2025-02-04 12:07

Licenses now required for some certain metal exports Prices for some related products already at record highs Similar curbs on other metals saw exports drop, recover slowly BEIJING, Feb 4 (Reuters) - China said on Tuesday it would restrict exports of five metals used in defence, clean energy and other industries in response to fresh U.S. tariffs, refraining from the outright export bans Beijing has previously used against Washington. The restrictions were the latest attempt by China since 2023 to leverage its dominance in mining and processing critical minerals used in everything from smartphones and electric car batteries to infrared missiles and ammunition. The new curbs by China stop short of outright export bans and are narrowly targeted in some cases. They form part of the measured package of tariffs and other policies unveiled by Beijing after an additional 10% tariff on Chinese imports into the U.S. came into effect at 1201 ET (0501 GMT). Licences will now be required to export 20 tungsten, tellurium, bismuth, indium and molybdenum-related products to "safeguard national security interests", the Commerce Ministry said. Uses for the metals range from solar panels to artillery shells. For example, China will restrict the export of certain types of molybdenum powders used to make missile parts. It shipped 287 tons last year, about half going to Japan, customs data showed. Markets had speculated China would expand export controls ever since its decision last December to ban exports to the U.S. of antimony and other materials, according to Jessica Fung, head of Consulting at Project Blue. The move will likely force up prices outside China, she added. However, a London-based trader, who requested anonymity as they were not authorised to speak to the media, said the move was a "warning shot" and there wouldn't be a big impact on markets as alternative sources exist. Indices which track a tungsten compound and indium prices outside China hit their highest levels in a decade or more in late January before these curbs were announced. SUDDEN STOP, SLOW RECOVERY After previous export curbs were imposed on other metals, exports dropped sharply as companies scrambled to get export licences, a process that takes roughly six weeks. In the past, shipments slowly rebounded as licenses were granted, although in the case of germanium, exports are still considerably below pre-restriction levels. However, it remains to be seen whether shipments destined to the U.S. will qualify for licences. The United States stopped mining tungsten in 2015 and has not produced refined bismuth since 1997, relying in both cases on imports. Sign up here. https://www.reuters.com/world/china/china-expands-critical-mineral-export-controls-after-us-imposes-tariffs-2025-02-04/

2025-02-04 11:53

Feb 4 (Reuters) - China announced export controls on Tuesday targeting five metals used across defence, clean energy and other industries minutes after an additional 10% tariff on Chinese goods imposed by U.S. President Donald Trump came into effect. Here is what you need to know about these metals: TUNGSTEN Tungsten is an ultra-hard metal, in terms of strength outdone only by diamonds, and is primarily used in the production of goods including artillery shells, armour plating and cutting tools. Approximately 60% of its U.S. consumption goes to making tungsten carbide, a highly durable material widely used across construction, metalworking, and oil and gas drilling. Like many other critical minerals, China dominates the production and export of tungsten and produced just over 80% of global supply in 2023. Based on analysis by UK-based consultancy Project Blue, China supplies 30% of the ex-China market, mostly in the form of powders for tooling applications. Other producers include Vietnam, Russia, South Korea, and Spain. Tungsten has not been mined commercially in the United States since 2015, according to the U.S. Geological Survey (USGS). China restricted eight types of tungsten products and the methods to make them. INDIUM Indium is a vital part of phone screens and TV displays via a refined product called indium tin oxide. A separate indium product is also used in fibre-optic technology. The expansion of fifth-generation (5G) cellular networks has led to greater demand for indium. As with tungsten, China is the leading producer, accounting for 70% of the global total, according to the USGS. As of September 2024, a quarter of U.S. indium imports came from China. Other major buyers from China include Japan and South Korea, according to Project Blue. China's new restrictions target three indium-related products and the technology to make them. BISMUTH Bismuth is used in solders, alloys, metallurgical additives, medications and atomic research. The United States ceased production of primary refined bismuth in 1997 and is highly import reliant, according to USGS. China produced over 80% of the world's roughly 13,000 tons of bismuth last year, data from USGS also showed. South Korea and Laos are other major producers. China restricted bismuth and various compounds containing bismuth. TELLURIUM Tellurium, usually a byproduct of copper refining, is used across metallurgy, solar panels, memory chips and other products. China produced about three quarters of the world's refined tellurium in 2024, according to USGS. While the United States has two refineries which produce the precursor, copper telluride, it is then shipped overseas for further processing, according to the USGS. Most products using tellurium relied on imports of the metal. China restricted tellurium exports and various compounds containing tellurium. MOLYBDENUM Molybdenum is primarily used to strengthen and harden steel alloys, making them more resistant to heat and corrosion. It is also used in lubricants, pigments, and as a catalyst in the petroleum industry. China accounted for about 40% of global production, versus 12% for the United States in 2024, according to USGS. However, the new restrictions apply specifically to the export of certain molybdenum powders used to make missile parts. China shipped 287 tons of the powder in question last year, about half going to Japan, customs data showed. Sign up here. https://www.reuters.com/markets/commodities/what-are-five-new-critical-metal-exports-restricted-by-china-2025-02-04/

