Latest news with #ColleenHowe
Yahoo
3 days ago
- Business
- Yahoo
Factbox-What to know about China's rare earth export controls
By Colleen Howe BEIJING (Reuters) -Global manufacturers have raised the alarm on China's decision to curb exports of rare earths alloys, mixtures and magnets. Here is an overview of rare earths and China's measures: WHAT ARE THEY? Rare earths are a group of 17 silvery-white elements. One of their most important uses is in making magnets that power motion for cars, cell phones, missiles and other electronics. ARE THEY RARE? While not rare in the sense of being uncommon, they tend to occur in small quantities or mixed with other minerals, making extraction difficult and costly. WHICH COUNTRY IS THE BIGGEST PRODUCER? China mines about 60% of the world's rare earths and makes 90% of rare earth magnets. It sets quotas on output, smelting, and separation, which are monitored as a barometer of global supply. WHY DOES CHINA DOMINATE PRODUCTION? One of the most difficult processing steps is separating individual rare earths from each other. While U.S. scientists helped developed a process called solvent extraction in the 1950s, radioactive waste made it unpopular in the United States. Spurred by the government, China has expanded the industry since the 1980s, spending the last 30 years mastering solvent extraction, while cheap labour and relatively lax environmental standards give it a cost advantage. China has put bans on its technologies for separating rare earths as well as producing magnets. New separation technologies are being developed but are not yet widely used. WHAT CURBS HAS CHINA CLAMPED ON EXPORTS? On April 4, China added seven of the 17 rare earths metals - such as samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium-related items - to a list of export controls two days after President Donald Trump's sweeping tariffs took U.S. trade barriers to their highest in a century. Exporters have to apply for a licence that industry sources say can take two to three months or longer, and shipments have been halted at many Chinese ports as applications are processed. On May 13, China agreed to remove recent non-tariff countermeasures issued after April 2, which includes the rare earth curbs, as part of a temporary tariff deal, U.S. trade representative Jamieson Greer said. However, since then, Greer has said China was "slow-rolling" their removal, and Trump complained that China violated the deal. WHAT HAS CHINA SAID ABOUT THE CURBS? China has defended its export curbs as "non-discriminatory" and not targeted at any specific country. The foreign ministry told media on Friday that China was ready for talks on the issue with relevant nations. WHAT IMPACT HAVE THE CURBS ALREADY HAD? Global automakers have warned that the measures could cause production delays and widespread shutdowns because rare earths are employed in key components, such as automatic transmissions and power steering.
Yahoo
30-05-2025
- Business
- Yahoo
China signals softer stance on rare earth export curbs
By Colleen Howe BEIJING (Reuters) - China said it would cooperate further with other countries over its rare earth export controls as shortages put auto and semiconductor makers in Europe and India at risk of closure. China, which controls over 90% of global processing capacity for the rare earth magnets used in everything from automobiles and fighter jets to home appliances, imposed restrictions in early April requiring exporters to obtain licences from Beijing. While a handful of licences have been granted, including to some Volkswagen suppliers, Indian automakers say they have received none and will have to stop production in early June. "We stand ready to strengthen dialogue and cooperation in the field of export control with relevant countries and regions and stay committed to maintaining the stability of global production and supply chains," foreign ministry spokesperson Lin Jian said on Friday when asked about the controls. Chinese state media reported on Wednesday that the country could relax its curbs on rare earths exports for Chinese and European semiconductor firms after meetings between industry and the Ministry of Commerce where the issue of shortages was raised. The New York Times reported earlier this week that the United States suspended some sales of critical technologies to China, including parts for state-owned plane maker COMAC, in response to China's restriction on exports of critical minerals.
