2024-04-12 00:00

LONDON, April 11 (Reuters) - The London Metal Exchange (LME) tin price has surged to near two-year highs this week as exchange inventory slides and yet another threat to an already stressed supply chain emerges. LME three-month metal hit $33,130 per metric ton on Wednesday, a level last traded in June 2022. Currently trading at $32,000, tin is now up by 27% since the start of the year. Copper, the second-best performer among the LME base metals suite, is up by a comparatively modest 10% since the start of January. Speculative buying has played its part in the sharp rally, with fund positioning as bullish as it's been since March 2022, when the price was on a super-charged run to above $50,000 per ton. Tin is clearly back in the spotlight as investors buy into the market's bull narrative of resurgent demand and challenged supply. Already facing disruption in Indonesia, the world's largest exporter of metal, and Myanmar, home to the world's largest mine, tin is now facing a third threat in the form of escalating violence in the tin-rich province of North Kivu in the Democratic Republic of Congo. NEW THREAT Kivu has long been a hub of artisanal mining for the so-called "3Ts", namely tin, tantalum and tungsten. It is also home to the Bisie tin mine, which was once artisanal but is now mechanised and operated by Alphamin Resources (AFM.V) New Tab, opens new tab. Bisie produced 12,600 tons of tin in concentrate last year, accounting for around 4.5% of global supply. Material mined from both Bisie and artisanal sources flows across the Goma border crossing with Rwanda, a part of the country that has fallen under the control of the M23 rebel group. The increasingly violent confrontation with government forces has displaced an estimated 800,000 people and key access roads to Goma are now under rebel control. The International Tin Association (ITA), which has been monitoring New Tab, opens new tab the fast-deteriorating situation in North Kivu, notes that while there is no evidence yet of tin exports being halted, "delays may be expected as mineral shipments are rerouted further north and south away from rebel-controlled areas." It's the last thing Asian smelters need right now, given the continued uncertainty around the status of the Man Maw mine in Myanmar. The mine is controlled by the semi-autonomous Wa State, which ordered the suspension of mining activities last August. Surface stocks have continued to be shipped across the border, but Chinese smelters have been lifting imports from other countries to compensate, including the Congo. METAL SQUEEZE At least one tin supply disruption is abating as Indonesian authorities catch up on delays to the annual export licensing process. Two of the country's largest producers, including PT Timah (TINS.JK) New Tab, opens new tab, have now restarted exports, according to the ITA. However, the sharp drop in Indonesian shipments to just 55 tons over the first two months of this year is already tightening the Western market. LME headline tin stocks have slumped by 46% to 4,145 tons since the start of the year and are now the lowest since last July. Excluding metal earmarked for physical load-out, available stocks are just 3,650 tons. The stocks squeeze has rippled through LME short-dated time-spreads. In the space of three weeks, the benchmark cash-to-three-months period has shifted from a contango of more than $200 per ton to a backwardation of $84 as of Wednesday's close. DEMAND RECOVERY The draw on LME stocks also attests to a demand recovery in the electronics sector, where tin is used in circuit-board soldering. The sector, accounting for about half of all global tin usage, saw falling sales last year as a cost of living squeeze in many Western countries suppressed demand for new purchases of electronic goods. However, semiconductor sales, another useful indicator of electronic goods demand, seem to have troughed around the middle of last year and have been recovering ever since. Global sales in February were up 16% on last year, according to the most recent figures New Tab, opens new tab from the Semiconductor Industry Association. It's noticeable that the tin price has been closely tracking the Philadelphia Stock Exchange Semiconductor Index, which has surged by 52% from its January low. But the two have diverged over the last few days, suggesting that tin is now trading on its own momentum as much as its fundamentals. FUNDS RUSH TO BUY Fund money has surged into the London tin market and positioning is now as bullish as it was during the mega rally of 2021 and early 2022. Investment funds have lifted long positions to 3,134 contracts, which is the highest level since the LME started publishing its Commitments of Traders Report in 2018. The position is equivalent to 15,670 metric tons, which doesn't sound like much until you consider the level of LME inventory. Funds are net long of the tin contract to the tune of 2,371 contracts, which is just short of the March 2022 peak. That's down to the fact there are still shorts in the London market, whereas there were almost none when the price was rocketing up to $50,000. It's worth noting that positioning in the LME's "Other Financial" category, which captures index and insurance entities, flipped to net long in January with the position now at 328 contracts, the most bullish it's been since the start of 2022. Tin is a relatively small LME contract and the scale of speculative inflows injects extra unpredictability into an already volatile market. That underlying volatility is only going to get worse as the number of potential supply threats multiplies. The opinions expressed here are those of the author, a columnist for Reuters. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/falling-stocks-more-supply-trouble-sends-tin-skywards-2024-04-11/

