2025-10-28 06:54
HYDERABAD, India, Oct 28 (Reuters) - India's Bharat Petroleum Corporation Ltd (BPCL) (BPCL.NS) , opens new tab will issue a spot crude purchase tender in 7-10 days as a replacement for Russian oil, a source familiar with the matter said on Tuesday. The source said BPCL will buy Russian oil only if it is supplied by non-sanctioned entities. Sign up here. https://www.reuters.com/business/energy/indias-bpcl-issue-spot-crude-tender-replacement-russian-oil-source-says-2025-10-28/
2025-10-28 06:50
LAUNCESTON, Australia, Oct 28 (Reuters) - China's imports of iron ore are on track for another robust month in October, following on from September's record arrivals, with the strength standing in stark contrast to weak steel output. October imports are forecast to reach 113.06 million metric tons by commodity analysts Kpler, a figure that if matched by official data would be second only to the all-time high of 116.33 million in September. Sign up here. China imports about 75% of global seaborne iron ore and uses the raw material to produce around half of the world's steel. Iron ore imports have picked up pace in recent months after a weak start to the year, with the last four months all seeing official arrivals exceeding 100 million tons. This has taken the year-to-date figure to almost the same as last year, with imports for the first nine months coming in at 917.69 million tons, down 0.1% from the same period in 2024. A strong October will push the year-to-date figure into positive territory, even though steel production is struggling. China's steel output slipped to a 21-month low in September, with official data showing production of 73.49 million tons, down 4.6% from the same month in 2024 and also a drop of 5% from August's 77.37 million. For the first nine months of the year China produced 746.25 million tons, down 2.9% from the same period in 2024. That pace puts China on track for total steel output of close to 1 billion tons in 2025, consistent with the production levels of the past five years and meeting an unofficial government target that output should not exceed that of the previous year. SENTIMENT BOOST? The question for the market is why has China picked up the pace of iron ore imports in recent months even as steel output softens? Price moves offer a partial explanation, with benchmark Singapore Exchange contracts dropping to an eight-month low of $93.35 a ton on July 1. The lower price would have encouraged steel mills and traders to increase imports, but this momentum may be fading given the price has trended higher in recent weeks, ending at $105.66 a ton on Monday, not far off the eight-month high of $107.30 reached on October 13. There is also some evidence of rising stockpiles, with port inventories monitored by consultants SteelHome reaching 133.6 million tons in the week to October 24, having risen since the 18-month low of 130.1 million in the seven days to August 8. Domestic iron ore production has also been modestly lower, dropping 3.8% to 761.43 million tons in the first nine months of the year. However, the modest gain in inventories and the small drop in domestic output aren't enough to justify the recent strength in imports. It's likely that sentiment is playing a bigger role with optimism growing that China's economy is weathering the trade storms unleashed by U.S. President Donald Trump. The prospects of some form of truce between Washington and Beijing on the trade front are likely to boost support for iron ore and steel bulls. Officials from the world's two largest economies are reported to have worked out a framework deal for Trump and his Chinese counterpart Xi Jinping to consider later this week, with the two leaders due to meet on Thursday on the sidelines of the Asia-Pacific Economic Cooperation summit in Gyeongju, South Korea. While there are concerns that any deal may be short on substance and long on rhetoric, any sign that both sides are pulling back from hardline positions would be seen as a positive boost to sentiment. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn , opens new tab and X , opens new tab. The views expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/chinas-ravenous-appetite-iron-ore-remains-steel-output-slips-2025-10-28/
2025-10-28 06:40
Late rains damage mature crops, threaten farmers' livelihoods Crop losses may halve agricultural growth in December quarter Farmers forced to sell damaged crops below minimum support price DHARASHIV, India, Oct 28 (Reuters) - Indian farmers' hopes for bumper crops following this year's abundant monsoon rains were dashed by heavy downpours just before harvest that damaged their fields, crushing the dreams of millions who rely solely on agriculture for their livelihoods. The losses to crops such as cotton and soybean are expected to slow agricultural growth, boost farmers' debt and cap rural consumption, which had been set to rise after New Delhi slashed taxes on hundreds of consumer items. Sign up here. "We had hoped to harvest 10 to 12 quintals of soybean per acre, but now we'll be lucky to get 2 to 3 quintals — and even that will require significant additional expenses," said farmer Kishore Hangargekar, using a unit equivalent to 100 kg (220 lb). He was speaking after two days of unrelenting rain flooded his fields and submerged his crops in the district of Dharashiv in the western state of Maharashtra. Until then, the soybean crop had been thriving, and farmers were readying for harvest. The reduction in yields from excessive rainfall is likely to halve agricultural growth to 3% to 3.5% in the December quarter, down from 6.6% a year earlier, said Garima Kapoor, economist at Mumbai-based Elara Securities. Summer-sown crops such