Latest news with #prices
Yahoo
3 hours ago
- Business
- Yahoo
Acerinox, shielded by tariffs, eyes price hikes for US business
By Javi West Larrañaga (Reuters) -Steelmaker Acerinox, whose U.S. business is a big beneficiary of President Donald Trump's tariffs, is looking into raising some prices in the market, though no notable changes are expected before late September, its management said on Thursday. "In the United States, we are trying to increase our prices, which is not easy under the current circumstances," CEO Bernardo Velazquez told analysts in a post-earnings call. There will be no "relevant" hikes in the third quarter, as price adjustments are typically not made during the summer season, Chief Corporate Officer Miguel Ferrandis added. "At the end of September, we shall see," he said, noting the decisions also depended on factors such as market visibility, a potential EU-U.S. trade deal and clarity on Russia's war in Ukraine. As the largest producer of stainless steel in the U.S., Acerinox benefits from Trump's protectionist policies and 50% tariffs on imported steel. Demand for stainless steel is subdued in both Europe and the United States, but tariffs on competitors mean Acerinox can keep U.S. prices stable, Velazquez told analysts. Meanwhile in Europe, the economic turmoil has dragged steel prices, driving a big miss in Acerinox's second-quarter results. "We have a lot of pressure in the market, low demand, high inventories, so prices are going down," Velazquez said. Imports have grown close to 75% in Europe this year, he said, adding that the European Union needed to take the necessary measures to protect the market from Asian imports, like the U.S. had done. U.S. hot-rolled coil steel futures have gained 24% so far this year to $876 a short ton ($965.60 per metric ton), while European prices have fallen 4% to 531 euros ($623.93) per metric ton. ($1 = 0.8511 euros)
Reuters
3 hours ago
- Business
- Reuters
Acerinox, shielded by tariffs, eyes price hikes for US business
July 24 (Reuters) - Steelmaker Acerinox ( opens new tab, whose U.S. business is a big beneficiary of President Donald Trump's tariffs, is looking into raising some prices in the market, though no notable changes are expected before late September, its management said on Thursday. "In the United States, we are trying to increase our prices, which is not easy under the current circumstances," CEO Bernardo Velazquez told analysts in a post-earnings call. There will be no "relevant" hikes in the third quarter, as price adjustments are typically not made during the summer season, Chief Corporate Officer Miguel Ferrandis added. "At the end of September, we shall see," he said, noting the decisions also depended on factors such as market visibility, a potential EU-U.S. trade deal and clarity on Russia's war in Ukraine. As the largest producer of stainless steel in the U.S., Acerinox benefits from Trump's protectionist policies and 50% tariffs on imported steel. Demand for stainless steel is subdued in both Europe and the United States, but tariffs on competitors mean Acerinox can keep U.S. prices stable, Velazquez told analysts. Meanwhile in Europe, the economic turmoil has dragged steel prices, driving a big miss in Acerinox's second-quarter results. "We have a lot of pressure in the market, low demand, high inventories, so prices are going down," Velazquez said. Imports have grown close to 75% in Europe this year, he said, adding that the European Union needed to take the necessary measures to protect the market from Asian imports, like the U.S. had done. U.S. hot-rolled coil steel futures have gained 24% so far this year to $876 a short ton ($965.60 per metric ton), while European prices have fallen 4% to 531 euros ($623.93) per metric ton. ($1 = 0.8511 euros)
Economy ME
10 hours ago
- Business
- Economy ME
Dubai 24-carat gold price today climbs AED5.25 to AED414 as investors eye Trump's tariff deadline
