2025-01-15 12:31
ISLAMABAD, Jan 15 (Reuters) - Pakistan will cut the power tariff for operators of electric vehicle charging stations by 45% as part of the ongoing reform of the energy sector designed to boost demand, the country's Energy Minister Awais Leghari said on Wednesday. A sustained economic crisis has slashed power consumption, leaving the South Asian nation with excess capacity that it still needs to pay for under decade-old contracts with independent power producers. "The success of the new policy depends on how the international community lives up to its commitment to catalysing adoption through green financing for such initiatives," Leghari told Reuters, referring to up to $10 billion worth of commitments made after 2022's devastating floods that are yet to be fully realised. The government is also planning to introduce financing schemes for e-bikes and the conversion of two- and three-wheeled petrol vehicles, Leghari said. The cabinet on Wednesday approved a reduced tariff of 39.70 rupees ($0.14) per unit, down from 71.10 rupees previously, which will be in place within a month. Leghari said the government expects an internal rate of return of more than 20% for investors in the sector. According to a report submitted to the government by power ministry advisor Ammar Habib Khan and seen by Reuters, there are currently more than 30 million two- and three-wheeled vehicles in Pakistan, which consume more than $5 billion worth of petroleum annually. The ministry plans to convert 1 million two-wheelers to electric bikes in a first phase, at an estimated net cost of 40,000 rupees per bike, according to the report, saving around $165 million in fuel import costs annually. BYD Pakistan, a partnership between China's BYD and Pakistani car group Mega Motors, told Reuters in September that up to 50% of all vehicles bought in Pakistan by 2030 will be electrified in some form in line with global targets. ($1 = 278.4000 Pakistani rupees) Sign up here. https://www.reuters.com/business/autos-transportation/pakistan-cut-tariff-ev-charging-stations-by-45-2025-01-15/
2025-01-15 12:30
NAPERVILLE, Illinois, Jan 14 (Reuters) - Bullish corn speculators were rewarded on Friday when the U.S. Department of Agriculture slashed last year’s U.S. corn harvest by a significant and unexpected margin. But does a January victory for the bulls increase their chances of punishment later? Unfortunately, the answer is not straightforward as all years are unique and there are plenty of different angles to examine. Of course, outliers exist in almost every dataset. One trend is pretty clear, though. Whenever U.S. corn production ends up smaller than previously forecast, farmers typically increase corn plantings for the next season. Analysts have already been very receptive to the idea that 2025 acres will be larger than in 2024. But they may not be prepared for the magnitude. In the last two decades, any time the U.S. corn crop was smaller than was forecast in August, the trade underestimates corn planting intentions in the following March. This would signal a bearish outcome ahead on March 31 as the 2024 harvest is now estimated to be 1.8% smaller than was projected in August. There is one outlier, a shrinking 2020 crop and bullish corn acres in March 2021. Pandemic implications complicated farmers’ reporting that year, and ironically, the trade in March 2021 was significantly closer to the final plantings than USDA’s March survey suggested. Some of this is inherent. In the last 10 times that corn acres rose year-over-year, the March planting number was bearish in eight cases. So this may be something that speculators consider over the next two months, especially with their notably bullish corn positions. Whether the trade correctly predicts March plantings, huge corn acres would likely weigh on prices. New-crop Chicago corn futures, relative to soybeans, have opened 2025 on the strongest note in over a decade, supporting corn plantings. POSSIBLE BULL CASES? There are a couple of friendly factors supporting bulls, particularly strong recent demand. Despite the production cuts, USDA since August has increased total 2024-25 U.S. corn use by 1%. That is the only instance in more than two decades where use estimates rose in that period despite a materially smaller harvest. Although this year’s case is slightly different with the smaller crop, rising use estimates between August and January often correspond with lower final ending stocks from here. Regardless of whether that pans out, it could be a bumpy ride to get there by way of quarterly stocks, especially if those are poorly anticipated by analysts. There is no correlation between a shrinking U.S. corn crop and trade biases on March 1, June 1 or Sept. 1 stocks – both bearish and bullish outcomes have ensued. However, a late-season production misjudgment could produce a bearish outcome down the road. Whenever January corn yield was particularly bullish as happened this year, Sept. 1 stocks, effectively the ending stocks, are almost always neutral-to-bearish relative to expectations. Rival corn exporters could come into play. U.S. ending stocks rarely have significant upside from this point whenever combined corn production out of Argentina, Brazil and Ukraine is steady to lower on the year. USDA pegs that combined crop in 2024-25 unchanged from the prior year, although annual gains of more than 30% have been observed within the last decade. That estimate has not yet factored in potential losses in Argentina, where dryness is largely expected to persist through late month. If this pattern continues beyond January, it could be a boon to U.S. exporters and corn bulls alike, though the latter should stay on alert come late March. Karen Braun is a market analyst for Reuters. Views expressed above are her own. Sign up here. https://www.reuters.com/markets/commodities/will-corn-bulls-january-win-come-back-bite-them-2025-01-15/
