2025-07-21 06:27

ANKARA, July 21 (Reuters) - Turkey wants to negotiate a new agreement with Iraq to revive operations at an oil pipeline between the two countries that were halted during a dispute over unauthorised Iraqi exports, a senior Turkish official told Reuters on Monday. In a decision published in its Official Gazette on Monday, Turkey said the existing deal dating back to the 1970s - the Turkey-Iraq Crude Oil Pipeline Agreement - and all subsequent protocols or memorandums would be halted from July 27, 2026. Sign up here. Iraq and Turkey have been working to resume oil flows from the pipeline running to Turkey's Ceyhan port following Turkey's move to halt them in March 2023 after the International Chamber of Commerce ordered Ankara to pay Baghdad $1.5 billion in damages for unauthorised exports between 2014 and 2018. Turkey has appealed against the ruling. Ankara has said it is ready to resume operations, but talks to do so hit a snag in March over payments and contracts. The official said the pipeline had the potential to become a "highly active and strategic pipeline for the region". The person added that Turkey had invested heavily in its maintenance, and noted its importance for regional projects like the Development Road - a planned trade route involving Turkey and Iraq. "A new and vibrant phase for the Iraq-Turkey pipeline will benefit both countries and the region as a whole," the official said, without giving details of what Ankara wanted the new agreement to include. There was no immediate comment from Iraq on the decision. https://www.reuters.com/business/energy/turkey-says-pipeline-agreement-with-iraq-expire-july-2026-2025-07-21/

2025-07-21 06:16

EU faces rising imports and dependency on foreign chemicals Around 40% of EU's ethylene capacity at risk of closure North America and Middle East benefit from cheaper raw materials Factbox giving details of plant closures in Europe MILAN/NEW DELHI/HOUSTON, July 21 (Reuters) - Europe's petrochemical industry is unravelling under a wave of plant closures after years of losses and a rapid expansion of global capacity led by China. High production costs and ageing plants have left European producers struggling, making the region increasingly dependent on imports of primary chemicals such as ethylene and propylene, the building blocks for plastics, pharmaceuticals and countless industrial goods. Sign up here. "While the rest of the world is building over 20 new crackers, Europe is sleepwalking into industrial decline," Jim Ratcliffe, founder of INEOS said during a recent event, referring to a unit in petrochemical plants. The billionaire made his money buying up petrochemical plants from BP (BP.L) , opens new tab and others, and along with other industry leaders has criticised a lack of political action. The European Commission responded this month with a pledge to support domestic production of chemicals deemed strategic for its industries, such as ethylene and propylene. It plans to expand state aid to modernise plants and require public tenders give preference to goods made in Europe - similar to the EU's 2023 legislation for metals and minerals. But the move may be too late to reverse the damage. "It's like being on the Titanic — you can't stay in denial. You must go and find a lifeboat," said Giuseppe Ricci, head of industrial transformation at Italian energy group Eni. Eni's (ENI.MI) , opens new tab chemical business Versalis accumulated over 3 billion euros ($3.5 billion) in losses in the last five years, Ricci said, as the firm shuts down Italy's last two steam crackers and invests 2 billion euros in bio-refineries and chemical recycling. Other global groups Dow (DOW.N) , opens new tab, ExxonMobil (XOM.N) , opens new tab, TotalEnergies (TTEF.PA) , opens new tab, and Shell (SHEL.L) , opens new tab are also closing or reviewing their European chemical assets. Most of the planned closures target crackers - a unit that turns hydrocarbons into ethylene, propylene or other primary chemical materials. A document issued by eight EU countries on petrochemicals in March said that 50,000 jobs could be at risk due to potential closures of more crackers in Europe by 2035. The EU's plants are mainly small and mid-sized and have been running at an average utilisation rate below 80% - a level considered uneconomical. Up to 40% of the EU's ethylene capacity — which totals 24.5 million metric tons — is at high or medium risk of closure, including shutdowns announced since late 2024, according to consultancy Wood Mackenzie. "The proportion of European crackers at risk is much higher than in other regions," said Robert Gilfillan, head of plastics and recycling markets at Wood Mackenzie. While older European plants use naphtha as a raw material, the United States and the Middle East use cheaper feedstocks like ethane — a by-product of shale gas. NEW DEPENDENCY North America's ethylene capacity will grow to 58 million metric tons by 2030 from 54 million currently, according to consulting firm ADI Analytics. China, meanwhile, will add 6.5% to its ethylene capacity every year between 2025 and 2030, when it will produce nearly 87 million metric tons of ethylene annually, China National Chemical Information Centre CEO Huang Yinguo said in May. That's more than triple the EU's current capacity. Chinese producers are also building outposts in Southeast Asia to export to Europe and North America to bypass carbon taxes and Western tariffs on China-made goods. Japanese and South Korean firms, unable to compete, have kept utilization rates low since 2023, the countries' petrochemical industry bodies said in reports in May. European policymakers now face a stark choice: intervene decisively or watch the continent's chemical backbone erode. In their March document, countries including France, Italy and Spain called for a "Critical Chemicals Act", as latest EU data shows the region was a net importer of ethylene and propylene each year in the period 2019-2023. EU Industry Commissioner Stéphane Séjourné said Brussels will identify strategic supplies and production sites. "First and foremost, this is about sovereignty — keeping our steam crackers," he told reporters this month. But sovereignty comes at a cost. Most European crackers are over 40 years old, compared to just 11 years in China, according to Citi analyst Sebastian Satz. And ethylene production in Europe using naphtha costs $800 a metric ton, versus less than $400 a metric ton in the U.S. if ethane is used, and around $200 a metric ton in the Middle East with ethane, Eni said in a presentation published in March. 'SLEEPWALKING INTO DECLINE' Some companies are betting big on survival. INEOS, which operates one of Europe's most advanced petrochemical facilities in Cologne, is building a 4 billion euro ethane cracker in Antwerp — the first new cracker in Europe in roughly 30 years, with production capacity of 1.45 million metric tons a year of ethylene. The plant, due online in 2026, aims to rival Chinese production and meet local demand with a lower carbon footprint. In the Middle East, consolidation is creating new global giants. A $60 billion merger between Abu Dhabi National Oil Company and Austria's OMV (OMVV.VI) , opens new tab will form Borouge Group, the world's fourth-largest polyolefins producer. The company plans to export polymers to Europe, competing directly with U.S. and Asian firms. Analysts say Europe's petrochemical production won't disappear entirely but will become the domain of a few dominant players. "Only major European companies with the market share to set competitive prices will continue to produce ethylene," said Enzo Baglieri, professor of operations and technology management at SDA Bocconi School of Management in Milan. ($1 = 0.8604 euros) https://www.reuters.com/business/energy/europes-chemical-industry-seeks-lifeboat-stay-business-2025-07-21/

