2025-07-11 19:56

Protests by informal miners block key transit route MMG and Hudbay copper mines face potential production impact Peru's government maintains deadline to end informal mining program Peru's central bank expects July GDP to dip 0.2% due to roadblocks LIMA, July 11 (Reuters) - MMG (1208.HK) , opens new tab and Hudbay Minerals (HBM.TO) , opens new tab executives met with Peru's cabinet chief this week to warn that production at their copper mines could be affected if a two-week protest by informal miners along a major transit route continues, two sources told Reuters on Friday. The Las Bambas mine of Chinese firm MMG and the Constancia mine of Canadian company Hudbay in the Cusco region are among Peru's top ten copper producers. Sign up here. The companies did not immediately reply to requests for comment. A person familiar with Las Bambas said the site's production remained normal for now. Protests in other parts of the country have also affected logistics, including in the gold mining stronghold of Pataz in northern Peru. July's gross domestic product (GDP) is expected to fall 0.2% due to the road impacts, Peru's central bank said on Friday. One of the sources, who attended the meeting with MMG and Hudbay, but was not authorized to comment, said concern at Las Bambas and Constancia was mounting over the impediments to copper-loaded trucks to transit freely. The blockades along a road that connects mines to the coast began in late June as hundreds of informal miners around the country pressed Peru's government to extend a deadline to regularize their operations. "Large vehicles that supply and transport the mineral cannot pass," the person said. "Both companies are still operating, but they mentioned that if the situation continues for much longer, it could become complicated." Las Bambas produced more than 320,000 metric tons of copper last year, making it Peru's fourth-biggest miner. Constancia ranked ninth, with about 99,000 tons of copper. Glencore's (GLEN.L) , opens new tab Antapaccay copper mine, which uses the same transit route, has not yet reported production impacts. Peru is the world's third-largest copper producer, and it exports most of the red metal to China. Peru's cabinet chief, Eduardo Arana, in a statement on Thursday evening said he met with Hudbay and MMG, and emphasized the government's commitment to fostering dialogue between companies and communities. The statement did not provide further details about the protests, or address their potential impact on copper output. In Pataz, gold miner Poderosa said the blockades have hit its operations, particularly over the past week. "The mining companies in Pataz are severely affected. We're now almost without food and basic supplies to operate," said Poderosa's corporate affairs head, Pablo de la Flor. The region supplies almost 40% of the country's gold, its biggest mineral export after copper. Despite the protests, Peruvian officials aim to end a temporary program that allowed informal mining, called REINFO, by year's end. Informal miners have protested numerous times to extend REINFO. It began in 2012 as a short-term scheme to formalize miners operating outside the law, but has been criticized for enabling illegal mining that harms the environment. https://www.reuters.com/markets/commodities/miners-mmg-hudbay-warn-peru-production-risk-amid-wildcat-protests-sources-2025-07-11/

2025-07-11 19:31

July 11 (Reuters) - U.S. President Donald Trump's fresh tariff announcements make it "messy" to interpret the state of the economy, Chicago Federal Reserve Bank President Austan Goolsbee said, adding that he is hearing a lot of anxiety from business contacts about coming inflation that is not yet obvious in the data. "I've got to wait until that noise kind of dies down, that anxiety dies down, before I'm gonna be comfortable that we are back on the old golden path, as I called it, to a stable soft landing," Goolsbee said in a "Moody's Talks: Inside Economics" podcast taped on Thursday and released on Friday. "If we, every six weeks, have to revisit whether we're about to have some big supply shock, that's messy at the least." Sign up here. https://www.reuters.com/business/feds-goolsbee-need-wait-until-anxiety-recedes-feel-comfortable-about-outlook-2025-07-11/

