2025-08-26 11:46
Groups led by Mitsubish won projects to provide 1.76 GW Mitsubishi Corp spokesperson says nothing decided yet Japan seeking energy security, proposes extending wind project leases TOKYO, Aug 26 (Reuters) - Mitsubishi Corp (8058.T) , opens new tab-led consortia are preparing to withdraw from three offshore wind power projects in Japan's Chiba and Akita prefectures due to concerns over profitability, the Nikkei business daily reported on Tuesday. Japan, the world's second liquefied natural gas (LNG) buyer after China, has turned to wind and solar energy as well as nuclear power station restarts to bolster energy security and achieve carbon neutrality by 2050. Sign up here. In 2021, groups led by Mitsubishi were selected to operate three projects in the Akita prefecture in the north and the Chiba prefecture to the east of Tokyo, with total projected capacity of 1.76 gigawatt (GW) to be launched in 2028-2030. A Mitsubishi Corp spokesperson told Reuters nothing had been decided, adding that the company is still examining its domestic offshore power projects. Japan's industry ministry, or METI, could not be immediately reached for a comment. Japan is targeting future offshore wind farm capacity of 10 GW by 2030 and 45 GW by 2040. It has held three offshore wind auctions, the first of which, for the projects in Akita and Chiba, was won by the Mitsubishi-led consortia. Sources have said Japan was likely to sweeten terms for offshore wind developers, including foreign players such as Germany's RWE (RWEG.DE) , opens new tab, Spain's Iberdrola (IBE.MC) , opens new tab and BP (BP.L) , opens new tab, as some other players decided to quit. In a sign of commitment to the offshore wind industry despite Mitsubishi's issues, Japan's industry and land ministries on Tuesday proposed revising guidelines to extend offshore wind project leases by 10 years, from the current 30, to help developers manage soaring construction costs and complete projects. In February, Mitsubishi said it was reviewing how to proceed with its offshore wind projects in Japan given a "significantly changed" business environment, showing Japan's vulnerability to rising costs across offshore wind projects globally. Earlier this year, METI acknowledged the renewable energy rollouts could be behind the schedule, predicting that Japan's demand for LNG could be on the rise again as artificial intelligence booms, after years of decline. https://www.reuters.com/business/energy/mitsubishi-led-groups-withdraw-three-offshore-wind-projects-japan-nikkei-says-2025-08-26/
2025-08-26 11:39
BEIJING, Aug 26 (Reuters) - Losses at China's top solar manufacturers mostly widened in the first half of 2025, but analysts said restructuring to cut oversupply could help return the industry to profitability. In a rare bright spot, Longi Green Energy's net loss narrowed to 2.6 billion yuan ($364 million) in the first six months of the year from 5.2 billion yuan a year earlier. Sign up here. Huatai Securities analysts in a Monday note attributed the improvement to "strengthened internal management" leading to lower costs and reduced asset impairment losses, while a surge in domestic solar panel installations because of frontloading had also supported sales. A series of meetings involving a widening circle of government ministries has signalled that authorities are taking more seriously a campaign to crack down on deflationary price wars, where companies have sold at below cost to undercut competitors. "Progress on domestic 'anti-involution' measures has been smooth, which may support an industry chain profitability recovery," the Huatai analysts said. Other top manufacturers' losses widened. Jinko Solar's (601778.SS) , opens new tab first-half net loss was 2.6 billion yuan, compared with 87 million yuan a year earlier. Jinko cited falling solar module prices as a result of rising production capacity, supply-demand imbalances and trade barriers. Trina Solar (688599.SS) , opens new tab swung to a loss of 2.9 billion yuan from a year earlier net profit of 526 million yuan, as module sales increased but prices fell. However, its energy storage business recorded its first-ever quarterly profit in the second quarter, according to Citi analysts. Signalling further expansion, Trina is making a capital injection of 800 million yuan into the subsidiary, according to a June filing. JA Solar's (002459.SZ) , opens new tab losses widened to 2.58 billion yuan from 874.2 million, while Tongwei (600438.SS) , opens new tab reported the biggest loss of the five, at 5 billion yuan, up from 3.1 billion a year earlier. Analysts including Huatai Securities and Citi maintained a "buy" rating on Tongwei on the expectation that the upstream polysilicon segment, in which Tongwei is also a major player, would benefit most from restructuring. https://www.reuters.com/sustainability/climate-energy/chinas-solar-industry-losses-balloon-falling-prices-2025-08-26/
2025-08-26 11:35