2025-07-21 06:14

BEIJING, July 21 (Reuters) - China's exports of two critical minerals used in weapons, telecommunications and solar cells have plunged over the past three months amid a crackdown on smuggling and transshipment that has involved China's top spy agency. Exports of antimony and germanium in June were down 88% and 95%, respectively, versus January, according to customs data published on Sunday. Much as with rare earths, China is by far the largest miner and or refiner for both elements. Sign up here. Both were added to an export control list in 2023 and 2024, respectively. Exports to the U.S. were then banned in December as part of retaliation for chip restrictions. Rare earths were added to the same control list in April, precipitating a sharp collapse in export volumes that forced some carmakers in Europe and the U.S. to pause some production lines. But where rare earth export volumes rebounded sharply last month thanks to a deal struck between Washington and Beijing, exports of germanium and antimony fell to some of the lowest levels on record. The collapse in export volumes coincides with well-publicised crackdown on critical mineral export control evasion. China's spy agency said last week it had detected attempts to bypass controls via transshipment, where cargoes move through a third country before going on to their final destination. The week before Reuters reported that unusually large quantities of antimony were being exported to the United States from Thailand and Mexico in what appeared to be transshipment conducted by at least one Chinese company. China's exports of antimony to Thailand have collapsed by 90% after hitting a record in April. There have been no exports to Mexico since April. Spot market prices for high-purity germanium have more than doubled since China imposed export restrictions in July 2023. Antimony prices have nearly quadrupled from May last year. https://www.reuters.com/world/china/chinese-exports-two-critical-minerals-plunge-even-rare-earths-rebound-2025-07-21/

