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As inventories shrink, premiums for copper contracts on the nearby LME soar.
The premiums for copper contracts near London Metal Exchange have increased to their highest level since October 2022 due to low inventories, large cash contracts and warrants held by traders. The title document that confers ownership on metal is a warrant. Tom-next, also known as the premium or backwardation that is charged for purchasing copper tomorrow and then selling it the next day, is currently trading at above The price of a metric tonne is $48. This compares to a $2 discount at the beginning of the week. The premium for the cash Copper Contract over the Three-Month Forward It is now trading at $180 per ton, up from $3 a month earlier. LME data shows that one company holds a dominant position with more than 90% of 0#LMEWHC> copper warrants or cash contracts, and two other companies hold 50%-79%. The dominant position would have triggered LME lending guidelines, which requires those with large trading or warrant positions to lend metal at specified premiums to other market participants. The guidelines aim to maintain market liquidity, and to prevent a single entity from squeezing the market or cornering it. The 99,200 tons of copper in LME warehouses has dropped by more than 60% from the middle February to its lowest level since August 2023. . The cancellation of warrants and the metal that was earmarked to be delivered shows 45%, or 44,800 tonnes more copper. A large amount of copper from LME's warehouses was shipped to the United States. Prices soared in the United States after President Donald Trump ordered an investigation into possible tariffs for copper imports as a way to rebuild U.S. manufacturing. COMEX copper is around $4.781 cents per lb, or $10,540 per ton, compared to $9,690 for the LME's three-month futures. Copper is an important material in power generation and construction. (Reporting and editing by Shailesh Kuber; reporting by Pratima Deai)
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China's teapots are slowing the purchase of Iranian oil, resulting in steeper discounts on Iranian oil
As independent refiners reduce their purchases due to the rise in crude oil prices, sellers of Iranian oil are offering greater discounts to China this month. They want to reduce their inventories. Three traders reported that Iranian Light crude oil was being traded between $3.30 and $35 a barrel under ICE Brent, compared with a discount around $2.50 in June. The main Chinese buyers for Iranian crude are independent refineries known as teapots. Since the conflict between Israel and Iran began last week, crude oil prices have risen by $10 per barrel. According to traders, teapots in the province of Shandong, a major refining hub, have suffered their worst losses ever this year. Consultancy Sublime Information estimates the average loss at 353 Yuan ($49.15 per metric ton) this week. Sublime data revealed that Shandong refinery operation remained at 51% capacity on June 18 compared to 64% one year ago. Storage Increasing According to Vortexa, the stocks of Iranian crude oil in China, on tankers in Chinese ports and near them, as well as in floating storage near Malaysia, Singapore and Malaysia, total 70 million barrels. China, the largest buyer of Iranian oil, has enough to last two months. Kpler's tanker tracking data indicates that this year, more than 30,000,000 barrels of oil were stored in floating storage. Kpler, as well as Vortexa, estimate the total Iranian oil in floating storage at 120 million barrels. This is the highest since at least the year 2023. Reports indicate that recent U.S. restrictions on three Chinese teapots have slowed down purchases from independent mid-sized retailers who were worried about being classified. One trader estimated that the Iranian oil delivered to China in the first half 2025 would be replaced by 100,000 barrels of non-sanctioned crude. This is a fraction of the 1,4-1.5 million barrels of Iranian oil per day.
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Amazon is under investigation by the UK Grocery Watchdog for alleged payment delays to suppliers
The British grocery regulator launched an investigation on Amazon on Friday, looking into whether the U.S. retailer had violated rules regarding timely payments to suppliers over a period of three years. The Groceries Code Adjudicator said that it suspected Amazon of breaking paragraph 5 of Groceries Supply Code of Practice which mandates prompt payments to suppliers. Mark White, an adjudicator at the Amazon Suppliers' Forum, said that "the alleged delays may expose Amazon suppliers and their partners to excessive risks and unexpected costs. This could affect their ability to innovate and invest." Amazon's spokesperson stated that it takes the Groceries Supply Code of Practice seriously and will fully cooperate with White and his investigations. The spokesperson stated, "While we're disappointed by this decision, it is a great opportunity for us to demonstrate our continued compliance with this section of the Code." White stated that he had launched an investigation that would cover the time between Amazon's designation of March 2022 to June 2025. The evidence was gathered from multiple sources who were not named. The GCA stated that it would investigate the impact and scale of any delays. It will focus on Amazon's payments systems, its handling of supplier disputes regarding deductions and whether or not it unfairly uses settlements for deductions in commercial negotiations. The GCA threatened Amazon last year with a formal inquiry if the company did not improve compliance with the GSCOP. The code aims at ensuring that Britain's 14 biggest grocery retailers, such as Tesco and Sainsbury's, treat their suppliers fairly. In its annual survey for 2024, the regulator found that less than half the respondents who directly supplied Amazon thought the U.S. giant complied "consistently", or "mostly". Amazon announced at the time that it had improved its services for grocery suppliers compared to last year, including clearer explanations of cost price increases, minimum periods before de-listing and a major upgrade in handling invoice disputes. The GCA has the power to impose fines of up 1% of the UK turnover of large retailers. (Reporting and additional reporting by James Davey, Writing by Sam Tabahriti, Editing by Joe Bavier & Louise Heavens).
