2025-10-08 06:24

Oct 8 (Reuters) - Australia's Lynas Rare Earths (LYC.AX) , opens new tab has partnered with U.S.-based manufacturer Noveon Magnetics to supply rare earth permanent magnets to defence and commercial sectors in the U.S., the two companies said on Wednesday. The deal includes provision of both light and heavy rare earth materials and the production and supply of finished magnets to end-users across defense, automotive and industrial sectors. Sign up here. "This partnership delivers what the market and the U.S. government need most: capacity, certainty and speed," Noveon CEO Scott Dunn said in a joint statement, adding that the companies plan to finalise a definitive agreement and work closely with the U.S. government and customers. The companies did not divulge any financial details of the deal. Washington has been pushing to secure critical minerals and reduce reliance on China, which produces around 90% of the world's rare earths magnets. Lynas is the world's largest rare earth producer outside China and CEO Amanda Lacaze said the deal will provide U.S. manufacturers with a "secure and traceable" magnet supply chain. https://www.reuters.com/world/asia-pacific/australias-lynas-partners-with-noveon-supply-rare-earth-magnets-us-2025-10-08/

2025-10-08 06:14

China imposed export controls on five critical metals in February China supplies 83% of global tungsten, USGS says Rising tungsten costs could add $3,000–$25,000 to oilfield drillbit prices, expert says Oct 8 (Reuters) - U.S. shale drillers are facing higher prices for tungsten, a rare, ultra-hard metal used for industrial tools like drillbits, as Chinese export controls have squeezed supply, threatening U.S. President Donald Trump's ambitions to boost America's fossil fuel production. Tungsten makes up as much as 75% of the drillbits deployed in oilfields. The metal's price has surged to over $600 per metric ton unit from around $330–$340 in early February, when Trump imposed a 10% tariff on Chinese goods and Beijing hit back with curbs on exports of five critical metals, including tungsten. Sign up here. While the curbs fall short of an outright ban, previous such measures have sharply curtailed exports. China controls more than two-thirds of global tungsten production, according to the U.S. Geological Survey, making it difficult to replace its supply, industry experts said. As a result, polycrystalline diamond compact (PDC) drill bits, typically priced at $20,000 to $100,000 depending on their size, design and other factors, now cost an additional $3,000 to $25,000, said Yaseer Ismail, supply chain manager at supply chain management firm Scan Global Logistics. PDC drill bits are prized in oilfields for their abrasion resistance, Ismail said. Top U.S. services provider SLB (SLB.N) , opens new tab calls them the 'workhorse of the oilfield' on its website. WHEN IT RAINS IT POURS Tungsten costs highlight an unexpected consequence of Trump's policies, despite his campaign promises to uplift the energy industry. Ben Dieterich, a spokesperson for the U.S. Department of Energy, said the department gave a grant this year to Melt Technologies, a Texas company that reclaims and recycles industrial metals, to fund a pilot facility to produce tungsten carbide products. "This will ultimately deliver greater savings for consumers," he said about the grant made in the final days of the administration of former President Joe Biden. The DOE did not immediately respond to a request for comment about the fact that it came during the Biden administration. The American Exploration & Production Council, which represents U.S. energy producers, declined to comment. Since Beijing's retaliation, Trump has slapped even higher duties on Chinese imports, and levied tariffs on other items widely used in oilfields, like steel. The industry also faces a potential oversupply after OPEC+ opted on Sunday to continue raising output after years of cuts. U.S. oil producers have been reducing drilling activity due to declining commodity prices, after output hit record levels in July according to the latest government data. Oilfield service providers will most likely have to absorb U.S. tariff costs instead of passing them on, said Mark Chapman, lead OFS analyst at Enverus Intelligence Research. These companies had warned in their second-quarter earnings reports that the steel tariffs would cut margins by 20 to 50 basis points, and surging tungsten costs will likely have a similar financial impact, Chapman said. SLB (SLB.N) , opens new tab said in July it expected to take the hit in the second half of the year, after it reported sharply lower second-quarter earnings from a year ago. Days later, smaller rival Halliburton (HAL.N) , opens new tab also posted a large drop in second-quarter profits and warned of a full-year revenue decline, citing softer demand. Global benchmark Brent crude oil futures were trading below $65 a barrel on Tuesday, down over 12% so far this year. "While the industry can generally pass through higher costs, it is challenging to do so in a market with flat to lower activity levels and especially difficult given anticipated pressure on commodity prices," said Samantha Hoh, senior clean tech analyst at HSBC. https://www.reuters.com/business/energy/rising-tungsten-prices-worsen-oil-drillers-inflation-worries-2025-10-08/

