2025-05-28 06:56
SINGAPORE, May 28 (Reuters) - China says it wants to cut crude steel output this year but traders and steelmakers are betting Beijing won't follow through as industry profitability improves and trade tensions weigh on the economy. The world's largest steel producer in March unveiled plans to cut output and restructure its giant steel sector to address overcapacity which has long plagued the industry and is spilling over into export markets and angering trade partners. Sign up here. But at the flagship Singapore International Ferrous Week conference, conversations with fifteen traders, steelmakers, analysts and hedge funds all had the same message: the cuts are unlikely to be enforced. Profitability is improving across the industry driven by unexpectedly strong demand, undercutting some of the logic of reining in output in the first place, they said. In the year to April industry profits hit 16.9 billion yuan , opens new tab ($2.35 billion), versus a loss , opens new tab of 22.2 billion yuan in the same period last year. Participants bet the turnaround will make Beijing less likely to crack down, especially as the trade war with the United States makes policymakers sensitive about maintaining economic growth. There's even less incentive for the local governments where many of these steel mills are an important contributor to the growth targets officials are assessed against. "When mills could make some money after grappling with survival in the past two years, no one has the motivation to slash output," said a manager from a medium-scale Chinese steelmaker on condition of anonymity. Chinese crude steel output rose 0.4% between January and April this year. In China, the absence of public orders from Beijing since the March announcement was a sign for many at the conference that the output cuts will be limited or only halfheartedly enforced. Chinese consultancy Fubao said in late April that while provincial targets for output cuts had been finalised, there were doubts about whether steel mills would actually follow through. "Some provincial governments will rely on steel to help with GDP," said Mengtian Jiang, chief ferrous metals analyst of Harizon Insights. "Steel mills are making money especially with domestic coking price having almost halved, so I do not see that China's steel output will be down much." Steel exports may fall 3%-4% this year, but that will not impact China's steel output much, she added. ($1 = 7.1976 Chinese yuan renminbi) https://www.reuters.com/markets/commodities/steel-industry-doubts-china-will-enforce-output-cut-plans-2025-05-28/
2025-05-28 06:51
COPENHAGEN, May 28 (Reuters) - Norway's Okea (OKEA.OL) , opens new tab has discovered oil in the Prince prospect in the North Sea, the Norwegian offshore directorate said on Wednesday. Preliminary estimates indicate a discovery of between 0.29 million and 2.79 million standard cubic metres of recoverable oil equivalent, corresponding to between 1.9 million and 17.5 million barrels of oil equivalent, the directorate said. Sign up here. It said in a statement the oil was discovered along the eastern flank of the Brage field in the northern part of the North Sea. Okea is the operator and owns 35.2% of the licence while Lime Petroleum holds 33.84%, DNO (DNO.OL) , opens new tab 14.26%, Petrolia Novo 12.26% and M Vest Energy holds the remaining 4.44%%, the directorate says on its website. https://www.reuters.com/markets/commodities/norways-okea-makes-oil-find-north-sea-2025-05-28/
2025-05-28 06:50
OPEC+ keeps output policy unchanged Eight OPEC+ members expected to agree to output boost Saturday Goldman Sachs sees OPEC+ keeping output steady after July hike Chevron's Venezuelan oil curbs, Canadian wildfires limit price downside NEW YORK, May 28 (Reuters) - Oil prices gained more than 1% on Wednesday on supply concerns as OPEC+ agreed to leave their output policy unchanged and as the U.S. barred Chevron (CVX.N) , opens new tab from exporting Venezuelan crude. Investors previously anticipated members of OPEC+ would agree to a production increase later this week. Sign up here. Brent crude futures settled up 81 cents, or 1.26%, to $64.90 a barrel. U.S. West Texas Intermediate crude gained 95 cents, or 1.56%, to stand at $61.84 a barrel. OPEC+, the Organization of the Petroleum Exporting Countries and allies, did not change output policy. It agreed to establish a mechanism for setting baselines for its 2027 oil production. Most oil-producing countries at the meeting do not have flexibility to adjust their