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Coal India's profit for the second quarter missed expectations due to a tepid market
Coal India reported on Wednesday a 30% drop in profit for the second quarter, a decline that was greater than expected due to a weak demand and low volumes. State-owned miner's net profit consolidated fell to $495.36 million in the third quarter ending September 30. According to LSEG data, analysts expected the company to report a profit in the range of 61.96 bn rupees. After the results, the shares of the company fell by over 2%. Coal India has been reported to have cut purchases and withdrawn more coal from India's power stations, despite their record-high inventories. According to data from the company, the world's second largest coal producer, who produces mainly non-coking coal for power plants and industries, saw a decline in production. Analysts noted that Coal India continued to lag behind its peers within the mining industry, due to a declining volume of offtake and a bleak increase in sales. This led to the company posting a profit drop year-on-year in both the second and third quarters. Revenue from operations dropped 3.2% to 301.87 Billion Rupees.
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Global oil demand won't peak until 2032, Wood Mackenzie report says
Wood Mackenzie, a consultancy, said that the peak in global oil demand would not occur until 2032. This is two years later than previously thought. The report, released on Wednesday, blamed continued growth in the use and production of hydrocarbons in transport, petrochemicals, and other applications. Wood Mackenzie's Energy Transition Outlook states that the 2050 goal of net zero is no longer achievable due to the increasing dependence on fossil fuels as a result of artificial intelligence, geopolitical tensions and increased power demands. The report is released ahead of the COP30 meeting, which will take place in Brazil next month. At this meeting, countries will be expected to update their national climate commitments as well as assess progress made on renewable energy targets. By the Numbers The report stated that the demand for liquid hydrocarbons will peak at 108 millions barrels of oil per day by 2032, with the natural gas market remaining strong well into the 2020s. The report stated that China's oil demand was 16 million bpd by 2025. However, rising adoption of electric vehicles could cause the demand to fall by 35% by 2030. India, Southeast Asia, and Africa continue to be the main drivers of oil consumption growth. Wood Mackenzie's analysis shows that to limit global warming to 2 degrees Celsius, $4.3 trillion annually in investment would be required between 2025-2060. This is a 30% increase from current levels. The energy sector investment must therefore grow from 2,5% of the global GDP to 3.35% in the next decade. KEY QUOTES The Wood Mackenzie Report stated that "Fossil Fuels are no long uncontested. They are being squeezed to narrower roles but their decline has been more gradual than anticipated." Why it's important The energy transition aims to achieve the Paris Agreement goal of limiting global temperature increases to 1.5 C (2,7 F) over preindustrial levels by replacing fossil fuels with clean renewable power. The slower pace of energy transition and stronger-than-expected crude demand are making this shift harder. (Reporting and editing by Alex Lawler, Conor Humphries, and Seher Dareen from London)
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Naturgy maintains its full-year forecast as gas prices continue to rise
The Spanish utility Naturgy announced on Wednesday that it is on track to achieve its full-year guidance, as it gains from its gas trading and supplies from the United States, despite higher gas and electricity prices across Europe. In the first nine-month period of this year, net profit increased by 5.6% to reach 1.67 billion euro ($1.95 billion). The company is expecting to generate a net profit of more than 2 billion euro this year, after only 1.9 billion euros in 2024. Naturgy reaffirmed that it would aim to achieve a full-year EBITDA of over 5.3 billion euro, which is the same as last year, despite EBITDA being 1.8% lower than in the first nine-months. In a press release, it said that gas and electricity prices were still higher than they were a year earlier. This was against the backdrop of geopolitical tensions as well as macroeconomic uncertainty. It said that "these factors contributed to the decoupling of gas and oil prices indexes", with oil prices still below the average for the same period in last year. Naturgy's combined-cycle power plants in Spain have "substantially increased" their production in order to assist the system operator with voltage control and to respond to contingencies after the April 28th earthquake. Blackout The Iberian Peninsula was left in darkness. The company is expecting to end 2025 with net debts of approximately 13 billion euros. This represents a ratio of debt to EBITDA of less than 2,5 times. The board of directors approved a dividend per share of 0.6 euro to be paid on November 5. This is in addition to the same compensation already paid to shareholders back in July. Naturgy’s strategic plan, launched in February, envisages a minimum annual remuneration for shareholders of 1.7 euro, provided the company maintains its BBB rating.
