2025-09-05 10:04

Cutting FY25 output by tens of thousands of tons from earlier plans Will unveil long-term plans to shrink smelting capacity Seeking to invest in upstream projects to secure rare metals TOKYO, Sept 5 (Reuters) - JX Advanced Metals (5016.T) , opens new tab will likely cut copper production by tens of thousands of metric tons in fiscal 2025 compared with earlier plans and unveil a roadmap to reduce smelting capacity by March, President Yoichi Hayashi said, as shrinking fees erode margins. Japanese copper smelters are grappling with tumbling treatment and refining charges (TC/RCs) and shrinking smelting margins due to a shortage of concentrate supply and growing smelting capacity in China. In June, some Chinese smelters agreed to process copper for Chilean miner Antofagasta (ANTO.L) , opens new tab at no charge. Sign up here. "In the short term, we plan to slash annual electrolytic copper output by several tens of thousands of tons from our earlier estimate as we can't purchase concentrates under current conditions," Hayashi told Reuters this week. JX, one of Japan's top copper smelters with 450,000 tons of annual production capacity, warned in June that cuts were possible. Its fiscal year ends in March. Longer term, it intends to shrink capacity to reduce risks in concentrate procurement and smelting, Hayashi said, though he gave no scale. Roughly half of JX's refined copper is exported, mainly to China, where demand could weaken as new domestic smelters ramp up. Rival Mitsubishi Materials (5711.T) , opens new tab is also weighing reductions. Asked if lower copper output would affect domestic industries, Hayashi said there would be no immediate impact, as only half is used domestically. If more capacity was needed, the government should provide support, he said. Despite cutbacks, Hayashi stressed that smelting remains essential for recovering rare metals, such as tantalum, critical to semiconductor materials, a key growth business. "We are reviewing the optimal scale from various perspectives, including the use of recycling materials," he said. Mid-year negotiations between Japanese smelters and global miners broke off without a TC/RC settlement, forcing firms to skip contracted term supplies, industry sources said. Hayashi said some miners are willing to negotiate different terms with Japanese firms from the Chinese benchmark deals to help sustain the world's fourth-largest smelting sector. JX is accelerating its pivot away from mining and smelting toward semiconductor materials. In June, it said it would acquire a stake in the Copi mineral sands project in Australia, led by RZ Resources (RRZ.AX) , opens new tab, to secure rare metals used in chip materials. "We are actively seeking new projects," Hayashi said, adding that future upstream deals would be far smaller than its past Chilean copper mine investment, which resulted in heavy impairment losses. Since its March listing, JX has streamlined decision-making and enhanced investor engagement. It recently raised its full-year earnings forecast, with Hayashi expressing confidence in achieving fiscal 2027 goals, including an operating profit margin of 12% to 17%. By 2040, JX aims to more than double operating profit to 250 billion yen ($1.7 billion). "Achieving our 2040 goal will require not only organic growth but also large-scale M&A starting in fiscal 2028," Hayashi said. https://www.reuters.com/world/china/major-japanese-copper-smelter-cut-output-capacity-margins-erode-2025-09-05/