2025-10-08 06:11

Production, LNG imports to cover half of needs by 2028 Turkey is Russia's last big remaining European gas market U.S. pushing allies to cut energy ties to Moscow, Tehran Turkey increasingly shunning long-duration pipeline contracts ISTANBUL, Oct 8 (Reuters) - Turkey could meet more than half of its gas needs by the end of 2028 by ramping up production and increasing U.S. imports, in a shift that threatens to shrink the last major European market for Russian and Iranian suppliers. Washington has publicly pressured allies, including NATO member Turkey, to cut energy ties with Moscow and Tehran. At their White House meeting on September 25, U.S. President Donald Trump pressed Turkish President Tayyip Erdogan to cut Russian energy purchases. Sign up here. Diversifying supply would also strengthen Turkey's energy security and support its ambitions to become a regional gas hub. Ankara aims to re-export imported liquefied natural gas and its own gas production to Europe while burning Russian and Iranian gas domestically, analysts said. "Turkey has been signalling that it will take advantage of the (global) LNG abundance," said Sohbet Karbuz, from the Paris-based Mediterranean Organisation for Energy and Climate. Russia remains Turkey's largest gas supplier, but its share of the market has fallen from more than 60% two decades ago to 37% in the first half of 2025. Most European countries halted imports following Moscow's invasion of Ukraine in 2022. RUSSIA'S PIPELINE CONTRACTS NEAR EXPIRY Russia's long-term pipeline contracts with Turkey to supply 22 billion cubic metres (bcm) annually via the Blue Stream and TurkStream pipelines are close to expiry. Iran's 10 bcm contract expires in the middle of next year, while Azerbaijan’s contracts, totalling 9.5 bcm, run until 2030 and 2033. While Turkey is likely to extend some of these contracts, it is likely to seek more flexible terms and smaller volumes to increase the diversity of its supply, Karbuz said. At the same time, Turkey is rapidly expanding alternative sources. State-owned TPAO is boosting output from local gas fields, while state and private companies have expanded LNG import terminals to bring gas in from the U.S. and Algeria. Domestic production and contracted LNG imports are set to exceed 26 bcm annually from 2028 from 15 bcm this year, according to Reuters calculations. US LNG IMPORTS SET TO DOUBLE That would cover more than half of Turkey's gas demand of around 53 bcm, reducing the gap for pipeline imports to around 26 bcm - well below the 41 bcm of current contracted supplies from Russia, Iran and Azerbaijan combined. To support this shift, Turkey has signed a series of LNG deals with U.S. suppliers worth $43 billion, including a 20-year agreement with Mercuria in September. The country has built 58 bcm annual LNG import capacity, enough to cover its entire demand, according to Turkey's energy exchange. Despite this, Russian gas continues to flow at full capacity, and the Kremlin has said cooperation with Ankara remains strong. Since Turkey needs less Russian gas, BOTAS could, in theory, stop imports from Moscow in two to three years, said Alexey Belogoryev of the Moscow-based Institute for Energy and Finance. "However, it won't do so, because Russian gas is price-competitive and creates a surplus that BOTAS can use to pressure other suppliers," Belogoryev said. Turkey's energy minister Alparslan Bayraktar said in a TV interview in October that Turkey must source gas from all available suppliers, including Russia, Iran and Azerbaijan, but noted that U.S. LNG offers cheaper alternatives. The energy ministry declined to comment on future supply deals and pricing. Russian gas pipeline export monopoly Gazprom (GAZP.MM) , opens new tab did not reply to a request for comment. Turkey could burn Russian and Iranian gas at home, export its own production and re-export imported LNG after Europe bans Russian energy imports by 2028, said Karbuz. Turkey's BOTAS has already signed deals to supply Hungary and Romania with small volumes of gas in its bid to become a regional gas trading hub. Beyond gas, Ankara has deep ties with Moscow. Russia's Rosatom is building Turkey's first nuclear plant and Moscow is also the country's top crude and diesel supplier. https://www.reuters.com/business/energy/turkeys-gas-shift-threatens-russia-irans-last-big-european-market-2025-10-08/

2025-10-08 05:40

MUMBAI, Oct 8(Reuters) - The Indian rupee lumbered in a tight band on Wednesday, holding above its all-time low even as the U.S. dollar continued to charge higher, with traders pointing to likely central bank intervention to support the local currency. The rupee closed at 88.7975 against the U.S dollar, a whisker away for its all-time low of 88.80 hit last week but little changed on the day. Sign up here. Traders noted that the Reserve Bank of India has repeatedly defended the rupee near 88.80, keeping volatility in check, but persistent dollar demand from importers has kept it pinned near that level. The local unit has remained steady around that mark even as the dollar has risen over 1% this week against its major peers, boosted by weakness in the euro and the Japanese yen due to political developments. The euro was last down nearly 0.4% at $1.1615 while the Japanese yen slipped to 152.90, its weakest level since February. "The real test for USD bears begins this week as FX quant signals deteriorate for both EUR and JPY," analysts at BofA Global Research said in a note. Traders also said that in addition to spot market interventions, the RBI has conducted dollar-rupee buy/sell swaps for October delivery of maturities between January and March 2027, over the last three sessions. Dollar-rupee forward premiums have dropped in response to this, with the 1-year implied yield falling to 2.18%, its lowest since August 29. Investors are now awaiting the minutes of the Federal Reserve's September policy meeting, due later on Wednesday, alongside remarks from a clutch of central bank policymakers. https://www.reuters.com/world/india/soaring-dollar-puts-all-time-low-peril-traders-eye-rbi-defence-2025-10-08/

