Latest News
-
Dalian iron ore falls by a weekly average on China's property demand concerns
Dalian iron ore contracts fell on Friday, posting a loss for the week as a result of weaker property demand and lower outdoor construction activity. The January contract for iron ore most traded on China's Dalian Commodity Exchange closed 1.08% down at 776 Yuan ($108.03). This contract fell 0.96% in the past week. As of 0706 GMT, the benchmark September iron ore price on Singapore Exchange was down 0.04% at $102,05 per ton. The contract has fallen 0.05% this week. China's crude output of steel fell to a low for seven months in July. It was down 4% compared to June, and marked a second consecutive monthly decline. High temperatures and heavy rains restricted outdoor construction. China's new homes prices dropped 0.3% in July compared to the previous month. Demand remains muted, despite local governments offering more incentives for homebuying. In the first seven month of this year, property investment dropped 12% from the previous year. The declines in the number of people living in Tier-one, Tier-two and Tier-three cities are decreasing. In recent months, the central government has continued to call for market stabilisation. This could be a sign of further policy support. Analysts at ANZ said that a recent drop in steel production has helped to improve profitability in the sector. This has pushed margins up and given iron ore prices more room to rise. ANZ reported that Beijing's renewed emphasis on reducing the overcapacity of iron ore could sustain this rally and provide further support for iron ore prices. Coking coal and coke, which are used in the steelmaking process, rose by 0.33% and 0.49 %, respectively. The Shanghai Futures Exchange has seen a decline in most steel benchmarks. Hot-rolled coils gained 0.2%, rebar fell 0.41%, stainless steel dropped 0.54% and wire rod was down 0.61%. ($1 = 7.1833 Chinese yuan). (Reporting and editing by Sonia Cheema, Subhranshu Sahu).
-
South Africa is nearing a decision on steel tariffs amid an import influx
Next week, the South African government will publish the preliminary results of its review on steel tariffs. This is a major step towards protecting the local industry against increased imports. In March, the International Trade Administration Commission initiated a review in response to a directive from the minister. South Africa's Steel Industry faces many challenges. One of them is the influx low-cost imports from China due to its overcapacity. The tariffs imposed by Donald Trump in the United States have disrupted trade this year. In South Africa, a depressed demand as well as energy and logistical challenges have exacerbated the problem. Next week, we'll be publishing a gazette. This gazette will contain preliminary findings from the review, ITAC Chief Commissioner Ayabonga Cwe said on Thursday at an auto parts conference. The review is being conducted as the government engages in discussions with ArcelorMittal South Africa. This company has announced that it intends to close down its long-sealing operations, which are vital for the local construction, mining and automotive industries. The government has a number of complaints, including a flood cheap steel imported from China. Cawe stated that ITAC received 150 responses to the review. Over 600 tariff codes have been reviewed. ITAC must determine if its current steel duties provide adequate protection, if more steel products should be imported under control and a declaration of emergency is needed to trigger wider safeguard measures. Mark Potter edited the report by Nqobile Dudla.
-
Qatar reduces the October term price of al-Shaheen crude oil, according to sources
QatarEnergy lowered its term price for al-Shaheen oil loadings in October. It now stands at $2.52 per barrel, a dollar higher than the Dubai quotations, according to sources on Friday. This was a drop of 81 cents compared to the high of $3.33 per barrel in September for oil loading, which was a five-month-high. The price reduction followed a drop in spot premiums on Middle East crude this month. This was due to rising supply, as the Organization of the Petroleum Exporting Countries (OPEC+) and its allies continued their policy of increasing output to regain market share. Qatar sold al-Shaheen to CNOOC OQ and Idemitsu Kosan for a premium of $2.30-2.55 a barrel over Dubai prices, according to the sources. Sources claim that Qatar also awarded PTT a Qatar Marine crude oil cargo with a premium of $1.70 per barrel and OQ a Qatar Land crude cargo for a premium $2.05 per barrel. Companies rarely comment on business deals. Each cargo is a 500,000 barrels.