Gold prices are mirroring the reversal patterns observed in Tuesday's Asian trading, as buyers take a pause early Wednesday following two consecutive days of substantial gains. In Dubai, gold rates saw significant increases, with 24-carat gold rising AED5.25 to AED414.00 and 22-carat gold gaining AED4.75 to AED383.25. Additionally, 21-carat gold was up AED5.00 to AED367.75, while 18-carat gold rose AED4.25 to AED315.25. Spot gold climbed to $3,428.84 per ounce by 2:10 p.m. ET (18:10 GMT), reaching its highest level since June 16 (currently trading above $3,423). U.S. gold futures also showed an increase, reaching $3,443.70 (currently trading above $3,437). Gold prices touched five-week highs of $3,439 this Wednesday before retreating due to profit-taking and a rebound in the U.S. Dollar (USD). Optimism surrounding U.S. trade agreements with Japan and Canada has shifted risk flows back into Asian markets, diminishing the safe-haven appeal of gold while bolstering the USD, especially in light of easing concerns about U.S. economic growth. President Trump stated early Wednesday that he had just finalized a massive deal with Japan, potentially the largest deal ever made. Japan's chief trade negotiator, Ryosei Akazawa, confirmed on X, stating, 'Mission Complete.' On Tuesday, Canadian Prime Minister Mark Carney remarked, 'We're working positively for a trade deal with Trump.' Read more: Dubai 24-carat gold price today hits AED408.25 up AED2.75 as dollar and bond yields fall Gold breaches key Fibonacci level Despite this positive shift in risk sentiment, investors remain cautious due to the lack of substantial details regarding the U.S.-Japan trade agreement and the upcoming earnings report from American tech giant Alphabet Inc, scheduled for release after the markets close on Wednesday. Additionally, political instability in Japan and uncertainties surrounding a U.S.-EU trade agreement continue to weigh on sentiment, which could limit any downside for gold prices. A Japanese media outlet, Mainichi, reported on Wednesday that Prime Minister Shigeru Ishiba is expected to resign by the end of August, following the defeat of his ruling Liberal Democratic Party (LDP) in the Upper House election on Sunday. As we look ahead, trade and political developments will play a crucial role in gold price movements, while traders will also closely monitor the ongoing feud between Trump and U.S. Federal Reserve (Fed) Chairman Jerome Powell. According to the daily chart, gold prices have successfully breached the 23.6 percent Fibonacci Retracement (Fibo) level of the April record rally at $3,377. The yellow metal maintains its position well above all major Simple Moving Averages (SMA), with the 14-day Relative Strength Index (RSI) remaining comfortably above the midline, despite the recent dip. Thus, the path of least resistance appears to be upward, with acceptance above the $3,440 static resistance required to challenge the June 16 high of $3,453. A sustained move above that level could ignite a fresh uptrend toward the record high of $3,500. Gold prices reach five-week high Gold prices surged to a five-week high on Tuesday, buoyed by trade uncertainties and declining U.S. bond yields, as investors keep an eye on President Trump's August 1 tariff deadline. Spot gold rose 1 percent to $3,428.84 per ounce by 2:10 p.m. ET (18:10 GMT), marking its highest point since June 16. U.S. gold futures increased by 1.1 percent to $3,443.70. The yield on benchmark U.S. 10-year notes fell to a near two-week low, enhancing the attractiveness of non-yielding bullion. Treasury Secretary Scott Bessent indicated on Tuesday that he would meet with his Chinese counterpart next week, suggesting a possible extension of the August 12 tariff deadline. He also mentioned that the U.S. is poised to announce 'a rash of trade deals' with other countries. Meanwhile, European Union diplomats hinted at broader counter-measures against the U.S. as prospects for a trade agreement dwindle. Investors are positioning themselves ahead of next week's Federal Reserve meeting. While the Fed is expected to maintain current interest rates, markets are anticipating a potential rate cut in October. Gold, traditionally viewed as a hedge in uncertain times, tends to perform well in a low-interest rate environment. Bessent also stated on Tuesday that there was no immediate need for Fed Chair Jerome Powell to step down, a day after calling for a review of the central bank as an institution. Furthermore, Fed Vice Chair Michelle Bowman emphasized the importance of the central bank's independence amid rising pressure from Trump to lower borrowing costs.