Aug 26 (Reuters) - China's net gold imports via Hong Kong rose 126.81% in July from June, Hong Kong Census and Statistics Department data showed on Tuesday. WHY IT'S IMPORTANT As the world's leading gold consumer, China's purchasing activities can significantly influence global gold markets. Sign up here. The Hong Kong data may not provide a complete picture of Chinese purchases, as gold is also imported via Shanghai and Beijing. BY THE NUMBERS Net imports via Hong Kong to China for July stood at 43.923 metric tons, compared to 19.366 tons of net imports in June. China's total gold imports via Hong Kong reached 58.296 tons in July, down 67.91% from 34.719 tons in June. CONTEXT China's central bank added gold to its reserves in July, its ninth consecutive month of purchases, official data showed earlier this month. Global gold demand including over-the-counter (OTC) trading rose by 3% year-on-year to 1,248.8 metric tons in the second quarter of 2025 as investment jumped 78%, the World Gold Council said last month. KEY QUOTE "I guess Chinese investors still are looking at gold [to diversify their asset base], and therefore we have seen a shift in flows towards China in July," said UBS commodity analyst Giovanni Staunovo. "Also the Shanghai gold price traded above the London price most of the time in July, an indication of solid demand last month, although this month it was less so," Staunovo added. https://www.reuters.com/world/asia-pacific/chinas-net-gold-imports-via-hong-kong-more-than-doubled-july-2025-08-26/
2025-08-26 11:34
NEW DELHI, Aug 26 (Reuters) - India is exploring the idea of using gas-fired power plants only to meet the surge of electricity demand during the peak summer months of May and June due to higher costs, an adviser to the power ministry said on Tuesday. The share of gas in India's power generation has fallen to about 1.5% from 3% in 2020, as prices have hit $12 per million British thermal units and ranged between $8 and $18 over the last two years, meaning other forms of generation are much cheaper. Sign up here. More carbon-intensive coal-fired generation typically accounts for about 75% of India's electricity mix. The country is trying to increase its use of renewable power. Chairman of the Central Electricity Authority Ghanshyam Prasad, speaking at the Indo-American Chamber of Commerce energy summit in New Delhi on Tuesday, did not give details on how gas-fired generation would be supported. However, he said the government had in May drawn up a 100-day plan to ensure gas-based plants could be used if needed to meet demand, and that it provided for a contract structure, including support for startup costs and gas price fluctuations. The government also reduced the capacity of gas plants connected to the grid to 20 gigawatts from 25 gigawatts after some were found unfit to be operated following years of being idled because of high gas prices. Of this capacity, Prasad said India deployed around 13-14 GW last year during the high-demand period. This year's heavy rains and reduced demand for cooling, as well as economic slowdown, have curbed power demand, meaning India's need for gas generation was limited. Power demand at its peak was 242 GW compared to predicted 270 GW. https://www.reuters.com/sustainability/boards-policy-regulation/india-explores-using-costly-gas-fired-power-meet-peak-demand-2025-08-26/
2025-08-26 11:32
US fuel storage investment in Indonesia discussed Indonesia wants to attract investors into industrial parks Focus on silica sand processing for solar panels, semiconductors JAKARTA, Aug 26 (Reuters) - The United States has agreed in principle to exempt Indonesian exports of cocoa, palm oil and rubber from the 19% tariff imposed by President Donald Trump since August 7, Indonesia's top trade negotiator said on Tuesday. The exemption will take effect once both sides reach a final agreement, but no timeline has been set because the U.S. is busy in tariff talks with other countries, Airlangga Hartarto, who is also the chief economic minister, told Reuters. Sign up here. The two countries also discussed potential U.S. investment in fuel storage in Indonesia in partnership with the Southeast Asian nation's sovereign wealth fund Danantara and state energy firm Pertamina, Airlangga said in an interview. "We are waiting for their response, but during the meeting, basically, the principal (exemption) has been agreed for products not produced in the U.S., such as palm oil and cocoa and rubber ... it will be zero or close to zero," he added. The U.S. embassy in Jakarta did not immediately respond to a request for comment. Indonesia is the world's biggest exporter of palm oil and a major rubber supplier. CERTAINTY ON TARIFFS Indonesia, the region's largest economy, was among the first nations to strike a tariff deal with Trump in July, but Jakarta ended up facing the same rate as some other countries, such as Thailand and Malaysia, and just below Vietnam's figure of 20%. During the talks, Indonesia offered billions of dollars worth of investment in the U.S. and purchases of American crude, LPG, planes and farm products. It also promised zero tariffs on almost all U.S. goods entering its market. Airlangga said certainty over U.S. tariffs and recent progress in talks about a free trade agreement with the European Union could boost Indonesia's economic growth, helping the government reach a 5.4% target for 2026, up from an estimate of about 5% this year. "They bring an optimistic perception from the global market since most investors are looking for certainty and Indonesia is one of the countries that provide global certainty," he said. Jakarta wants to draw foreign investors to help develop industrial facilities, particularly in the processing of its key commodities, Airlangga said, replicating the success the country has seen in bringing Chinese investment into nickel projects. Airlangga said the government is also keen to boost investment in silica sand processing, including the production of solar panels and wafers for semiconductors. https://www.reuters.com/world/asia-pacific/indonesia-says-us-agrees-tariff-exemption-its-palm-oil-cocoa-rubber-2025-08-26/
