2025-08-20 12:30
Aug 20 (Reuters) - China’s Sinopec Shanghai Petrochemical Co (600688.SS) , opens new tab swung to a net loss in the first half of 2025 as weaker demand hit sales of refining and chemical products, the company reported late Wednesday. Sinopec reported a net loss of 462.1 million yuan ($64.40 million) for the period from January to June, according to the report. That compares with 27.9 million yuan profit the prior year. Sign up here. Net sales were 33.498 billion yuan, down 10.66% year-on-year, with net sales of refining products and chemicals falling 16.14% and 3.21%, respectively. The company said the market remains challenging, with strong supply and weak demand, rising penetration of new-energy vehicles squeezing fuel demand, and the chemical sector still at a cyclical low. Weaker market demand drove a 6.72% decline in refining product sales volumes. With crude prices falling, weighted average selling prices across all segments also declined from a year earlier, the company said. Refinery throughput was 6.33 million metric tons in the six-month period, down 4.93% year-on-year. Diesel production fell 13.56% and aviation fuel declined 8.62% year-on-year, while gasoline slightly rose 0.14%. Output of ethylene, a key building block for petrochemicals, rose 24.34% to 273,300 tons in the first half. Capital expenditure was 408 million yuan in the first half of 2025, mainly allocated to construction work for the Shanghai Petrochemical cogeneration unit clean-efficiency upgrade. Sinopec Shanghai Petrochemical’s Shanghai-listed shares closed at 2.90 yuan on Wednesday, up 1.75% on the day. The stock is down 4.3% year-to-date, while the SSE Composite Index has risen 12.37% over the same period. ($1 = 7.1757 Chinese yuan renminbi) https://www.reuters.com/business/energy/chinas-sinopec-shanghai-petrochemical-first-half-profit-slides-2025-08-20/
2025-08-20 12:19
Trump says US may provide air support to back a Ukraine deal API shows weekly US crude, gasoline stocks fell BP says Whiting refinery operations hit by flooding LONDON, Aug 20 (Reuters) - Oil prices rose on Wednesday as the American Petroleum Institute reported a drop in U.S. crude inventories and investors awaited the next steps in talks to end the Ukraine war, with sanctions on Russian crude remaining in place for now. Crude fell more than 1% on Tuesday on optimism that an agreement to end the war seemed closer. However, U.S. President Donald Trump conceded that Russian President Vladimir Putin might not want to make a deal. Sign up here. Brent crude futures rose 71 cents, or 1.1%, to $66.50 a barrel by 1207 GMT. U.S. West Texas Intermediate crude futures for September delivery, set to expire on Wednesday, gained 84 cents, or 1.4%, to $63.19. "It seems oil prices are thrown down one day, followed by a rebound the next day. The API report was on the positive side, so I assume some price support is coming from that," said Giovanni Staunovo, an analyst at UBS. U.S. crude stocks fell by 2.42 million barrels, market sources said on Tuesday, citing American Petroleum Institute figures, ahead of official data at 1430 GMT. "Not so sure about the peace deal - will have to see if something moves forward over the coming days," Staunovo added. Trump said on Tuesday the United States might provide air support as part of a deal to end Russia's war in Ukraine. A day earlier, Trump said he was arranging a meeting between Putin and Ukrainian President Volodymyr Zelenskiy to be followed by a trilateral summit among the three presidents. Russia has not confirmed it will take part in talks with Zelenskiy. "The likelihood of a quick resolution to the conflict with Russia now seems unlikely," said Daniel Hynes, senior commodity strategist at ANZ, in a note on Wednesday. Oil also found support from flooding at a large U.S. refinery. BP (BP.L) , opens new tab said on Tuesday operations at its 440,000-barrel-per-day refinery in Whiting, Indiana, were affected by flooding after a severe thunderstorm, potentially weighing on crude demand at the facility - a key fuel producer for the Midwest market. https://www.reuters.com/business/energy/oil-firms-investors-await-next-steps-ukraine-peace-push-2025-08-20/
2025-08-20 12:12