2024-04-11 23:38

CarMax drops after Q4 results miss Rent a Runway surges amid AI frenzy March producer prices at 2.1% YoY vs 2.2% est Indexes: Dow ~flat, S&P up 0.74%, Nasdaq gains 1.68% NEW YORK, April 11 (Reuters) - U.S. stocks closed higher on Thursday, with tech-related momentum stocks leading the charge, as fresh economic data rekindled hopes that inflation remains in a cooling trend. Interest rate-sensitive megacaps gave the tech-heavy Nasdaq a decisive edge. The S&P 500 also closed in positive territory, while the Dow ended essentially unchanged. The Producer Prices index (PPI) came in softer than expected, supporting the narrative that price growth is still cooling. "The data this morning was mildly more supportive of sort of a benign 'soft landing' outcome than the data yesterday," said Brian Nick, senior investment strategist at Macro Institute. "I guess it feels like a natural kind of snapback from, what was potentially an overreaction yesterday." On Wednesday, hotter-than-expected CPI data sent stocks sharply lower and benchmark Treasury yields to their highest level since November. The report doused hopes that the central bank could implement as many as three rate cuts before year-end, possibly starting as soon as its June policy meeting. "There’s a suggestion that the inflation numbers the Fed really cares about - the PCE numbers - aren't going to be quite as dire as CPI," Nick added. "And the parts of the market that were most punished yesterday are having a bit of a comeback today." While the PPI data was more encouraging, the data did indicate that inflation's journey down toward the central bank's annual 2% target might be too meandering for the Fed. New York Fed President John Williams said "there's no clear need to adjust monetary policy in the very near term." Richmond Fed President Thomas Barkin said the central bank is not yet confident pricing pressures will continue to ease. "Investors are starting to absorb the possibility that maybe inflation could linger just a little bit longer and the Fed's going to continue to remain patient, which is their big word right now," said Joseph Sroka, chief investment officer at NovaPoint in Atlanta. Investors now switch their focus to first-quarter earnings season, with results from three major U.S. banks - JPMorgan Chase & Co (JPM.N) New Tab, opens new tab, Citigroup Inc (C.N) New Tab, opens new tab, and Wells Fargo & Co (WFC.N) New Tab, opens new tab - due Friday morning. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab fell 2.43 points, or 0.01%, to 38,459.08, the S&P 500 (.SPX) New Tab, opens new tab gained 38.42 points, or 0.74%, to 5,199.06 and the Nasdaq Composite (.IXIC) New Tab, opens new tab added 271.84 points, or 1.68%, to 16,442.20. Of the 11 major sectors in the S&P 500, tech (.SPLRCT) New Tab, opens new tab was out front, while financial shares (.SPSY) New Tab, opens new tab were the laggards. The FANG+ index of megacap momentum stocks (.NYFANG) New Tab, opens new tab was a clear outperformer, gaining 2.6%. CarMax(KMX.N) New Tab, opens new tab slid 9.2% after the pre-owned vehicles retailer missed analysts' estimates for fourth-quarter results and said it might not meet its long-term vehicle sales target. Globe Life(GL.N) New Tab, opens new tab tumbled 53.1% after Fuzzy Panda Research disclosed a short position in the company, alleging multiple instances of insurance fraud. Rent the Runway(RENT.O) New Tab, opens new tab skyrocketed by 161.9% after the apparel rental company said it was betting on artificial intelligence to power its current year growth. Biotech firm Alpine Immune Sciences(ALPN.O) New Tab, opens new tab is to be acquired by Vertex Pharmaceuticals (VRTX.O) New Tab, opens new tab for about $4.9 billion in cash, both companies said. Alpine surged 36.9%. Advancing issues outnumbered declining ones on the NYSE by a 1.12-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored advancers. The S&P 500 posted 11 new 52-week highs and 6 new lows; the Nasdaq Composite recorded 51 new highs and 135 new lows. Volume on U.S. exchanges was 10.39 billion shares, compared with the 11.48 billion average for the full session over the last 20 trading days. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/futures-slip-rate-cut-hopes-ebb-2024-04-11/

