2025-10-09 06:11

HAMBURG, Oct 9 (Reuters) - Europe's largest sugar producer Suedzucker (SZUG.DE) , opens new tab reported on Thursday an 82% fall in quarterly operating profit as it continued to face weak EU sugar markets. The German company said operating profit in June-August, the second quarter of its 2025/26 fiscal year, totalled 20 million euros ($23.29 million), down from 114 million euros in the same quarter the previous year. Sign up here. Cost reductions were not enough to compensate for low sugar prices in the European Union while exports also fell, it said. Suedzucker confirmed its reduced forecast of full-year 2025/26 operating profits of between 100 and 200 million euros, down from 350 million last year. Suedzucker’s core sugar sector made a second quarter operating loss of 33 million euros against an operating profit of 13 million euros in last year’s second quarter. EU data says average EU sugar prices fell to 534 euros a metric ton in July 2025 from 775 euros in July 2024 although the EU restricted cheap Ukrainian sugar imports following protests by farmers. "EU sugar prices remain under pressure and the market environment therefore remains challenging,” a Suedzucker spokesperson said. “This is despite EU restrictions on sugar imports from Ukraine. The EU now plans to increase again the permitted import volume from Ukraine to 100,000 (metric) tons.” Suedzucker said that with market conditions remaining difficult, it still expects a loss in the sugar sector in the second half of the year. “We have reduced our sugar beet planted area this season to compensate for this, and figures show other European producers have done so too,” the spokesperson added. “But growing conditions for beets are better than expected leading to expectations of higher crop yields, which could reduce some of the benefits of the reduced crop area.” ($1 = 0.8587 euros) https://www.reuters.com/sustainability/climate-energy/suedzucker-posts-heavy-q2-earnings-fall-82-weak-sugar-market-2025-10-09/

2025-10-09 06:11

LONDON, Oct 9 (Reuters) - The Democratic Republic of Congo's (DRC) February ban on exports of cobalt has put a hard floor beneath the price of the battery metal. Now the world's largest producer is looking to go further, leveraging its unique geology to tame a notoriously volatile market. Sign up here. Export quotas have been set for the remainder of this year and both 2026 and 2027. The volumes are less than half of last year's production and the stated intention is to force a reduction in global stocks that have accumulated from consecutive years of surplus. Congo's state minerals regulator ARECOMS has the right to adjust those quotas on a quarterly basis and also to buy any production surplus to export allowances, setting the stage for a government-backed cobalt buffer stock. This is shaping up to be a long-term market control project but the history of similar enterprises has not always been a happy one. STEMMING THE FLOOD Congo produced some 220,000 metric tons of cobalt last year in the form of cobalt hydroxide shipped to China for refining. Output has more than doubled over the last five years, outpacing global demand growth. The resulting surplus caused cobalt prices to sink to ten-year lows at the start of 2025, the latest slump in a history of boom-bust pricing. The February export ban boosted the price of cobalt metal by almost 50% with the price of hydroxide more than doubling, according to consultancy Benchmark Mineral Intelligence (BMI). The imposition of export quotas effective next week has given it another lift. London Metal Exchange cobalt is now trading at $38,960 per ton, the highest level since February 2023. The quotas, capped at 96,600 tons per year in both 2026 and 2027 change the market landscape. Left unchanged, the restrictions on Congo exports would transform the 2025-2027 market balance from a period of yet more supply surplus to one of deficit, resulting in a steady reduction in supply-chain inventory, according to BMI. The DRC government has exempted small operators and processing plants without captive mines, which may provide some supply flex. But not much. The country's informal cobalt mining sector is much reduced after three years of sliding prices. BUFFER STOCKS The export quota is split between a base level of 87,000 tons, allocated to producers based on historical exports, and a strategic quota of 9,600 tons reserved for Congo's state minerals regulator ARECOMS. ARECOMS is empowered to buy back any cobalt produced over and above each operator's export allowance. In-country stocks have already built up since exports were halted in February. China's CMOC (603993.SS) , opens new tab, the world's largest producer thanks to its huge Congolese copper-cobalt operations, reported cobalt inventory of 57,000 tons at the end of the second quarter. It and other operators will have to decide whether to trim cobalt output to match individual export allowances, so far unannounced, or continue producing. No-one's going to stop mining the copper given the red metal's current elevated pricing, but is it worth running the cobalt by-product through a hydroxide line if it can't be exported? Each company will have its own unique set of economic calculations, meaning it's difficult to say how much material may be available for government purchase. But the underlying intention is clearly to establish ARECOMS as a market balance mechanism, buying up surplus material when prices are low and releasing it when prices get too high. TOTAL CONTROL? There is a long history of commodity producer attempts to control market pricing. OPEC is still a powerful influence on the oil price but state-backed structures to manage the coffee and tin markets collapsed in the 1980s. The bankruptcy of the tin buffer stock manager still looms large in the history of market control failures. The 1985 tin crisis almost broke the London Metal Exchange and resulted in years of legal wrangling , opens new tab. The scheme, backed by multiple producer and consumer countries, was too inflexible to bend to changing market dynamics and ended up collapsing under the weight of surplus stock. The DRC has a big advantage in the scale of its control of the global supply chain. The country accounts for more than 70% of output and has by far the biggest reserves. It also has market dynamics on its side. Cobalt consumption is still growing at a healthy clip despite the metal's challenge from alternative battery chemistries. One of the tin buffer stock manager's headaches was a weakening demand profile as aluminium and plastics eroded tin usage in the all-important packaging sector. Moreover, governments are rushing to build strategic stocks of a metal most classify as critical for both military and civilian reasons. China has been a significant strategic cobalt buyer over the last couple of years and the United States' Defense Logistics Agency is tendering for up to 7,500 tons of alloy-grade metal over the next five years. Against such a market backdrop, the Congo has enough muscle not just to engineer a floor price but to force a much-needed de-stock along the length of the process chain. The real challenge, though, will be managing the resulting price upside. If cobalt prices rise too far and too fast, as they have done twice in the last ten years, any Congolese buffer stock manager will face the problematic combination of simultaneous demand destruction and price-induced supply growth in the rest of the world. As management of the tin buffer stock in the 1980s showed, even with state backing, controlling a market is a tricky balancing act, particularly if it is a market with a history of wildness. The opinions expressed here are those of the author, a columnist for Reuters. https://www.reuters.com/markets/commodities/can-congo-tame-wild-cobalt-market-2025-10-09/