output, said Bob Yawger, director of energy futures at Mizuho. "They were hoping to slow the pace of production increases and stop the slide in price. But that's not the way it panned out," he added. A separate meeting on Saturday of eight OPEC+ countries is expected to decide on an increase in oil output for July. Goldman Sachs analysts saw the group of eight keeping production steady after the July hike. "However, we see the risks to our OPEC8+ supply path as skewed to the upside, especially if compliance doesn't improve or if hard demand data surprise further to the upside," they added. Coming demand for the summer driving season is significant, and with non-OPEC+ crude output flat in the first half of the year, coupled with risks of Canadian wildfires hurting supply, the call on crude is stronger from OPEC+, said Janiv Shah, vice president of oil commodity markets analysis at Rystad Energy. On Wednesday, Chevron (CVX.N) , opens new tab terminated the oil production, service and procurement contracts it had to operate in Venezuela, but it plans to retain its direct staff in the country, sources said. Both benchmarks ticked up in the previous session on concerns of tighter supply after the U.S. barred Chevron from exporting crude from Venezuela under a new authorization on its assets there. Analysts also said prices could respond positively if there was progress on global trade talks or resolving U.S.-Iranian friction. Iran's nuclear chief Mohammad Eslami said on Wednesday it might allow the U.N. nuclear watchdog to send U.S. inspectors to visit nuclear sites if Tehran's talks with Washington succeed. U.S. crude stocks fell by 4.24 million barrels last week, market sources said, citing American Petroleum Institute figures on Wednesday. Market participants now await government data on crude inventories due Thursday. https://www.reuters.com/business/energy/oil-prices-inch-up-us-bans-chevron-exporting-venezuelan-crude-2025-05-28/
2025-05-28 06:46
HONG KONG, May 28 (Reuters) - China's National Meteorological Centre on Wednesday issued alerts for heavy rain and flooding in southern regions, forecasting the most intense storms of the year so far. The NMC flagged a high risk of mountain floods, geological disasters and localised flooding in southern provinces and regions due to strong rainfall including in Jiangxi, Fujian, Guangxi, Guangdong and Guizhou. Sign up here. In Jiangxi, forecasts showed torrential rain in some areas may reach more than 150 millimetres (5.9 inches), while in Guangxi, authorities braced for flash floods, state broadcaster CCTV reported. In the southern city of Shenzhen, several trains were suspended from operation over May 28-29 due to heavy rain, railway authorities said. China faces longer, more intense heat waves and more frequent and unpredictable heavy rain which meteorologists attributed to climate change. The country is especially vulnerable to climate change, authorities have said, because of its huge population. Heavy rain in southern Guangdong province, the Guangxi region and southwestern Guizhou province, has led to the deaths of at least 13 people and disappearance of several others. Dozens of people became trapped after landslides in Guizhou, prompting authorities to send the military to assist in their rescue. https://www.reuters.com/sustainability/climate-energy/china-issues-flood-warnings-after-heavy-rain-southern-regions-2025-05-28/
2025-05-28 06:36
US PCE due on Friday Gold up 26% so far this year Silver down nearly 1% May 28 (Reuters) - Gold prices steadied on Wednesday as investors assessed the U.S. Federal Reserve's May meeting minutes, which flagged rising inflation and recession risks, reinforcing gold's appeal as a safe-haven asset at a time when the global economic environment remains volatile. Spot gold held steady at $3,299.95 an ounce as of 02:20 p.m. EDT (1820 GMT). Sign up here. U.S. gold futures settled 0.2% lower at $3,294.90. "The gold market has been kind of choppy recently, just reacting to fresh daily fundamental news events with no real trending price action," said Jim Wyckoff, Kitco Metals' senior analyst. Fed officials at their May 6–7 meeting acknowledged possible "difficult tradeoffs" ahead, with rising inflation and unemployment, and warned about growing recession risks, according to meeting minutes. The meeting took place amid heightened concerns over global trade tensions, following U.S. President Donald Trump's early April announcement of major import tariffs. Some of the most aggressive levies, however, were