as soybean, cotton, rice, pulses and vegetables mature from September, a month that saw rains of 15% above average this year, with some regions getting as much as 115% more than normal. While agriculture contributes just 18% to India's economy of nearly $4 trillion, almost half its population of 1.4 billion relies on farming to earn a living. NO RESPITE FROM RAIN Now farmers are scrambling to harvest summer crops ahead of winter sowing set to begin next month, but more untimely rain forecast this week could delay planting and damage late-maturing summer crops. The rain-damaged crops are earning prices well below the government's minimum support price, as quality has deteriorated. "Traders are buying the damaged crops for throwaway prices, and we have no choice but to sell," said farmer Sachin Nanaware, who sold his soybean at a rate of 3,200 rupees ($36) for 100 kg (220 lb), below the government-fixed rate of 5,328 rupees. Nanaware said he had hoped to buy a motorcycle and a television, but is now worried about repaying his bank loan. The excessive rain has boosted soil moisture for winter-sown crops such as wheat, rapeseed and chickpea, but many farmers say they lack funds for seeds and fertilisers. "We need money to buy seeds and fertilisers and to prepare the land," said farmer Chaya Jawale as she collected cotton bolls brought down from plants prematurely by the rain. "So, we have no choice but to mortgage our gold jewellery." Damage to soybean and cotton crops is expected to boost India's vegetable oil imports in the marketing year from November by 1.5 million tons to a record 18 million, says industry analyst Thomas Mielke of Oil World. ($1=87.8950 Indian rupees) https://www.reuters.com/business/environment/monsoon-promise-turns-sour-indias-crops-ruined-by-late-downpours-2025-10-28/
2025-10-28 06:32
ASTANA, Oct 28 (Reuters) - Kazakhstan's authorities are determining how to deal with Russian oil producer Lukoil's (LKOH.MM) , opens new tab stakes in projects and could make a decision soon, the chairman of sovereign wealth fund Samruk Kazyna said on Tuesday. Lukoil said on Monday it would sell its international assets following sanctions over Ukraine announced last week by the United States. Sign up here. "The sanctions are being studied and their impact on companies and the economy remains to be fully assessed," the fund's chairman, Aidar Ryskulov, told reporters in Astana. "I think we will take (a decision) in the near future, by the end of this week," he added. Lukoil's planned sale of assets is the most consequential action so far by a Russian company in the wake of Western sanctions over Russia's war in Ukraine, which started in February 2022. The Russian oil major is a stakeholder in Kazakhstan's Tengiz and Karachaganak fields, as well as in the Caspian Pipeline Consortium, which carries Kazakh oil to Russia's port of Novorossiisk for export. https://www.reuters.com/business/energy/kazakhstan-weighing-how-deal-with-lukoils-stakes-local-projects-2025-10-28/
2025-10-28 06:25
Bessent calls on BOJ to anchor inflation expectations Says Japan's economy different from when Abenomics deployed Remarks echo Bessent's past calls for higher BOJ rates Japan's Katayama says Bessent wasn't prodding BOJ to hike rates Markets expect BOJ to keep rates steady this week TOKYO, Oct 28 (Reuters) - U.S. Treasury Secretary Scott Bessent called for "sound monetary policy" during a meeting with Japanese counterpart Satsuki Katayama, his department said on Tuesday, in the latest swipe at the slow pace of interest rate hikes by the Bank of Japan. The remarks briefly pushed up the yen and come ahead of the BOJ's two-day policy meeting ending on Thursday, when markets widely expect the central bank to hold off on raising interest rates. Sign up here. "Secretary Bessent highlighted the important role of sound monetary policy formulation and communication in anchoring inflation expectations and preventing excess exchange rate volatility," the U.S. Treasury Department said in a statement. The matter was critical since Japan's economic conditions were substantially different from when former premier Shinzo Abe deployed his "Abenomics" stimulus measures 12 years ago, the statement quoted Bessent as saying during Monday's discussions. BOJ FACES NEW POLITICAL REALITY The remarks have revived market expectations Washington may keep pressuring Japan to tighten monetary policy more quickly. When asked about the Treasury Department's statement, Katayama said on Tuesday the meeting did not directly discuss how the BOJ steers monetary policy. "I believe Mr. Bessent spoke on the assumption that each country's central bank holds independence" in setting monetary policy, Katayama said. "I don't think he intended to prod" the BOJ into raising rates, she added. An advocate of Abenomics, Japan's new prime minister Sanae Takaichi has urged the BOJ to cooperate with government efforts to boost demand in remarks seen by analysts as pushing back against the central bank's rate-hike plans. After exiting a decade-long, massive stimulus launched as part of Abenomics in 2024, the BOJ raised interest rates twice through January, but still keeps borrowing costs at 0.5%. Critics have blamed the slow pace of its rate hikes for weakness in the yen currency, which has become a political headache by pushing up import costs and broader inflation. Complicating the argument, Japan's economic revitalisation minister, Minoru Kiuchi, said on Tuesday a weak yen has benefits to the economy, signaling the administration's sanguine view over the cost of prolonged yen declines. Bessent's comments come as rising costs of food and raw materials have kept Japan's core inflation above the central bank's 2% target