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After Trump-Xi's meeting, iron ore prices fall on the back of profit-taking
Iron ore futures fell on Thursday as profit-taking impacted the market after the leaders of the two largest economies met. U.S. president Donald Trump announced on Thursday that he and Chinese President Xi Jinping had agreed to reduce tariffs against China in exchange for Beijing crackingdown on the illicit fentanyl market, resuming U.S. soya bean purchases, as well as keeping rare earths imports flowing. After hitting a session high of more than 810.5 Yuan, the most-traded contract for January iron ore on China's Dalian Commodity Exchange closed daytime trading 0.38% higher. As of 0700 GMT the benchmark December iron ore traded on the Singapore Exchange had fallen 0.48% to $106.65 per ton after reaching its highest level since October 14, at $107.6. The recent price rally had already exceeded expectations. However, spot trading was unable to provide the same level of momentum. Therefore, it is not surprising that futures prices have corrected down since hitting their recent peak, said Steven Yu. Yu said that the prices are also under pressure due to expectations of an acceleration in portside inventory. Investors were cautious about signs of seasonal weakness in the steel market, despite cheering macroeconomic growth. China's factory output likely fell for the seventh consecutive month in October as producers tried to export their price wars at home. Some investors took profits because they were worried about a possible price drop, which led to a softening of the price," said an anonymous Zhejiang trader who was not authorized to speak with media. On the back of expectations that supply will be constrained, coking coal and other steelmaking components, such as coke, have gained further momentum, with gains of 1.62% and 0.59 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange have fallen. Rebar fell 0.38%; hot-rolled coils dropped 0.33%; stainless steel declined 0.39%, while wire rod rose 0.42%. $1 = 7.1230 Chinese Yuan (Reporting and editing by Subhranshu Sahu, Rashmia Aich and Lewis Jackson)
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Covestro cuts full-year guidance and says ADNOC is on track to close the deal in Q4
Covestro, a German chemicals company, lowered its core profit forecast for the full year on Thursday because of soft demand. However, it said that its financial stability will be assured as ADNOC's $17 billion acquisition by Abu Dhabi is expected to close during the fourth quarter. Covestro's earnings before interest taxes, depreciation, and amortization are now expected to range between 800 and 700 million euros. This is a drop from the two previous cuts it made this year. The previous estimate was that the EBITDA would range between 700 million and 1.1 billion euro. The company's products, including foam chemicals used in mattress, car seats, and building insulation, were a major oversupply on the U.S. market, especially from Asia-Pacific, causing a significant drop in price. Covestro said Thursday that an incident at a Dormagen external substation, Germany, would result in negative financial impact of low-three-digit millions for the entire year. The company's consensus stated that its third-quarter EBITDA dropped 15.7%, to 242 millions euros. This was better than the average analyst estimate of 183million euros. The company stated that the closing of ADNOC's takeover is expected to occur in the fourth quarter. The EU regulator was worried that ADNOC may have used state subsidies in order to purchase the chemicals company, which is its largest acquisition and one of the biggest foreign takeovers by a Gulf State of an EU-based company.
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Climate change threatens to erode the cradle of civilisation in Iraq
Iraqi officials have raised the alarm about the danger of losing thousands of years of history as Iraq's ancient cities in the south face erosion due to climate change. The harsh, dry weather increases the salinity of the soil, damaging historical monuments such as Ur, where Abraham the Biblical patriarch was born, and Babylon, which once held the capital of an empire. Sand dunes have caused the deterioration on the northern side the Ziggurat, an ancient stepped pyramid temple dedicated to Nanna, the moon goddess, more than 4,000-years ago. The combination of wind and dunes causes the northern parts of the structure to be eroded, said Abdullah Nasrallah an archaeologist in the Dhi Qar Province - which is where the city Ur is located. ANCIENT MUD BRICKS ARE NOW SALT-FREE The shrine is a UNESCO World Heritage Site and remains one of best preserved examples of ancient Mesopotamian architectural styles. It offers an insight into the religious practices and sacred ceremonies of the Sumerian Empire, where one the first civilisations in the world flourished. Nasrallah stated that the erosion of the second layer has begun. "While the third (of the Ziggurat's) layer had already degraded due to climate change and weathering, the erosion now affects the second layer," he said. Salt deposits are eroding the mud bricks of Ur's Royal Cemetery, which was discovered in the 1920s by British archaeologist Leonard Woolley. The Royal Cemetery is now at danger of collapse. Dr. Kazem hassoun, an antiquities inspector in Dhi Qar, said that the salt deposits were caused by global warming and climate changes. This led to the destruction important parts of this cemetery. Hassoun stated that "ultimately, the deposits would cause the total collapse of the mud-bricks which make up this graveyard." Iraq has been battling high temperatures and droughts, which have led to an increase in salinity in the south of the country where the Tigris River and Euphrates River converge on their way to the Gulf. The archaeological sites of ancient Babylon, further up the Euphrates are also in danger. The sites need urgent attention and restoration but lack of funds is a problem, said Dr. Montaser Al-Hasnawi of the Iraqi Ministry of Culture and Tourism. The country has endured decades worth of wars that have threatened its historic structures. From the 1980s conflict with Iran, to the Gulf War in the early 1990s and the 2003 U.S. invasion, followed by insurgent violence, and the rise and collapse of the Islamic State. Climate change is the latest threat to its future, threatening not only its agricultural industry, but also its historic footprint. High salinity levels in Babylon are threatening the ancient clay-based structures on which Sumerian drawings can still be seen. Materials were directly sourced from land that was lower in salinity. Hasnawi explained that this could have made the structures less susceptible to climate change. However, improper restoration practices during previous decades had made them more vulnerable. The need for a new restoration is made more urgent by the rising salinity. The salinity of surface and underground water is increasing. Hasnawi stated that this will result in the destruction of many underground cities.