eased or delayed a week later. Gold, which performs well in a low-interest rate environment and serves as a safe haven during times of uncertainty, has gained 26% so far this year and hit a record high in April. Goldman Sachs recommended on Wednesday a higher-than-usual allocation to gold in long-term portfolios, citing elevated risks to U.S. institutional credibility, pressure on the Fed and sustained central bank demand. Focus is also on Thursday's U.S. GDP data, Friday's Personal Consumption Expenditures (PCE) numbers and comments from U.S. central bank officials. Elsewhere, gold imports to Switzerland from the United States jumped in April to the highest monthly level since at least 2012, after the exclusion of precious metals from U.S. import tariffs, data showed. Spot silver fell 0.9% to $32.99 an ounce, platinum was up 0.1% at $1,081.09 and palladium dipped 1.2% to $967.10. https://www.reuters.com/world/india/gold-rises-investors-buy-dip-eye-us-economic-data-clues-2025-05-28/
2025-05-28 06:30
Strict conditions on extension, environment minister says Woodside says approval provides certainty for project Climate Council calls decision "a failure of leadership" SYDNEY, May 28 (Reuters) - Australia conditionally approved on Wednesday a request by Woodside Energy (WDS.AX) , opens new tab to extend until 2070 the life of its North West Shelf gas plant, following a six-year review dogged by delays, appeals and backlash from green groups. The facility on the Burrup peninsula in Western Australia is the country's oldest and largest liquefied natural gas plant and a key supplier to Asian markets, but concerns that its emissions could imperil ancient rock art held up a decision. Sign up here. In a statement, Environment Minister Murray Watt said the approval of project extension was subject to strict conditions, "particularly relating to the impact of air emissions levels". The impact of emissions on the Murujuga rock art on the Burrup peninsula was considered as part of the government's assessment process, he added. "I have ensured that adequate protection for the rock art is central to my proposed decision," Watt said. Woodside has 10 days to respond to the conditions on air quality and cultural heritage management before Watt makes the final decision, he added. The project's existing approval had been set to expire in 2030. Australia nominated the Murujuga landscape for World Heritage listing in 2023 but a U.N. advisory body has warned it was at risk from industrial pollution, including emissions from the North West Shelf gas plant. Estimated to be up to 50,000 years old, the rock art is of cultural and spiritual significance to Indigenous Australians. Woodside welcomed the government's decision, and said the approval would provide certainty for project operation. "(We) are reviewing the proposed conditions to understand their application," it said in a statement. "We remain committed to protecting the Murujuga cultural landscape and support its World Heritage nomination." After the news, Woodside shares jumped 4% in the afternoon, though they had been trading higher through the day. CLIMATE CONCERNS Woodside's extension application in 2018 was caught up in state and federal assessment processes stemming from competing concerns over energy security and its environmental impact. The extension lays the groundwork for Woodside, Australia's top gas producer, to bring online new gas fields to feed the LNG plant, and is expected to generate up to 4.3 billion metric tons of carbon emissions over its lifetime. Australia's Climate Council said the approval was "a failure of leadership and a polluting stain on (the federal government's) climate record." The state government of Western Australia cleared the project in December after considering nearly 800 appeals from activists. The federal government twice delayed making a call in the lead-up to general elections in May. With the North West Shelf's original offshore gas fields in decline, the decades-long extension opens the door for Woodside to develop its long dormant Browse offshore project to supply gas to the Karratha plant. Woodside's partners in the North West Shelf venture are units of BP (BP.L) , opens new tab, Chevron (CVX.N) , opens new tab, Shell (SHEL.L) , opens new tab, Japan's Mitsui & Co (8031.T) , opens new tab and Mitsubishi Corp (8058.T) , opens new tab and China's CNOOC (600938.SS) , opens new tab. https://www.reuters.com/business/energy/australia-approves-woodsides-north-west-shelf-lng-project-extension-2025-05-28/
