Japan’s Honda, Nissan mull scrapping merger plan

Spanish Market: Battery materials, Metals
06/02/25

Japanese car maker Honda and Nissan are considering ending merger talks, a representative of Honda told Argus today.

Ending negotiations for proposed merger is among the issues the two firms are discussing, Honda's representative told Argus on 6 February, without providing further details.

Honda will make an official announcement regarding the deal, including its course of action, in mid-February, according to statements released by the firm on 5 February.

Nissan similarly commented that the firms are "in the stage of advancing various discussions", according to a statement the company separately released on 5 February. This includes "the contents of the report", the statement said, referring to the local news story about a possible withdrawal from the basic merger agreement with Honda. Nissan reiterated that the report is not based on any official announcement from the company.

This comes only several weeks after the firms launched formal merger negotiations in late December 2024. This included setting up a joint holding company under which the current brands would operate as subsidiaries.

The merger plan was partly aimed at jointly developing electric vehicles (EVs) along with studying possible areas of co-operation in developing automotive software platforms, core components relating to EVs and complementary products.

Tough negotiation was anticipated from the beginning partly because of Nissan's financial struggles. Honda had suggested the merger plan could be scrapped depending on Nissan's turnaround, reiterating that the proposed merger is not aimed at alleviating Nissan's financial situation.

By Yusuke Maekawa

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10/07/25

US’ 50pc Cu levy unlikely to dent Japan’s metal output

Tokyo, 10 July (Argus) — The US' sweeping 50pc tariff on copper imports effective from 1 August is expected to have minimal impact on Japanese metal producers given limited shipments to the US market. The impact of the blanket 50pc tariff by the US government will be negligible, a domestic electric copper producer told Argus on 10 July, because the company primarily supplies copper products to Asian nations. There are virtually no shipments to the US market, it added. The company's selling prices are likely to remain stable given that most purchase agreements are locked in through term contracts, the firm said. The company has not yet received unexpected windfall orders following the White House's announcement of the tariff hikes. Another Japanese metal producer echoed this sentiment, saying that the US' tariff measure is unlikely to hit its operations given limited deliveries to the country. The firm owns stakes in a South American copper mine project but its copper offtake from the mine is not destined for the US market, reinforcing the limited direct impact from the tariffs. But the company expressed concerns over potential broader implications, citing uncertainty around Washington's definition of "copper products". The impact could be larger if the US government plans to enforce tariffs on a wider range of copper-based products. The producer's concern also lingers over potential indirect impacts from possible disruptions in the metal supply chain. The company ships processed copper products to Asian nations for further manufacturing in the region, but some of the final products are partly exported to the US market. The company could face challenges if these end-products fall under the new tariff, it added. Japan produced around 1.6mn t of copper ingot in 2024, up by 4.9pc from a year earlier, according to the industry group Japan Mining Industry Association and the Japan Mining Promotive Foundation. Around half of total domestic output is exported, with the majority going to Asian markets, according to a market participant. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Sumitomo to invest $10bn in UK clean energy

10/07/25

Japan’s Sumitomo to invest $10bn in UK clean energy

Tokyo, 10 July (Argus) — Japanese trading firm Sumitomo has agreed to invest a total of £7.5bn ($10.2bn) by 2035 in key clean energy projects in the UK. The agreement was made with the UK's Department for Business and Trade's Office for Investment on 9 July. The £7.5bn total includes investments Sumitomo made before this deal. The investments will be focused on key offshore wind and hydrogen projects. Sumitomo is also actively exploring the commercialisation of next-generation technologies such as fusion energy and energy management with storage solutions, the firm said. Sumitomo did not disclose more details on what projects it will invest in, when requested for comment. Sumitomo is currently involved in a low-carbon hydrogen production project at the Bacton gas terminal in north Norfolk, CO2 storage in the North Sea and the Peak Cluster CO2 shipping project. The trading house has also invested in offshore wind power businesses. Sumitomo chose to partner with the UK because of the government's support for clean energy businesses, said the firm, and it intends to enhance its collaboration with the UK to develop its clean energy portfolio. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump threatens 50pc Brazil tariff: Update