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Trump announces that the US will reduce fentanyl's tariff to 10% following talks with China’s Xi
After his meeting with Chinese President Xi Jinping, Donald Trump announced on Thursday that the United States would reduce its tariffs on Chinese products from 20% to 10%. Trump said that Xi would work "very hard" to stop the flow of fentanyl and that the tariffs were reduced "because they really are taking strong actions." Trump described his meeting with Xi Jinping as "an incredible meeting" and said that many decisions were taken. Trump announced that China would purchase "tremendous quantities" of U.S. soya beans and other farm products, "starting immediately". A one-year agreement regarding rare earths was also reached and will be extended at the end of a year. He said, "They won't impose rare earth controls." Trump said earlier that he expected to lower U.S. Tariffs on Chinese Goods in exchange for Beijing’s commitment to curtail the flow of precursor chemical to make fentanyl. Fentanyl is a deadly synthetic drug and the leading cause of American Overdose Deaths. Beijing wants to lift the 20% tariffs on fentanyl and other products. Trump spoke to reporters aboard Air Force One as it left South Korea for the final leg of his Asia tour. Trevor Hunnicutt, Jack Kim and Joyce Lee reported from Seoul. Clarence Fernandez edited the story.
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Saudi Arabia's third-quarter economy grew by 5%, according to government estimates
Saudi Arabia's third-quarter economy grew by 5% from the previous year, according to government estimates released Thursday. The growth is largely driven by oil, as production increases. Preliminary data from the Statistics Authority showed that oil activities grew by 8.2% on an annual basis, followed closely by non-oil activities, which grew 4.5%, and government activity, which grew 1.8%. The third quarter's seasonally adjusted real GDP grew by 1.4% compared to the second quarter due to a 3.1% increase in oil activity. The growth in non-oil activities was 0.6% quarterly. Saudi Arabia's economy is expected to grow this year as a result of the gradual unwinding by the OPEC+ nations, of which Saudi Arabia is a major member. After several years of reducing production to support the oil markets, the group that includes Russia began to ease these curbs in April. The Ministry of Finance has predicted a real GDP growth rate of 4.4% by 2025. This is up from the 2% growth last year. This growth will be driven by non-oil related activities. This month, the International Monetary Fund increased its forecast of real GDP growth for 2025 from 2% to 4% due to an increase in oil production. The world's largest oil exporter, Saudi Arabia, is undergoing a massive transformation led by Crown Prince Mohammed bin Salman. Vision 2030 is designed to increase revenue and growth from non-oil sources and reduce dependence on hydrocarbons. The Economy Minister said Wednesday that the country is on a long-term restructuring journey to economic diversification.