-
Over 100 people are missing after floods and landslides kill 60 in Indian Kashmir
Authorities and local media reported on Friday that at least 60 people were dead and over 100 missing, one day after heavy rains caused floods and land slides in Indian Kashmir. This is the second disaster of this kind to hit the Himalayas within a few days. On Thursday, mudslides and floodwaters swept through the village of Chasoti (Indian Kashmir), washing away pilgrims who gathered to eat lunch before hiking up the hill to a popular pilgrimage location. "We heard an enormous sound, and then a flash flooding and slush followed. Some people fell into the Chenab River while others shouted. "Some were buried beneath the debris," said Rakesh Singh, a pilgrim injured. On Friday, bags, clothes, and other belongings caked with mud lay scattered among broken electric poles. Rescue workers tried to free people from the debris using ropes, shovels, and makeshift bridges. One rescue worker told ANI news agency that "we were told another 100-150 persons might be buried underneath the debris". Machail Mata is one manifestation of Goddess Durga. The pilgrims trek from Chasoti to the temple, which is where the road to vehicles ends. The incident on Thursday comes just a few days after a mudslide and flood engulfed a whole village in the Himalayan State of Uttarakhand. Nature has tested us. "In the last few weeks, we've had to deal with landslides and cloudbursts, as well as other natural calamities," said Prime Minister Narendra modi at the beginning of his nearly two-hour address on the 79th anniversary of the country’s independence. According to the Indian Meteorological Department a cloudburst is a sudden and intense downpour that produces over 100 mm of rain (4 inches) in one hour. This can cause sudden flooding, landslides and destruction, especially during the monsoon season in mountainous areas. Reporting by FayazBukhari and ShilpaJamkhandikar, Editing by Michael Perry
-
China's independent refiner Changyi gets 2025 crude import quota, sources say
Multiple sources confirmed on Friday that China's Changyi Petrochemical (recently sold by the state-owned Sinochem Group) has been granted a crude oil import quota until 2025. The company used this quota to purchase Brazilian oil. Three sources confirmed that the refiner in Shandong was allocated 2.5 million metric tonnes (18 million barrels), on a prorated scale, for the rest of the year. The sources claim that Changyi has a right to 5,000,000 tons for a whole year. Changyi declined comment. Hongrun declined to comment on a phone conversation, and the company didn't immediately respond to e-mail requests. The Commerce Ministry, which sets quotas for exports, did not respond to phone calls nor faxed requests for comments. After the acquisition in May, Changyi restarted the 160,000 bpd crude plant in Weifang, but the unit has been running very slowly as the refiner has not been able to import crude oil without the government's quota. As they struggle to make a profit, independent refiners in Shandong process mostly crude oil from Iran and Russia. These grades are cheaper than the conventional grades of Middle East, Africa, and Brazil. Sources said that Changyi purchased 1 million barrels for September loading of Brazilian crude Tupi with the new quota. Changyi will not use the new permits to their full potential, say traders. Non-sanctioned products are more expensive. Sources said that the new quota was still tied to the former owner of Changyi, Sinochem. This prevents the Shandong refiners from buying sanctioned oil. Sinochem has for a long time avoided buying barrels sanctioned. Sinochem has not responded to an email requesting comment. Changyi was one of three Sinochem plants in Shandong declared bankrupt last year by local courts due to debts and taxes. (Reporting from Trixie Yap in Singapore, Chen Aizhu in Beijing and Siyi Lu in Singapore. Editing by Tom Hogue.)
