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Iron ore traders weigh up production cuts against the stimulus promises
Iron 'ore futures were unable to find a direction on Thursday as traders weighed the reduced demand for feedstock due to imminent production -cuts against signs that Beijing will implement more 'property stimuli' measures. The daytime trading of the most traded May iron ore contract at China's Dalian Commodity Exchange ended flat at 748.5 Yuan ($109.46). The benchmark March ore at the Singapore Exchange rose 0.13% to $0.13 per ton. Chinese steelmakers in the northern region of the country will have to reduce production by at least 30% from March 4, to maintain clean air during the annual parliament meeting on March 5. The reduction in production will reduce the demand for feedstock. However, the higher steel prices and the anticipation of stimulus policies at the parliamentary'meeting' will encourage mills?restock. Beijing showed its willingness on Wednesday to re-energize the property market after Shanghai lifted restrictions on homebuying and rules that limited property developers' borrowing. There are rumors that other major cities will soon follow suit with property-easing measures. According to data released by the Shanghai Steel Market on February 25, the blast furnace operating rates in 242 mills increased week-on week, and hot metal production was up 7,700 tons from the previous week. SteelHome's data shows that spot prices for seaborne iron ore rose 1.46% in a week to $97.5 on 25 February. Coking coal and coke, two other steelmaking ingredients, also declined on the DCE. The Shanghai Futures Exchange's steel benchmarks were mixed. Rebar gained 0.2%, while hot-rolled coils rose 0.09%. Wire rod also gained 0.35%. Stainless steel, meanwhile, fell 0.27%.
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Schneider exceeds expectations in profit as demand for data centers offsets the weak dollar
French industrial group ?Schneider Electric on Thursday reported stronger-than-expected core earnings, driven by robust ?data centre demand, supporting its 2026 outlook despite pressure from a weakening ?dollar. In its data center segment, the group saw a triple-digit growth year-on-year. Quarterly revenues increased organically by 10.7%, to 11,10 billion euros ($13.12billion). The adjusted full-year earnings before interest taxes and amortization (EBITA), totaled 7,52 billion euros. The company polled analysts who expected an average revenue of 10.90 billions for the fourth quarter and a full-year adjusted EBITDA of 7.48 billions. Hilary Maxson, CFO of the company, told the media that while the United States drives data centre growth, there is also a growing demand for the technology in France and Northern Europe. Maxson stated that "we are starting to see data centers being unlocked in Europe where the governments have pushed for permits and electrical connections." Schneider, once known for its industrial components such as fuses and circuit breaker, is now the backbone of data centers. They supply everything from cooling units, server racks, and critical power distribution equipment. About 30% of the company's total orders are for data centers and networks. The company is the latest to make a positive prediction about AI demand in 2019. This follows comments from Nvidia, a chipmaker, and Legrand, a French electrical and digital infrastructure group. DATA CENTERS SUPPORT BUSINESS GROWTH Schneider expects its organic revenue to grow between 7% and 9% this year, and that the adjusted EBITA will increase between 50bps and 80% bps. This is in line its long-term goals, which it set out in December. It aimed for an average annual organic growth rate of 7% to 10% and organic adjusted EBITA growth of approximately 250 basis points between 2026 and '2030. Currency fluctuations caused the group's fourth-quarter revenue to drop by 701 millions euros, due to a falling dollar, Indian Rupee, and Chinese Yuan. Maxson stated that the company expects to see "a little less than double" of the 160 million euro increase reported for 2025 due to import tariffs. This includes the U.S. Schneider announced that Nathan Fast will replace Maxson as investor relations director on April 5. ($1 = 0.8462 euros)
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Schneider exceeds expectations in profit as demand for data centers offsets the weak dollar
