2025-05-22 07:42

NEW DELHI, May 22 (Reuters) - India's finished steel imports fell 11.3% year on year in April to 0.5 million metric tons following a decline in shipments from China and Japan, according to provisional government data reviewed by Reuters on Thursday. India, the world's second-biggest crude steel producer, had in April imposed a 12% temporary tariff on some steel imports, locally known as a safeguard duty, to curb a surge in cheap shipments primarily from China. Sign up here. Finished steel shipments from China fell to 0.1 million metric tons in April, down 26.5% from a year ago. Imports from Japan dropped to around 85,600 metric tons, down 60% from a year ago, the data showed. "China has definitely gone down as far as imports are concerned," said Nitin Kabra, director sales and marketing, Bhagyalaxmi Rolling Mill Pvt Ltd, a Maharashtra-based producer. China's crude steel output in April slid 7% from March, defying analysts' expectations for a rise against the backdrop of healthy profits and robust exports, but production was still reasonably high. In April, South Korea was the biggest exporter of finished steel to India, with imports reaching 0.15 million metric tons, up 2.4% on year, the data showed. India's prices of hot-rolled coil "edged higher" in April, triggered by the imposition of the temporary tariff, the government report said. Meanwhile, finished steel imports from France and Germany showed a sudden spike in April, the data showed. Finished steel imports from Germany rose more than five times to 30,600 metric tons, while those from France jumped 10 times to 30,300 metric tons. India imported mostly plates from France and Germany, the data showed. Plates are primarily used in construction, heavy machinery manufacturing and transportation. New Delhi remained a net importer of steel during April. Finished steel exports in April fell to 0.4 million metric tons, down 25.7% from a year ago, the data showed. Europe is a big destination for Indian steel, but shipments to Belgium dropped 6% on year in April, while finished steel exports to Italy fell 60.4%, the data showed. India's finished steel production reached 12.4 million metric tons in April, while crude steel output was at 12.9 million metric tons. https://www.reuters.com/world/china/indias-finished-steel-imports-fall-113-april-china-japan-shipments-slow-2025-05-22/

2025-05-22 07:08

May 22 (Reuters) - OPEC+ members are discussing whether to agree on another large production increase at their meeting on June 1, Bloomberg News reported on Thursday. An output hike of 411,000 barrels a day (bpd) for July is among the options under discussion, although no final agreement has yet been reached, the report said, citing delegates. Sign up here. Reuters has previously reported that OPEC+ will accelerate oil hikes and could bring back as much as 2.2 million bpd to the market by November, including via an accelerated increase in July. https://www.reuters.com/business/energy/opec-discusses-making-another-large-output-hike-july-bloomberg-news-reports-2025-05-22/

2025-05-22 07:01

Lower tariff impact may mean lower profit outlook not as dire Truce positive because of reliance on Chinese steel for US-made equipment Competition with Chinese rivals becoming more demanding TOKYO, May 22 (Reuters) - Komatsu should see a nearly 20 billion yen ($140 million) mitigation in the impact of U.S. tariffs on its bottom line after the U.S.-China trade truce last week, the Japanese company's CEO said, suggesting its outlook for lower profits may not be as bad as feared. With more than one-quarter of Komatsu's sales coming from North America, the reduction in the tariff impact - a roughly 20% easing in its forecast of a 94.3 billion yen hit from the tariffs - would have an outsized effect on its profit outlook. Sign up here. In an interview with Reuters on Wednesday, Takuya Imayoshi, the head of the world's second-largest construction and mining machinery maker, did not say it is officially revising its forecast last month of a 27% drop in current-year profit as a result of U.S. President Donald Trump's tariffs. But the 90-day pause of extra U.S. tariffs on Chinese imports may mitigate the impact on Komatsu (6301.T) , opens new tab, which buys Chinese steel for its American-made machines, he said. "Countries' retaliatory tariffs haven't been like what we previously feared, so the negative impact on our performance appears limited," he said. The company forecast operating profit would be 478 billion yen for the business year to March 2026 because of the tariffs and a stronger yen, a far more conservative outlook than the consensus of analysts' estimates compiled by LSEG for operating profit of 597.5 billion yen, down only 9% from the previous year. Still, Imayoshi remained cautious on Komatsu's outlook, saying "if tariff rates are adjusted with countries, the impact will likely settle within the previously made estimate." Despite the easing of Chinese tariffs, about half of Komatsu products sold in the U.S. are manufactured overseas and imported, such as construction machines from Japan, Brazil and Thailand, which remain subject to higher levies. SUPPLY SHIFTS Komatsu would consider shifts such as bypassing U.S. warehouses when exporting spare parts to Canada or Latin America, and rebasing the production of U.S.-bound items from China to Thailand in case the higher U.S. tariff rates on China at the end of the 90-day truce, Imayoshi said. But "it's never the case" that the tariffs can make manufacturing in the U.S. cost-competitive and drive Komatsu to ramp up U.S. production, he said, citing U.S. steel prices that are more than double those of China. Overall, tariffs will have little impact on its competition with Caterpillar (CAT.N) , opens new tab, the world's biggest heavy equipment maker, and other rivals because they have similar global supply-chain structures, he said. However, Komatsu will watch how other companies pass on tariff costs, he added. Caterpillar last month estimated additional tariff-related costs at between $250 million and $350 million in the April-June quarter. Caterpillar shares are down 4.8% year-to-date, while Komatsu is up 1.5%. CHINESE RIVALS Imayoshi, who led Komatsu's China office for three years from 2021, said competition with Chinese construction machinery makers is becoming as demanding as with Caterpillar. Chinese rivals Sany (600031.SS) , opens new tab, XCMG (000425.SZ) , opens new tab and LiuGong (000528.SZ) , opens new tab are grabbing market share from Komatsu and other established brands in emerging markets with lower prices and excess capacity amid China's property downturn, according to Chris Sleight, managing director at Off-Highway Research, a consultancy on the global construction equipment market. Komatsu "still leads in durability and reliability, but they have largely caught up in offering decent performance at lower initial costs - in electrification, they are actually ahead," Imayoshi said. Electrification and solutions for software-defined and autonomous vehicles require technologies from outside Komatsu, he said, suggesting these fields are a consideration for an acquisition after its 2023 purchase of Detroit-based battery startup ABS. The company has not made major purchases since buying U.S. mining equipment manufacturer Joy Global for $2.9 billion in 2017. In a mid-term business plan announced last month, Komatsu added a free cash flow target of 1 trillion yen in the next three years. "We plan to spend it while maintaining balance between investments and shareholder returns, and it can also be directed toward acquisitions if opportunities arise," Imayoshi said. "Financial structure-wise, we have considerable leeway." ($1 = 143.3000 yen) https://www.reuters.com/world/china/us-china-trade-truce-may-ease-komatsus-tariff-pain-by-140-million-ceo-says-2025-05-22/