2025-10-08 05:35

Gold shows no sign of stopping Yen hits lowest since February European shares climb to record S&P 500, Nasdaq hit record closing highs; Dow off NEW YORK, Oct 8 (Reuters) - Major stock indexes rose on Wednesday, with U.S. and European indexes hitting record highs, while gold extended its recent rally above $4,000 an ounce as a prolonged U.S. government shutdown and expectations of further U.S. interest rate cuts drove demand for the safe-haven asset. Gold, traditionally seen as a store of value during times of instability, is up 54% year-to-date after gaining 27% in 2024. Spot gold was last up 1.36% at $4,037.90. U.S. gold futures GCv1 , opens new tab for December delivery settled 1.7% higher at $4,070.5. Silver also climbed to a record high. Sign up here. Shares of gold miners also rose, including U.S.-listed shares of Gold Fields , which ended 3.7% higher. The Japanese yen reached its weakest level since mid-February against the dollar as investors worried about an increase in fiscal spending in Japan, while the euro eased on ongoing political uncertainty in France. On Wall Street, stocks rebounded from Tuesday's declines, with the S&P 500 and Nasdaq registering all-time closing highs and technology shares (.SPLRCT) , opens new tab leading the way higher. Nvidia (NVDA.O) , opens new tab shares ended 2.2% higher. "It comes down to investors have been optimistic since April, and that optimism continues to be expressed in spite of a government shutdown, a slowing employment market or any other red flags that would normally detract investors," said Oliver Pursche, senior vice president and advisor for Wealthspire Advisors in Westport, Connecticut. Investors have been without most U.S. economic data as the federal government remains shut. Minutes released Wednesday from the last Federal Reserve meeting showed a divided committee, in which policymakers were concerned about rising labor market risks but remained wary of inflation. The central bank is widely expected to cut rates by 25 basis points at its October 28-29 meeting, according to the CME Group’s FedWatch Tool. The Dow Jones Industrial Average (.DJI) , opens new tab slipped 1.20 points to 46,601.78, the S&P 500 (.SPX) , opens new tab gained 39.13 points, or 0.58%, to 6,753.72 and the Nasdaq Composite (.IXIC) , opens new tab gained 255.02 points, or 1.12%, to 23,043.38. European shares climbed to record highs, powered by strong gains in French and Spanish stocks. The pan-European STOXX 600 (.STOXX) , opens new tab was up 0.8%, closing at its highest level, while French stocks (.FCHI) , opens new tab jumped 1.1% and Spanish stocks (.IBEX) , opens new tab touched their highest mark since 2007. French caretaker Prime Minister Sebastien Lecornu said a deal could on a 2026 budget despite the country's political crisis. France's fifth prime minister in two years, Lecornu tendered his and his government's resignation on Monday, just hours after announcing the cabinet line-up, making it the shortest-lived administration in modern France. The euro pared losses after Lecornu also said on Wednesday that President Emmanuel Macron could be in a position to nominate a new prime minister in the next 48 hours. The currency was last down 0.33% at $1.1616 and reached $1.1597, the lowest since August 27. In Japan, the surprise election of Sanae Takaichi to lead the country's ruling Liberal Democratic Party on Saturday has dented the yen on expectations of greater government stimulus. Against the yen the dollar was last up 0.53% at 152.7. It earlier reached 152.99, the highest since February 14, and has risen from 147.44 on Friday. U.S. Treasury yields turned positive in afternoon trading after investors showed tepid demand at an auction of 10-year notes. The yield on the benchmark U.S. 10-year Treasury note was up 0.6 basis points to 4.133%. Oil prices rose. Traders expected a lack of progress on a Ukraine peace deal to keep sanctions in place against Moscow. U.S. crude rose 82 cents to settle at $62.55 a barrel and Brent gained 80 cents to settle at $66.25. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-10-08/

2025-10-08 05:32

JAKARTA, Oct 8 (Reuters) - Indonesia's Investment Minister Rosan Roeslani on Wednesday said the government has entered into discussions with China about restructuring the debt of Indonesia's high-speed train company. Construction of the $7.3 billion China-backed high-speed railway began in 2016, and it was meant to start operating in 2019. Sign up here. But the project to connect the capital Jakarta and Bandung in West Java faced problems, including land procurement issues, pandemic-related delays and ballooning costs, which pushed out its launch to 2023. Rosan declined to disclose details of the proposed restructuring being negotiated with the Chinese government. "We want a comprehensive reform, so that after we restructure there will be no more things like the possibility of default and so on in the future," Rosan said. https://www.reuters.com/world/asia-pacific/indonesia-has-entered-talks-with-china-high-speed-train-debt-minister-says-2025-10-08/