2025-10-09 06:03

Croatia halts crude shipments to Serbia, affecting NIS operations Serbia's President warns of severe consequences for country's economy NIS faces challenges in securing alternative crude supply routes BELGRADE, Oct 9 (Reuters) - The United States imposed sanctions on Serbia's Russian-owned oil company NIS (NIIS.BEL) , opens new tab on Thursday, prompting neighbouring Croatia to cut crude supplies and raising concerns that the country's sole refinery may halt operations within weeks. Without deliveries, the NIS refinery, which supplies most of Serbia's oil products, including gasoline and jet fuel, will struggle to operate beyond November 1, Serbia's President Aleksandar Vucic said in a televised speech. Sign up here. He added that storages are full and existing stocks of oil products should keep the country supplied until year-end. "These are extremely severe consequences for our entire country, in a political, economic, social, and every other sense," Vucic said. "It's not just about the functioning of one company; it will have severe consequences for the entire country. The U.S. in January announced sanctions on NIS, Serbia's biggest oil importer and one of Russia's last remaining energy assets in Europe. A series of waivers delayed the measures until Thursday, when NIS said that no further postponement was forthcoming. "The special license from the U.S. Department of the Treasury, which enables seamless operational business, has not yet been extended," NIS said in a statement. The operators of the JANAF (JANF.ZA) , opens new tab pipeline that delivers crude from Croatia said in a statement that they had halted shipments to Serbia and were looking to expand into other markets. DISRUPTION TO OIL SUPPLY While the Serbian government has a 29.9% stake in NIS, Gazprom Neft (SIBN.MM) , opens new tab holds 44.9% and an investment unit of Gazprom (GAZP.MM) , opens new tab has about an 11.3% stake. That combined Russian majority stake triggered the sanctions, which were already affecting ordinary Serbs at the pumps on Thursday. NIS told loyalty customers they could not buy petrol from its around 350 gas stations with American Express, Mastercard or Visa, and Reuters reporters saw one man turned away by cashiers. Jug Lopusina, 58, from Belgrade said Serbians still remember tough international sanctions in the 1990s, imposed over the country's role in fomenting Yugoslav wars. "We have survived one round of sanctions, I am hoping these will not be the same," Lopusina said. Without access to the JANAF pipeline from Croatia's Adriatic Sea, Serbia's options for crude imports at scale are limited, traders said. One alternative would be to import fuels on barges along the Danube River, or by rail or truck, although the traders doubted that other regional suppliers could make up for the lost flows. NIS' retail director, Bojana Radojevic, said petrol stations would continue to operate and NIS said it had secured enough oil to keep running its refinery in Pancevo, near Belgrade, which has an annual capacity of 4.8 million metric tons. "There are no restrictions when it comes to the quantities people can take, so there is no need for them to stockpile," Radojevic said. SANCTIONS MAY HURT SERBIAN ECONOMY NIS supplies around 80% of Serbia's diesel and gasoline demand, and 90% or more of jet fuel and heavy fuel oil, a trader told Reuters. The Balkan country is also almost entirely dependent on gas imports from Russia. Milos Zdravkovic, a Belgrade-based economist, said that NIS added around 2 billion euros in 2023 to the state budget, or around 12% of total revenue. National Carrier Air Serbia's bottom line may suffer, said Belgrade-based consultant Zoran Kusovac, because it will not be able to store large quantities of fuel anymore, nor engage in hedging that can translate to significant savings on fuel costs. Air Serbia did not respond to a request for comment. Croatia's economy minister Ante Susnjar told state media outlet HRT TV that Croatia would be willing to buy NIS to resolve the problem. "Our hand is extended," he said. Stjepan Adanic, the chairman of the JANAF's managing board, said on Thursday that its contract with NIS accounted for 30% of the company's revenue. If the sanctions remain, it stands to lose 18 million euros by the end of the year, he said. https://www.reuters.com/business/energy/serbias-russian-owned-oil-firm-nis-faces-us-sanctions-waiver-expires-2025-10-09/