2025-05-22 06:47

MUMBAI, May 22 (Reuters) - Dollar-rupee forward premiums eased across tenors this week as a pullback in the dollar-rupee overnight swap rate coincided with U.S. bond yields climbing a leg higher, lowering the cost of hedging against weakness in the rupee. The 1-year dollar-rupee implied yield, for instance, has fallen about 25 basis points over May so far and was hovering at an over two-month low of nearly 2% on Thursday. Sign up here. Similarly, the 1-month dollar-rupee forward premium has eased to a near 6-month low of about 14-15 paisa on the back of a pullback in the dollar-rupee overnight swap rate. While the dollar-rupee forward premiums had climbed earlier this month when the India-Pakistan conflict flared up, traders pointed out that they have since shed the risk premia and that far forwards could likely keep trending lower amid the rise in U.S. bond yields. The 1-year U.S. Treasury yield has climbed nearly 30 basis points this month amid persistent concerns about the U.S. fiscal situation and uncertainty about the future path of Fed policy rates. A swap trader at a large private bank said he prefers to "receive forward premiums on up-ticks," and that 1-year dollar-rupee implied should ease to about 1.90% in the near term. The rupee, meanwhile, is expected to stay rangebound between 84.50 and 86 in the near term with traders keeping an eye on developments in U.S.-India trade talks and the dollar's overall trajectory. On the day, the rupee dipped slightly to 85.67 per U.S. dollar, compared to its close at 85.6375 in the previous session. Asian currencies were mostly higher between 0.1% and 0.4% while the dollar index eased to 99.5, down for the fourth consecutive session. Persistent worries over the U.S. fiscal situation and uncertainty about the impact of U.S. tariff policies have hurt the dollar and driven it down by over 8% in 2025 so far. "The market’s focus on the weakness of the USD is structural," DBS Bank said in a Thursday note. https://www.reuters.com/world/india/dollar-rupee-forward-premiums-fall-overnight-swap-rate-softens-us-yields-rise-2025-05-22/

