HYMLY Hyundai Motor (PK)

MARKET MOVEMENTS:

-- Brent crude oil is down 0.8% at $81.85 a barrel.

-- European benchmark gas is down 0.3% at EUR39.80 a megawatt hour.

-- Gold futures are 0.5% lower at $1,989.70 a troy ounce.

-- LME three-month copper futures are down 2.3 % at $8,541.50 a metric ton.

-- Wheat futures are 0.3% lower at $6.55 a bushel.

TOP STORY:

GM, Hyundai Tap South Korean EV Battery Makers to Build U.S. Plants

General Motors Co. and Hyundai Motor Group each announced new investments to produce electric-car battery cells in the U.S. in joint ventures with different South Korean battery makers.

General Motors and Samsung SDI Co. announced Tuesday that they are planning to invest more than $3 billion in a battery-cell factory that would begin operating in 2026. The location of the plant wasn't disclosed but the cells will support GM's EV capacity in North America, Chief Executive Mary Barra said.

Separately, Hyundai Motor Group and South Korean battery maker SK On Co. also said on Tuesday that they have agreed to invest $5 billion to build a plant in Georgia to produce electric-vehicle battery cells, as car makers bump up spending in the U.S. to benefit from incentives in the Inflation Reduction Act.

--

OTHER STORIES:

Sliding Diesel Prices Signal Warning for U.S. Economy

A nationwide freight slowdown has helped cut U.S. diesel prices by half from last year's record, raising concerns that parts of the world's largest economy have begun to slow.

Wholesale diesel recently fell to $2.65 a gallon in New York Harbor, down from $5.34 last May, after Russia's invasion of Ukraine sent commodity markets haywire and turned prices advertised at gas stations into street-level reminders of inflation's 40-year highs. Record diesel costs made it more expensive to operate excavators at construction sites, run machinery on farms, and haul goods from ports, rail yards or factory floors.

--

The U.S. Wants a Rare-Earths Supply Chain. Here's Why It Won't Come Easily.

A bipartisan bill set to be introduced in Congress this week would offer a tax credit for establishing rare-earth magnet production in the U.S., a crucial component for the clean-energy transition. MP Materials efforts to build a local supply chain demonstrate the challenge for American producers.

The bill, to be introduced by Rep. Guy Reschenthaler (R., Pa.) and Rep. Eric Swalwell (D., Calif.), includes a $20-a-kilogram credit for U.S.-made magnets, while manufacturers sourcing 90% of their component parts from U.S. producers could be entitled to a $30-a-kilogram credit, according to a draft seen by The Wall Street Journal. The credit is planned to be phased out by Dec. 31, 2035.

Rare earths such as neodymium, dysprosium and terbium are used in permanent magnets that are needed to help drive motors in electric vehicles, offshore wind turbines and increasingly within robotics. According to experts, they are going to become more crucial as the drive to adopt clean-energy technology grows. Wood Mackenzie's Rare Earths Market Service estimates demand for rare-earth oxides stood at 171,300 metric tons in 2022 and projects it to grow to 238,700 tons by 2030.

--

Here's How Supply Chains Are Being Reshaped for a New Era of Global Trade

When a measure of strains on global supply chains fell earlier this year to levels last seen before the Covid-19 pandemic, it signaled to some that the product shortages, port bottlenecks and shipping disruptions of the past three years were over and that a new era of stability was on the horizon.

But industry experts say a "return to normal," as the Federal Reserve Bank of New York described its Global Supply Chain Pressure Index in February, hardly means that companies are going back to conventional, some would say complacent, supply chains.

Instead, say academics and consultants, the experiences during the pandemic, along with changes in geopolitics, are leading to broader, potentially long-lasting changes in how companies manage the flow of goods, from the sourcing of raw materials to manufacturing and distribution.

The changes are playing out at factories in India, auto-assembly plants in northern Mexico, ports from the U.S. Southeast to East Africa and mineral mines in Canada and Sweden. The sites are where companies are implementing disciplines such as resilience, regionalization and supplier diversification that came to the forefront as they coped with the severe disruptions that began in early 2020.