2025-09-05 10:00

Anutin Charnvirakul elected Thai PM after political upheaval Former health minister championed cannabis legalisation His pragmatic politics bridge conservative, populist interests BANGKOK, Sept 5 (Reuters) - Anutin Charnvirakul waited just hours after the June leak of a phone call that would bring down Thailand's prime minister before kicking into higher gear his manoeuvring to take power. The veteran politician swiftly walked out of the ruling coalition led by the Pheu Thai party's Paetongtarn Shinawatra, made an initial outreach to the main opposition, and stood back to bide his time. Sign up here. On Friday, a week after a court decision dismissed Paetongtarn as premier and triggered a political maelstrom, parliament overwhelmingly voted to elect Anutin as the next prime minister. Anutin himself abstained from voting and, having secured a decisive win, received telephone calls and posed for photographs with his lawmakers on the floor of the house. The 58-year-old's rise has been decades in the making, starting with his entry into politics with the Thai Rak Thai party founded by Paetongtarn's billionaire father, Thaksin Shinawatra. In recent years, Anutin's growing influence in Southeast Asia's second largest economy has been mainly wielded through the Bhumjaithai party, a relative newcomer in Thai politics with roots in the farming communities of the lower northeast region. For two election cycles, in 2019 and 2023, pundits tipped Anutin among candidates for the premiership, most likely seen as leading a coalition government, given his pull across party lines. That did not happen and Anutin rose instead to prominence as health minister for his handling of the COVID-19 pandemic, and championing Thailand's legalisation of cannabis in 2022. "I am younger, more fresh and I understand politics in a democratic system," he told Reuters in 2023, making no bones about his ambition for the top job and expectations of a big win. Bhumjaithai secured only 70 of the 500 seats on offer but, after helping to block the election-winning Move Forward party from taking power, it teamed up as Pheu Thai's junior partner to form a government that held power for two years. Anutin and his party are a rare bridge spanning powerful family clans that dominate provincial politics and sections of the influential royalist-conservative establishment, said analyst Napon Jatusripitak. "He is very much a pragmatic politician, cut from the same cloth as Thaksin Shinawatra," Napon, a visiting fellow at Singapore's ISEAS-Yusof Ishak Institute, said of Anutin, an avowed royalist committed to preserve the revered monarchy. "Now, he has positioned his own party in a way that places it as the most credible guardian of conservative interest in Thailand." An unrelenting battle between the conservative establishment and populist parties backed by Thaksin has defined Thailand's politics, triggering military coups and court verdicts that unseated six elected prime ministers in the last 25 years. HIGH-FLIER Born to an influential politician-businessman, Anutin studied at an all-boys private school in Bangkok before heading to university in the United States for an engineering degree. In 1990, he joined his father's construction firm, Sino-Thai, and served as its president before stepping away from the private sector to enter government as deputy minister of public health under Thaksin in 2004. Thaksin's Thai Rak Thai party was dissolved in 2007 by a court order that also handed a five-year ban to Anutin, who returned to politics as leader of Bhumjaithai in 2012. In the decade since, Anutin has leveraged not only the connections of Bhumjaithai founder Newin Chidchob to shore up provincial support, but also his own influence with the conservative elite to place his party in successive governments. Since 2023, he served as interior minister in two administrations led by Pheu Thai prime ministers. "Bhumjaithai has been part of the government for many, many years, almost in every single cabinet, and usually controls lucrative ministries," said Napon. Anutin's path to power, however, has required the support of the People's Party, the successor of the progressive Move Forward that he blocked from forming the government in 2023 but will now provide outside support to Bhumjaithai's coalition. "We know that the People's Party has cooperated and made sacrifices in finding a solution for Thailand during a period of crises," Anutin told reporters on Wednesday, after securing the endorsement. Outside of business and politics, Anutin's interests include collecting Buddhist amulets and recreational flying, which he sometimes uses to facilitate emergency organ donations. With Thailand's stuttering economy facing serious headwinds, tensions with neighbouring Cambodia on knife-edge after a deadly border war and the spectre of more political turmoil, an ability to handle turbulence could prove useful in Anutin's new job. https://www.reuters.com/world/asia-pacific/thailands-anutin-charnvirakul-cannabis-crusader-prime-minister-2025-09-05/