-
Delegates say there was no consensus reached at the Geneva talks on a binding plastic treaty
According to delegates, no consensus was reached in Geneva during the talks on the first legally-binding treaty for combating plastic pollution. "South Africa regrets that this session was unable to reach a legally binding agreement and the positions are still far apart", its delegate said at a meeting on Friday morning. After a failed meeting of the Intergovernmental Negotiating Committee in South Korea at the end of last year, more than 1,000 delegates gathered in Geneva to begin the sixth round. The United Nations Environment Assembly established the INC in 2022. Its mandate was to create a global, legally-binding treaty on plastic pollution. On Thursday, the countries were scrambling to build a bridge. Deep divisions The extent of future curbs. Diplomats and climate advocates had warned earlier this month that efforts by the EU and small island states to cap virgin plastic production - fuelled by petroleum, coal and gas - are threatened by opposition from petrochemical-producing countries and the U.S. under President Donald Trump. The main issues are capping production, managing chemicals and plastics of concern, as well as financing to assist developing countries in implementing the treaty. (Reporting and writing by Emma Farge; editing by Jacqueline Wong, Christian Schmollinger and Miranda Murray)
-
Asia markets recover after hot U.S. price data
After an unexpected rise in U.S. producer prices, traders in Asia assessed the options available to the central banks around the world. Inflation concerns were renewed after the sudden spike in U.S. producer price data. MSCI's broadest Asia-Pacific index outside Japan fell 0.2% following a report from the Bureau of Labor Statistics on Thursday, which showed that the Producer Price Index rose 0.9% on a monthly basis in July. This was well above the expectations of economists. The report caused traders to temper their expectations about how quickly the Federal Reserve could cut rates during its meeting in September without further inflaming inflation. Mike Houlahan is the director of Electus Financial Ltd. in Auckland. According to CME Group's FedWatch, the market currently prices in a 92.1% chance of a rate cut of 25 basis points at their meeting next month. This compares with a 100% probability of a rate cut on Thursday. The probability of a 50-basis point cut has dropped to zero, from an earlier estimate of 5.7%. U.S. Stock Futures rose 0.2% in Asian Trading and are on track to gain a further 0.2% after a volatile trading session on Wall Street. The yield of the 10-year Treasury Bond in the United States was down by 2 basis points to 4.2732%. The yield on the two-year bond, which is sensitive for traders to expectations about Fed Fund rates, fell to 3.7233%, down from a U.S. closing of 3.739%. The dollar index (which tracks the greenback in relation to a basket currency of other major trading partners) retraced gains following the PPI release. It last traded down 0.2%, at 98.026. After a selloff on Thursday, the Nikkei index rebounded by 1.6% and reached a near-record high. This was after a six day winning streak. The Japanese GDP data published on Friday showed that the economy grew by 1.0% annually in the April-June period, exceeding analyst expectations. The dollar fell 0.5% to 147.09 yen against the yen. Hong Kong stocks were down by 1.1%, but Australian shares rose 0.7%. The CSI 300 rose by 0.8% following the release of lower-than-expected Chinese data Economic data The July figures, which included retail sales and industrial output, stoked speculation about new stimulus. India and South Korea have closed their markets for the public holidays. The cryptocurrency markets have stabilised following a record high of $124480.82 for bitcoin on Thursday. However, the new record was fragile and quickly fell after it missed its next major milestone. The digital currency gained 0.8% and recovered some ground. Ether also gained 1.7%. "Bitcoin’s failure to overcome the $125,000 opposition signals another consolidation phase," Tony Sycamore said, a market researcher at IG Sydney. Brent crude fell 0.3% to $66.63 a barrel on the commodities market ahead of an Alaska meeting between U.S. president Donald Trump and Russian President Vladimir Putin. Marc Velan is the head of investments for Lucerne Asset Management, a Singapore-based asset management firm. He said that "the first meeting does not seem to be a market-moving event – it's really more about setting up a subsequent meeting, which may prove more important." If a ceasefire occurs, the euro will rise and the dollar will fall. The gold price was lower than usual as markets digested inflation-adjusted rates of interest, which usually move in the opposite directions to bullion prices. Spot gold traded up 0.3% to $3,343.94 an ounce. Early European trades saw the pan-regional futures up 0.5%. German DAX Futures also gained 0.5%. FTSE Futures also gained 0.5%.