2025-02-04 11:45

Feb 4 (Reuters) - Top U.S. refiner Marathon Petroleum (MPC.N) , opens new tab beat fourth-quarter profit estimates on Tuesday, as strength in its midstream and renewable diesel segment helped offset a slump in refining margins. The refiner's midstream segment reported an adjusted core profit of $1.71 billion in the quarter, compared with $1.57 billion a year earlier, benefiting from accretive contributions of its recently acquired Utica and Permian basins assets. The company's MPLX (MPLX.N) , opens new tab unit acquired Utica assets from pipeline operator Summit Midstream Partners for $625 million last year. However, the company's refining and marketing margin was down at $12.93 per barrel in the quarter, compared with $17.81 per barrel from a year earlier. Quarterly U.S. refinery margins, measured by the 3-2-1 crack spread , have been down on an average from a year earlier, touching as low as $15.04 in mid-December. On an adjusted basis, the company reported a profit of 77 cents per share in the quarter, compared with the analysts' average estimate of 2 cents per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/marathon-petroleum-beats-fourth-quarter-profit-estimates-2025-02-04/

2025-02-04 11:41

TOKYO, Feb 4 (Reuters) - Japan's Sumitomo Corp (8053.T) , opens new tab on Tuesday raised its net profit forecast by 6% for the fiscal year through March as stronger earnings in overseas power generation and higher aluminium prices offset a loss in its nickel project in Madagascar. The trading house now predicts a net profit of 560 billion yen ($3.61 billion) for the current year, up from previous guidance of 530 billion yen, despite a 6 billion yen loss from its Ambatovy nickel project due to the unrecoverable shareholder loans. Net profit for April-December rose 3% from the same period a year earlier to 416.5 billion yen. Sumitomo has been struggling to stabilise production and improve profitability at the Ambatovy project, launched in 2005. It wrote down the project's book value to zero in the fiscal year ended March 31, 2024, incurring an 89 billion yen impairment loss. But it warned at the time that further losses could arise if additional funding is required to sustain operations, potentially leading to another impairment if deemed unrecoverable. Sumitomo owns a 54.17% stake in the project companies - Ambatovy Minerals, a mining company, and Dynatec Madagascar, a refining company - with the remaining stake held by Korea Mine Rehabilitation and Mineral Resources. The Ambatovy project companies have completed their debt restructuring under a London court in December, resulting in the elimination of lender debt. Sumitomo is still considering all options for Ambatovy, including a possible sale, a company spokesperson said. From April to December, Ambatovy produced about 20,000 metric tons of nickel, Sumitomo said, but did not disclose output plans, stating it will assess production plans after a detailed inspection of the pipeline damaged in September. ($1 = 155.1800 yen) Sign up here. https://www.reuters.com/business/finance/japans-sumitomo-corp-raises-full-year-profit-forecast-36-bln-2025-02-04/

2025-02-04 11:40

TSX ends up 0.2% at 25,279.35 Energy group adds 1.1% as oil settles off lows Tech gains 1%, with Celestica up 7.3% TMX Group jumps 8.3% after earnings beat Feb 4 (Reuters) - Canada's main stock index rose on Tuesday, led by energy and technology shares, as investors took advantage of a recent pullback in the market that was brought about by the threat of U.S. trade tariffs. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 37.59 points, or 0.2%, at 25,279.35. That followed two straight days of declines in volatile trading since the index notched a record closing high on Thursday. U.S. President Donald Trump suspended his threat of steep tariffs on Mexico and Canada on Monday, agreeing to a 30-day pause. The reprieve for Canada came after the market's close on Monday. "Canada is rebounding quite nicely today," said Kevin Headland, co-chief investment strategist at Manulife Investment Management. "Many people were selling off in anticipation of the uncertainty that tariffs might bring and now investors are looking for some of the opportunities that the brief sell-off might have presented." The energy group was up 1.1%, helped by a gain of 4.4% for the shares of Cenovus Energy (CVE.TO) , opens new tab. U.S. crude oil futures settled down 0.6% at $72.70 a barrel but were well off their lows for the day. Technology rose 1%, helped by a gain of 7.3% for the shares of Celestica Inc (CLS.TO) , opens new tab. Consumer staples ended 0.8% higher, with shares of dairy products producer Saputo Inc (SAP.TO) , opens new tab adding nearly 2%. TMX Group Ltd (X.TO) , opens new tab was among the biggest advancers. Its shares rose 8.3% as the stock exchange operator reported fourth-quarter profit and revenue above estimates. Despite the gains for TMX, heavily weighted financials fell 0.9%. Investors worry that lingering trade uncertainty could weigh on the domestic economy. Sign up here. https://www.reuters.com/markets/tsx-futures-fall-crude-prices-dip-us-china-trade-conflict-2025-02-04/

2025-02-04 11:40

LONDON, Feb 4 (Reuters) - The head of Britain's statistical office said on Tuesday he was "super-hopeful" that the shift to a new, improved labour market survey could take place next year and not in 2027 which has previously been mentioned as a possible roll-out date. "I would very much like the number to end with a six," Ian Diamond, National Statistician at the Office for National Statistics, told lawmakers when asked when the Transformed Labour Force Survey might be introduced. "My professional view is that I am super-hopeful," Diamond told parliament's Treasury Committee, adding he was encouraged by the results of the new approach to surveying which includes a shorter questionnaire. The ONS said in December that the shift to its improved labour market survey might be pushed back to as late as 2027, a setback for the Bank of England which is trying to assess inflationary pressures in the economy. The ONS has struggled to reach respondents for its surveys since the Covid-19 pandemic and is overhauling the way it measures the labour market with a focus on introducing the TLFS as a way to reach more people. The Resolution Foundation, a think tank, has said the official labour market data may be failing to count almost 1 million people who are in work and overstating the number of people dropping out of the labour market altogether. Sign up here. https://www.reuters.com/world/uk/uk-statistics-boss-says-he-is-hoping-labour-data-overhaul-2026-2025-02-04/