2025-07-21 06:09

MILAN/HOUSTON/NEW DELHI, July 21 (Reuters) - A wave of closures and disposals is reshaping the global petrochemical sector as companies around the world rethink their exposure to markets as they adjust to capacity build-up in China and higher costs in Europe. The European Union is being hit the hardest by the rationalisation, while the United States and the Middle East are considered relatively immune. Petrochemical makers in Asia are also reducing capacity but at a slower pace compared with the EU. Sign up here. Here is a list of some of the major closures, divestment and portfolio reviews: ** U.S.-based LyondellBasell (LYB.N) , opens new tab in June said it had started exclusive talks to sell four olefin and polyolefin plants in Europe to Munich-based investment firm AEQUITA. The sites to be sold are in France, Germany, Britain and Spain. The company has also said it is evaluating options for its factories in the Netherlands and Italy. ** U.S. chemical giant Dow Inc (DOW.N) , opens new tab said at the beginning of July it would shut down three upstream sites in Europe: an ethylene cracker in Böhlen, Germany and chlor-alkali & vinyl assets in Schkopau, Germany, and its siloxanes plant in Barry, Britain. The company also announced in January that it would idle a cracker in the Netherlands. ** U.S. oil major ExxonMobil (XOM.N) , opens new tab said last year it would shut down the steam cracker and close chemical production at Gravenchon in France, adding that the site had lost more than 500 million euros ($582.75 million) since 2018 and remains uncompetitive. ** British oil company Shell (SHEL.L) , opens new tab in April completed the sale of its energy and chemicals park in Singapore, which includes a refinery, an ethylene cracker and other petrochemical assets. The group's top executives told a post-results conference call in May that the group was undertaking a review of its chemical business, including in Europe. Shell hired Morgan Stanley to conduct the strategic review of its chemicals operations in Europe and the United States, the Wall Street Journal reported in March, citing sources. ** BP (BP.L) , opens new tab said in February it was looking for potential buyers for its Ruhr Oel refinery, cracker and downstream assets at Gelsenkirchen in Germany. ** French oil major TotalEnergies (TTEF.PA) , opens new tab said in April it would shut its oldest steam cracker in Antwerp, Belgium, by end-2027, citing a "significant surplus of ethylene expected in Europe". ** Eni (ENI.MI) , opens new tab will complete the closure of Italy's two last steam crackers by the end of this year. One is in Brindisi, Apulia, and the second in Priolo, Sicily. It also closed a polyethylene plant in Ragusa, Sicily. ** Poland's Orlen (PKN.WA) , opens new tab said at the end of 2024 it would scale back plans for its olefins petrochemical project, pushing back output until at least 2030 and aiming to cut its estimated cost by as much as a third. ** U.S. chemical group Huntsman Corp (HUN.N) , opens new tab announced the closure of its polyurethanes facility in Deggendorf, Germany, and the reduction of some of its other sites and facilities around Europe. The company will close a facility located in Moers, Germany. The closure is expected to be complete by the end of the current quarter. ** Japan's largest oil refiner, Eneos (5020.T) , opens new tab, said in February that it would consider partially halting an ethylene production facility at its Kawasaki refinery at the end of 2027 due to falling demand. It said in March that it would gradually halt production of lubricants and some petroleum products at its Yokohama plant near Tokyo by March 2028, but will consider relocating lubricants' output to other facilities. ** Saudi Petrochemical Group SABIC said last year it planned to permanently shut one of its two naphtha-fed crackers at its plant in Geleen, the Netherlands. ($1 = 0.8580 euros) https://www.reuters.com/business/energy/closures-disposals-reshaping-global-petrochemical-sector-2025-07-21/

2025-07-21 05:38

MUMBAI, July 21(Reuters) - The Indian rupee slipped on Monday to its weakest level in nearly one month, pressured by dollar demand from foreign and local private banks, and modest weakness in its regional peers. The rupee declined to 86.2725 per dollar by 11 a.m. IST, down 0.1% on the day. The currency hit its weakest level since June 23 at 86.35 in early trading. Sign up here. Most Asian currencies were trading lower, while the dollar index was little changed, with investors keeping an eye on trade negotiations ahead of an August 1 deadline to strike deals with Washington. "If the discussions fail or get delayed, Indian exporters could face fresh pressure, adding to the rupee's challenges. However, if a deal is reached, it could offer a much-needed breather," said Amit Pabari, managing director at FX advisory firm CR Forex. Meanwhile, a narrow arbitrage between non-deliverable and onshore rates helped nudge dollar-rupee forward premiums higher, with the one-month forward premium ticking up to 12.25 paisa, its highest level in three weeks. The one-year dollar-rupee implied yield was also a tad higher at 1.99%. The arbitrage isn't "too large," a swap trader at a state-run bank said. The trader said the dollar-rupee daily fix was last quoted at a 0.20/0.30 paisa premium, signalling heightened demand for dollars at the reference rate. On the day, India's benchmark equity indexes, the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab, were trading higher, while the yield on the benchmark 10-year bond was little changed. https://www.reuters.com/world/india/rupee-dips-near-one-month-low-pressured-by-dollar-bids-foreign-banks-2025-07-21/

