2025-03-26 06:16
LITTLETON, Colorado, March 26 (Reuters) - Record nuclear power production is helping South Korea to cut imports of thermal coal and LNG to multi-year lows so far in 2025, offering a potential blueprint for other power-hungry nations looking to curb reliance on fossil fuel imports. Nuclear reactors have generated more electricity than South Korea's coal and natural gas-fired plants since September of last year, and have helped the country's utilities make steep cuts to fossil fuel purchases and use so far in 2025. Sign up here. Historically, South Korea has been a top-four importer of both coal and LNG, but over the first quarter of 2025 it has cut the combined imports of both fuels by 20% from 2024, thanks to greater home-grown nuclear output. Continued high nuclear generation could allow for further drops to South Korea's fossil fuel imports going forward and showcase the effectiveness of a nuclear fleet in displacing costly and high-polluting fuels from power production. NUCLEAR GROWTH South Korea's nuclear power fleet churned out a record 17.9 terawatt hours of electricity in January, according to data from Ember, which is 20% more than in the same month in 2024 and accounted for nearly 35% of the country's electricity. A sustained drive to raise efficiency levels of the country's nuclear reactors, alongside the start-up of the Shin Hanul-2 reactor in early 2024, has resulted in a steady climb in South Korea's nuclear-powered electricity supplies. Between 2019 and 2024, total electricity generation from South Korea's nuclear plants expanded by 29%, from 146 terawatt hours (TWh) to 189 TWh, Ember data shows. That rapid swell in clean electricity supplies allowed for utilities to reduce coal-fired power output by 26% and still elevate overall electricity supplies by 6% during that same period. Natural gas-fired electricity supplies grew by 17% from 2019 to 2024, and overtook coal-fired supplies for the first time last year. But 2024 also saw output from nuclear plants exceed that from South Korea's coal and gas-fired plants for the first time, cementing its place as the country's primary power source. And nuclear power's stature within South Korea looks set to keep growing, with an additional four reactors under construction. IMPORT IMPACT South Korea was the world's fourth-largest importer of thermal coal and third-largest importer of LNG in 2024, data from ship-tracking firm Kpler shows. Over the first quarter of 2025, however, South Korea's imports of thermal coal were down 23% from the same quarter a year ago, while LNG imports were down 16%. From January through March, South Korea's total imports of thermal coal were just over 14 million metric tons, which was 4 million tons less than during the same period in 2024. South Korea's LNG imports during the first quarter of 2025 were 10.6 million tons, which was nearly 2 million tons less than during the first quarter of 2024. For both commodities, the first-quarter import tallies were the lowest in at least eight years and signify a potentially major shift in fossil fuel flows across Asia if sustained through the rest of the year. But the impact of South Korea's fossil fuel imports drop could be felt more broadly, especially among nations considering the deployment of nuclear power to boost overall energy supplies and reduce reliance on foreign fuels to produce it. As South Korea's utilities have shown, with the appropriate funding and policy support it is possible to upgrade the efficiency and output levels of existing fleets and bring on new reactors to boost overall electricity production. With that higher nuclear power base, it is then possible to pare back dependence on foreign-sourced fossil fuels, resulting in a cleaner and more self-reliant power system that is capable of expanding electricity supplies in line with domestic needs. The opinions expressed here are those of the author, a market analyst for Reuters. https://www.reuters.com/markets/commodities/nuclear-growth-helps-south-korea-cut-back-coal-lng-imports-maguire-2025-03-26/
2025-03-26 06:11
MUMBAI, March 26 (Reuters) - The Indian rupee is set to open higher on Wednesday following weak U.S. consumer confidence data that heightened anxieties regarding the U.S. economic trajectory. The resumption of equity flows should provide an additional impetus to the rupee. Sign up here. The 1-month non-deliverable forward indicated that the rupee will open at 85.62 to 85.64 against the U.S. dollar compared with 85.7550 in the previous session. The Indian currency snapped a nine-day winning run on Tuesday, during which it has rallied by 2%. A predominantly softer dollar, the return of foreign capital to Indian equities, and the liquidation of bearish rupee bets contributed to the rise, per bankers. Foreign investors acquired more than $600 million worth of Indian equities on Tuesday, resulting