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Belgium announces border controls in immigration clampdown
By Charlotte Van Campenhout BRUSSELS - The government announced that Belgium would introduce border checks to curb illegal immigration. This is another restriction on the free movement of people across Europe's Schengen area. Anneleen Van Bossuyt's spokesperson, who is the junior minister of migration, announced on Friday that the restrictions will begin this summer in the country bordering the Netherlands, France and Germany. "Time for entry checks. Belgium cannot be a magnet to those who are stopped elsewhere. Van Bossuyt, writing on X, said: "Our message is clear. Belgium will not tolerate illegal immigration and asylum shopping." This announcement comes after similar actions by the Netherlands, Germany and other countries in Europe, as part of a wider crackdown on migration on the continent. The checks will be conducted in a targeted way on major access routes such as motorway parking lots, bus traffic, certain trains, and intra-Schengen flight from countries that have high migration pressure such as Greece and Italy," said a late Thursday statement by the Belgian government. Bart De Wever is the Prime Minister of his right-leaning Government, and has been in office since February. He said that curbing immigration was a top priority. The Schengen Area is open to all 29 of its member states, allowing them to travel freely between each other. Article 23 of the Schengen Borders Code allows members to temporarily reinstate border controls in response security or migration pressures. The Belgian Immigration Office spokesperson said that it is difficult to estimate the illegal immigration numbers without systematic border checks. The Federal Agency for the Reception of Asylum Seekers has revealed that Belgium, which is one of the richest countries in the world, will receive 39,615 applications for asylum in 2024. This represents an increase of 11.6% over 2023. According to figures, the country was only able to accommodate 35,600 applicants by 2024. This left many new arrivals with no proper housing. Charlotte Van Campenhout reported and Andrew Heavens edited.
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Turkey's Urals crude imports will reach a 1-year high in the month of June
LSEG data and two sources stated that the increase in Turkey's Urals crude imports is due to seasonal demand and healthy refinery margins. According to LSEG, the imports of Urals in Turkey will reach 1.64 million metric tonnes in May. This will be the highest level since May 2024 when the country imported 1,76 million tons. The second largest importer of Urals crude oil by sea is Turkey, after India. It has not complied with Western sanctions against Russia, but it does comply with international laws. Data shows that urals prices were below $60 per barrel at Russian ports during April and May. However, they have recently increased above this cap due to Brent prices rising. Traders said that the price hike could put pressure on Turkey’s Russian oil imports. Tupras, Turkey’s largest refiner, resumed purchasing Urals crude after stopping purchases in February because of U.S. sanctions. The Group of Seven has introduced a price cap that prevents Western companies from providing insurance or transport services to Russian oil cargoes priced at more than $60 a barrel. (Reporting and Editing by Joe Bavier).