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Investors await Fed decision, Powell's speech as gold gains more than 1 percent
Gold prices rose more than 1% in Wednesday's session as investors found it attractive after the metal fell to its lowest level in three weeks during the previous session. The Federal Reserve's rate-cut decision and Jerome Powell’s speech are at the forefront. As of 0748 GMT spot gold rose 1% to $3,991.59 an ounce after falling to its lowest level since October 6, on Tuesday. U.S. Gold Futures for December Delivery gained 0.6%, to $4,005.60 an ounce. Peter Fertig, Quantitative Commodity Research's analyst, said that bargain-hunting might be a good way to support gold because its price has dropped by more than 10%. This makes gold attractive because the gold story remains valid. Fertig continued, "There may also be central bank currency managers who saw a great opportunity to purchase a little more gold when the price dropped." On Wednesday, U.S. president Donald Trump started the final leg in his Asia tour by arriving in South Korea. He was optimistic that he could advance an unresolved trade deal with President Lee Jae Myung as well as reach a truce on a trade dispute with Chinese President Xi Jinping. Trump and Xi will meet in South Korea Thursday. The progress in U.S. China trade talks has continued to sap the demand for safe-haven assets like gold. This pullback extended as tensions eased. The recent falls may offer central banks an opportunity to increase purchases," ANZ stated in a report. Investors are looking for any comments from Powell that will be forward-looking. Gold that does not yield is a good investment in low interest rate environments and times of economic uncertainty. The gold price has risen by 52% in the past year, with a peak of $4381.21 reached on October 20. This was boosted by economic and geopolitical uncertainty, bets to lower rates, and central bank purchases. Silver spot rose by 2%, to $47.98 an ounce. Platinum was up 0.6%, at $1,595.46, and palladium was up 1%, to $1,407.25. (Reporting and editing by Sumana Nady, Sherry Phillips, Eileen Soreng, Sonia Cheema, and Ishaan Aroo in Bengaluru)
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Finnish utility Fortum warns about lower power output after missing earnings forecast
The Finnish utility Fortum announced third-quarter earnings on Wednesday that were well below analyst expectations. They cited weaker electricity generation and warned of lower outputs for the rest of 2025. Fortum's earnings declined due to reduced production volumes and lower hydro inflows. The comparable operating profit for July-September fell to 97 millions euros ($113million), down from the 158 million euro figure of a year earlier. This is below the median analyst's estimate of 114 million euros in a survey provided by the company. Markus Rauramo, Chief Executive Officer of the company, said that the decrease in the Generation segment result was primarily due to a lower generation volume but also because hedge prices were lower. Lower hydro inflows, and an extended outage of Sweden's Oskarshamn Nuclear Plant, which the utility co-owns along with Germany's Uniper led to the decline. Fortum has cut its nuclear generation forecasts for this year. It expects a decline of 3.6 Terawatt Hours (TWh), compared with the 2.9 TWh predicted in August. Fortum, despite lower generation volumes, achieved an average power price of 46.11 euros per megawatt hour (MWh) during the third quarter. This is up by two euros compared to last year. The increase was mainly due to higher spot prices and better physical optimisation. Rauramo stated that the industrial demand in Scandinavia, and in particular in Sweden, has slowed down after initially showing signs of improvement. He said that the current political and regulatory uncertainty in the Nordics can influence the timing of major industrial investment decisions.
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Everest tourism is halted in Nepal and Tibet due to heavy snowfall caused by cyclone winds
Authorities said that the Nepali and Chinese sides were closed for tourism due to heavy snowfall brought by cyclone wind. Deep snowdrifts caused a helicopter crash while it was trying to rescue stranded hikers. The region around Mount Everest, visited by thousands of climbers and trekkers, has been covered in snow since Monday. A cyclone that shook India from the Bay of Bengal brought a second round of heavy snowfall to the Himalayas in this month. The authorities in Nepal have stopped trekking on many routes because of heavy snowfall and rain in lower elevations. They have also urged hikers to not venture out on their treks or continue in the Annapurna and Manaslu areas. These are home to some the highest peaks in the world. Civil Aviation Authority of Nepal spokesperson Gyanendra Bhull said that a small private helicopter which was flying to Lobuche, near Everest Base Camp, to rescue stranded hikers crashed when it attempted to land. CAAN footage showed the helicopter lying on its back after it slipped in the snow during landing. The pilot was rescued later. The trekkers' rescue status was not immediately clear. Since Tuesday, Nepal Army spokesperson Raja Ram Basnet reported that hundreds of trekkers have been guided to safety by army and police rescuers in the Manang district. He stated that about 1,500 hikers including 200 foreigners from different countries, their guides, and local trekkers lost their way because hiking trails had been buried by deep snow. Basnet said in Kathmandu that rescuers cleared snow from the trail and moved them to safer places. The weather officials predicted heavy rain and even snow for Thursday and Friday, due to Cyclone Montha's passage through India's Andhra Pradesh state. According to the Tingri County Tourism Department, the ticket sales on the Tibetan side had been suspended as of Tuesday afternoon due to icy roads and poor visibility, which made it impossible for vehicles to travel. Uncertainty remained as to whether tourists were trapped in the Everest region of Tibet. The Tibetan government's press office did not respond immediately to a comment request. The weather forecast shows that temperatures in Tingri will continue to drop below freezing levels this week. A blizzard trapped hundreds of trekkers on the Tibetan side of Everest near the eastern face in early October. The trekkers were all rescued in a massive rescue operation which lasted several days and was conducted under sub-freezing temperatures. More than 50 people have died in Nepal due to floods, landslides and heavy rains. Reporting by Gopal Singh in Kathmandu, and Ryan Woo from Beijing; editing by Stephen Coates