in inflows exceeding $2 billion in the last four trading days. A currency trader at a Mumbai-based bank said Tuesday's price action was an expected correction following the currency's "super run-up". The trader expects buying interest on USD/INR dips and a range of 85.50 to 86 pending clarity on U.S. tariffs. Next Wednesday, U.S. President Donald Trump will disclose the specific details of the tariffs he plans to implement. WEAK US DATA U.S. Treasury yields slipped on Tuesday, pressured by weak consumer confidence data and worries over the economic outlook amid the impending tariffs. The U.S. Conference Board data showed that the consumer confidence index fell to a four-year low of 92.9, with households reporting the highest pessimism in 12 years. The data indicated "potential future softness in consumer discretionary spending, which on our estimates represents around 20% of consumer expenditure," ANZ Bank said in a note. "Tariff anxiety is continuing to play a role in the elevated level of worry." KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.02; onshore one-month forward premium at 31 paise ** Dollar index dips to 104.18 ** Brent crude futures up 0.5% at $73.4 per barrel ** Ten-year U.S. note yield at 4.33% ** As per NSDL data, foreign investors bought a net $723 million worth of Indian shares on March 24 ** NSDL data shows foreign investors bought a net $15.7 million worth of Indian bonds on March 25 https://www.reuters.com/markets/currencies/rupee-likely-rise-uncertain-us-economic-outlook-inflows-2025-03-26/
2025-03-26 06:11
MUMBAI, March 26 (Reuters) - The Indian rupee reversed early gains to weaken slightly on Wednesday, pressured by dollar demand spurred by maturity of positions in the non-deliverable forwards (NDF) market alongside weakness in regional peers such as the Chinese yuan. The local currency was at 85.8575 against the U.S. dollar, as of 11:40 a.m. IST, down about 0.1% after hitting a peak of 85.6950 earlier in the session. Sign up here. The dollar index was up 0.1% at 104.3, while most Asian currencies were lower, with the offshore Chinese yuan declining to 7.27. Appetite for dollars at the daily reference rate maintained pressure on the rupee, a trader at a state-run bank said. The reference rate, or the daily fix, was last quoted at a 0.50/0.60 paisa premium, signalling strong dollar bids, as per the trader. Despite slipping on Wednesday, the rupee has outperformed its major Asian peers this month, aided by dollar inflows spurred by repatriation of corporate profits and a pick in foreign portfolio inflows as well. Overseas investors have bought more than $2 billion worth of Indian shares in the last four days, while month-to-date inflows into bonds stand at little over $3 billion. "For the medium term, any uptick in USD/INR could offer selling opportunities, while further improvement in the rupee's fundamentals may push the pair toward 85.20," said Amit Pabari, managing director at forex advisory firm CR Forex. Traders will also be on guard for developments related to U.S. tariff policies, with reciprocal trade levies set to be announced on April 2. For its part, India is open to cutting tariffs on more than half of U.S. imports worth $23 billion in the first phase of a trade deal that the two nations are negotiating, as it looks to mitigate the impact of reciprocal tariffs, Reuters reported on Tuesday. https://www.reuters.com/markets/currencies/rupee-dips-dollar-demand-spurred-by-ndf-maturities-tepid-asian-peers-2025-03-26/
2025-03-26 06:04
HANOI, March 26 (Reuters) - Vietnam will cut its tariffs on several U.S. products including LNG and cars, and moved to approve Starlink services, as the country tries to avoid being hit with U.S. tariffs because of its large bilateral trade surplus. The Southeast Asian industrial hub announced in past weeks a series of measures, including boosting imports, to reduce its trade surplus with Washington, which exceeded $123 billion last year, after U.S. President Donald Trump flagged wide-ranging tariffs on trading partners. Sign up here. Under the new plans revealed late on Tuesday, the tariff on American liquefied natural gas will be cut to 2% from 5%, on automobiles to 32% from a range of 45% to 64%, and on ethanol to 5% from 10%, the head of the Finance Ministry's tax policy department Nguyen Quoc Hung said in a statement posted on the ministry's website. The tariff cuts are aimed at "improving trade balances with (Vietnam)'s trade partners," Hung said, adding that while the U.S. and Vietnam had a Comprehensive Strategic Partnership the countries had not signed a free-trade agreement. Vietnam has not yet imported LNG from the U.S., but the country has been in talks with U.S. suppliers for its future fleet of LNG power plants, the first two of which are scheduled to start commercial power generation by June this year. Hung said the decree