2025-01-15 12:19
Russia targets natural gas facilities in Ukraine's west Residents in Kyiv take shelter as capital attacked Zelenskiy seeks licences for air defence production Jan 15 (Reuters) - Russia launched scores of missiles and drones at Ukraine on Wednesday, targeting gas infrastructure and other energy facilities in western regions in a new barrage against the struggling power system in the depths of winter. President Volodymyr Zelenskiy said that the Russian forces launched over 40 missiles during the morning attack and used more than 70 drones overnight. Ukrainian air defences shot down 30 missiles and 47 drones, the air force said. Another 27 drones were "lost" in reference to Kyiv using electronic warfare to redirect them. "Another massive Russian attack. It's the middle of winter, and the target for the Russians remains unchanged: our energy infrastructure," Zelenskiy said in a social media post on X platform. "Among their objectives were gas and energy facilities that sustain normal life for our people." The capital Kyiv also came under attack, with hundreds of residents taking shelter in underground metro stations across the capital, sleeping on yoga mats and sitting on folded chairs with their pets. The governor of Ukraine's western Lviv region said two energy facilities, in the Drohobych and Stryi districts, were damaged. In neighbouring Ivano-Frankivsk, the governor said air defences were fending off Russian attacks on facilities. The air force also said that gas infrastructure facilities in the Kharkiv region in the northeast were attacked. Russian Defence Ministry said that its forces conducted strikes on Ukrainian energy facilities, successfully hitting all designated targets. In a further statement issued after midnight, the Russian ministry said the strikes were in response to Ukrainian attacks using U.S. ATACMS missiles and British-made Storm Shadow missiles and an attack on Russia's Krasnodar region aimed at halting gas flows through the Turkstream pipeline network. The ministry said its forces had made a successful strike on a large gas storage facility in the western Ukrainian town of Stryi. GAS SUPPLIES STEADY, KYIV SAYS Ukraine's oil and gas company Naftogaz said there were no outages, adding that "gas supplies to the population were uninterrupted." Ukrainians use natural gas mainly for heating homes and cooking. The country uses gas stored over the summer months to use in winter, when daily production does not cover consumption. Ukraine's underground gas storage facilities are located in the western part of the country, including in the Stryi area. Their role has grown since Kyiv refused to extend a gas transit agreement with Russia. Russia has stepped up its bombardments of Ukraine's power sector and other energy infrastructure since March 2024, knocking out half of the available generating capacity and forcing long, rolling blackouts across the country. Ukrainian cities, businesses, and residents rushed to install new generating capacities, including solar panels, batteries, generators, and other equipment to increase their energy independence and survive the critical cold months. Zelenskiy, who visits neighbouring Poland on Wednesday, reiterated his pleas to Kyiv's Western allies to strengthen Ukraine's air defence. "We have also discussed licenses for the production of air defence systems and missiles for them, which could serve as one of the effective security guarantees for Ukraine. This is both realistic and necessary to implement." Sign up here. https://www.reuters.com/world/europe/russian-airstrike-targets-infrastructure-western-ukraine-2025-01-15/
2025-01-15 12:08
MILAN, Jan 15 (Reuters) - Newcleo signed on Wednesday two deals with Slovakia's nuclear companies Jadrová vyraďovacia spoločnosť (JAVYS) and VUJE to build up to four reactors for a cost of 3.2 billion euros ($3.3 billion), the firm headed by an Italian physicist said. WHY IT'S IMPORTANT Newcleo aims to build so-called lead-cooled fast reactors (LFR) that will allow the use of Slovakian spent nuclear fuel as fuel, offering a sustainable solution to deal with nuclear waste and creating opportunities for Slovak companies, the firm said. Newcleo and JAVYS also plan to develop a nuclear fuel supply route, with the support of the French government, with the ultimate goal of the reprocessing and use of Slovak Republic spent nuclear fuels and enabling long term multi-recycling as part of a closed fuel cycle. CONTEXT Under the first agreement, Newcleo and state-company JAVYS will set up a joint venture to build up to four Newcleo's reactors at JAVYS' Bohunice site in western Slovakia. The second agreement with VUJE sets a framework for technical and commercial cooperation to support Newcleo's development and implementation