--

MARKET TALKS:

Oil Listless Ahead of Chinese Holiday

0754 GMT - Oil prices are directionless as the market awaits clearer signals on Chinese demand. Brent crude, the international oil benchmark, is little changed at $82.50 a barrel while WTI, the U.S. crude benchmark, is also unchanged at $78.75 a barrel. Analysts are hoping China's upcoming labor-day holiday could offer clues to the strength of Chinese consumers' demand for travel, which would be key for oil demand. Holiday bookings for international trips during the period are up 157% so far, according to data from a major Chinese travel firm, cited by Reuters. Also in focus: a batch of major tech earnings from the likes of Microsoft and Alphabet are due starting today, which could shape investors' risk appetite. (william.horner@wsj.com)

--

CATL in Strong Position Ahead of EV Demand Recovery

0741 GMT - Contemporary Amperex Technology will benefit from a gradual demand recovery for electric vehicles in the next few quarters, as well as from a sharp drop in lithium prices, Nomura analysts say in a research note. They expect higher EV demand on policy stimulus and more appealing retail prices, and they think product upgrades will help CATL strengthen its leadership from low-end to high-end EV battery and energy-storage-system markets. They are also positive on CATL's 1Q showing, pointing to an 83% on-year jump in revenue, a 6.8-percentage-point rise in gross margin and a "meaningful improvement" in net profit margin, which rose by 8.0 percentage points to 11%. Nomura keeps a buy rating and a target price of CNY570. Shares close 2.8% lower at CNY385.90, pulling into the red for the year. (ben.otto@wsj.com; @benottoWSJ)

--

Anglo American's Unchanged Guidance Implies Production Recovery

0733 GMT - Anglo American's unchanged production and cost guidance for 2023 implies a sharp recovery in production throughout the year, Citi says in a note after the London-listed miner posted a set of mixed first-quarter production figures with weaker copper output, which was offset by higher diamonds and iron ore. "Although production volumes have declined for the group as a whole vs last quarter, weakness in copper production was relatively large with 27% decline," says analyst Ephrem Ravi, noting that despite the ramp-up in Peru, the lower grades at its Chilean site that dented production was a read-across from other companies and appears to be a sector-wide issue. Citi has a buy rating on the stock. Shares fall 1.8% at 2,468.5 pence. (elena.vardon@wsj.com)

--

Metals Mixed on Global Economic Uncertainty

0717 GMT - Metal prices are mixed in early trading with uncertainty about the macroeconomic environment hitting markets. Three-month copper is down 0.1% to $8,737 a metric ton while nickel is up 0.1% to $24,265 a ton. Gold, meanwhile, is 0.3% higher at $2,004.80. "The macro mood has improved after yesterday's U.S. dollar drop and crude oil's mild recovery," Peak Trading Research says in a note. Peak says that with this week being light on data, investors will be looking ahead to Thursday's U.S. GDP figures and Friday's personal consumption expenditures inflation indicator. "A lower PCE inflation print would spark a risk-on rally across the commodity complex ahead of next week's Fed policy decision," Peak says. (yusuf.khan@wsj.com)

--

Lithium Miners Finish Higher After Decline on Chilean Proposal

17:36 ET - Shares of lithium miners Sociedad Química y Minera de Chile and Albemarle rise after falling sharply Friday following the Chilean government's announcement of a state-led lithium policy. SQM's US-traded shares rose more than 6% after falling 20% on Friday, while Albemarle was up 5.9% after declining 15% in the previous session. Both companies extract lithium in Chile, the world's second biggest lithium producer. President Gabriel Boric said last week that Chile would create a state-led lithium company, and that state miner Codelco would hold talks with SQM and Albemarle so the state could participate in their operations before their contracts expire. (ryan.dube@wsj.com; @duberyan)

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

April 25, 2023 08:30 ET (12:30 GMT)

Hyundai Motor (PK) (USOTC:HYMLY)
Historical Stock Chart
From Mar 2024 to Apr 2024

Hyundai Motor (PK) (USOTC:HYMLY)
Historical Stock Chart
From Apr 2023 to Apr 2024