UK inflation set to hit 4% after 3.8% reading in July Bank of England has hinted at slower interest rate cuts Academic sees 4% as important threshold level UK inflation higher than elsewhere in G7 BoE expects jobs slowdown to ease price growth LONDON, Aug 20 (Reuters) - British inflation looks set to hit 4% next month, double the Bank of England's target and a level likely to add to nervousness at the central bank about the risk of price growth getting stuck at a stubbornly high rate. Consumer prices climbed by 3.8% in July, data showed on Wednesday, the fastest annual rise for a Group of Seven economy and approaching the BoE's forecast of a 4% peak in September. Sign up here. While below the four-decade high of 11.1% reached in October 2022, when energy prices were surging after Russia's invasion of Ukraine, July's reading was the strongest in 18 months. By comparison, U.S. inflation held at 2.7% in July and in the euro zone it is expected to stay around 2%. British inflation has been above the BoE's 2% target almost constantly since May 2021. Little wonder then that the central bank - which saw its standing fall in the eyes of the public when inflation jumped in 2022 - has suggested that its already gradual run of interest rate reductions might slow, even with the jobs market weakening. That would be a blow to Prime Minister Keir Starmer and finance minister Rachel Reeves who are seeking to speed up Britain's slow-moving economy. They have pointed to the five rate cuts since they came into office as a sign of progress. The BoE's quarter-point cut to its benchmark rate on August 7 was opposed by almost half of its monetary policymakers. One of them, Catherine Mann, pointed in March to research in the United States showing that public attentiveness to inflation doubles when price growth hits 4%. The research, by Oliver Pfaeuti, a University of Texas assistant professor, found the increased U.S. public awareness of inflation "substantially amplified the already inflationary supply shocks and rendered inflation more persistent". Thomas Pugh, chief economist at accountancy firm RSM UK, said inflation at 4% was probably not an automatic trigger for long-lasting economic damage but "there is some pretty good evidence that consumers and businesses are paying a lot more attention to inflation". He noted that September's data would be used to set rail fares and student loan repayments and by some pension schemes. "There is a genuine risk of some higher inflation becoming baked into the system," Pugh said. Many businesses are caught between the burden of rising costs and the risk of losing customers also under strain. Steve Hardeman, managing director of Clevedon Fasteners, which makes rivets and other parts for construction and engineering firms, said his firm had raised prices around five times since 2022 in response to higher electricity bills and labour costs. "We’re looking at increasing our prices again because of things that are coming down the line," he said. Nimisha Raja, founder of food manufacturer Nim's, said she had seen a lot of "opportunistic" price rises. She pushed back when one supplier sought to raise the price of courgettes by another 5% after a 30% increase earlier this year. "I said we can’t afford to do that because we can’t pass this cost on to our customers. And they did back down." BANK OF ENGLAND ON ALERT The BoE has become increasingly alert to the risk of inflation getting stuck too high. But it is counting on a gradual deceleration in wage growth to continue. At around 5% a year, it is down from almost 8% two years ago but remains far above the 3% level that the BoE thinks is consistent with its 2% inflation target. Despite a slowdown in payrolls numbers, some employers are still scrambling to retain staff. The British arm of German supermarket Lidl said last week it would give workers a fifth pay rise in two years, matching an increase at rival Aldi. Many other firms are taking a more cautious approach. Private-sector pay settlements held at 3% in the three months to July and uncertainty about the economy suggest further caution ahead, data firm Brightmine said on Wednesday. Inflation hitting 4% in September was unlikely to affect pay settlements for early 2026, Sheila Attwood, HR insights and data lead at Brightmine, said. But if inflation holds around 4% in the following months, that could have an impact in the spring, she said. The head of a major trade union group responded to Wednesday's inflation figures by saying workers needed immediate pay rises. "The time for action is now," Unite general secretary Sharon Graham said. The BoE has forecast inflation to slow to 3.6% in December and average 2.5% over 2026 before returning to 2% only in the second quarter of 2027. However, the central bank said the risk of higher-than-expected inflationary pressures had risen. Robert Wood, chief UK economist at Pantheon Macroeconomics, expects inflation to be higher than the BoE does at 2.7% in 2026 and close to 2.5% in 2027, in part because he assumes finance minister Reeves will end a car fuel duty freeze and may resort to other tax hikes to stay on track for her budget targets. Wood predicts the BoE has now reached the end of