2025-08-26 11:30
Trump says he is firing Fed governor Lisa Cook President's move fuels concerns over Fed independence Safe haven gold, German bonds rally, oil falls French markets hit by political turmoil LONDON, Aug 26 (Reuters) - Long-dated U.S. Treasuries and stock futures slipped on Tuesday after President Donald Trump said he was firing a Federal Reserve governor, an unprecedented move that fuelled investor concerns about the Fed's independence. French stocks and bonds also tumbled as France's minority government looked increasingly likely to be ousted next month, raising the spectre of renewed political instability in one of the euro zone's biggest economies. Sign up here. World stocks edged off this month's record highs, with focus on U.S. markets after Trump said he was removing Lisa Cook from the Fed's board of directors, citing alleged improprieties in obtaining mortgage loans. Cook said through her lawyers that Trump's "demands lack any proper process, basis or legal authority". Gold prices touched a two-week high, U.S. equity futures , fell and the dollar was on the back foot, as Trump also renewed tariff threats on trade partners. Japan's Nikkei closed down almost 1% (.N225) , opens new tab and Europe's broad STOXX 600 index was last down 0.6% (.STOXX) , opens new tab as the U.S. president's latest salvo on the Fed muddied the outlook for Fed policy. "Since he took office, Trump has managed to get his way on most things he has turned his attention to," said RBC BlueBay Asset Management Chief Investment Officer Mark Dowding. "In this context, it may seem reasonable for markets to conclude that he may end up getting his way with the Federal Reserve." In London trade, the benchmark U.S. 10-year Treasury yield rose 2.5 basis points to 4.30%, while 30-year bond yields rose 4 bps to 4.94%. The two-year Treasury yield, which typically moves in step with interest rate expectations for the Fed, fell 2 bps to 3.71% as investors continue to anticipate lower rates. Trump has regularly threatened to dismiss Fed Chair Jerome Powell, and earlier this month he fired a top Labor Department official after accusing her, without evidence, of manipulating jobs data that had disappointed him. Trump, who lacks the legal authority to fire the Fed chair except "for cause", has backed away from that threat as Powell gets closer to the expiration of his term next May. Cook's exit from the Fed could speed up the president's reshaping of the rate-setting Federal Open Market Committee. Her term had been due to end in 2038. Extending months of turmoil over on-again, off-again tariff policies, Trump also threatened "subsequent additional" import duties on countries with digital taxes. NVIDIA EARNINGS In currency markets, the euro rose around 0.2% to $1.1642. The dollar was also a touch softer at 147.60 yen . That all left the dollar index , which tracks the greenback against a basket of currencies, 0.2% softer after a 0.7% gain on Monday. Tim Graf, head of macro strategy for EMEA, State Street, said he remained bearish on the outlook for the dollar. "We've started to see a lot of selling of the dollar from institutional investors again," he said. "They are willing to build overweights in euros." Friday's U.S. personal consumption prices reading, considered the Fed's preferred inflation gauge, could provide the next steer on the rate outlook, while in stock markets Nvidia earnings on Wednesday were also moving into focus. "Nvidia earnings matter, it will give us insight into the AI space, as well as what’s happening at the current poster-child for the tech sector," said Guy Miller, chief market strategist at Zurich Insurance Group. "It will be interesting to see what guidance is given." FRANCE WOES In Europe, French bonds and stocks tumbled, particularly banking shares, as the minority government looked increasingly likely to be ousted next month. Main opposition parties said they would not back the government in a September 8 confidence vote called by Prime Minister Francois Bayrou over his plans for sweeping budget cuts. France's blue chip CAC40 index was last down 1.5% (.FCHI) , opens new tab with banking giants BNP Paribas (BNPP.PA) , opens new tab and Societe Generale (SOGN.PA) , opens new tab bearing the brunt of selling. France's 10-year government bond yield rose to 3.53%, its highest since March . When a bond's yield rises, its price falls. "We are heading into budget season which is why this (French selloff) is happening," State Street's Graff said. Elsewhere, oil prices fell after surging nearly 2% in the previous session as traders monitor developments surrounding the war in Ukraine and potential disruption to Russian fuel supplies. Brent crude oil weakened 1.5% to $67.78 a barrel and U.S. crude fell 1.7% to $63.71. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-08-26/