2025-09-05 08:51

Sept 5 (Reuters) - The prospect of a change in leadership and policy making at the U.S. Federal Reserve, in France, Japan and Norway will keep markets on alert, while the European Central Bank meets and investors brace for data from the U.S., China and Japan. Here's your week ahead in global markets by Alden Bentley in New York, Rocky Swift in Tokyo, Yoruk Bahceli, Dhara Ranasinghe and Karin Strohecker in London. Sign up here. 1/ THE PRICE YOU PAY Investors have a lot riding on Thursday's August U.S. inflation report. A rate cut at the Federal Reserve's September 16-17 meeting is priced in but not a foregone conclusion, especially if the Consumer Price Index rises more than the 0.3% expected after July's 0.2% rise. Some policymakers, including Fed Chair Jerome Powell, have signalled that an easing for the first time since December is likely, maybe this month - depending on data. The long expected pass-through from tariffs has yet to be really felt by consumers paying for imported goods. U.S. Treasury auctions will be another test of where long-term interest rates are headed, especially Thursday's 30-year bond sale. T-bond yields rose above the psychological 5% level for the first time in seven weeks in recent days, enticing bond buyers and should indicate support for bidding at the long-end. 2/ MONEY'S TOO TIGHT (TO MENTION) Who would envy being finance minister of France or Britain right now? Economic growth is weak, debt uncomfortably high. Try and cut public spending and you have a revolt on your hands, signal you take fiscal discipline anything but seriously, and bond vigilantes swoop. France holds a confidence vote in parliament on Monday, called precisely because its prime minister wants backing for an unpopular debt-reduction plan. He's unlikely to win, fuelling political uncertainty and difficulties bringing an over 5% budget deficit down. Britain's fiscal challenges have hurt gilts and sterling. A November budget is shaping up as a key risk event. Meanwhile, ruling party lawmakers in Japan prepared their bids to replace outgoing premier Shigeru Ishiba on Monday, as financial markets recoiled on the political uncertainty and the possibility of his successors ramping up government spending. Norwegians vote on Monday on the final day of a parliamentary election that has seen investments in Israel in focus, sparking an unusual public debate over how the Scandinavian country's sovereign wealth fund - the largest in the world - operates. 3/ POKER FACE The ECB meeting is set to hold rates on Thursday. Traders reckon the central bank is done cutting this year. A hawkish tone at July's meeting, an EU-U.S. trade deal and better-than-expected data since then have wiped bets on further easing. Traders now see around a 30% chance of a rate cut by December, having nearly fully priced that move before the July meeting. Economists polled by Reuters , opens new tab also reckon the ECB is done for 2025. Policymakers last time wanted to remain "deliberately uninformative , opens new tab" about future decisions. Markets will face another guessing game as traders try to read between the lines during ECB chief Christine Lagarde's news conference. Expect her to also be pushed on what renewed political turmoil in France and the risk of a deterioration in U.S. Federal Reserve independence means for the euro zone economy. 4/ BIG IN JAPAN Data from China and Japan will be closely watched for signs of how U.S. President Donald Trump's mercurial tariff policy is impacting Asia's biggest economies. China trade data is due on Monday for August when talks between Beijing and Washington went down to the wire to extend a trade truce and forestall the imposition of more than 100% tariffs on each other's goods. The previous print showed Chinese exports grew a better-than-expected 7.2% in July, but a breakthrough with the Trump administration remains distant. Wednesday's Reuters Tankan index of Japanese manufacturers' sentiment, tracking the central bank's own gauge, may offer clarity on how Japan Inc is weathering the trade turmoil. Uncertainty over the tariff hit has stayed the Bank of Japan's hand on rate hikes. 5/ BLACK AND GOLD Gold has again scaled record highs, boosted by uncertainty around the global economic outlook, U.S. trade policy and the fate of King Dollar after Trump's battle with the Fed triggered a high-stakes legal challenge and raised fresh concerns over central bank independence. Analysts predict the run isn't quite over yet for the ultimate safe haven after spot gold prices hit a record high of $3,578.50 in recent days, and central banks joining the push to stock up on the precious metal. But there's less of a shine on oil. On Sunday, OPEC+ agreed to further raise oil production from October as its leader Saudi Arabia pushes to regain market share, while slowing the pace of increases compared with previous months due to an anticipated weakening of global demand The deal also means OPEC+ - which pumps half the world's oil - has begun to unwind a second tranche of cuts of about 1.65 million bpd by eight members more than a year ahead of schedule. https://www.reuters.com/business/take-five/global-markets-themes-update-1-graphic-2025-09-05/

2025-09-05 07:58

Gold up 3% this week after hitting a record high on Wednesday US non-farm payrolls data due at 1230 GMT Fed officials consider rate cuts due to labour market concerns Sept 5 (Reuters) - Gold prices edged higher on Friday and were on track for their best weekly gain in three months, as expectations of a Federal Reserve rate cut bolstered bullion's appeal and investors awaited U.S. non-farm payrolls data due later in the day. Spot gold was up 0.1% at $3,548.49 per ounce, as of 0934 GMT. Bullion has risen 3% so far this week. Sign up here. U.S. gold futures for December delivery were steady at $3,605.10. U.S. jobless claims rose more than expected last week, while the ADP National Employment Report showed private payrolls grew below forecasts in August, both signalling further signs of a weakening labour market. Investors are now focused on the U.S. non-farm payrolls report, due at 1230 GMT, which is expected to show an increase of 75,000 jobs in August, according to a Reuters poll, compared with 73,000 in July. Gold's short-term direction hinges on the U.S. jobs report and its influence on rate-cut expectations, bond yields, and the dollar, with a weak NFP print driving prices toward $3,650, while support at $3,450 to $3,500 remains key, said Ole Hansen, Saxo Bank's head of commodity strategy. Several Federal Reserve officials speaking earlier this week pointed to labour market concerns as a key factor supporting the case for rate cuts. Traders anticipate the Fed will deliver its first rate cut of the year, lowering interest rates by 25 basis points at the conclusion of its two-day policy meeting starting on September 17. FEDWATCH Gold, which hit a record high of $3,578.50 on Wednesday, offers no yield and typically performs well in a low-interest-rate environment. "The combination of lower funding costs, Fed independence concerns, geopolitical risks, a steepening yield curve spiced with a weaker dollar all points to further gains in precious metals," Hansen said. Elsewhere, spot silver rose 0.2% to $40.76 per ounce and was heading for its third straight weekly gain. Platinum gained 1% to $1,381.17 and palladium was down 0.7% at $1,119.23. https://www.reuters.com/world/india/gold-heads-best-week-three-months-ahead-us-jobs-data-2025-09-05/