2024-04-11 22:36

Group of technical advisers write to trustees Urge board to 'immediately' halt Scope 3 offsets plan Science Based Targets initiative facing staff revolt LONDON, April 11 (Reuters) - The climate targets verification group that announced a plan this week to allow companies to offset greenhouse gas emissions from their supply chain with carbon credits came under new pressure on Thursday to drop the policy. A group of 21 technical advisers asked the board of trustees of the Science Based Targets initiative (SBTi) in a letter seen by Reuters "to retract this decision immediately" because it was made without their advice. On Tuesday, the SBTi said it would accept "environmental attribute certificates (EACs) for abatement purposes" for so-called Scope 3 emissions, including from the use of a company's products. The decision marked a policy reversal and sparked an angry letter from SBTi staff to the leadership of the global nonprofit on Wednesday. The letter decried the move and called for the chief executive and board members who backed it to resign. The 21 advisers represent around a fifth of the SBTi's Technical Advisory Group (TAG), which helps inform the development and revision of SBTi standards. The last time the group met, a plan to address Scope 3 emissions was proposed but "neither carbon credits nor any other type of environmental attribute certificates were presented as a considered option during that call," the letter said. While the SBTi had last year asked for evidence on the effectiveness of EACs, the TAG group was not shown any analysis of the responses received so far, the letter said. Given that, the decision to press ahead and allow the use of EACs "is premature and not supported by the TAG", they added. Requests for comment from two SBTi board members via LinkedIn were not immediately returned. Make sense of the latest ESG trends affecting companies and governments with the Reuters Sustainable Switch newsletter. Sign up here. https://www.reuters.com/business/environment/more-climate-experts-object-emissions-target-watchdogs-offsets-policy-2024-04-11/

2024-04-11 22:30

VIENNA, April 11 (Reuters) - Drone attacks on the Russian-held Zaporizhzhia nuclear power plant in Ukraine must stop as they could pose "a new and gravely dangerous" stage in the war, the U.N. nuclear watchdog chief told his agency's 35-nation Board of Governors on Thursday. Drones attacked Zaporizhzhia, Europe's biggest nuclear power plant, on Sunday, hitting a reactor building in the worst such incident since November 2022, though nuclear safety was not compromised, the International Atomic Energy Agency (IAEA) has said. Moscow and Kyiv have repeatedly accused one another of targeting the plant since Russia seized it weeks after it invaded Ukraine. Both countries requested an emergency meeting of the IAEA's Board soon after Sunday's attack. "The most recent attacks ... have shifted us into an acutely consequential juncture in this war," IAEA Director General Rafael Grossi told the Board gathering. He called on the Board to "unanimously to support the role of the IAEA in monitoring" principles aimed at preventing an accident at the plant, including that it not be attacked. Since no draft resolutions have been submitted to the Board meeting, it is likely to boil down to an exchange of statements by the countries convening behind closed doors in Vienna. "We are meeting today, and I will meet with the U.N. Security Council next week, because it is of paramount importance to ensure these reckless attacks do not mark the beginning of a new and gravely dangerous front of the war," Grossi said, adding: "Strikes must cease." Russia's representative to international organisations in Vienna, Mikhail Ulyanov, described as a "very serious flaw" Grossi's failure to single out Ukraine as the guilty party. "I get the feeling that they are afraid," Russian news agencies quoted Ulyanov as telling Russian journalists. "It is simply not done to speak badly of Ukrainians because they are supposed to be the victims. An atmosphere is being created which essentially encourages the Ukrainian side to commit reckless actions, like these attacks," he said. But he said he believed there would be no more incidents. The Ukrainian statement to the meeting said the incident was part of a longstanding Russian disinformation campaign. "But this time it is many times more dangerous, since these are not just words, but a real encroachment on the physical integrity of a nuclear facility," the statement said. "Russia's attempt to pin the blame on Ukraine is a desperate effort to hide its guilt." The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/iaeas-grossi-says-zaporizhzhia-attacks-risk-shift-ukraine-war-2024-04-11/

