EM ASIA CREDIT: Freeport Indonesia: Limited direct tariff impact
(FRIDPT, Baa3/NR/BBB)
Asia EM has limited direct exposure to proposed U.S. copper tariffs. Neutral for Freeport Indonesia.
U.S. President Trump announced plans overnight to implement a 50% tariff on copper imports, the ultimate aim to drive investment back into U.S. production. In February, the U.S. Government started an investigation into the global copper market and on potential new tariffs, though it's not clear if last night's announcement is the outcome of this investigation.
According to the US Geological Survey, the U.S. imported 45% of its total demand for copper, of which Chile was by far the largest contributor for refined copper (65%) with Canada (17%) and Mexico (9%) in second and third place. LATAM is clearly a major exporter to the U.S. market, while in contrast ASIA has limited direct exposure.
In Asia, Indonesian copper production ranks equal 6th in the world, alongside the U.S., with around 1.1 million tons annually. Indonesian company, Freeport Indonesia (FRIDPT), which is majority State owned, mines one of the world’s largest copper and gold deposits in the Grasberg minerals district in Papua, Indonesia. Freeport Indonesia exports mostly within Asia, though will be indirectly impacted by changes in prices for copper concentrate.
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
CHINA PRESS: China Vows to Enhance Dialogue On Rare Earth Export Control
China has approved a number rare earth export applications and will enhance communication with relevant countries, a spokesperson from the Ministry of Commerce said on Saturday. The ministry emphasised that implementing controls on rare earths, which have both civilian and military applications, aligns with international practices. The ministry was willing to establish a green channel and accelerate approvals to European Union firms. (Source: Securities Times)
CHINA PRESS: Shenzhen To Boost Consumption Further
Shenzhen has launched 39 measures to expand consumption, ranging from boosting residents’ income to increasing the high-quality supply of goods and services, Yicai.com reported. Eligible university graduates who move to Shenzhen for employment can obtain subsidies of up to CNY30,000, CNY50,000 and CNY100,000, alongside increased maternity and childcare benefits. The city will also reduce restrictions on car purchases and usage, and reward AI enterprises for launching tech products, the newspaper said.
CHINA PRESS: Yicai Economist Index Rises In June
The Yicai Chief Economist Confidence Index reached 50.50 in June, returning above the 50 boom-bust line after May’s 49.84, the news agency has reported. Economists expected an increase in domestic prosperity after the Geneva talks paused the Sino-US tariff game. Lian Ping, chief economist at Guangkai, said the short-term external environment has improved and the downward pressure on exports may be less than expected. Participants expected China’s trade surplus to reach USD97.1 billion in May, with exports up 4.97% y/y and imports falling 0.61% y/y. Total retail sales were anticipated to rise 5.48% y/y, down from 5.1% y/y last month due to high base effects, according to Wen Bin, chief economist at Minsheng Bank.