French industrial group Schneider Electric on Thursday reported stronger-than-expected core earnings, ?driven by robust data centre demand, supporting its ?2026 outlook despite pressure from a weakening dollar. The group saw a triple-digit growth year-on-year in demand for the 'pure' data centre segment, leading to a 10.7% organic increase in total quarterly revenues of 11.10 billion euro ($13.12billion) and adjusted full-year earnings before interest taxes and amortization (EBITA) at 7.52 billion. The company polled analysts who expected an average revenue for the fourth quarter of?10.90 Billions and a full-year adjusted EBITDA of 7.48 Billions. Schneider, once known for its 'industrial components, like circuit breakers and fuses,' now forms the backbone of most data centers. They supply everything from cooling units, server racks, and critical power distribution equipment. Legrand, a French electrical and digital building equipment group and chipmaker Nvidia have also made positive comments about AI demand. DATA CENTERS SUPPORT GROWTH Schneider expects its organic revenue to grow between 7% and 9% and that the adjusted EBITA will increase between 50bps and 80%bps this year. This is in line the long-term goals it set out in December. It aimed for an average organic revenue growth between 7% and 10% per year and a EBITA adjusted organic margin?growth of approximately 250 basis points from 2026 to 2030. Currency fluctuations caused the?group's fourth-quarter revenue to drop by 701 millions euros, due to a weakening dollar, Indian rupee, and Chinese Yuan. Nathan Fast, the investor relations director at Schneider, will replace Hilary Maxson on April 5. (1 euro = 0.8462 dollars) (Reporting and editing by Alessandro Parodi)
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Asia shares are on the rise, but Nvidia's performance is not impressive
The yen is on a shaky footing as the possibility of further rate increases in Japan has been raised. The lingering concerns about the escalation of geopolitical tensions in the U.S. Oil prices remained high ahead of the third round of talks scheduled between Iran and the United States on Thursday. Nvidia forecasted first-quarter revenues above market expectations on Wednesday, betting that Big Tech would continue to spend on AI processors. After hours, the stock price of the company remained flat. Investors were likely disappointed with the lackluster results, especially since the company had consistently exceeded revenue expectations in the previous 14 quarters. This contributed to a drop of 0.3% in Nasdaq Futures while S&P500 futures also fell by 0.2%. The FTSE and EUROSTOXX futures both fell by 0.2% and 0.08%, respectively. Richard Clode said that the debate was less about near-term results than it was about the sustainability and viability of AI capex, given concerns about its size, monetisation, and cashflow degeneration. The Nikkei 225 index in Japan was up by 0.15%. South Korea's KOSPI rose 3%. MSCI's broadest Asia-Pacific index of?shares other than Japan increased 0.65%. Hong Kong's Hang Seng Index fell 0.76%, while China's CSI300 Blue-chip Index was down 0.2%. Charu Chanana, chief investment strategist at Saxo, said that the immediate reaction of Asian stock markets was relief. This translated into a moderate risk-on attitude after the AI-driven volatile of recent weeks. This doesn't mean that the debate is over. "Valuations are stretched in some parts of the ecosystem and disruption risks become more visible with increased competition." In recent weeks, traders have been alternating between being concerned about the returns on investments and the potential of the technology to disrupt entire industries and hesitant to stay on the sidelines. Will they, won't they? Investors were mainly focused on the yen, which remained near its two-week low after Japan's Government nominated two economists who are seen as strong supporters of economic stimulus by the markets to join the board of the central bank. Markets viewed the surprise move as a "reflection of Prime Minister Sanae Takayichi's easy-going monetary policies", putting into question future Bank of Japan rate hikes. The yen recovered some of its losses Thursday, climbing 0.3% to reach 155.88 dollars, thanks in part to comments made by a hawkish BOJ Board member Hajime Takata who called for gradual rate increases. In an interview with the Yomiuri, BOJ Governor Kazuo ueda left the door open to a rate hike in near future. In a recent note, OCBC strategists said that "dovish-leaning BOJ nominations have reignited fears the central bank could lag in policy normalisation. This would weaken the JPY while steepening JGB's curve." Our USD/JPY forecast for the end of 2026 remains at 149. The currency is unlikely transition from a currency used as a funding to if it becomes an investment currency, unless?the BOJ changes its baseline outlook to two rate increases this year. The dollar is on the decline, as the euro rose 0.1% to $1.1821 and sterling remained at $1.3561. Prices on the oil market rose, as fears about a possible military conflict between Iran and the U.S. continued to rise. Both sides will be holding the latest round In Geneva, on Thursday, the two countries sought to resolve their long-standing nuclear dispute in order to avoid new U.S. attacks on Iran after a massive military buildup. Brent crude futures rose by 0.28% to $71.05 per barrel, while U.S. oil rose by 0.24% at $65.58. Gold spot was up 0.5% to $5,197.08 per ounce on the back of some safe-haven buying.