2025-07-11 19:04

Forecast in line with bank's 2025 growth estimate Central bank sees 2026 growth moderation, tariff risks US' 50% copper tariff could push up prices, economist says Mexican avocados gain edge over Peru's thanks to US tariff exemption LIMA, July 11 (Reuters) - Peru's economy is projected to have expanded just under 3% in the second quarter of 2025, central bank chief economist Adrian Armas said on Friday, adding that this remained in line with the bank's forecasts of 3.1% growth by the end of the year. Peru's gross domestic product (GDP) likely grew some 2.4% to 2.6% in May and more than 4% in June, Armas said in a call, though the July figure is estimated to have taken a 0.2% hit due to protests by informal miners blocking a key copper corridor. Sign up here. The central bank expects GDP growth to ease to 2.9% in 2026. Informal miners are protesting to extend the term of a formalization program, but the government's recent decision to kick more than half those registered - over 50,000 miners - off the scheme led organizers to double down on the road blockades. The measure is intended to crack down on illegal mining operations. Sources told Reuters on Friday that the two-week protest could start to impact production at major mining firms. Peru is the world's third-largest copper producer and a major exporter of metals and agricultural commodities into the United States. Asked on the impacts of U.S. President Donald Trump's announcement of a 50% tariff on copper imports set to take effect on August 1, Armas said if the U.S. did not have much capacity to substitute its copper imports, the cost of the tax could be passed on - leading to higher prices in the U.S. Peru ships most of its copper to China, but Armas estimated that last year the Andean nation exported around $900 million in copper and derivatives to the U.S. The red metal had been excluded from a prior so-called reciprocal tariff of 10%. Chile and Mexico, other major copper exporters, have said they will look to ship their production to new markets. "Clearly our products, like other products, become more expensive when they reach the U.S. market," Armas said, noting that companies with high exposure to the U.S. that are not able to push up their prices may well be negatively hit. Avocado producers in particular, he said, face a disadvantage compared to counterparts in Mexico that are able to export the popular fruit tariff-free to the United States thanks to a free trade pact. Peru is among the world's top avocado exporters. https://www.reuters.com/world/americas/peru-central-bank-holds-growth-forecasts-steady-trump-readies-copper-tariffs-2025-07-11/

2025-07-11 18:59

EU could receive tariff letter on Friday Hard to predict situation, EU source says European shares, Wall Street futures down Canada PM says will protect businesses and workers Rubio meets China's Wang Yi BRUSSELS, July 11 (Reuters) - The European Union braced on Friday for a possible letter from U.S. President Donald Trump outlining planned duties on the United States' largest trade and investment partner after a broadening of his tariff war in recent days. The EU initially hoped to strike a comprehensive trade agreement, including zero-for-zero tariffs on industrial goods, but months of difficult talks have led to the realization it will probably have to settle for an interim agreement and hope something better can still be negotiated. Sign up here. The 27-country bloc is under conflicting pressures as powerhouse Germany urged a quick deal to safeguard its industry, while other EU members, such as France, have said EU negotiators should not cave into a one-sided deal on U.S. terms. After keeping much of the world guessing, Trump has outlined new tariffs for U.S. imports of goods from a number of countries, including allies Japan and South Korea, along with a 50% tariff on U.S. imports of copper, and a hike to 35% on Canadian goods. His cascade of tariff orders since returning to the White House has begun generating tens of billions of dollars a month in new revenue for the U.S. government. U.S. customs duties revenue shot past $100 billion in the federal fiscal year through to June, according to U.S. Treasury data on Friday – exceeding the largest annual take ever from customs duties. U.S. consumers face an effective U.S. tariff rate of more than 20%, the highest since the early 1900s, the International Chamber of Commerce estimated this week after Trump's latest announcements. Rates are already around 16%, their highest since the 1930s. Economists expect much of that to be passed along as higher consumer prices for imported goods, although there is only limited evidence of that occurring so far. "So at some point, the new tariffs will start to bite, or if companies decide they can't trade under those conditions, shelves will start to look decidedly sparse," ICC Deputy Secretary General Andrew Wilson said. A person with knowledge of the U.S.-EU negotiations said an agreement was close, but that it was hard to predict if the EU might still get a letter announcing more tariffs or when any agreement might be finalised. European winemakers, who rely in part on American drinkers of their products, are among the industries who have worried about not being included in tariff exemptions in any deal. European shares dipped on Friday as investors awaited word on tariffs for the EU, while U.S. stocks dipped in response to the upsized tariff rate Trump announced for Canada late on Thursday. Gold prices, meanwhile, rose for a third straight session on higher demand for the safe-haven asset. Investors appear increasingly inured to Trump's tariff announcements after having near-panic reactions to the first announcements back in winter. However, businesses are increasingly altering supply chains, reducing imports and in some cases holding off on orders due to the uncertainty surrounding tariffs. Suppliers of Walmart have delayed some orders of Bangladesh-made clothing. Levi's and other retailers are limiting shipments of goods that don't sell as well to avoid tariffs on products destined for discounts. Auto suppliers are asking customers to pay more for cars because of additional levies on metals. The jacked-up rates Trump unveiled out of the blue this week on U.S. imports from Brazil and Canada are emblematic of his unpredictable approach. The 35% tariff on Canadian goods is an increase from the current 25% rate he had assigned and is a blow to Canadian Prime Minister Mark Carney, who was seeking a trade pact with Washington. Trumps says the new rate will take effect on Aug. 1 and could go up further if Canada retaliates. "Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses," Carney said in a statement. "We will continue to do so as we work towards the revised deadline of August 1." The EU has drawn up countermeasures against Trump's tariffs, but has not imposed them. An initial 21 billion euros ($24.5 billion) of levies on U.S. imports due in April was suspended before taking effect. Another package, on some 72 billion euros of U.S. imports, could also be applied. "Basically, if a political decision is made to extend the suspension, then we'll extend the suspension," EU spokesperson Olof Gill told reporters. "If we need to unsuspend it, we can do that, you know, at the drop of a hat." CONSTRUCTIVE Elsewhere, U.S. Secretary of State Marco Rubio met with Chinese Foreign Minister Wang Yi in Kuala Lumpur on Friday. Both sides described the meeting as constructive. China warned the U.S. this week against reinstating hefty levies on its goods next month and Beijing has also threatened to retaliate against nations that strike deals with the U.S. to cut China out of supply chains. Trump has periodically railed against the EU, saying in February that it was "formed to screw the United States" and asking why Europe exports so many cars but buys so few from the U.S. in return. His biggest grievance is the U.S. merchandise trade deficit with the EU, which in 2024 amounted to $235 billion, according to U.S. Census Bureau data. The EU has repeatedly pointed to the U.S. surplus in services that in part redresses the balance. https://www.reuters.com/world/china/eu-waits-trump-letter-markets-digest-latest-tariff-salvo-2025-07-11/