of its LFR technology primarily in Slovakia. The agreements were signed during a visit to Italy by Slovak President Peter Pellegrini and the Slovak Minister of Economy, Denisa Saková. QUOTES "With its 50 years of nuclear experience and existing nuclear infrastructure, Slovakia is a highly important and strategic partner for us, specifically in the development, testing, and practical application of new technologies for advanced modular reactors," Newcleo's founder and CEO Stefano Buono said in a statement. "We believe that utilising spent nuclear fuel in advanced reactors like Newcleo's LFR technology offers a far more sustainable and responsible solution than simply putting it in a deep geological repository," Peter Gerhart, Chairman of the board of directors of JAVYS said. ($1 = 0.9698 euros) Sign up here. https://www.reuters.com/markets/deals/newcleo-signs-deals-build-up-four-nuclear-reactors-slovakia-2025-01-15/
2025-01-15 12:07
Aramco and Ma'aden study minerals exploration, mining venture Saudi miner Manara eyes investing in Pakistan's Reko Diq mine RIYADH, Jan 15 (Reuters) - Saudi Arabian state oil giant Aramco's (2222.SE) , opens new tab project to extract lithium is "promising, but not yet commercially viable", the kingdom's mining minister told Reuters on Wednesday. Aramco has partnered with the King Abdullah University for Science and Technology (KAUST) for the pilot, Bandar Alkhorayef said. Lithium Infinity, also known as Lihytech, a startup launched out of KAUST, is leading the extraction project with cooperation from Saudi mining company Ma'aden (1211.SE) , opens new tab and Aramco. Lithium is a key component in the batteries of electric cars, laptops, and smartphones. Reuters previously reported that Saudi Arabia and the United Arab Emirates' national oil companies planned to extract the mineral from oil runoffs. Aramco and Ma'aden on Wednesday signed a non-binding term sheet to explore the creation of a minerals exploration and mining joint venture in the kingdom. The proposed venture "would focus on energy transition minerals, including extracting lithium from high concentration deposits and advancing cost-effective direct lithium extraction (DLE) technologies," the two companies said during the Future Minerals Forum in Riyadh. Commercial production of lithium could potentially start by 2027. Alkhorayef also confirmed that Saudi Arabian mining company Manara Minerals was looking at investing in Pakistan's Reko Diq mine, saying that the Saudi Development Fund could contribute over $100 million to Pakistan's mining infrastructure. "Part of what we are looking at is how we can help Pakistan also in some infrastructure," Alkhorayef said in an interview on the sidelines of the Future Minerals Forum in Riyadh. "Without that infrastructure, the economics of the deal are not attractive, so through the Saudi Development Fund we are thinking about how we can finance it." Manara, a joint venture between state-controlled Ma'aden and the $925 billion Public Investment Fund (PIF), was set up as part of the kingdom's efforts to diversify its economy away from oil, including by buying minority stakes in assets overseas. Executives from Manara visited Pakistan in May last year for talks about buying a stake in the Reko Diq mine, considered one of the world's largest underdeveloped copper-gold areas by global mining company Barrick Gold (ABX.TO) , opens new tab, which owns the project jointly with Pakistan. Sign up here. https://www.reuters.com/markets/commodities/aramcos-lithium-project-promising-not-yet-commercial-minister-says-2025-01-15/
2025-01-15 12:02
SAO PAULO, Jan 15 (Reuters) - Brazil's exports of orange juice fell 19.7% in the first six months of the 2024/25 crop when compared to the same period in the previous season, exporters' group CitrusBR said on Wednesday. The Latin American nation exported about 535,600 metric tons of orange juice in the period, said CitrusBR, which gathers firms exporting citrus juices in Brazil. WHY IT'S IMPORTANT Brazil is the world's largest producer and exporter of orange juice, whose frozen concentrate global prices have been hovering around historic highs in New York amid lower orange supply in Brazil and Florida. ADDITIONAL CONTEXT Orange output from Brazil's key growing regions has fallen in recent years due to adverse climate conditions and the spread of greening, an incurable disease that reduces productivity. The current crop in Brazil's key regions is seen near a 30-year low, the most recent outlook from research center Fundecitrus showed in December. KEY QUOTES CitrusBR executive director Ibiapaba Netto noted that lower exports from Brazil also come amid a scenario of lower consumption. "The sector faces five cycles of small and medium crops and, according to international references, an unprecedented price rise that shows that demand decline is inevitable," Netto said in a statement. BY THE NUMBERS The revenue from Brazil's orange juice exports rose 42.7% from July to December, to $1.88 billion, amid higher international prices, government data compiled by CitrusBR showed. Europe has kept its place as the top buyer of Brazil's orange juice in the period, representing 42.7% of the total shipped amount. Sign up here. https://www.reuters.com/markets/commodities/brazil-orange-juice-exports-volume-falls-20-july-december-2025-01-15/