2025-09-05 07:57

KYIV, Sept 5 (Reuters) - Ukrainian President Volodymyr Zelenskiy said he would meet European Council President Antonio Costa and Slovak Prime Minister Robert Fico in Kyiv on Friday to discuss energy issues. Ukraine's deputy energy minister Roman Andarak said in Copenhagen on Friday that Zelenskiy was expected to discuss a phase-out of Russian oil deliveries via Ukraine with Fico during their meeting. Sign up here. Slovakia is heavily reliant on supplies of oil from Russia via the Druzhba pipeline, whose infrastructure Ukrainian drones have attacked recently, causing repeated disruptions in supply that elicited a furious reaction from Bratislava. Ukraine, battling a full-scale Russian invasion since February 2022, has repeatedly called on other countries to stop buying Russian oil to deprive Moscow of funds to wage its war. https://www.reuters.com/world/europe/zelenskiy-meet-eus-costa-slovakias-pm-energy-issues-2025-09-05/

2025-09-05 07:32

Two powerful aftershocks strike within 12 hours More than 6,700 homes destroyed, survivors stay in the open Rescuers slowed by landslides, blocked roads, rough terrain WHO warns of disease, overcrowding, lack of sanitation UN says money running low, plans emergency funding appeal JALALABAD, Afghanistan, Sept 5 (Reuters) - Two powerful aftershocks struck eastern Afghanistan 12 hours apart, triggering fears of more deaths and destruction on Friday in a region where earthquakes have killed about 2,200 people as rescuers battled mountainous terrain and harsh weather. Survivors in the earthquake-prone region are scrambling for basic amenities as the United Nations and other agencies warn of a critical need for funds, food, medical supplies and shelter, with the World Health Organization seeking funds of $4 million. Sign up here. The latest aftershocks follow two earthquakes that ravaged a nation already crushed by war, poverty and shrinking aid. The Taliban administration estimated 2,205 deaths and 3,640 injuries by Thursday. Ambulances ferried to hospital 13 people injured after Thursday night's tremor of magnitude 6.2 in Nangarhar province, with its epicentre in the district of Shiwa near the Pakistan border, said regional health spokesman Naqibullah Rahimi. Ten were discharged after treatment and three were in stable condition, he added. A Reuters witness said details of the damage were still being collected after continuous aftershocks in Nangarhar, with its capital Jalalabad about 150 km (95 miles) from Kabul. Friday's earthquake of magnitude 5.4 struck the southeast at a depth of 10 km (6.2 miles), the German Research Center for Geosciences (GFZ) said, just hours after Thursday's event. With houses built mostly of dry masonry, stone, and timber, some families preferred to stay in the open to guard against shocks, rather than return home. Residents of the Nurgal district of Kunar have left their homes to live in tents, on the surrounding high land near a river, or in the open, for fear of more tremors. Fallen rocks and earth blocked access to some badly affected villages, holding up rescue and relief efforts, they said. The week's first earthquake of magnitude 6, just before midnight on Sunday, was one of Afghanistan's deadliest, unleashing damage and destruction in Nangarhar and Kunar provinces when it struck at a shallow depth of 10 km (6 miles). A second quake of magnitude 5.5 on Tuesday caused panic and interrupted rescue efforts as it sent rocks sliding down mountains and cut off roads to villages in remote areas. The two initial quakes flattened villages in both provinces, destroying more than 6,700 homes, and rescue workers pulled bodies from the rubble on Thursday. Afghanistan's earthquakes mainly happen in the Hindu Kush mountain range, where the Indian and Eurasian tectonic plates meet. FUNDING CRISIS Landslides and debris on key roads hampered relief work, the WHO said, as it called for more funds to provide healthcare and disease surveillance. "A funding gap of at least $4 million threatens to delay critical activities, underscoring the urgent need for international support," it added in a statement. It warned of the risk of disease, stemming from overcrowded shelters, unsafe water and inappropriate waste management, while an influx of Afghans recently deported from Pakistan strains the fragile healthcare system. Afghanistan's Taliban government made an urgent appeal for international aid soon after Sunday's disaster. But relief has been scant in a country largely ignored by the world since the Taliban takeover in 2021, that is struggling to accommodate millions of Afghans expelled from neighbouring Iran and Pakistan, as well drought victims in its north. The United Nations, which has said money to help quake victims will run out soon, plans to launch an emergency appeal for funds, a senior official in the country said. It has released $10 million, more than the trickle of cash announced by rich nations, though some have sent assistance such as tents. "We have some seed funding, but we are looking to make a flash appeal," Kate Carey, deputy head of the UN’s humanitarian affairs coordination office for Afghanistan, told Reuters. https://www.reuters.com/business/environment/two-powerful-aftershocks-pummel-afghanistan-after-earthquakes-kill-2200-2025-09-05/