Reuters
11 hours ago
- Business
- Reuters
Lynas sees higher rare earths prices after US backs MP Materials
MELBOURNE, July 24 (Reuters) - Prices of rare earths could rally further given growing demand for Western material, reflected in a recent deal by the United States that has shown its resolve to rebuild the sector outside China, the CEO of top producer Lynas Rare Earths ( opens new tab said. The U.S. Department of Defense this month agreed to a multi-billion dollar deal to become the largest shareholder in the Australian company's peer, MP Materials (MP.N), opens new tab, the sole U.S. miner of the magnetic metals used in electronics, electric vehicles and aircraft engines. As part of the deal, it offered a floor price of $110 per kilogram for the two most popular rare earths, a price nearly twice the current Chinese market level. Lynas CEO Amanda Lacaze, who heads the world's largest rare earths producer outside China, said the MP Materials deal reflected the U.S. government's determination to break Beijing's dominance and to drive investment in its own industry. "Can (prices) go above $110? Yes and I think the recent detail of the deal is that there would be an expectation for the government that that is likely to happen, because they have negotiated exposure to upside," she said. After Beijing curbed exports earlier this year, automakers panicked over a rare earths supply bottleneck, though those concerns have started to dissipate as Chinese rare earths magnets began to flow again. Japanese magnet makers had "significantly increased" their output over the past quarter due to the Chinese supply shortages, and Lynas was working with them to develop automotive customers outside their home country, Lacaze said. Lynas beat estimates for fourth-quarter revenue by 10%, driven by higher selling prices across all rare earths products, and entered into a magnet manufacturing deal with South Korea's JS Link ( opens new tab. It received an average selling price of A$60.20 per kg, the highest since the July 2022 quarter, compared with A$42.30 per kg a year earlier. Shares climbed as much as 4.2% to A$10.57, the highest level since April 5, 2022, compared to a 0.3% decline in the broader Australian mining index (.AXMM), opens new tab. Lynas posted sales revenue of A$170.2 million ($112.3 million) for the quarter ending June 30, beating a Visible Alpha consensus estimate of A$155 million by about 10% according to Barrenjoey, and up from A$136.6 million a year earlier. The company's total rare-earth oxide (REO) output for the fourth quarter was at 3,212 REO metric tons, compared with 2,188 REO tons reported a year ago. Lynas also disclosed a deal with South Korean permanent magnet manufacturer JS Link to develop a permanent magnet value chain in Malaysia and said it sees the country as a key market for industry growth. The collaboration includes plans for a 3,000-ton neodymium magnet manufacturing facility near Lynas' advanced materials plant in Kuantan, Malaysia, it said. Lynas will supply light and heavy rare earth materials to support production, although the non-binding agreement remains subject to finalisation. ($1 = 1.5152 Australian dollars)
RNZ News
12 hours ago
- Business
- RNZ News
Fonterra boss rejects idea of discounted butter prices for New Zealanders
Fonterra chief executive Miles Hurrell. Photo: RNZ / Dan Cook The head of dairy giant Fonterra says the co-operative cannot and will not have different butter prices for local and overseas customers. It comes amid soaring prices for the household staple, with Stats NZ data showing the price of a 500g block of butter rising 46.5 percent in the year ended May. Other dairy products such as milk and cheese have also recorded steep price increases amid global demand. Fonterra chief executive Miles Hurrell fronted the media in Christchurch on Thursday, after a highly publicised - but regular - meeting with Finance Minister Nicola Willis on Tuesday, where the pair discussed the price of butter, amongst other things. He sympathised with households feeling the pinch but said price increases were a reflection of supply not being able to keep up with demand. Hurrell said for a block of butter at the supermarket, roughly 80 percent was determined by the international market. He said globally there was a growing need for both dairy fats and dairy protein, underpinned by strong demand from China and other nations. Hurrell rejected that Fonterra had a social responsibility to offer cheaper products to local consumers. "We know we have an obligation to sell here in New Zealand, and we do that, and we support the New Zealand economy," he said. "But our job is to not come in with a two-tier pricing system ... and discount here in the New Zealand market - where we have an international obligation to operate as well," he said. "If you're going to get into discounting by product - this is not a game that we're playing." Hurrell said Fonterra's responsibility was to its farmer suppliers , a comment he had made earlier. "We're a co-operative, and our job is to go and support the 8500 family farms that we support here in New Zealand," he said. "I know for a fact that when they get their share of $25 billion [in estimated] revenue that comes back, they do a heck of a lot ... to support their own communities." He said strong dairy prices were in fact a "good news story" for the New Zealand economy. "It talks to the economic recovery that I know the New Zealand government have been talking about." Recent economic data showed annual inflation rose to its highest level in a year in the June quarter, partly driven by food prices, which in turn, were driven by dairy prices. Hurrell said the final prices on local shelves were set by retailers, who set their own costs and margins. He said he explained all of this to Finance Minister Nicola Willis on Tuesday. In response to the strong public debate around the price of butter, Woolworths New Zealand - one of the country's two big supermarket operators, said it was "working hard to keep butter prices as low as possible, for as long as possible". "Market conditions have changed significantly in the last few months and international butter prices are now at record highs," a spokesperson said. "While this is great news for our farmers, it does mean we have to pass on these increased prices to our customers, which is why we've changed the shelf price for butter products," they said. Foodstuffs North Island - the operator of PAK'nSAVE and New World - referred RNZ to previous comments made by chief executive Chris Quin on social media last month. "Analysis as of May 2025 confirms that among major grocery retailers operating throughout the North Island (as distinct from those in a limited number of locations), PAK'nSAVE offers the most affordable 500g block of butter, at $8.29," Quin wrote. Quin said while tough for households, strong global dairy prices were "ultimately good for New Zealand's economy". Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