09/07/25

Trump threatens 50pc Brazil tariff: Update

Updates with comments from Brazil's vice president Washington, 9 July (Argus) — US president Donald Trump is threatening to impose a 50pc tariff on imports from Brazil from 1 August, citing the ongoing trial of that country's former president, Jair Bolsonaro. Trump's letter to Brazil's president Luiz Inacio Lula da Silva, released on Wednesday, is one of the 22 that the US leader sent to his foreign counterparts since 7 July, announcing new tariff rates that the US will be charging on imports from those countries. But his letter to Brazil stands out for allegations of a "witch hunt" against Bolsonaro, who — much like Trump — disputed his electoral defeat and attempted to stay in office. Brazil's supreme court qualified Bolsonaro's actions in 2022 as an attempted coup, ordering him to stand trial. Trump said he will impose the 50pc tariff because "in part to Brazil's insidious attacks on Free Elections and the Fundamental Free Speech Rights of Americans". The latter is a reference to orders by judges in Brazil to suspend social media accounts for spreading "misinformation". Trump separately said he would direct US trade authorities to launch an investigation of Brazil's treatment of US social media platforms — an action likely to result in additional tariffs. Trump's letter to Lula also contains language similar to that included in letters sent to 21 other foreign leaders, accusing Brazil of unfair trade practices and suggesting that the only way to avoid payments of tariffs is if Brazilian companies "decide to build or manufacture product within the US". The Trump administration since 5 April has been charging a 10pc extra "Liberation Day" tariff on most imports — energy commodities and critical minerals are exceptions — from Brazil and nearly every foreign trade partner. Trump on 9 April imposed even higher tariffs on key trading partners, only to delay them the same day until 9 July. On 7 July, Trump signed an executive order further delaying the implementation of higher rates until 12:01am ET (04:01 GMT) on 1 August. Trump earlier this week threatened to impose 10pc tariffs on any country cooperating with the Brics group, which includes Brazil, China, Russia, India and South Africa. Lula hosted a Brics summit in Rio de Janeiro on 6-7 July. Brazil vice president Geraldo Alckmin, speaking to reporters before Trump made public his letter to Lula, said: "I see no reason (for the US) to increase tariffs on Brazil." The US runs a trade surplus with Brazil, Alckmin said, adding that "the measure is unjust and will harm America's economy". Trump has justified his "Liberation Day" tariffs by the need to cut the US trade deficit, but the punitive duties also affect imports from countries with which the US has a trade surplus. By Haik Gugarats and Constance Malleret Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

LME copper prices down on US tariff announcement

09/07/25

LME copper prices down on US tariff announcement

London, 9 July (Argus) — London Metal Exchange (LME) copper prices have fallen after US president Donald Trump announced on Tuesday that he will impose a 50pc tariff on copper imports. In the wake of the announcement, the market anticipates that the duty will halt the flow of metal into the US and redirect it back towards other global consumers. The cash copper price on the LMEselect electronic trading platform fell by 1.75pc to $9,579.50/t at 12:06 BST today. This was a stark contrast to movement on the US Comex exchange, where the next-month copper price soared by more than 13pc to $5.645/lb on Tuesday before falling back slightly to $5.502/lb in later trading. The jump drove the arbitrage between the Comex spot price and the LME cash price to a new record high of more than $2,500/t. Clarity on term price movement and trade flow was clouded by the lack of detail on the US tariffs. Trump's announcement was an unscheduled comment before a cabinet meeting, followed by a comment from US Secretary of Commerce Howard Lutnick that the tariffs are likely to be in place by the end of July. Even this short a window is likely to encourage one last spurt of buying from US consumers and traders looking to build tariff-free stockpiles before the duty is in place. This is likely to keep Comex prices and the arbitrage to LME high in the near term, but Comex prices might drop off sharply as soon as participants see that tariffs for new deliveries become too risky. Once that threshold is crossed, copper shipments to the US are likely to fall sharply and US copper consumers will start to work through the vast tariff-free inventory that has built up in the country over the past six months. US imports of refined copper under HS code 7403 have increased by 126.72pc this year to 680,727t, according to customs data. Of that total, 422,603t was delivered across April and May, which represented more than half of the total refined copper imports for the whole of 2024. Data from vessel tracking platform Kpler indicate similar volumes of copper cathode imports in June as in April and May, which could mean that at least another 200,000t of copper has already made landfall in the US. With this stockpile to work through, US consumers will not be actively looking to import significant volumes subject to a 50pc tariff in the near term, which means the shift in global copper trade flow this year might reverse rapidly. Comex warehouse copper stocks rose by 138pc from the start of this year to 221,788t as of Tuesday, while LME warehouse stocks dropped by 61pc over the same period to 107,125t today. The trade flow shift has been centred on all Comex-deliverable copper brands, led by Chilean copper but also including European metal as well, leaving European and Chinese buyers to scramble for alternative supplies from the Democratic Republic of Congo in particular. Chile is the largest supplier of copper to the US, accounting for more than 60pc of US refined imports this year. If US imports slow down as a result of the tariffs, Chilean copper will flow back towards China and Europe. Greater availability will pressure LME prices and regional premiums in those ex-US markets, which have risen sharply this year on tighter supply. The Argus assessment for the delivered Germany grade-A copper cathode premium to the LME price has risen by 56pc since February to a record high of $270-290/t as of Tuesday, while the cif Shanghai grade-A cathode premium to the LME price has risen by 122pc over the same period to $80-120/t. "It is difficult to know what will happen but Comex prices will go up and LME will go down," a major copper producer told Argus . "I don't see any short-term impacts in Europe but if the tariff is confirmed, then more copper will flow to Europe and Asia, decreasing physical premiums." By Ronan Murphy and Roxana Lazar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s crude steel output to fall in Jul-Sep: Meti