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Maersk suspends Haifa calls temporarily
Maersk, a container shipping company, announced on Friday that it has temporarily suspended vessel calls to Israel's Haifa Port due to the country's escalated conflict with Iran. The Danish company stated that it has not encountered any other disruptions in its planned operations in the area. Haifa Port, which will be privatized by India's Adani Ports in 2022, has 70% of its ownership held by Adani Ports, while 30% belongs to Israel's Gadot Group. Adani Ports, the port-operating arm of Adani Group led by billionaire Gautam Adani, is part of Adani Group. The company has four ports, including Haifa Port. The Adani Group spokesperson did not respond immediately to email or text messages asking for comment. Israel has been attacking Iran from the sky since last Friday, in an effort it claims is to stop Tehran from developing nuclear arms. Iran denies plans to create such weapons, and in response has launched counter-strikes against Israel. The Iranian Revolutionary Guards announced on Thursday that they had carried out a combined missile and drone attack at sites in Haifa, Tel Aviv and other cities linked to Israel's defense industry. Reporting by Jacob GronholtPedersen and HritamMukherjee; writing by Stine Jacobsen; editing by Louise Rasmussen & Toby Chopra
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HAL, the Indian warplane manufacturer, wins the bid to privatise India’s small satellite launchers
The Indian space regulator announced on Friday that Hindustan Aeronautics Ltd had won the contract to manufacture small satellite launch rockets in India. This is the biggest step the government has taken to allow private companies to enter the fast-growing industry. In February, it was reported that three consortiums, Alpha Design Technologies (a unit of Adani Defence Systems and Technologies), state-backed Bharat Dynamic and HAL, were the finalist to acquire India's Small Satellite Launch Vehicle technology. Indian Space Research Organisation said that HAL, a manufacturer of fighter jets, had submitted an application independently. HAL won the bid with 5.11 billion rupees (59 million dollars), Pawan Goenka of the Indian National Space Promotion and Authorisation Centre told reporters. He added that the technology transfer stage will take two year. After the announcement, shares of HAL rose by as much as 1,6% and reached a session high at 4,980 Rupees. India's space sector has made a major shift by transferring the SSLV technology to HAL. The industry had previously granted satellite communications service licenses to international and domestic companies such as France's Eutelsat. Satellite venture of Reliance Jio Goenka said that by winning the bid for the SSLV rocket capable of carrying 500kg to low-Earth, HAL would be able to independently build, own and commercialize SSLV launch, he added. Around 20 companies initially expressed an interest in bidding on the SSLV. This was the first privatisation under Prime Minister NarendraModi's policy to open up India’s space industry. Global Market Insights estimates that the global market for low-Earth orbit launch vehicles will reach $13.9 billion by 2023, and grow to $44 billion around 2032. India, which only accounts for 2% of global space economics, is aiming to grow five-fold, reaching $44 billion, by the end decade.
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As US rate cuts expectations decline, gold is poised to have its worst week in over a month
The gold price fell on Friday, and was on track for its worst weekly performance for more than a week after the Federal Reserve moderated expectations for rate reductions and temporarily eased concerns over an imminent U.S. strike on Iran. As of 0851 GMT spot gold was down 0.6% at $3,350.66 per ounce and 2.4% on the week. U.S. Gold Futures fell 1.2% to $3366.30. The dollar has gained 0.5% this week, and is on track to make its largest weekly gain in more than a month. This makes gold more expensive for those who hold other currencies. The White House announced on Thursday that President Donald Trump would decide within the next two week whether or not the U.S. is going to get involved in Israel-Iran's air war. Israel and Iran's war in the air entered its second week on Saturday. Trump's deadline of two weeks "indicates a bit more hope that things can cool down before U.S. involvement with that military strike." "I think this is easing some of that anxiety in the markets, which has allowed gold prices to deflate just a bit," said Nitesh Sharma, commodities strategist at WisdomTree. In a low-interest rate environment, gold, which is a safe haven during political and economic unrest, tends to flourish. The Fed held its interest rates steady at the current range of 4.25% to 4.50% on Wednesday but reduced its outlook for future rate cuts due to an increasingly challenging economic outlook. Trump reiterated on Thursday his call for the Federal Reserve's interest rate to be cut by 2.5 percentage points. Ole Hansen is the head of commodity strategy for Saxo Bank. He said that "gold, silver, platinum, all suffered setbacks after traders booked profits following Wednesday's FOMC Meeting." Gold is expected to continue its current consolidation phase, with support at around $3,320, followed by $3.245." Palladium increased 0.1%, to $1,051.53, while spot silver fell 1%, to $36.01 an ounce. After hitting its highest price in more than 10 years during the previous session, platinum fell by 1.4% to $1289.52. (Reporting and editing by Susan Fenton in Bengaluru, Anushree Mokherjee)
India's Delhivery launches short-haul freight service to rival Uber and Porter
Delhivery, an Indian courier firm that delivers parcels in short distances, launched their service at two locations in India on Friday. This is a move to increase competition in the market which has been dominated by Uber and Kedaara Capital's Porter.
Following the success of Quick-Commerce delivery services where everything from mobile phones to milk is delivered in 10 minutes, near-distance delivery has become increasingly popular.
Uber, Swiggy's ride-hailing app Rapido and Porter, among others, are currently the firms that transport parcels between areas of a city.
Delhivery currently offers its service only in the capital and in the southern IT hub, Bengaluru. However, the company plans to expand rapidly to other metro areas, according to MD and CEO Sahil B Barua.
Delhivery and other third-party logistics companies are looking to diversify their business as they compete with the in-house logistics divisions of ecommerce giants like Amazon, Walmart-backed Flipkart, and others. (Reporting by Hritam Mukherjee in Bengaluru; Editing by Janane Venkatraman)
(source: Reuters)