2025-10-09 05:53

Takaichi says doesn't want to trigger excessive decline in yen Euro pressured by French political uncertainty and budget challenges Fed's more hawkish tone helps to lift dollar NEW YORK, Oct 9 (Reuters) - The Japanese yen fell to its weakest level against the dollar since mid-February on Thursday as the newly elected leader of Japan's ruling party Sanae Takaichi failed to instill confidence in the market about the direction of the currency. Takaichi said she did not want to trigger excessive declines in the yen, which led to a brief rally, before the currency weakened back to its lows of the day. Sign up here. "We did see an uptick there briefly, at least it indicates that they're watching, but we don't really know what excessive means in the context for what you're going to tolerate," said Adam Button, chief currency analyst at investingLive in Toronto. Takaichi added that "there are pros and cons to a weak yen." The dollar was last up 0.27% at 153.09 yen after earlier reaching 153.23, the highest since February 13. The yen has tumbled this week on concerns that Takaichi will introduce more fiscally expansive policies. The yen has slowed its decline, however, as traders evaluate how much room she will have to stimulate the economy. “Traders are turning a little bit more skeptical on the Takaichi administration's capacity for passing fiscal stimulus and pushing back against the Bank of Japan's tightening plans,” said Karl Schamotta, chief market strategist at Corpay in Toronto. “That's a reflection of underlying inflation dynamics in Japan. The reality is that Japanese households are agitating for change because inflation is running at elevated levels,” Schamotta said. Takaichi said that the country's central bank is responsible for setting monetary policy but that any decision it makes must align with the government's goal. EURO DROPS AS FRENCH POLITICAL UNCERTAINTY DEEPENS The euro, meanwhile, has dropped since French Prime Minister Sebastien Lecornu tendered his resignation and that of his government on Monday. The political paralysis has made it challenging to pass a belt-tightening budget sought by investors who are increasingly worried by France's expanding deficit. French President Emmanuel Macron’s office said on Wednesday he would appoint a new prime minister within 48 hours. European Central Bank policy is robust enough to respond to changes in the euro zone inflation outlook, so the bank can afford to keep a steady hand until it gains more clarity, policymakers concluded last month, according to the accounts of their September 10-11 meeting. The single currency was last down 0.61% at $1.1555 and reached $1.1545, the lowest since August 5. The dollar index gained 0.62% to 99.47, the highest since August 1. The dollar is being aided by some more hawkish commentary by Federal Reserve officials. Minutes from the U.S. central bank’s September meeting released on Wednesday showed that officials agreed that risks to the U.S. job market had increased enough to warrant an interest rate cut but remained wary of high inflation. “We are seeing a more hawkish tone from Fed policymakers, both in the minutes from September's meeting as well as ongoing commentary. And that's pushing back on market expectations for further aggressive easing,” said Schamotta. Traders are pricing in a 95% chance that the Fed cuts rates by 25 basis points at its October 28-29 meeting, while the odds of an additional cut in December have dropped to 82%, from 90%, in the past week, according to the CME Group’s FedWatch Tool. Fed Governor Michael Barr on Thursday said that the U.S. central bank should move cautiously on further interest rate cuts due to inflation risks. New York Fed President John Williams, meanwhile, backs more interest rate cuts this year given the risk of a further slowdown in the labor market, he said in an interview published by The New York Times on Thursday. Traders are also focused on how long the U.S. federal government shutdown will last, with the economy likely to take a bigger hit the longer it drags on. U.S. Transportation Secretary Sean Duffy warned on Thursday that the government could dismiss air traffic controllers who repeatedly fail to show up for work during the government shutdown, saying a spike in absences is causing significant air disruptions. In cryptocurrencies, bitcoin fell 1.93% to $120,578. https://www.reuters.com/world/asia-pacific/dollar-set-best-week-year-yen-struggles-2025-10-09/