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Japan's Sojitz imports heavy rare Earths from Australia
Japan's Sojitz said that it has started importing rare earths heavy from Australia's Lynas. This is the first import of this kind produced using Australian ore, which was separated and refined in Malaysia. This move is intended to ensure that Japan can obtain key materials used in electric vehicles and solar panel production from other sources than China. Japan, the United States and their allies are working to create supply chains outside China as Beijing tightens its export controls on key minerals. In a statement issued on Wednesday, Sojitz stated that "we will continue to promote diversification of rare earth supply chains and contribute to a steady supply of critical materials." However, he declined to reveal import volumes or price. This week, U.S. president Donald Trump and Japan prime minister Sanae Takaichi have signed a framework to ensure the supply of rare earths and critical minerals through mining and processing. Since 2011, Sojitz has invested in and financed Lynas, which signed an exclusive deal with Sojitz for the Japanese market for light rare Earths. It secured supplies in 2023 of the heavy rare Earths dysprosium (used for neodymium) and terbium (used for neodymium magnetics). (Reporting and editing by Clarence Fernandez; Yuka Obayashi)
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BHP and POSCO Sign Deal to Advance Hydrogen-Based Low Emission Iron
BHP, world's largest miner, and South Korean Steelmaker POSCO announced on Thursday they had signed an agreement for the advancement of the production "near-zero emissions" iron. This is a major step towards manufacturing green steel. Iron will be produced in a demonstration facility at POSCO’s steelworks, located on the port side of South Korea’s city of Pohang. The process is based on hydrogen and uses an electric smelting oven. Construction will begin shortly, with the commissioning scheduled for 2028. The plant is expected to be able to produce 300,000 tons of molten metal per year. According to the International Energy Agency, a ton of steel produced in a blast-furnace, which is responsible for most of the world's production of steel, emits around 2.3 tonnes of carbon dioxide. The sector also accounts for about 8% of global emission. When crude steel is produced without scrap, and emits 0.4 tons or less of carbon per ton of crude steel, it is classified as "near-zero emissions". Australia's iron ores are typically too low-grade to produce green steel without a further processing step. This could make them less competitive with a future of lower carbon emissions than higher grade ore produced in Brazil.
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WGC reports that India's gold demand surged above $10 billion during the third quarter of this year.
The World Gold Council reported on Thursday that rising gold prices have prompted Indian investors to purchase bars and coins. Record purchases of $10 billion were made in the third quarter, bringing their share of the total consumption up to a record high. Sachin Jain is the CEO of WGC India. He said that gold has become a popular asset, as investors are diversifying their portfolios and increasing allocations. He said: "We think investors' interest will grow and continue to grow in the next quarters." The WGC reported that investment demand in the second largest gold consumer in the world jumped by 20% on an annual basis in the September quarter, to 91.6 tons or $60.7 billion in value terms. The overall gold consumption fell by 16%, to 209.4 tonnes, as jewellery demand dropped 31%, to 117.7 tonnes, due to record high prices. Gold prices in India, which reached a record of 132,294 rupies per 10 grams this month, are up 56% since 2025, after a rise of 21% last year. The WGC reported that investment demand represented 40% of the total gold consumption during the first nine months 2025. This is the highest ever recorded. Jain said that physical gold-backed exchange-traded fund are also gaining in popularity amid the rally. The Association of Mutual Funds in India's (AMFI) data showed that gold ETFs attracted record monthly inflows of Rs 83.63 Billion in September. Jain said that the demand for the December quarter will be higher than the September quarter due to the festivals and wedding season. Jain stated that despite the seasonal recovery in gold demand, it could be between 600-700 metric tons by 2025, which would be the lowest level since 2020 and below last year's 828.8 tons. (Reporting and editing by Nivedita Battacharjee; Editing by Rajendra J. Jadhav)
The 'amazing' Trump Xi meeting calms tensions
Ankur Banerjee gives us a look at what the future holds for European and global markets
Investors can only think of a handshake between Donald Trump, Xi Jinping and the Bank of Japan. They also have to consider Jerome Powell of the Federal Reserve's cautious tone.
The markets will welcome the optimism expressed by the U.S. President and his counterpart in China.
Trump claimed to have struck a deal with China that would reduce tariffs in exchange for Beijing continuing U.S. purchases of soybeans, maintaining rare earth exports and crackingdown on illicit fentanyl trade. China has not yet responded.
Trump called his meeting with Xi "amazing", stating that "on a 1-10 scale, the meeting with Xi is 12." The markets didn't really know what to think, and stocks have been choppy.
Markets are waiting for more details on the agreement between two of the world's largest economies. Stocks around the world reached record highs as signs of trade tensions eased. Chinese stocks also held close to a decade-high.
This sets up a busy European schedule, with earnings due from Volkswagen, Puma, and many French banks, as well as inflation and economic data for the region.
The Bank of Japan kept rates unchanged but reiterated its commitment to increase borrowing costs if economic growth is in line with their projections. This has shifted investor attention to the possibility of a rise as early as December.
Powell was the star of the show on Wednesday, when the Fed cut rates in line with expectations. Powell said that a policy split within the U.S. Central Bank and the lack of data from the federal government may prevent another rate cut this year.
The following are key developments that may influence the markets on Thursday.
Economic events: Germany October inflation data; GDP data for the eurozone, Germany and France
(source: Reuters)