2025-05-13 12:33
May 13 (Reuters) - China has issued export permits to at least four rare earth magnet producers including suppliers to Volkswagen , the German carmaker and industry sources said, the first granted since Beijing restricted shipments last month and a sign that the critical materials will continue to flow. Baotou Tianhe Magnetics (603072.SS) , opens new tab, which makes the magnets used in electric and hybrid car motors, received a licence for Volkswagen in late April, three sources said. One of the sources added that the automaker had reached out to Beijing to help during the process. Sign up here. "We remain in close contact with our suppliers and have received indications that a limited number of Volkswagen AG’s magnet suppliers have been granted export licenses by the Chinese government," Volkswagen said in response to questions from Reuters, declining to provide further detail. Zhongke Sanhuan received at least one permit, two of the sources said. Baotou INST Magnetic (301622.SZ) , opens new tab and Earth-Panda Advanced Magnetic Material (688077.SS) , opens new tab were also granted at least one permit, one of the sources added. The sources declined to be named due to the sensitivity of the matter. The four magnet producers and China's commerce ministry did not immediately respond to requests for comments. Export licenses are granted for each customer and it is unclear whether all clients of the four firms have been cleared by Beijing. One of the sources said permits were only issued to suppliers for customers in Europe and Vietnam. However, the permits were issued before the trade war truce agreed with Washington on Monday, which industry sources said is likely to make it easier for U.S. customers to win approvals. Beijing issued the permits less than a month after it imposed restrictions on seven rare earth elements and related materials as part of a response to U.S. President Donald Trump's earlier tariffs, bucking industry expectations of a long wait. The sources said the permits were the first to be issued since Beijing imposed its curbs. China dominates the processing of the 17 rare earth elements used across clean energy, defence and automaking and companies have few, if any, alternative suppliers. That dependence is demonstrated by Volkswagen's intervention as well as lobbying from other big Western users. Elon Musk said last month Tesla was in talks with Beijing over licenses for its Optimus robots. https://www.reuters.com/business/autos-transportation/beijing-has-issued-first-rare-earth-magnet-export-permits-volkswagen-suppliers-2025-05-13/
2025-05-13 12:30
BEIJING, May 13 (Reuters) - Brazil signed protocols with China on Tuesday to allow exports of an ethanol by-product used in animal feed, challenging U.S. dominance in the market amid ongoing China-U.S. trade standoff. The deal, outlined in a Brazilian government document viewed by Reuters, underscores Brazil's push to strengthen agricultural ties with China as President Luiz Inácio Lula da Silva visits the country, and as rising domestic DDG production fuels the search for alternative markets. Sign up here. Distillers dried grains (DDGs) are highly valued in animal feed, particularly for pigs, cattle, and poultry. In an interview with Reuters on Monday, the president of Brazil's National Corn Ethanol Union (UNEM) said Brazil and China have been working since 2022 to finalise a sanitary agreement for DDG exports, adding current "broad geopolitical shifts" present a favourable time to conclude the deal. "It opens up an opportunity for Brazil to become another supplier, another option for China to source animal nutrition products. For us, it means re-establishing and strengthening the relationship between the Brazilian and Chinese markets, which share multiple mutual interests," Guilherme Nolasco added. In 2024, the U.S. was nearly the sole supplier of DDGs to China, dominating the market with 99.6% of imports by volume, valued at $65.7 million, the Chinese customs data showed. According to Nolasco, over 10 new plants are under construction and set to begin production within the next two to three years for corn ethanol and DDG, coinciding with the opening of the Chinese market. Nolasco expects DDG production in Brazil to potentially reach up to 5 million tons in 2025/26. In April, Agriculture Minister Carlos Fávaro revealed that Brazil is nearing a deal with China to allow DDG exports. Separately, both countries also signed protocols for the export of poultry and extractive fishery products from Brazil to China, according to the document. https://www.reuters.com/markets/commodities/china-allow-brazils-ethanol-by-product-amid-lula-visit-us-china-trade-war-2025-05-13/
2025-05-13 12:20
ABUJA, May 13 (Reuters) - Nigerian oil producer Oando (OANDO.LG) , opens new tab has completed repairs on its pipeline in the oil-rich Bayelsa state after four oil spill incidents caused by sabotage in recent weeks, the company said on Tuesday. The company activated emergency responses immediately after each spill, shutting down affected wells, halting crude delivery and deploying containment measures. Joint investigations were conducted with government regulators and community representatives, it said in a statement. Sign up here. Oando, which now owns former Eni unit Nigerian Agip Oil Co, said it plans a sectional replacement of the pipeline to further reduce future risks. https://www.reuters.com/business/energy/nigerian-oil-producer-oando-completes-pipeline-repairs-after-spills-2025-05-13/