2025-07-21 05:35

Asian stock markets : Nikkei futures, yen steady after Japan elections Wall St futures firm before earnings blitz Euro underpinned as ECB seen on hold SYDNEY, July 21 (Reuters) - Asian shares and the yen held their ground on Monday as Japanese elections proved bad for the government but no worse than already priced in, while Wall Street futures braced for earnings from the first of the tech giants. Investors were also hoping for some progress in trade talks ahead of President Donald Trump's August 1 tariff deadline, with U.S. Commerce Secretary Howard Lutnick still confident a deal could be reached with the European Union. Sign up here. There were reports Trump and Chinese leader Xi Jinping were closer to arranging a meeting, though likely not until October at the earliest. European Commission President Ursula von der Leyen has stolen a march and will meet with Xi on Thursday. In Japan, the ruling coalition lost control of the upper house in an election on Sunday, further weakening Prime Minister Shigeru Ishiba's grip on power as a tariff deadline looms. Ishiba vowed to stay in the position, which along with a market holiday, limited the reaction and the yen was 0.4% firmer at 148.29 to the dollar. "The loss was within the range of expectations, and actually the outlook was even more pessimistic," said Nissay Research Institute chief economist Tsuyoshi Ueno. "In terms of negotiations with the U.S., it is easy to doubt whether a government with such a weak foundation is reliable as a negotiating partner," he added. "For the Bank of Japan, if there is political instability, it will be difficult to raise interest rates, and pressure on the yen will continue." The BOJ still has a bias to raise rates further but markets imply little chance of a move until late October. While the Nikkei (.N225) , opens new tab was shut, futures traded at 39,885 and up on the cash close of 39,819. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab eased 0.1%, while South Korean stocks (.kS11) , opens new tab added 0.5%. Chinese blue chips (.CSI300) , opens new tab firmed 0.3%, led by rare earth and construction sectors, as Beijing kept interest rates unchanged as widely expected. MEGA CAPS KICK OFF EUROSTOXX 50 futures and DAX futures both dipped 0.3%, while FTSE futures were flat. S&P 500 futures and Nasdaq futures both edged up 0.2%, and are already around record highs in anticipation of more solid earnings reports. A host of companies reporting this week include Alphabet (GOOGL.O) , opens new tab and Tesla (TSLA.O) , opens new tab, along with IBM (IBM.N) , opens new tab. Investors also expect upbeat news for defence groups RTX (RTX.N) , opens new tab, Lockheed Martin (LMT.N) , opens new tab and General Dynamics (GD.N) , opens new tab. Ramped up government spending across the globe has seen the S&P 500 aerospace and defence sector rise 30% this year. Tech giant Microsoft (MSFT.O) , opens new tab issued an alert about "active attacks" on server software used by government agencies and businesses, urging customers to download security updates. In bond markets, U.S. Treasury futures held steady having dipped late last week after Federal Reserve Governor Christopher Waller repeated his call for a rate cut this month. Most of his colleagues, including Chair Jerome Powell, have argued a pause is warranted to judge the true inflationary impact of tariffs and markets imply almost no chance of a move in July. A September cut is put at 61%, rising to 80% for October. Powell's reticence on rates has drawn the ire of Trump who threatened to fire the Fed chief, before backing down. The spectre of a potential political appointee who would seek to ease policy sharply has investors on edge. The European Central Bank meets this week and is expected to hold its rates steady at 2.0% following a string of cuts. "The press conference will likely keep highlighting uncertainty and need to wait for tariff negotiations to conclude before deciding the next step," said analysts at TD Securities in a note. "Similarly, its 'meeting-by-meeting' language would be retained in the release." The euro was unchanged at $1.1630 in early trading, having dipped 0.5% last week and away from its recent near-four-year top of $1.1830. The dollar index was a fraction lower at 98.373 . In commodity markets, gold firmed 0.5% to $3,367 an ounce with all the recent action in platinum which last week hit its highest since August 2014. Oil prices were caught between the prospect of increased supply from OPEC+ and the risk European Union sanctions against Russia for its war in Ukraine could curb its exports. Brent edged up 0.1% to $69.38 a barrel, while U.S. crude added 0.2% to $67.50 per barrel. https://www.reuters.com/world/china/global-markets-wrapup-3-2025-07-21/