2024-04-11 22:10

LIMA, April 11 (Reuters) - A road blockade on a key Peruvian transport route is halting truck traffic but has not yet hit operations at the Andean country's major Las Bambas copper mine, a source close to the miner told Reuters on Thursday. The mine, owned by China's MMG Ltd (1208.HK) New Tab, opens new tab, faces a fresh protest by local communities demanding greater benefits from the copper mine, a major producer in a country that ranks among the world's top suppliers of the red metal. Residents of Velille, in Cusco's Chumbivilcas province, have resumed a blockade that began over a week ago after a meeting with company representatives failed to provide a solution. "There is still no impact on production operations, but if the blockade persists for a long time the situation could change," the source said, adding the protest has paralyzed the flow of trucks carrying minerals through the country's so-called "mining corridor" to the coast for export. "An alternate route is being used for the supply of inputs for the mine operation," the source said. Las Bambas offered the Velille community a voluntary sum of 1.15 million soles ($312,925) for 2024/25, plus technical assistance for development projects, but the community is calling for an annual sum of 2 million soles, the source said. The source said two other communities, one in Cusco and another in the Aprurimac region, have accepted the offer. Las Bambas has faced frequent stoppages due to protests by poor communities demanding more benefits from the nearby mines. Since launching operations in 2016, the mine counts around 600 days of stoppages. Last year, the mine nevertheless produced 302,039 metric tons of copper, up from 254,838 tons in 2022, according to government data. It typically supplies around 2% of global copper supplies and is one of the top producers in Peru. ($1 = 3.6750 soles) Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/protest-blocks-trucks-big-peru-copper-mine-operations-continue-source-says-2024-04-11/

2024-04-11 21:54

NEW YORK, April 11 (Reuters) - U.S. coffee chain Bluestone Lane will start in August selling an espresso coffee made from farm foods such as date seeds, guava and sunflower, seen by some as a more sustainable option than coffee beans. The beanless coffee, to be sold in all 58 Bluestone's U.S. stores, will be supplied by Seattle-based startup Atomo Coffee, which said it has replicated the molecular structure of conventional coffee using raw materials that otherwise would go to waste. The company said it wants to offer a more sustainable alternative to coffee. With concerns growing about climate change, there has been more scrutiny around the carbon footprint of agriculture. Coffee farmers are now using regenerative techniques to reduce or even eliminate carbon emissions. Coffee trees, like other plants, absorb carbon dioxide form the atmosphere, but chemicals such as nitrogen fertilizers are heavy on emissions. "This presents an opportunity for our customers to enjoy an innovative coffee option that maintains our high standards for quality and taste while aligning with our commitment to environmental stewardship," said Nicholas Stone, CEO of Bluestone Lane in a statement. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/commodities/us-coffee-chain-bluestone-lane-offer-beanless-espresso-sustainable-option-2024-04-11/