africa and is actively looking for new investment opportunities across the continent and elsewhere. "The geology is fundamental, but the above-ground risk is also critical and something that we consider strongly when making investment decisions." https://www.reuters.com/business/energy/rhino-resources-plans-new-appraisal-wells-flow-test-namibia-2025-10-24/
2025-10-24 07:12
LONDON, Oct 24 (Reuters) - Gold funds received their largest weekly inflow on record in the week to Wednesday, Bank of America Global Research said in a note citing EPFR data, a week in which the precious metal's price surged to a new record, before retreating sharply. Gold funds saw inflows of $8.7 billion in the week BofA said, putting the inflows over the last four months at $50 billion, larger than all inflows in the prior 14 years. Sign up here. Gold spiked to a record of $4,381.21 per ounce on Monday before retreating as investors booked profits and momentum trades unwound. It was last at $4,092.60/oz. https://www.reuters.com/business/global-markets-flows-bofa-urgent-2025-10-24/
2025-10-24 07:07
Polls show tight race between Milei's party and Peronists Analysts warn gains by Milei would not ensure reforms Peso hit record lows this week, investors expect further softening NEW YORK/LONDON, Oct 24 (Reuters) - Investors are bracing for a renewed round of Argentine currency and bond market swings, as this Sunday's midterm elections mark a defining moment for President Javier Milei's economic reform efforts. Milei is not on the ballot himself but his La Libertad Avanza party is, making the vote a key test for his right-wing stabilization strategy and far-reaching austerity plan, which endeared him to U.S. President Donald Trump and helped to secure a $20 billion U.S. swap line. Sign up here. Even so, it's been far from a smooth ride in the markets in recent weeks, and with most polls showing a tight race, investors see the potential for gyrations either way once the election results are in. The peso stumbled to a record low against the dollar this week and investors expect further weakness ahead. Argentina's heavily traded international bonds, star performers across emerging markets last year, have sunk into losses in 2025. As investors look ahead to Sunday's election, Trump has added to the pressure by threatening that he won't waste more time on Argentina if Milei loses. "It just demonstrates the transactional nature of the relationship with the United States these days," said Carl Ross, partner and sovereign credit analyst at asset manager GMO, which is overweight Argentina's international dollar bonds. "It makes it more difficult to play it, because it becomes even more of a key-man risk, and it becomes even more binary of an outcome." MILEI WIN COULD TRIGGER RALLY In the midterm vote, half of Argentina's lower Chamber of Deputies as well as a third of the Senate are up for grabs. Milei's party will need about one-third of the votes in each house to thwart future attempts to override his spending vetoes. The election math is complex, though anything in the region of 35% or above is seen as a success for Milei, using as a barometer the 30% he secured in the first round of the 2023 presidential election. "If Milei doesn't perform well, I think we get a (market) correction because my view is that this U.S. mini-bailout will not be available in such size," said Diliana Deltcheva, head of emerging market debt at Robeco, who calls the election a coin toss. "I can see another three to five points of upside (in bonds) if Milei does well, but the market has already rallied back to the highs of the year so the downside is pretty large," she said, adding that the firm could add to its current market-weight holdings if bonds sold off. Local brokerage Max Capital said sovereign dollar bonds are pricing a win from left-leaning opposition Peronists by about 4 percentage points in Sunday's vote. A better result than that for Milei's party could see upside of about 15% in the bonds, they said. Aside from the U.S. swap line, the Trump administration is negotiating with U.S. banks the formation of a $20 billion fund to purchase Argentine sovereign debt, U.S. officials have said. U.S. SUPPORT IS CONDITIONAL But with U.S. support conditional on a continuation of Milei's previous policies, his party's election results will be closely scrutinized. JPMorgan's baseline sees Milei's bloc on track to secure enough seats to protect his veto power but warned that such a result alone would not deliver reforms or bring down risk premiums. "In this scenario U.S. support is poised to intensify, providing a tailwind for the administration. Political risk premium, which has weighed heavily on markets, would likely recede," JPMorgan analysts said. Any ballot underperformance by Milei's party could also be seen as an early gauge of his longer-term political standing, including his prospects for retaining power in the 2027 general election, said Alejo Czerwonko, CIO for emerging markets in the Americas at UBS Global Wealth Management. "Beyond the election, a sustained rally will require a credible strategy to rebuild international reserves, likely involving a significant devaluation," Czerwonko said. https://www.reuters.com/world/americas/argentina-braces-market-turbulence-midterm-elections-loom-2025-10-24/
2025-10-24 06:48
US September CPI up 3.0% on year Trump to meet Chinese President Xi Jinping next week Silver down over 6% so far this week Oct 24 (Reuters) - Gold prices pared losses on Friday after slightly softer-than-expected U.S. inflation data reinforced expectations that the Federal Reserve will cut interest rates next week, but the metal was still set for its first weekly loss in 10 weeks. Spot gold fell 0.2% at $4,118.29 per ounce by 01:42 p.m. ET (1742 GMT), after falling nearly 2% earlier in the session. The price is down over 3% for the week. Sign up here. U.S. gold futures for December delivery settled 0.2% lower at $4,137.8 per ounce. "Gold and silver jump as September core CPI comes in lower than expectations but it's likely insufficient to entirely blunt this week's selloff. Price action suggests that gold and, especially silver, need another leg lower before consolidation," said Tai Wong, an independent metals trader. Spot gold notched a record high of $4,381.21 on Monday, but has fallen over 6% since, as investors booked profits and signs of easing U.S.-China trade tensions dented safe-haven demand. Spot silver was down 0.6% at $48.65/oz, on track for a weekly loss of over 6%. Labor Department data showed that U.S. consumer prices rose 3.0% in the 12 months through September, slightly below economists' expectations of a 3.1% increase. Traders are almost fully pricing in a rate cut at the U.S. central bank's meeting next week, with another expected in December. FEDWATCH Lower interest rates reduce the opportunity cost of holding non-yielding assets like gold. Meanwhile, the White House confirmed on Thursday that U.S. President Donald Trump will meet Chinese President Xi Jinping next week, ahead of the November 1 deadline for additional U.S. tariffs on Chinese imports. "If (gold prices) fall below $4,000, we're going to continue to see more of a dramatic washout in the market, perhaps down to $3,850, the next major support level," said Phillip Streible, chief market strategist at Blue Line Futures. Bullion has gained 55% this year, on geopolitical and trade tensions, robust central bank buying and expectations of U.S. interest rate cuts among other factors. Elsewhere, platinum slipped 1% to $1,608.77, and palladium fell 0.5% to $1,450.05. https://www.reuters.com/world/china/gold-set-snap-nine-week-winning-streak-us-inflation-test-looms-2025-10-24/