2025-07-11 17:27

July 11 (Reuters) - Venezuelan state-run PDVSA's oil sales abroad in 2024 stood at $17.52 billion, according to a results document seen by Reuters on Friday, as exports jumped due to U.S. licenses allowing foreign partners to operate in the sanctioned OPEC member. There are no comparative figures from previous years because PDVSA has not published its results since 2016, and it did not immediately respond to a request for comment. Sign up here. Venezuela has some of the world's largest reserves of oil, but its crude output remains at a fraction of what it was a decade ago after a lack of investment, mismanagement at PDVSA and U.S. sanctions on Venezuela's energy industry since 2019. The licenses to U.S. oil major Chevron (CVX.N) , opens new tab and other foreign firms in Venezuela have allowed a slight recovery in oil output and exports since 2023. In late May, however, Washington revoked those licenses to take Venezuelan crude bound for U.S. and European refineries. PDVSA's crude oil and fuel exports averaged 805,500 barrels per day (bpd) last year, according to preliminary data from its 2024 financial and operational results. That would be an over 15% hike from almost 700,000 bpd in 2023, according to data and documents viewed by Reuters. According to PDVSA's results, the OPEC member produced an average of 952,000 bpd in 2024, compared with 783,000 bpd in 2023 reported by OPEC. President Nicolas Maduro and his government have always rejected sanctions by the United States and others, saying they are illegitimate measures that amount to an "economic war" designed to cripple Venezuela. Maduro and his allies have cheered what they say is the country's resilience despite the measures, though they have historically blamed some economic hardships and shortages on sanctions. Crude production was above 1 million bpd in the first quarter of 2025, according to the results documents, and authorities have said that exports continue to perform normally. In June, crude and fuel exports were 844,000 bpd, and were directed to China, according to shipping data and documents. https://www.reuters.com/business/energy/venezuelas-pdvsa-oil-sales-abroad-hit-175-billion-2024-exports-jump-2025-07-11/

2025-07-11 17:00

BUENOS AIRES, July 11 (Reuters) - Argentina's monthly inflation likely ticked up to 1.9% in June, according to the median forecast of a Reuters poll, after May's rise marked the lowest monthly increase since 2020. The month of May had marked the smallest monthly increase in five years for South America's No. 2 economy, with consumer prices rising just 1.5%, data from the official INDEC statistics agency showed, as the government of President Javier Milei works to tame painful price hikes. Sign up here. For June, estimates from 15 local and foreign analysts ranged from 1.4% to 2.0%. Consulting firm C&T Economic Advisors said their survey showed a 2% rise in June, slightly above their May estimate of 1.8% and the official 1.5% figure, but still one of the lowest monthly rates since 2020. May's unusually low inflation was driven by factors that did not recur in June, they added. "No disinflation process is linear, so it is natural to observe some months with slightly higher inflation than the previous one," said Eugenio Mari, chief economist at Fundacion Libertad y Progreso(LyP). This is especially relevant "when we consider that these are the first months after the exchange rate unification and several relative prices are still seeking equilibrium," he added. For July, early analyst estimates predict a lower inflation rate than that projected for June. "The rate of depreciation of our currency has been very slow," said Aldo Abram, economist and executive director at LyP, saying this contributed to his estimates that July inflation would be lower than in June, at around 1.7%, even though July typically experiences seasonal price increases. INDEC is scheduled to publish data for June on Monday at 1900 GMT. https://www.reuters.com/world/americas/argentina-inflation-seen-accelerating-june-after-may-slowdown-2025-07-11/