In separate Tuesday interviews, President Trump stated the Iranian conflict is “close to over” (Fox) and extending the two-week ceasefire may not be necessary (ABC), because U.S./Iran peace talks will restart “over the next two days” (New York Post). At 6:40 am Wednesday, Associated Press reports the U.S. and Iran have given an “in principle agreement” to “mediators” to extend the ceasefire (due to expire 4/22) to allow for face-to-face negotiations to reach compromise on three main sticking points: Iran’s nuclear program, the Strait of Hormuz and compensation for wartime damages. Stay tuned…
Hormuz ripple watch: The global sulfur shortage due to Gulf supply interruptions (75% of Indonesia’s supply) has forced several Indonesian nickel processors to trim output by at least 10% since last month. The cuts have affected plants that use sulfuric acid to process nickel ore into mixed hydroxide precipitate (MHP), a feedstock used in electric vehicle battery materials. Affected plants include facilities backed by Chinese firms such as Huayou Cobalt, Lygend Resources and Tsingshan Group.
Russia's Nornickel (40% of global palladium output) said on Tuesday it aims to complete the development of a palladium-based catalyst for lithium-sulphur (Li-S) batteries within three years, potentially creating a major new source of demand for palladium in electric vehicles. Li‑S batteries in theory offer higher energy density as well as significantly lower cost and weight than lithium-ion batteries currently used in most EVs. But they have so far failed to reach mass-market production due to their extremely limited service-life.
China’s Sichuan Yahua Industrial Group joined Chengxin Lithium and Sinomine Resources as the third firm to receive a lithium concentrate export quota from Zimbabwe. Yahua stated its quota is six-months in length and will support normal production at its Kamativi mine.
Director General of Brazil’s National Mining Agency Mauro Sousa announced a national policy for development of rare earths and critical minerals will emerge in the next two-to-three months from the mix of 13 bills currently before Congress. Sousa stated Brazil’s mining industry opposes lawmaker proposals to create a state-owned rare earths company called Terrabras.
Signaling escalation of economic pressures on Iran, the Trump administration signaled it will not renew the 30-day waiver of sanctions on Iranian oil at sea (expires 4/19), after letting a similar waiver on sanctioned Russian oil expire over the weekend. Former IMF Chief Economist Kenneth Rogoff observed the U.S. dollar is “probably at least still 20% overvalued” and warned investors are overestimating the likelihood of near-term resolution of the Iran war, describing markets as “naïve” to think the conflict is resolved. Euro Stoxx 50 -0.4%, S&P and Nasdaq futures little changed. European bonds ticking lower with yields up 2bps-3bps across the board. 10-year Treasury yield +1.2bps (4.260%). DXY dollar index +0.13%, spot gold -0.6% and spot silver -0.75%. Brent futures +1.0% ($95.79) and WTI futures +1.0% ($92.19). [7:50 am ET]Interested in getting potential access to private placements with Miners and Junior Miners? Plus, get exclusive videos, articles and market commentary on the sector for free? Join our Wealthion Real Assets Community now by clicking below.