2025-05-22 06:43

OPEC in pursuit of market share, says Onyx analyst A 411,000 bpd increase likely, RBC Capital analyst says U.S. crude inventories rise unexpectedly LONDON, May 22 (Reuters) - Oil prices dropped by more than 1% on Thursday after a report that OPEC+ is discussing a production increase for July, stoking concerns that global supply could exceed demand growth. Brent futures lost $1.08, or 1.7%, to $63.83 a barrel by 1134 GMT. U.S. West Texas Intermediate crude was down $1.02, or 1.7%, at $60.55. Sign up here. The Organization of the Petroleum Exporting Countries and its allies, known collectively as OPEC+, are discussing whether to make another large output increase at their meeting on June 1, Bloomberg News reported. An increase of 411,000 barrels per day (bpd) for July is among the options under discussion, though no final agreement has been reached, the report said, citing delegates. Reuters previously reported that that the group planned to accelerate output increases and could bring back as much as 2.2 million bpd by November. OPEC+ has been in the process of unwinding production cuts, with additions to the market in May and June. "We're seeing the market reacting to evidence that OPEC is letting go of a strategy to defend price in favour of market share," said Harry Tchiliguirian at Onyx Capital Group. "It's a bit like taking off a Band-Aid; you do it in one fell swoop." In a note on Wednesday, RBC Capital analyst Helima Croft said that a 411,000 bpd increase from July is the "most likely outcome" from the meeting, primarily from Saudi Arabia. "A key question will be whether the voluntary cut will be fully drawn down before the leaves turn brown in many parts of the world, in line with the original taper schedule," she said. Prices were already lower in the session after Energy Information Administration data released on Wednesday showed U.S. crude and fuel inventories showed surprise stock builds last week as crude imports hit a six-week high and gasoline and distillate demand slipped. Crude inventories rose by 1.3 million barrels to 443.2 million barrels in the week ended May 16, the EIA said. Analysts in a Reuters poll had expected a drawdown of 1.3 million barrels. The EIA's surprise stock builds will exert downward pressure on prices, particularly on WTI, said Emril Jamil at LSEG Oil Research, adding that this could further encourage more U.S. exports to Europe and Asia. While OPEC+ deliberates, a rising yield on 10-year U.S. Treasury bonds suggests that the producer group could be increasing oil supply into a market with lower demand. https://www.reuters.com/business/energy/oil-prices-ease-surprise-builds-us-inventories-2025-05-22/

2025-05-22 06:12

US bond yields slip after early gains; US debt concerns remain Bitcoin hits another record high; oil prices fall US dollar inches up after recent losses NEW YORK, May 22 (Reuters) - Thirty-year U.S. bond yields reached their highest level in 19 months before easing on Thursday, with worries lingering over the U.S. fiscal outlook and demand for government debt, while stocks on Wall Street ended flat to slightly higher. The U.S. dollar strengthened after recent losses. Sign up here. Yields rose earlier after the U.S. House of Representatives passed President Donald Trump'stax bill by a single vote, adding to worries about the country's debt load. Moody's late last week became the last of the major credit rating agencies to strip the U.S. of its coveted triple-A status. The recent selloff sent bond prices lower, which attracted some buyers. Yields, which move inversely to prices, dipped. The 30-year bond yield was down 3.7 basis points at 5.0521% late Thursday. The yield on benchmark U.S. 10-year notes was down to 4.551%. During the session it had reached 4.629%, the highest since February 12. The Nasdaq ended higher, while the S&P 500 and Dow finished flat, following sharp declines in the previous session. Shares of Nvidia (NVDA.O) , opens new tab were up 0.8%, while Alphabet (GOOGL.O) , opens new tab climbed 1.4%. "Tech is the market's security blanket at this point," said Jake Dollarhide, chief executive of Longbow Asset Management in Tulsa, Oklahoma. "It's seen as the leader." The Dow Jones Industrial Average (.DJI) , opens new tab fell 1.35 points to 41,859.09, the S&P 500 (.SPX) , opens new tab fell 2.60 points, or 0.04%, to 5,842.01 and the Nasdaq Composite (.IXIC) , opens new tab rose 53.09 points, or 0.28%, to 18,925.74. Shares of solar energy companies fell as Trump's tax bill is expected to end a number of green-energy subsidies. First Solar shares (FSLR.O) , opens new tab ended down 4.3%. The bill would deliver new tax breaks on tips and car loans and boost spending on the military and border enforcement. The Congressional Budget Office estimates Trump's tax-cut bill will add $3.8 trillion to the $36.2 trillion in U.S. debt over the next decade. Soft demand for a $16 billion sale of 20-year bonds on Wednesday increased concerns about reduced interest in U.S. debt. Benchmark 10-year yields and 30-year yields have both risen by around 50 basis points this month. "The Treasury market is looking for a circuit breaker," said Ed Al-Hussainy, senior rates analyst at Columbia Threadneedle Investments. Among other things, "this can come in the form of poor labor market data to bring forward (Federal Reserve) cuts and trigger a reassessment of the strength of the economy." Also on Thursday, German long-term bond yields hit a two-month high. MSCI's gauge of stocks across the globe (.MIWD00000PUS) , opens new tab fell 2.94 points, or 0.34%, to 871.01. The pan-European STOXX 600 (.STOXX) , opens new tab index fell 0.64%. Data showed Britain's government borrowed more than expected in April, euro zone business activity unexpectedly slipped back into contraction territory. The euro stumbled after the data, while the U.S. dollar rose after three days of losses. The euro was last down 0.41% at $1.1283. Against the Japanese yen , the dollar strengthened 0.29% to 144.08. Bitcoin , meanwhile, rose again to an all-time high, partly as investors sought out alternatives to U.S. assets. Bitcoin was last up 3.25% at $111,795.31. A report that OPEC+ is discussing a production increase for July weighed on oil prices. Brent futures fell 47 cents, or 0.72%, to settle at $64.44 a barrel. U.S. West Texas Intermediate crude eased 37 cents, or 0.6%, to settle at $61.20. Spot gold fell 0.57% to $3,295.06 an ounce. https://www.reuters.com/world/china/global-markets-wrapup-1-2025-05-22/