Yahoo
30-05-2025
- Business
- Yahoo
Oil prices set for weekly drop with tariff legal battles, OPEC+ in focus
By Colleen Howe BEIJING (Reuters) - Oil prices were on track to end the week down more than 1% on Friday amid whipsawing tariff rulings in the U.S. and as the market braced for a potential OPEC+ output hike. Brent crude futures slipped 26 cents, or 0.41%, to $63.89 a barrel by 0104 GMT. U.S. West Texas Intermediate crude fell 27 cents, or 0.44%, to $60.67 a barrel. The Brent July futures contract is due to expire on Friday. In the U.S., President Donald Trump's tariffs were to remain in effect after a federal appeals court temporarily reinstated them on Thursday, reversing a trade court's decision on Wednesday to put an immediate block on the most sweeping of the duties. The block had sent oil prices falling more than 1% on Thursday as traders weighed its effects. Analysts said uncertainty would remain as the tariff battles worked their way through the court system. Members of the Organization of the Petroleum Exporting Countries and its allies, a group known as OPEC+, are expected to decide on a July oil production hike when they meet on Saturday. At the same time, OPEC is trying to ensure that some countries that have been producing above their agreed levels, such as Kazakhstan, cut their output. "The standoff between OPEC and Kazakhstan became even more apparent this week," Westpac's head of commodity and carbon research Robert Rennie said in a note. Kazakhstan has informed OPEC that it does not intend to reduce its oil production, according to a Thursday report by Russia's Interfax news agency citing Kazakhstan's deputy energy minister. Kazakhstan's energy minister on Thursday dismissed complaints from other members over Kazakhstan's overproduction, saying that the country's share in global production is less than 2% and that an oil price above $70-$75 per barrel is likely to be suitable for all countries. "The stage is set for another bumper production increase," Rennie said, potentially higher than the 411,000 barrels per day hike decided on at the previous two meetings. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Oil prices inch up as U.S. bans Chevron from exporting Venezuelan crude
By Colleen Howe BEIJING (Reuters) - Oil prices ticked up in early trading on Wednesday as the U.S. barred Chevron from exporting crude from Venezuela under a new authorization on its assets there, raising the prospect of tighter supply. Brent crude futures rose 47 cents, or 0.73%, to $64.56 a barrel by 0028 GMT, while U.S. West Texas Intermediate crude gained 49 cents, or around 0.8%, to $61.38 a barrel. The Trump administration has issued a new authorization for U.S. major Chevron that would allow it to keep assets in Venezuela but not to export oil or expand its activities, Reuters reported on Tuesday according to sources. "The loss of Chevron's Venezuelan barrels in the U.S. will leave refiners short and thus relying more on Middle Eastern crude," Westpac's head of commodity and carbon strategy Robert Rennie wrote in a note. U.S. President Donald Trump had revoked the previous license on February 26. In recent years, the licenses to Chevron and other foreign companies supported a slight recovery in sanction-hit Venezuelan oil output to about 1 million barrels per day. On the economic front, European Union officials have begun asking top EU companies for details of their U.S. investment plans, signalling that Brussels is preparing to advance trade talks with Washington. The move came after Trump over the weekend walked back a threat to impose 50% tariffs on European goods that would have hurt economic activity and demand for oil. Wednesday's gains recouped most of the losses from Tuesday, when prices settled down around 1% after signs of limited progress emerged in a fifth round of Iran-U.S. nuclear talks. The market expects any resolution between the two countries could add more Iranian oil supply to the market. A full meeting of the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, is scheduled for Wednesday, though no policy changes are expected. A July output hike could be decided on Saturday when eight members of the group hold talks, according to sources. Rennie said that a 411,000 barrel per day increase for July is the most likely scenario and would "add to rising inventory given signs that demand is weak as we move toward the summer driving season in the U.S."
Yahoo
28-05-2025
- Business
- Yahoo
Oil prices inch up as U.S. bans Chevron from exporting Venezuelan crude
By Colleen Howe BEIJING (Reuters) - Oil prices ticked up in early trading on Wednesday as the U.S. barred Chevron from exporting crude from Venezuela under a new authorization on its assets there, raising the prospect of tighter supply. Brent crude futures rose 47 cents, or 0.73%, to $64.56 a barrel by 0028 GMT, while U.S. West Texas Intermediate crude gained 49 cents, or around 0.8%, to $61.38 a barrel. The Trump administration has issued a new authorization for U.S. major Chevron that would allow it to keep assets in Venezuela but not to export oil or expand its activities, Reuters reported on Tuesday according to sources. "The loss of Chevron's Venezuelan barrels in the U.S. will leave refiners short and thus relying more on Middle Eastern crude," Westpac's head of commodity and carbon strategy Robert Rennie wrote in a note. U.S. President Donald Trump had revoked the previous license on February 26. In recent years, the licenses to Chevron and other foreign companies supported a slight recovery in sanction-hit Venezuelan oil output to about 1 million barrels per day. On the economic front, European Union officials have begun asking top EU companies for details of their U.S. investment plans, signalling that Brussels is preparing to advance trade talks with Washington. The move came after Trump over the weekend walked back a threat to impose 50% tariffs on European goods that would have hurt economic activity and demand for oil. Wednesday's gains recouped most of the losses from Tuesday, when prices settled down around 1% after signs of limited progress emerged in a fifth round of Iran-U.S. nuclear talks. The market expects any resolution between the two countries could add more Iranian oil supply to the market. A full meeting of the Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, is scheduled for Wednesday, though no policy changes are expected. A July output hike could be decided on Saturday when eight members of the group hold talks, according to sources. Rennie said that a 411,000 barrel per day increase for July is the most likely scenario and would "add to rising inventory given signs that demand is weak as we move toward the summer driving season in the U.S."