2025-10-09 05:45

China curbs export of five new rare earth elements New rules come weeks ahead of Trump-Xi meeting Foreign producers who use Chinese tech, material required to comply Foreign semiconductor users will face more scrutiny BEIJING, Oct 9 (Reuters) - China dramatically expanded its rare earths export controls on Thursday, adding five new elements and extra scrutiny for semiconductor users as Beijing tightens control over the sector ahead of talks between Presidents Donald Trump and Xi Jinping. The world's largest rare earths producer also added dozens of pieces of refining technology to its control list and announced rules that will require compliance from foreign rare earth producers who use Chinese materials. Sign up here. The Ministry of Commerce's announcements follow U.S. lawmakers' call on Tuesday for broader bans on the export of chipmaking equipment to China. They expand controls Beijing announced in April that caused shortages around the world, before a series of deals with Europe and the U.S. eased the supply crunch. "The White House and relevant agencies are closely assessing any impact from the new rules, which were announced without any notice and imposed in an apparent effort to exert control over the entire world's technology supply chains," a White House official told Reuters on Thursday. The new curbs come ahead of a scheduled face-to-face meeting between Trump and Xi in South Korea at the end of October. "This helps with increasing leverage for Beijing ahead of the anticipated Trump-Xi summit in (South) Korea later this month," said Tim Zhang, founder of Singapore-based Edge Research. China produces over 90% of the world's processed rare earths and rare earth magnets. The 17 rare earths are vital materials in products ranging from electric vehicles to aircraft engines and military radars. Exports of 12 of them are now restricted after the ministry added five - holmium, erbium, thulium, europium and ytterbium - along with related materials. Foreign companies producing some of the rare earths and related magnets on the list will now also need a Chinese export licence if the final product contains or is made with Chinese equipment or material. This applies even if the transaction includes no Chinese companies. The regulations mimic rules the U.S. has implemented to restrict other countries' exports of semiconductor-related products to China. It was not immediately clear how Beijing intends to enforce its new regime, especially as the U.S., the European Union and others race to build alternatives , opens new tab to the Chinese rare earth supply chain. "We're likely entering a period of structural bifurcation — with China localizing its value chain and the U.S. and allies accelerating their own," said Neha Mukherjee, a rare earths analyst with Benchmark Mineral Intelligence. In a nod to concerns about supply shortages, the ministry said the scope of items in its latest restrictions was limited and "a variety of licensing facilitation measures will be adopted". China's latest restrictions on the five additional elements and processing equipment will take effect on November 8, just before a 90-day trade truce with Washington expires. The rules on foreign companies that make products using Chinese rare earths equipment or material are to take effect on December 1. Shares in China Northern Rare Earth Group (600111.SS) , opens new tab, China Rare Earth Resources and Technology (000831.SZ) , opens new tab and Shenghe Resources (600392.SS) , opens new tab surged by 10%, 9.97% and 9.4%, respectively, on Thursday. Shares in U.S.-based rare earths companies jumped as well in New York afternoon trading, with Critical Metals Corp (CRML.O) , opens new tab gaining 25%, Energy Fuels (UUUU.A) , opens new tab adding 9%, MP Materials (MP.N) , opens new tab gaining 2.5% and USA Rare Earth (USAR.O) , opens new tab up 15%. Energy Fuels, which owns a uranium and rare earths processing facility in Utah, said in a statement to Reuters that it is working to boost U.S. rare earths production and that its recent pilot project "showcases the technical capabilities of an American company on American soil." NioCorp (NB.O) , opens new tab, which is developing a Nebraska rare earths mine, said: "It's clear that the People's Liberation Army is increasingly calling the shots on rare earth policy in China. That means even more difficult times both for the Pentagon and for a wide range of commercial manufacturers." CHIPS AND DEFENSE The ministry also said overseas defense users will not be granted licences, while applications related to advanced semiconductors will be approved on a case-by-case basis. The new rules apply to 14-nanometer chips or more advanced chips, memory chips with 256 layers or more, and equipment used in production of such chips, as well as to related research and development. These advanced chips are used in products from smartphones to AI chipsets that require powerful computing performance. The rules will also apply to research and development of artificial intelligence with potential military applications. South Korea, home to major memory chipmakers Samsung Electronics (005930.KS) , opens new tab and SK Hynix (000660.KS) , opens new tab, is assessing the details of the new restrictions and will continue discussions with China to minimise their impact, its industry ministry said in a statement to Reuters. Samsung declined to comment. SK Hynix and Taiwan's TSMC (2330.TW) , opens new tab did not immediately respond to questions. Shares in TSMC rose 1.8% on Thursday, as the company reported forecast-beating third-quarter revenue. South Korea's financial markets were closed on Thursday for a public holiday. https://www.reuters.com/world/china/china-tightens-rare-earth-export-controls-2025-10-09/