its rate-cutting cycle. For now, however, most economists think the jobs market slowdown will allow for borrowing costs to be lowered further. A Reuters poll of analysts showed most expect a rate cut in November and another in early 2026. "There is always a risk that wages react to higher inflation, but at least this is not 2021," Philip Shaw, chief economist at Investec, said, pointing to a rise in unemployment, more people entering the workforce and no energy price surge. "It may be an environment where the Monetary Policy Committee chooses to be cautious but the labour market currently looks too weak to pose a major, medium-term inflationary threat." https://www.reuters.com/sustainability/sustainable-finance-reporting/uk-inflation-heat-puts-bank-england-back-spotlight-2025-08-20/
2025-08-20 12:03
OSLO, Aug 20 (Reuters) - Danish energy trader InCommodites, backed by Goldman Sachs (GS.N) , opens new tab, has appointed former Gunvor executive Rich Brockmeyer as its new CEO for North America as it plans to accelerate its push into the U.S. power and gas market, the group said on Wednesday. Brockmeyer most recently oversaw North American natural gas and power operations at energy trader Gunvor, where he also served on the executive committee, and will join InCommodities from September 2, the company said. Sign up here. He will work from Stamford, Connecticut, where InCommodities will set up a new office and oversee the expansion of the trading firm's U.S. gas and power trading desk. "We are not just expanding - this will be an aggressive buildout to scale and seize opportunities in a quickly changing North American market," Brockmeyer said in a statement. The company has traded power in North America since 2020, and already has an office in Austin, Texas, and has expended into gas trading in 2024. Its North American business currently consists of around 30 people, a number expected to at least double in the coming years, InCommodities said, expecting the U.S. energy market to grow rapidly. While the renewable energy build-out will create more market volatility, increased demand from data centres and artificial intelligence applications as well as the expansion of storage, are also reshaping demand and flexibility, Brockmeyer said. This creates a clear need for faster, tech-driven approaches to trading, giving an edge to InCommodities, which already takes a data-driven decision making process and utilises algorithmic trading, he added. The company, in which Goldman Sachs and some other investors own a 15% stake, is one of Europe's fastest-growing energy trading companies, with expansion previously focused on new renewable energy offerings and Asia-Pacific power markets. https://www.reuters.com/business/energy/danish-trader-incommodities-appoints-gunvors-brockmeyer-head-up-us-expansion-2025-08-20/
2025-08-20 11:59
NEW DELHI, Aug 20 (Reuters) - India's infrastructure output (ININFR=ECI) , opens new tab grew 2% year-on-year in July, government data showed on Wednesday. The index, which tracks activity across eight sectors and makes up 40% of the country's industrial production, grew at a revised 2.2% in June, compared to the initial estimate of 1.7%. Sign up here. KEY NUMBERS * Crude oil output fell 1.3% year-on-year in July against a revised fall of 1.2% in June * Natural gas production fell 3.2% year-on-year in July after a decline of 2.8% in June * Cement output rose 11.7% year-on-year in July compared with a revised 8.2% increase in June * Steel production increased 12.8% year-on-year in July after a revised 9.7% growth in June * Fertiliser production rose 2% year-on-year in July after a drop of 1.2% in June * Coal production fell 12.3% year-on-year in July against a fall of 6.8% in the previous month * Electricity generation rose 0.5% year-on-year in July against a revised drop of 1.2% in June * Refinery products output fell 1% year-on-year in July after a growth of 3.4% in the previous month https://www.reuters.com/world/india/indias-infrastructure-output-grows-2-year-on-year-july-2025-08-20/
2025-08-20 11:59
BERLIN, Aug 20 (Reuters) - China has requested dispute consultations at the World Trade Organization regarding Canadian surtaxes and quotas on steel and aluminium goods, the WTO said on Wednesday. The disputed measures include a surtax in the form of tariff rate quotas on certain steel imports originating from Canada's non-free trade agreement partners, including China, a notice from the WTO said. Sign up here. China is also challenging a surtax on certain goods that contain steel or aluminium originating from China, it added. https://www.reuters.com/markets/commodities/china-launches-wto-dispute-with-canada-steel-aluminium-surtaxes-2025-08-20/