for well over three years, causing some BOJ policymakers to worry about second-round price effects. In overseeing Washington's trade and exchange-rate talks with Tokyo, Bessent has repeatedly signalled his preference for tighter Japanese monetary policy. The yen would find its own level if the BOJ follows "proper monetary policy" Bessent said during annual IMF meetings this month. In August, he had said the BOJ was behind the curve in tackling the risk of inflation. Some analysts see Washington pursuing a weak-dollar policy that would boost U.S. exports, thereby applying pressure on Japan to allow the yen to appreciate against the dollar. While Governor Kazuo Ueda has signaled the BOJ's resolve to keep raising rates, he has stressed the need to tread cautiously due to uncertainty over how slowing U.S. growth and President Donald Trump's tariffs could affect Japan's economy. "If Japan were to correct a weak yen, it would have to be through currency intervention or monetary policy," said Shota Ryu, FX strategist at Mitsubishi UFJ Morgan Stanley Securities. "But the market's consensus is for the BOJ to next raise rates in December or January next year and, after a pause, push up borrowing costs to 1%. It's hard for the BOJ to increase rates to around 3% to 4%, like in Europe or the United States." https://www.reuters.com/world/asia-pacific/uss-bessent-highlights-need-sound-monetary-policy-japan-talks-2025-10-28/
2025-10-28 05:48
Japanese yen gains after comments from Japanese minister and U.S. Treasury Secretary BOJ expected to hold rates steady, focus on future rate hike clues Investors watch U.S.-China trade deal prospects ahead of Trump-Xi meeting NEW YORK, Oct 28 (Reuters) - The Japanese yen gained on Tuesday, rebounding from seven consecutive days of losses against the U.S. dollar, after comments from a Japanese minister and U.S. Treasury Secretary Scott Bessent eased some concerns about more expansionary fiscal and monetary policy in the country. Japan's new economic revitalization minister, Minoru Kiuchi said that Japan can boost its long-term potential growth by stimulating demand and keeping the labor market tight while being mindful of the need for fiscal discipline. Kiuchi also said that the government is closely monitoring the impact of currency moves on Japan's economy. Sign up here. “That has helped to improve sentiment around both the JGB (Japanese government bond) market and the yen," said James Lord, head of FX and emerging market strategy at Morgan Stanley. "I think foreign investors in particular have had a view that the Takaichi administration may be a little bit more stimulative when it comes to fiscal policy. These comments today are leaning in the other direction, that perhaps A, there may not be as much fiscal stimulus and B, the government is sensitive to movements in the yen,” Lord said. The Japanese currency was further supported as Bessent highlighted the important role of "sound monetary policy formulation." "Bessent is stating a clear preference for conventional policy tools like interest rate hikes rather than FX intervention, that took dollar/yen down," said Kamal Sharma, senior FX strategist at Bank of America. The comments came during a meeting with Japanese counterpart Satsuki Katayama, in the latest swipe at the slow pace of interest rate hikes by the Bank of Japan (BOJ). “That was interpreted by the market as maybe encouraging the BOJ to hike rates,” said Morgan Stanley's Lord. The Bank of Japan is expected to hold rates steady when it concludes its two-day meeting on Thursday, but the focus will be on whether it provides clues on the timing of the next hike. The Japanese yen was last up 0.44% against the greenback at 152.18 per dollar. The European Central Bank is also expected to leave rates unchanged on Thursday while the U.S. Federal Reserve is likely to cut rates on Wednesday. The greenback whipsawed against the euro on Tuesday amid multiple U.S. economic releases. The dollar gained after the ADP National Employment Report's inaugural weekly preliminary estimate showed that U.S. private payrolls increased by an average of 14,250 jobs in the four weeks ending October 11. It turned negative, however, after the Conference Board said U.S. consumer confidence eased in October as households worried about the availability of jobs over the next six months and persistently higher prices because of tariffs on imports. The dollar index was last down 0.08% at 98.69, with the euro up 0.14% at $1.1659. The single currency also hit the highest level against the British pound since May 2023 and sterling dropped against the dollar to the lowest since August 1. Britain's budget watchdog is expected to cut a key productivity forecast by 0.3 percentage points, potentially leading to a 20 billion-pound ($26.8 billion) hit to the public finances. The Bank of Canada is also widely expected to cut rates on Wednesday, though Morgan Stanley holds a nonconsensus view that it will leave rates unchanged. “We think it is likely that they are going to take a skip this time, largely because the data's been better than expected. So, we're short USD/CAD,” Lord said. The Canadian dollar was last up 0.34% versus the greenback at C$1.39 per dollar. Traders are also focused on the prospect of trade deal between the United States and China ahead of a meeting between Trump and Chinese President Xi Jinping in South Korea on Thursday. The Australian dollar , often seen as a proxy for risk appetite, strengthened 0.46% versus the greenback to $0.6586, the highest since October 9. In cryptocurrencies, bitcoin gained 0.17% to $114,719. https://www.reuters.com/world/asia-pacific/dollar-soft-traders-brace-trump-xi-central-bank-meetings-2025-10-28/
