2025-02-10 10:08

MUMBAI, Feb 10 (Reuters) - The Indian rupee weakened to its all-time low on Monday in the wake of U.S. President Donald Trump announcing fresh tariff plans, which drove regional currencies lower, while persistent portfolio outflows remained a sore point for the local unit. The rupee weakened to 87.95 against the U.S. dollar before closing at 87.4750, down slightly on the day. The currency managed to pare most of its losses due to strong central bank intervention, exporters' dollar selling and profit-booking by speculators holding long USD/INR positions, traders said. Asian currencies were mostly weaker, with the offshore Chinese yuan down 0.2% at 7.31. The dollar index was down slightly at 108.2. Trump said he will announce new 25% tariffs on all steel and aluminium imports into the U.S. later on Monday, as well as reciprocal tariffs on Tuesday or Wednesday that will be applied to all countries and match the tariff rates levied by each nation. "While the details are still unknown, we note that India looks more vulnerable in this regard," MUFG Bank said in a note, referring to the reciprocal tariffs. "We think the good relationship between Trump and (Indian Prime Minister Narendra) Modi historically should imply negotiation being more likely than not," the note added. Modi is preparing additional tariff cuts ahead of a meeting with Trump this week, government officials told Reuters. U.S. tariffs on India could be an additional headwind for the rupee, which has declined more than 2% so far this year. India's sluggish growth, foreign portfolio outflows, the uncertainty over U.S. tariffs, and increased hedging in the onshore and the non-deliverable forward market have all weighed on the rupee in recent months. Foreign investors have net sold nearly $10 billion of local stocks over the year so far. The benchmark BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab equity indexes ended lower by about 0.7% each on the day. Sign up here. https://www.reuters.com/markets/currencies/rupee-sticks-losing-run-mounting-tariff-worries-persistent-investor-outflows-2025-02-10/

2025-02-10 07:41

Australia seeks exemption from U.S. steel and aluminium tariffs Australian exports create American jobs, support shared defence interests BlueScope Steel, which has U.S. operations, sees shares rise SYDNEY, Feb 10 (Reuters) - Australia's trade minister said its steel and aluminium exports to the U.S. create "good paying American jobs" and are key to shared defence interests, as Canberra presses Washington for an exemption to President Donald Trump's planned tariffs. Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminium imports into the U.S., on top of existing metals duties, in another major escalation of his trade policy overhaul. Trade Minister Don Farrell said on Monday that Australia, a key U.S. security ally in the Indo-Pacific, was making the case for "free and fair trade, including access into the U.S. market for Australian steel and aluminium" in meetings with the Trump administration. "Australian steel and aluminium is creating thousands of good paying American jobs, and are key for our shared defence interests," he said in a statement. Farrell is yet to meet with his U.S. counterpart who has not been confirmed in the role, but Australian officials have been making representations on aluminium and steel exports for several months, seeking to secure a similar exemption from tariffs it won during the previous Trump presidency in 2018. Australia shipped about $237 million worth of steel and iron products to the U.S. in 2023, and $275 million worth of aluminium in 2024, according to the United Nations Comtrade database. Prime Minister Anthony Albanese told national parliament on Monday he was scheduled to talk with Trump and would raise the matter. "We will continue to make the case to the United States for Australia to be given an exemption to any steel and aluminium tariffs," he said in parliament. Defence Minister Richard Marles met his U.S. counterpart Pete Hegseth in Washington on Friday, with Australia making its first $500 million payment to boost production in the U.S. submarine industry under the AUKUS defence project that will see Australia buy several U.S. nuclear-powered submarines and also build submarines. Australian processed steel was purchased by the largest U.S. military shipbuilder as AUKUS partners Australia, Britain and the U.S. seek to integrate defence supply chains, the Australian government said last year. Shares in Australian-listed BlueScope Steel (BSL.AX) , opens new tab rose nearly 2% on expectations its U.S. business would gain from the tariffs. It operates the North Star Mill in Ohio and employs around 4,000 people in the United States. Sign up here. https://www.reuters.com/markets/commodities/australia-says-its-steel-aluminium-exports-create-american-jobs-2025-02-10/

2025-02-10 07:37

NEW DELHI, Feb 10 (Reuters) - India will miss the February deadline to submit a next round of national climate action plans required by the UN Paris Agreement and has yet to complete the exercise, one government official said, making it the latest nation to delay. The agreement sets a Monday deadline for nations to deliver tougher action plans for 2035, called Nationally Determined Contributions (NDCs), in line with a target of limiting global temperature rise to 1.5 degrees Celsius (2.7 degrees F). "India has yet to finish its studies on emission trajectories and roadmap," said the official, who sought anonymity as he was not authorised to speak to the media. "It is unlikely we will submit the updated commitments within the given time frame." India's environment ministry did not immediately respond to a query from Reuters. Such plans have a vital role in helping countries limit warming to the Paris Agreement goals, but only a handful of countries such as Brazil, Britain, New Zealand and the United Arab Emirates have submitted them. China, also among the world's largest polluters, has not presented its climate plan yet. New Delhi is trying to finish the studies early but has not set a deadline for itself, the official added. The United States, under President Joe Biden, made the 2035 submissions in December, before his successor, Donald Trump, took charge and quit the Paris Agreement to halt U.S. climate action. Sign up here. https://www.reuters.com/sustainability/climate-energy/india-miss-february-deadline-tougher-climate-action-plan-source-says-2025-02-10/