2025-10-09 05:34

Gold falls over 2%, profit-taking seen after 50% rise this year Gaza ceasefire 'reduces the temperature' in volatile region Silver eases from $50 following gold's fall and ceasefire deal Oct 9 (Reuters) - Gold prices fell 2% on Thursday, dipping below the $4,000/oz milestone breached for the first time in the previous session, as the dollar pushed higher and gold investors booked profits following a ceasefire deal between Israel and Hamas. Silver eased from its record high of $51.22 per ounce as well, pressured by the same factors as gold. Sign up here. Spot gold fell nearly 2% to $3,959.48 per ounce by 01:53 p.m. ET (17:53 GMT). U.S. gold futures for December delivery fell 2.4% to settle at $3,972.6. Silver was flat at $48.93 per ounce. The dollar index (.DXY) , opens new tab was up 0.5% near a two-month high, making dollar-priced bullion more expensive for overseas buyers. "Speculators are taking some gold chips off the table as the Gaza ceasefire takes effect since it reduces the temperature in a historically volatile region," said Tai Wong, an independent metals trader. Israel and Hamas signed an agreement on Thursday to cease fire, the first phase of U.S. President Donald Trump's initiative to end the war in Gaza. "Gold and silver may need to consolidate further, but the primary drivers of the rally, reserve diversification and large, growing global sovereign debt, remain entirely valid and keep the bullish outlook intact," Wong said. Bullion surged past $4,000 per ounce for the first time on Wednesday, reaching a record high of $4,059.05. The non-yielding asset, traditionally considered a hedge during geopolitical and economic uncertainty, has gained about 52% this year. Its rally has been fueled by geopolitical tension, robust central bank buying, rising ETF inflows, expectations of U.S. rate cuts and tariff-related economic uncertainties. Minutes of the U.S. central bank's September meeting, released on Wednesday, showed Fed officials agreeing that risks to the U.S. job market were high enough to warrant a rate cut, but remained wary amid stubborn inflation. The Fed resumed its rate-cutting cycle in September, with a 25 basis point cut. Traders see a 25 basis point cut in October and another in December, with a 95% and 80% chance, respectively. FEDWATCH Silver has risen 69% this year, driven by the same macroeconomic forces fueling gold's rally and tight supply in the spot market. "Liquidity in the London silver market is thin due to ETF buying and metal still being moved to the U.S.," a precious metals trader said. India's Kotak Mahindra has temporarily halted new investments in silver ETF amid a shortage. Platinum eased 2.4% to $1,622.25 and palladium dropped 1.7% to $1,425.36. https://www.reuters.com/world/india/gold-takes-breather-after-safe-haven-demand-fuels-record-run-2025-10-09/