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Asia LPG and naphtha prices jump after Saudi terminal failure
According to trade sources and LSEG, the prices of liquefied petrol gas and?naphtha jumped on Thursday in Asia after Saudi Aramco halted its exports from a major terminal, disrupting'supplies' to the region. Saudi Aramco announced on Wednesday that it had halted LPG deliveries this week at its eastern terminal in Juaymah. It is one of the largest exporters of butane and propane. A part of its delivery system was damaged by structural damage to an area of its delivery network on February 23. Fuel from the terminal near Aramco’s Ras Tanura refinery and the Jafurah Gas Field is used to heat the building during the winter. It can also be used as a cooking gas or a petrochemical source for steam crackers. Aramco announced that it has halted the delivery of propane and butane to Juaymah for the next couple of weeks, as it assesses the extent and duration of any impact. SURGE OF 5% IN THE LPG FAR-EAST INDEX In Asia, the disruption caused a spike in the prices of butane, propane and naphtha. LSEG data shows that March butane and propane?futures, both on the Far East Index, gained over 5% since Wednesday. They now stand at $598 a metric ton each and $612 a metric ton. The March Japan naphtha exchange rates?on a cost and freight basis?were up almost 2%, at $619 a ton. The prompt monthly spreads were?more than $2 per ton?backwardation compared to?Wednesday’s Asian close. Market structure backwardation occurs when prices are higher in the immediate months than they will be in future ones. This indicates a shortage of supplies. Three TANKERS to Load LPG for India Shipping data from Kpler and LSEG revealed that two tankers, Symi, and Bw Elm have arrived at the terminal, while Jag Viraat will be loading LPG cargoes on behalf of Indian Oil Corp. and Hindustan Petroleum Corp. IOC didn't immediately respond to an inquiry for comment. The traders say that at least seven cargoes scheduled to load in March will be cancelled. India, Juaymah’s largest LPG buyer, is expected to be the worst affected. The size of each cargo ranges between 44,000 and?46,000 tonnes. Kpler data showed that Juaymah exported LPG on a monthly basis in the range of 450,000 tonnes between 2025 and 2024. The data shows that at least 60% (or more) of India's LPG exports last year were bound for India while China received only 15%. CHINA IS FEELING LESS HEAT NOW Chinese traders expect less impact during a season of low demand. A Chinese LPG importer executive said that many units of propane dehydrogenation will not resume operations until after the Lantern Festival on March 3. Two other sources stated that China's PDH unit are operating slightly below 60% of their capacity on average, slightly lower than normal due to turnarounds. Three trade sources have confirmed that loading of the first Jafurah condensate shipments is not affected for now. One source added that the problem is only affecting one pipeline and one berth, specifically for the Juaymah NGL Facility. Reporting by Trixie YAP, Florence Tan, and Chen Aizhu from Singapore, Shariq KHan in New York, and Maha El Dhan in Dubai. Editing by Clarence Fernandez.
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Russell: China is changing its crude oil purchases in response to the price rally.