09/07/25

Japan’s crude steel output to fall in Jul-Sep: Meti

Tokyo, 9 July (Argus) — Japan's crude steel output is likely to fall in July-September from a year earlier because of persistently weak demand in both domestic and export markets, the country's trade and industry ministry (Meti) said. Meti expects output to drop by 2.3pc over the period to 20.1mn t, it said in its quarterly forecast released on 8 July. Output is likely to remain stable from April-June. The projected year-on-year output decline is the result of persistently weak demand from key domestic steel-consuming sectors, including automobiles and construction, Meti said. "The situation has not changed significantly from the previous quarter ", a Meti official told Argus . Demand for ordinary steel products from the automobile sector is forecast to increase by 1.9pc on the year to 2.4mn t in the quarter. But Meti characterised this as only a "slight increase", despite it being a higher year-on-year growth rate in comparison with other sectors. Meti had anticipated a strong rebound in the automobile sector, and consequently steel demand, after some car producers resumed operations. The auto manufacturers had suspended operations for up to six months in 2024 following alleged false reporting of safety tests results. Some car producers remain cautious about pushing to ramp up output, the Meti official told Argus , without naming any companies. This is because some carmakers are prioritising quality over quantity, Meti suggested, possibly to avoid a repeat of past safety scandals. Japan's largest domestic car producer Toyota was among those that halted production because of safety issues in mid-2024. Toyota said it has since focused on building a solid foundation for production to enhance safety and quality. Steel demand from the construction sector remains under pressure from a labour shortage and rising material costs, according to Meti. This is likely to cap ordinary steel demand from the sector at 3.9mn t, a similar output level to the same period last year. External markets Japan's steel exports are also projected to decline, with shipments expected to fall by 11.5pc on the year to 6.1mn t in July-September, Meti said. Meti attributed the drop to an influx of low-cost Chinese steel products, which continue to flood key export markets including southeast Asia. Japanese steel producers are reluctant to lower their selling prices to compete with cheaper, non-value-added items, the Meti official added. Meanwhile, the blanket 50pc tariff imposed by the US on imports of steel is unlikely to have a significant impact on domestic crude steel output, at least until September, the Meti official said. This is largely because many of the Japanese steel products imported by US customers cannot be easily replaced with domestic products, the Meti official said. Meti's optimism comes despite some Japanese steel producers struggling to maintain stable business with US clients following Washington's decision to double its sweeping import tariffs on steel to 50pc from 4 June. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Japan’s Honda, Nissan mull scrapping merger plan

Related news posts

US’ 50pc Cu levy unlikely to dent Japan’s metal output

US’ 50pc Cu levy unlikely to dent Japan’s metal output

Japan’s Sumitomo to invest $10bn in UK clean energy

Japan’s Sumitomo to invest $10bn in UK clean energy

Trump threatens 50pc Brazil tariff: Update

Trump threatens 50pc Brazil tariff: Update

LME copper prices down on US tariff announcement

LME copper prices down on US tariff announcement

Japan’s crude steel output to fall in Jul-Sep: Meti

Japan’s crude steel output to fall in Jul-Sep: Meti

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