2025-02-10 07:04

Feb 10 (Reuters) - London aluminium prices were flat on Monday as market players weighed risks of a major trade war after U.S. President Donald Trump said he was set to impose new 25% tariffs on all steel and aluminium imports. Three-month aluminium on the London Metal Exchange (LME) was little changed at $2,628.5 a metric ton, as of 0600 GMT, after two straight sessions of gains. The aluminium contract on the Shanghai Futures Exchange (SHFE) was 0.2% higher at 20,525 yuan ($2,809.14) a ton, after hitting its highest level since early December 2024 on Friday. On Sunday, Trump said he would introduce new 25% tariffs on all steel and aluminium imports into the United States, which would come on top of existing metals duties, in another major escalation of his trade policy overhaul. Trump said he would announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the rates levied by each country. Australia's trade minister said the country's steel and aluminium exports to the United States create "good paying American jobs" and are key to shared defence interests, as Canberra presses Washington for an exemption to the planned tariffs. "While steel and aluminium appear to account for a larger share of U.S. imports from Taiwan, Korea and India, we estimate the exposure to be only around 5% of their shipments to the U.S., at most," Barclays said in a note. LME copper fell 0.2% to $9,390 a ton, zinc held steady at $2,841, tin eased 0.2% to $31,060, lead was steady at $1,992.5, and nickel traded unchanged at $15,760. SHFE copper gained 0.5% to 77,140 yuan, nickel firmed 0.1% to 127,180 yuan, zinc fell 0.1% to 23,785 yuan, lead gained 0.4% to 17,160 yuan and tin rose 0.2% to 258,670 yuan. ($1 = 7.3065 yuan) Sign up here. https://www.reuters.com/markets/commodities/aluminium-rises-supply-risks-after-trump-tariff-threat-2025-02-10/

2025-02-10 06:57

Share prices of steelmakers decline in Monday trade Trump says to announce 25% tariffs on steel, aluminium imports on Monday Tariffs threaten to bring higher prices, weaker demand, analysts say S.Korea ministry holds emergency meeting with steel firms SEOUL/SINGAPORE, Feb 10 (Reuters) - U.S. President Donald Trump's plan to impose new 25% tariffs on all imports of steel and aluminium into the United States weighed on shares of producers in Asia on Monday as it threatened to disrupt trade flows in the metals. The tariffs, which Trump said would be announced on Monday and be in addition to existing duties, sparked warnings from steelmakers in Asia about the impact on prices, profitability and volumes and broader worries that they could push up inflation and drag on economic activity. Canada, Brazil, Mexico, South Korea and Vietnam are the biggest sellers of steel into the U.S., according to government and American Iron and Steel Institute data, while Canada is the dominant supplier of imported aluminium. In South Korea, the industry ministry said on Monday it held an emergency meeting with steelmakers in Seoul to discuss measures to minimise the impact of potential tariffs. "We are concerned that the potential change would lead to export price hikes and reduction in the 70% quota volumes," said an official at Hyundai Steel (004020.KS) , opens new tab, referring to South Korea's annual duty-free steel quota of 70% of volumes shipped to the U.S. on average from 2015-17, agreed during the first Trump administration. The company, which supplies steel to Hyundai and Kia's car plants in the U.S., has said previously that it was considering building a new steel plant in the U.S. to blunt the impact of potential Trump tariffs. Hyundai Steel shares fell as much as 2.9% amid a broader decline among South Korean steelmakers. "The negative impacts from the changes in tariffs would be unavoidable," said an official with Dongkuk Steel (460860.KS) , opens new tab, noting that the U.S. is a profitable market for it now. Chu Xinli, an analyst at China Futures, said U.S. demand would be reduced by higher prices and slower inflows of steel, which is used in automaking, appliances and construction. "Those that are poised to flow into the U.S. will be redirected to other countries and regions, such as the EU and Asian countries, which will see a change in the global steel trading pattern," Chu said. India's metals index (.NIFTYMET) , opens new tab was that country's top sectoral decliner on Monday, down about 2.5%. DEMAND THREATENED The impact of the tariffs could be wide ranging. "I suspect U.S. manufacturers will have to wear higher prices as a result of these 25% tariffs. Its import reliance is high, around 40%-45% for aluminium and 12%-15% for steel," said Daniel Hynes, senior commodity strategist at ANZ in Sydney. Iron ore futures fell on Monday as the tariffs threat triggered risk-off sentiment despite evidence of recovering demand in top buyer China, while aluminium was up narrowly on what one analyst said was concern that supply could tighten. "One of the impacts of these tariffs is depressed global economic activity," said Kyle Rodda, senior financial markets analyst at Capital.com in Melbourne. Some countries were making the case for exemptions from Trump's tariffs. Australia's trade minister said its steel and aluminium exports to the U.S. create "good paying American jobs" and are key to shared defence interests, as Canberra presses Washington for a tariff exemption. Shares of Australia's BlueScope Steel (BSL.AX) , opens new tab, however, rose to a more than two-month high on Monday, buoyed by expectations that its U.S. business would gain from the tariffs. Charu Chanana, chief investment strategist at Saxo in Singapore, said slower demand could counter the potential inflationary impact of the tariffs. "The bigger concern is the uncertainty and the shift towards a more protectionist world," she said. Sign up here. https://www.reuters.com/markets/commodities/trumps-steel-aluminium-tariffs-rattle-makers-metals-2025-02-10/