-
The weekly iron ore price is set to fall due to China's falling property demand
The price of iron ore futures fell on Friday. They are on course to lose money for the week as China's property market weakened. As of Friday, 0328 GMT, the most traded January iron ore contract at China's Dalian Commodity Exchange was trading 1.27% lower. It was trading at 774.5 Yuan ($107.83), per metric ton. This contract has fallen 1.34% this week. On the Singapore Exchange, September benchmark iron ore was $101.95 per ton lower. The contract has fallen 0.2% this week. China's crude output of steel fell to a low for seven months in July. This is a 4% drop from June, and marks a second consecutive monthly decline. The drop reflects efforts to reduce overcapacity while heavy rains and high temperatures restricted outdoor construction. China's new homes prices dropped 0.3% in July compared to the previous month, despite local governments offering more incentives for homebuying. Property investment fell 12% from a previous year in the first 7 months of this year. The declines in the number of people living in Tier-one, Tier-two and Tier-three cities are decreasing. In recent months, the central government has continued to call for the stabilisation of the market. This could be a sign that further policy support is on the way. Analysts at ANZ said that a recent drop in steel production has helped to improve profitability in the steel industry, pushing the margins of steel mills up and allowing iron ore prices to rise. ANZ stated that Beijing's renewed emphasis on reducing the overcapacity may see this rally continue, providing additional support for iron ore. Coking coal and coke, which are used to make steel, also fell on the DCE. They were down by 0.45% and 0.03% respectively. All steel benchmarks at the Shanghai Futures Exchange have lost ground. Rebar fell 0.81%, while hot-rolled coils dropped 0.35%. Wire rods also declined 0.7%, and stainless steel fell 0.69%. ($1 = 7,1824 Chinese yuan). (Reporting and editing by Sonia Cheema; Lucas Liew)
Who's afraid of an inflated PPI?

Gregor Stuart Hunter gives us a look at what the European and global stock markets will be like today. Did you think the U.S. market would be stopped by a PPI, no matter how big?
S&P futures held on to their 0.2% gain in Asian trading despite the rise in wholesale prices. Nasdaq's futures fell for the third day in a row. The yield on a 10-year Treasury bond in the United States was down by 2 basis points to 4.2732%.
According to CME Group's FedWatch, the market has given in on the hope of a 50-basis point rate cut by the Federal Reserve. The CME Group's FedWatch tool shows that traders still expect a 92.1% chance of a 25-basis point rate cut during the September meeting. This is compared to a 100% probability yesterday.
Data from Asia's two largest economies revealed that Japan's economy was booming last quarter, keeping shelves stocked in advance of Donald Trump's deadline for tariffs, while China showed renewed signs of slack.
Hong Kong shares fell by 1.2% following the release of disappointing Chinese economic data, including retail sales and production. The large-cap CSI 300 rose 0.5% on speculation that the data could justify additional stimulus. India and South Korea have closed their markets for public holidays.
The Nikkei recovered 1.2% on Friday after ending a six-day streak of gains on Thursday. It was the biggest single-day decline since April 11. Japanese GDP data showed that the economy expanded by an annualised 1,0% in the quarter April-June, exceeding analyst expectations and sending more signals to Bank of Japan which will meet next on September 19. The dollar fell 0.3% to 147.64 yen after ending a six-day winning streak on Thursday.
Brent crude fell 0.1% to $66.79 a barrel on the commodities market, just a few cents away from its two-month low. This is ahead of Friday's meeting between U.S. president Donald Trump and Russian President Vladimir Putin in Alaska.
Marc Velan is the head of investments for Lucerne Asset Management, based in Singapore. He said that "the first meeting does not seem to be a market-moving event – it's really more about setting up a subsequent meeting, which may prove more important." If a ceasefire occurs, the euro will rise and the dollar will fall.
The following are key developments that may influence the markets on Friday.
Eurozone reserve assets: July data
UK debt auctions reopen 1-month, 3-month, and 6-month government bond auctions
(source: Reuters)