2025-05-13 12:16
NEW DELHI, May 13 (Reuters) - India has approved three Russian insurers, including a unit of top lender Sberbank (SBER.MM) , opens new tab, to provide marine cover to ships arriving at Indian ports, a government notification shows, helping Moscow maintain oil supplies to a key market. India is the top buyer of Russian seaborne oil after China since Western nations shunned purchases and imposed sanctions on Moscow for its military action in Ukraine. Sign up here. With the granting of the permits to Sberbank Insurance, Ugoria Insurance Group and ASTK Insurance Company, India now recognises eight Russian entities that are eligible to provide protection and indemnity (P&I) coverage for ships. The permits for Sberbank Insurance, Ugoria and ASTK are valid until February 20, 2026, the order showed. Reuters last month reported that the three entities were seeking approval from the Indian shipping regulator to provide P&I cover. Insurance is essential for maritime transport, particularly oil cargoes that require the highest safety standards due to the risk of spills. Russian entities are not a part of the International Group of P&I Clubs, which provides liability cover for personal injury or environmental clean-up claims for the majority of the world's tankers. Growing scrutiny of Russia's oil supply chain by the United States and the European Union, including compliance with a price cap set by the Group of Seven democracies for the use of Western ships and insurance, has made it increasingly difficult for Moscow to export its oil. To navigate the restriction, Indian refiners buy Russian oil on delivered basis, with sellers providing vessels and insurance. India's oil secretary said in February that it only wanted to buy Russian oil supplied by companies and ships that have not been subject to U.S. sanctions. https://www.reuters.com/world/india/india-approves-more-russian-insurers-provide-marine-cover-2025-05-13/
2025-05-13 12:08
LONDON, May 13 (Reuters) - Bank of England Governor Andrew Bailey and British finance minister Rachel Reeves have raised the prospect of the BoE making money from its new system for providing reserves to banks after racking up huge losses from its bond-buying programme. The BoE has increasingly used its repo facilities as it sells down the holdings of government bonds that it began to buy as a stimulus measure during the global financial crisis of 2008-09 and which it continued to use until 2022. Sign up here. The long-run cost of the bond purchase programme could be around 120 billion pounds , opens new tab ($158.51 billion) as rising interest rates push down the value of the bonds. The government foots the bill for losses incurred by the BoE. In an exchange of letters published on Tuesday, Bailey and Reeves said the new, repo-based system was likely to prove less damaging for the public finances. "Dependent on the evolution of demand for reserves and the design of the Bank's repo facilities, the transition to repo is expected to generate income for the Bank and broader public sector," Reeves said in her letter to Bailey. The BoE governor said he expected the change to be profitable for the central bank. "As banks will be paying for the reserves they demand in this framework, we expect that our operations will generate positive income in the future," he said. ($1 = 0.7571 pounds) https://www.reuters.com/world/uk/uks-reeves-bailey-hope-repo-system-will-make-money-boe-2025-05-13/
2025-05-13 12:02
ABIDJAN, May 13 (Reuters) - Ghana should be able to reduce its debt of $2.5 billion owed to independent power producers and gas suppliers by the end of the year, President John Dramani Mahama said on Tuesday. Last year, the West African country reached an agreement with independent power producers to restructure legacy debt of around $1 billion as part of efforts to deal with its overall debt burden. Sign up here. But arrears to service providers have continued to pose a challenge to Ghana's economy since Mahama was sworn in for a second term as president in January. "I'm sure by next year, our partners would be happy because we would have dealt appropriately with the debt overhang," Mahama told a forum in Ivory Coast. He said that state-owned utility ECG was inefficient in collecting revenue and was experiencing losses of about 40%. To be able to pay for electricity, Mahama said he was bringing the private sector into the billing process. "People are queuing up, I said they should wait. We're going to do expressions of interest," Mahama said when asked about interest from private investors. The cabinet will decide whether Ghana should have one or multiple partners working on the billing, he said, adding that there must be local participation. Mahama also said companies should take advantage of oil and gas extraction before the world transitions to renewable energy. "Oil is in transition and so everybody who has any assets should be pumping like there's no tomorrow ... I would lay a red carpet to anybody who wants to drill and pump oil to do so," he said. https://www.reuters.com/world/africa/ghana-aims-reduce-25-billion-debt-owed-power-producers-by-year-end-2025-05-13/