2025-02-10 06:55

SINGAPORE, Feb 10 (Reuters) - U.S. President Donald Trump said on Sunday he will introduce new 25% tariffs on all steel and aluminum imports into the U.S., on top of existing metals duties. He also said he will announce reciprocal tariffs on Tuesday or Wednesday. Shares of steelmakers in Asia mostly fell on Monday, save for those with operations in the United States. The dollar rose and U.S. Treasury yields ticked higher. Here is what market participants are saying: KELVIN WONG, SENIOR MARKET ANALYST, OANDA, SINGAPORE "Trade War 2.0 is different in scope and implementation from Trade War 1.0 in 2018 as it involves more countries ... (and)includes all U.S. major trading partners that have significant trade surpluses with the U.S. "All in all, Trade War 2.0 may upend global trade flows that in turn dampen global economic growth prospects, which may lead to a stagflation environment. "Investors and short-term traders are now in flux in terms of playbook positioning as the global economy has not faced a stagflation environment in the last 15 years since the Great Financial Crisis of 2009." VASU MENON, MANAGING DIRECTOR, INVESTMENT STRATEGY, OCBC, SINGAPORE "It is unclear if Trump's latest steel and aluminium tariffs is a negotiation strategy which he may dial down on later. After all if implemented it will also hurt the U.S. given its dependence on imported steel and aluminum from Canada and Mexico which are major suppliers of these metals to the U.S. Markets will be on edge and volatile with the escalating trade war and investors need to tread with caution for now and brace for possibly more market turbulence." KYLE RODDA, SENIOR MARKETS ANALYST, CAPITAL.COM, MELBOURNE "It adds to the potential looming price shock from Trump's trade policy. In the short term that's inflationary. In the longer-run and in the aggregate, it's going to be a drag on growth. There's now also the issue of a tit-for-tat dynamic emerging in the global economy as competitors like China respond with counter measures. Currently, markets are mostly responding to the uncertainty. But as the odds of an all out trade war increases, they will have to increasingly discount marginally weaker economic activity." TOMO KINOSHITA, GLOBAL MARKET STRATEGIST, INVESCO ASSET MANAGEMENT JAPAN, TOKYO "Although the details (of 25% tariff on steel and aluminum) have not been released, considering that the United States imports over $100 billion annually for steel and aluminum combined, the annual additional tariff resulting from this new tariff is likely to be around $25 billion. That would be less than 0.1% of U.S. GDP. The inflationary effect on the U.S. economy ... is expected to emerge slowly, but I think it would be at most around 0.1%, so the impact would be pretty limited." CHARU CHANANA, CHIEF INVESTMENT STRATEGIST, SAXO, SINGAPORE "These threats appear legitimate and within Trump's power to implement on the basis of national security. The old playbook can't be used because China is no longer a significant supplier of steel to the U.S. after the 2018 tariffs. Instead, the impact will be more pronounced on countries like Canada, Mexico, the EU, Japan, South Korea, Taiwan, and Brazil. "The immediate concern, however, might not be inflation, as there could be counter effects such as demand slowdown. The bigger concern is the uncertainty and the shift towards a more protectionist world." TONY SYCAMORE, MARKET ANALYST, IG, SYDNEY "It's been a very different reaction. This week started like last week did - we've seen tariff headlines, but the reaction has been somewhat different across asset classes ... U.S. equity futures are trading higher, and in fact, even the ASX 200 has bounced somewhat off its early lows. The Aussie dollar is still struggling a little bit, but my feel is that ... after the whipsaw ride we saw last week, there's going to be less of a temptation now to shoot first and ask questions later." DANIEL HYNES, SENIOR COMMODITY STRATEGIST, ANZ, SYDNEY "I suspect U.S. manufacturers will have to wear higher prices as a result of these 25% tariffs. Its import reliance is high, around 40%-45% for aluminium and 12%-15% for steel. "I suspect we see regional pricing react first. U.S. prices are likely to be big higher, with traders anxious to secure metal before the tariffs are applied. " Sign up here. https://www.reuters.com/markets/markets-react-trumps-tariffs-steel-aluminium-imports-2025-02-10/