China's role in setting the floor and ceiling prices for crude oil is one of the less discussed dynamics of the global market. The world's biggest crude?importer is known to buy excess oil and build up inventories when the refiners or government consider prices to be low. They also pull back imports when they feel that prices are rising too quickly. Analysts and journalists covering the crude oil market are not aware of the changes in imports because they occur with a delay of several months. There are early signs, however, that China will shift its imports in favor of crudes with more competitive prices, and also reduce imports starting April. The reason for this is that crude oil prices are rising sharply, amid tensions between Iran and the United States. There's also concern about a possible Iranian response to a U.S. strike against?oil tankers and installations in the crucial Persian Gulf region. Brent crude futures have risen 23% from the December 16 low of $58.72, the lowest in seven months. Brent's rise has led to crudes priced relative to Brent becoming more expensive, including those produced by West African producers Nigeria or Angola. This has led to producers offering larger discounts to clear their cargoes. Traders report that West African grades have been sold at up to $5 per barrel discount over the Dated Brent benchmark. This is up from $3 earlier this month. China is often viewed as the buyer of last recourse for West African crudes. The high discounts offered show that there's limited appetite?for extra cargoes. It is also more expensive to import crude oil from West Africa into China due to higher freight rates, particularly since Middle East producers are lowering their prices. Saudi Arabia, world's biggest oil exporter has cut its official selling prices (OSPs) for its main Arab Light grades for Asian refiners by a further month for cargoes loaded in March. According to data, the March OSP for Arab Light Crude was equal to the Oman/Dubai Average, down from $0.30 per barrel in February. This is the lowest premium since December 2020. China has responded to the Saudi oil crisis by purchasing more crude and other grades of similar grade from Gulf producers. AFRICA DIP Kpler data also shows that China is reducing its cargoes coming from Africa. Arrivals in February and march were below the levels of the fourth quarter last year. Kpler data predicts that China's imports of Africa will be 1,04 million barrels a day in March, and 978, 000 bpd by February. This is down from 1,25 million barrels a day in the fourth quarter 2025. Due to similar API gravity and sulphur content, there is a high degree of fungibility among grades like Arab Light, Nigeria's Bonny Light or Angola Cabinda. China is buying cargoes of Urals crude at a steep discount after India, the other major Russian buyer, agreed to buy less sanctioned oil as part of a deal with the United States. China's imports from Europe of Russian crude, where Urals loads are located,?are expected to reach 824,000 barrels per day (bpd) in February. This is up from 741,000 barrels per day in January and 444,000 in December. China appears to be buying Russian crude at a discount and cutting back on Brent prices. It may also be reducing the volume of its imports due to the recent price increase, as it did during the 12-day war between Israel and Iran in June, last year, which was supported by the United States. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of the columnist, an author for.
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MORNING BID EUROPE-Nvidia delivers, but good no longer cuts it
Rae Wee gives us a look at what the European and global markets will be like today. With so many expectations?for Nvidia?, even a solid beating of its earnings didn't satisfy investors who were chasing higher returns on artificial intelligence. After hours, shares of the most valuable company in the world traded flat. This was a reversal of a brief bounce that followed its January-quarter results. These showed sales exceeding analyst expectations. They also forecast revenue for the current quarter above market projections. The markets are used to the chipmaker's solid revenue beatings for 14 consecutive quarters. Wednesday's result was hardly a shock. It has at least put the worry about AI-driven disruptions and their costs to the side. Stocks in Asia rose on Thursday in a relief rally, while U.S. futures and European futures were lower. Investors have been a bit unsure about the AI market in the last few weeks. They are worried about the returns on their investment, and the potential for it to disrupt entire industries. But they also don't want to "sit back" and do nothing. Analysts also say that the AI boom will no longer be the tide which lifts all the boats. Geopolitics continue to?cast a cloud on markets in other places. The third round of talks between the U.S., Iran and their negotiators this year will take place in Geneva on Thursday. The U.S. is also building up its largest military presence in the Middle East to prepare for possible attacks on the Islamic Republic. In his State of the Union address earlier this week Donald Trump briefly outlined his case for an attack on Iran, saying that his preference would be to "solve the issue through diplomacy", but that he wouldn't allow Tehran to possess a nuclear bomb. Iran claims that its nuclear activities are for the production of civilian energy. The U.S. rhetoric kept oil prices high on Thursday as investors worried about a possible supply disruption in case of conflict. The yen, which is a currency, was once again in the spotlight after the Japanese government appointed two academics who were seen by the markets as strong advocates of economic stimulus, to the Bank of Japan board. Market participants were surprised by the move, which they interpreted as reflecting Prime Minister Sanae Takayichi's monetary policy preferences. This put into doubt future interest rate increases from central banks. The currency gained support after the Yomiuri reported that BOJ Governor Kazuo Ueda had left the door open to a rate hike in the near future, and board member Hajime Takata called for a gradual tightening of policy. The following are key developments that may influence the markets on Thursday. * U.S.-Iran talks Weekly U.S. jobless claims