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Iron ore reaches two-week high before Trump-Xi Meeting
The iron ore futures price rose on Wednesday, for the third consecutive session. It reached its highest level in two weeks. This was boosted by optimism about a possible trade agreement between two of the world's largest economies. U.S. president Donald Trump, who is expected to meet with Chinese President Xi Jinping in South Korea on Thursday for a high-level meeting, has said that he anticipates reducing U.S. duties on Chinese products as a result of Beijing's promise to limit exports fentanyl precursor chemicals. Analysts at brokerage Xinhu Futures stated in a report that the general risk sentiment has improved due to a easing of U.S. China trade tension. The January contract for iron ore on China's Dalian Commodity Exchange closed the daytime trading 1.96% higher, at 804.5 Yuan ($112.94) per metric ton. This was its highest level since October 14. The benchmark December Iron Ore at the Singapore Exchange increased 1.42%, to $107.25 per ton. This is the highest price since October 14. Prices of the main steelmaking ingredient were also supported by the expectation that steel mills will restock in a hurry to meet production requirements after the end of production restrictions. A forecast for worsening air pollution forced steelmakers in certain northern regions to start implementing production controls on Monday. This included the largest steelmaking hub, Tangshan. Vale, a Brazilian miner, said that it was very optimistic about long-term demand for iron ore. Coking coal, coke and other steelmaking components, which had previously suffered a decline, have now risen by 3,5% and 1,9% respectively. Analysts at Galaxy Futures stated that the price rally was caused by authorities reiterating their commitment to cracking down on 'involution style' competition. Early in July, China promised to stop excessive price wars. This sparked hopes for a wave supply-side reforms. Coal prices rose that month. The majority of steel benchmarks at the Shanghai Futures Exchange have gained ground. Rebar gained 1%, while hot-rolled coil grew by 1.21%. Wire rod climbed 0.48%, and stainless steel gained 0.31%.
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Outokumpu invests $45 Million in US pilot plant despite missing earnings forecast
Outokumpu, a Finnish stainless steel manufacturer, reported a third-quarter profit that was below the market's expectations on Wednesday. It also announced it would invest $45 million into establishing a pilot plant in America. In the period June-September, the adjusted earnings before taxes, depreciation, and amortization (EBITDA), as measured by the company, fell 60%, to 34 million euros. This was below the 35.7 million forecasted by analysts in a survey provided by the firm. European steelmakers are facing challenges, including a low domestic demand, high energy costs and severe pressures from imports at low prices from Asia, particularly China. The global trade tensions caused by President Donald Trump’s import tariffs are weighing on consumers' moods, slowing economic and industrial activity. In a recent statement, CEO Kati Ter Horst stated that "the underlying demand for stainless is still subdued because of low investment activity and manufacturing as well as weaker consumer confidence." Outokumpu announced that it will open a pilot plant in New Hampshire, the U.S. where it is currently the second largest producer of stainless steel, to produce critical materials without carbon, such as chromium and enriched ferrochrome. Due to the market slowdown in Europe and the seasonal slowdown in North America, the group's deliveries of stainless steel fell by 11% during the third quarter. Outokumpu stated that "Asian exports to Europe remain high in comparison to the low demand on the stainless steel market."
After the reduction in state currency purchases, the Russian rouble is weaker against US dollars
The Russian rouble fell slightly on Friday against the U.S. Dollar and, even more, against the Chinese yuan, as a reaction to the planned reduction of the state's purchases of foreign currencies for the next month.
The Russian Finance Ministry announced earlier that they would reduce their foreign currency sales from 1.4 billion Russian roubles per day to 0.6 billion Russian roubles (roughly $7.36 million) per day between October 7 and November 7.
From October 7, the total daily net forex sales of the state, combining forex operations conducted by both the central bank and the ministry, will be reduced to 9.54 billion Russian roubles, down from the previous 10.34 billion.
The central bank purchases and sells foreign currency to maintain a constant supply on the domestic markets and for the Finance Ministry, which manages the National Wealth Fund denominated by foreign currency.
The central bank was a net seller in foreign currency for the entire year 2025. This supported the rouble which had risen by 45% since the beginning of the year. About 10% of daily yuan trade is conducted by the central bank.
LSEG's data on over-the counter trade shows that the rouble fell by 0.3% at 0900 GMT to 82.30 against the dollar. The rouble fell by 1.2% at the Moscow Stock Exchange to 11.47 versus the Chinese yuan, the most commonly traded currency.
Natalya Milchakova, from Freedom Finance, said that "the reduction in forex sales may contribute to a down correction of the rouble if a trigger is triggered. The likelihood of negative events due to the geopolitical tensions and the unstable macroeconomic data are quite high."
She added, "We believe that the rouble could depreciate even further in October after the release of September inflation data and October inflation expectations." (Reporting and editing by Alex Richardson; Gleb Bryanski)
(source: Reuters)