on the tariff cuts will be ready within this month and will take effect right after that. He added tariffs on ethane will be removed and duties will be cut on other imports including chicken thighs, almonds, apples, cherries and wooden products. Separately, the government issued a decision to allow SpaceX to launch its Starlink satellite internet service on a trial basis in the country, while retaining full ownership on the service, according to a statement published on the government portal on Wednesday. Allowing the U.S. firm to launch its internet service is seen by some analysts as one of the measures Vietnam has taken to avoid being hit with U.S. tariffs. Trump is expected to apply reciprocal tariffs on several countries on April 2, although on Monday he said some countries might get breaks. https://www.reuters.com/markets/asia/vietnam-says-cut-tariffs-several-us-products-2025-03-26/
2025-03-26 05:51
Fed's Kugler: inflation progress has slowed U.S. PCE data due on Friday Spot gold up 15% for the year so far March 26 (Reuters) - Gold prices rose for a second straight session on Wednesday, buoyed by safe-haven demand as markets awaited further clarity on U.S. President Donald Trump's trade policies. Spot gold was up 0.1% at $3,023.63 an ounce by 1102 GMT, while U.S. gold futures also rose 0.1% to $3,029.10. Sign up here. "It is the safe-haven function of gold which is providing support (to prices), and one of the reasons driving that is the U.S. tariffs policy," Quantitative Commodity Research analyst Peter Fertig said. Trump's tariff policies are widely expected to weigh on economic growth and trigger further trade tensions. Trump said on Monday that automobile tariffs are coming soon, but indicated that not all of his threatened levies would be imposed on April 2 and some countries may get breaks. Gold, traditionally seen as a hedge against uncertainty and inflation, has risen more than 15% this year and hit an all-time peak of $3,057.21 on March 20. Fed Governor Adriana Kugler said on Tuesday that Federal Reserve interest rate policy remains well positioned, but progress on bringing inflation back to the central bank's 2% target has slowed. Investors are now awaiting data on U.S. personal consumption expenditures due on Friday. "The PCE deflator is the yardstick for the Fed, and if it comes in at a moderate pace then speculation about further rate cuts in the U.S. might intensify and that would of course be a positive factor for gold," Fertig said. The Fed held its benchmark interest rate steady last week but indicated it could cut rates later this year. Non-yielding bullion tends to thrive in a low interest-rate environment. "We are forecasting $3,200 by September," ANZ Commodity Strategist Soni Kumari said, adding that any hawkish comment from the Fed could be a factor slowing gold's rally. Spot silver was flat at $33.75 an ounce, while platinum lost 0.5% to $971.55. Palladium added 0.1% to $957.01. https://www.reuters.com/markets/commodities/gold-steady-concerns-loom-over-trumps-reciprocal-tariff-plans-2025-03-26/
2025-03-26 05:50
JAKARTA, March 26 (Reuters) - Indonesian authorities will hand over more land that has been seized in probes into illegal palm plantations to the new state company Agrinas Palma Nusantara, officials said on Wednesday, as part of a push to clean up the industry's global image. Indonesia, the world's top palm oil producer, launched an anti-corruption effort this year, facing criticism that palm oil plantations are a major driver of deforestation. Sign up here. Prosecutors on Wednesday handed over to Agrinas 216,997 hectares (536,211 acres) of plantation areas confiscated from 109 companies, Attorney General official Febrie Adriansyah said, adding to more than 221,000 hectares handed over earlier this month. Agrinas is expected to continue running the plantations. "Agrinas Palma must be ready with their leadership to make sure the production will not drop, and should even be increased," said Defence Minister Sjafrie Sjamsoeddin, who is leading the forest management effort, adding that Agrinas would be assisted by other state plantation firms. In January, President Prabowo Subianto set up a group to punish companies operating in designated forest areas without permits. The task force is allowed to seize the land, including palm oil plantations operating in forest-designated areas. The plantations being given to Agrinas were part of an area of around 1 million hectares the task force has confiscated. Authorities will go through a verification process for the rest of the area and aims to hand over more plantations to Agrinas, Sjafrie told reporters. Areas found to be no longer feasible for commercial operation may be re-forested, a task force official said. https://www.reuters.com/markets/commodities/indonesia-steps-up-handing-confiscated-palm-plantations-state-company-2025-03-26/