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Oil prices edge up as tensions between the US and Iran keep supply risks front-and-center
The oil prices rose on Thursday, as investors hoped that U.S.-Iran negotiations could prevent a'military conflict which risks disruption of supply.' However, gains were limited by the buildup in U.S. ?crude inventories. Brent futures traded at $71.04 a barrel at 0415 GMT, an increase of 19 cents or 0.3%. WTI futures increased 15 cents or 0.2% to $65.57 a barrel. Brent rose Monday to its highest level since July 31, as Washington sent military forces to the Middle East in an effort to pressure Iran into negotiating a stop to its nuclear programme and ballistic missile program. Toshitaka Takawa, analyst at Fujitomi Securities said that investors are focusing on the possibility of a military conflict in the U.S. and Iran negotiations. WTI could rise briefly to $70 per barrel if the targets are limited and the conflict is short-lived. It would then fall to $60-$65,?he said. A prolonged conflict could disrupt the supply of crude oil from Iran, the Organization of Petroleum Exporting Countries' third-largest producer, as well as other Middle East exporters. U.S. envoy Steve Witkoff and Jared Kushner will meet with an Iranian delegation on Thursday for a third session of talks in Geneva. The outcome of the U.S. and Iran nuclear talks will be crucial to the direction oil prices take. "If the talks fail, there is still an upside risk, but the market might wait to react until the extent of any possible U.S. actions against Iran are clearer." In his State of the Union address on Tuesday, U.S. president Donald Trump briefly outlined?his argument for a potential attack on Iran. He said he wouldn't allow a nation he called the world's largest sponsor of terrorism to possess a nuclear weapon. Abbas Araqchi, the Iranian Foreign Minister, said on Tuesday a deal between Iran and the United States was "within our reach" - but only if diplomacy is given priority. Saudi Arabia has increased its oil exports and production as part of an emergency plan to ensure that Middle East supplies are not disrupted by a U.S. attack on Iran, according to two sources who were familiar with the plan. OPEC+ - which includes members of 'the Organization of 'the Petroleum Exporting countries and their allies, including Russia - is likely to increase its oil production by 137,000 barrels a day in April, according to three sources familiar with OPEC+ thought. This comes as the group prepares itself for the peak?summer?demand and a possible price boost due the tensions between the U.S. Energy Information Administration data released on Wednesday showed that U.S. crude oil inventories increased by 16 million barrels, the highest in three years. This is far more than the 1.5-million barrel rise predicted in a survey. (Reporting from Yuka Obayashi, Tokyo; Emily Chow, Singapore; editing by Christian Schmollinger).
EU Steel Sector Pushes for a Narrow Scope of the "Made in Europe" Act
The European steel industry stated on Thursday that EU provisions that are due to be announced next week, which will prioritize?the use?of locally-made materials, must include steel. 'Local' is understood only as "close EU neighbors such as?"Britain" and Norway. Next Wednesday, the EU executive will propose its "Industrial Accelerator Act", which includes requirements that local products be given priority when using public funds.
The "Made in Europe' provision will cover "key sectors", such as batteries, solar, wind, and hydrogen production, nuclear power, and electric vehicles. The inclusion of low-carbon steel is unclear.
Disagreements about the geographical scope of the plans delayed their presentation.
Norway, Iceland, and Liechtenstein are members of the EU single market.
"I agree that those countries with a system very similar to the EU should be added." "I have no issue with the UK but you can't add all of the FTA countries (Free Trade Agreement)," Axel Eggert said, director general at steel association Eurofer.
He said that the Middle East/North Africa, India, Indonesia, and Vietnam must be excluded.
He continued: "They are the ones who create overcapacity and do not decarbonise as much as we must in the EU." Other industries, including carmakers, have asked for the provisions to be extended to include countries in their supply chains such as Britain and Turkey.
Eggert stated that the latest draft appears to have removed "Made in Europe"?requirements.
He said that many other trading partners were buying local. "India, China and the U.S. are all "buying national", but they do this for all production.?And we're just talking about low-carbon steel. He said that if you wanted to stimulate investment in decarbonisation then you had to include steel as well, referring back to the Act. (Reporting and editing by Alexandra Hudson; Reporting by Philip Blenkinsop)
(source: Reuters)