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MMK, a Russian coal mining company, shuts down a loss-making mine in the face of an industry crisis
MMK is one of Russia's four largest steelmakers. It has decided to close a coal mine that has been losing money due to the deteriorating conditions on the market, its coal subsidiary announced Friday. The Russian coal industry is among the worst-affected by the economic slowdown and Western sanctions. Two-thirds have reported?losses for the year 2025. Last year, the government offered some assistance to coal miners in order to keep them afloat. The ?Chertinskaya-Koksovaya mine, located ?in western Siberia's Kemerovo region, produced 1.2 million metric tons of coal in 2025. The company didn't say how many workers were at the mine. The decision to'suspend coal mines is influenced by a variety of external factors including a significant drop in coal concentrate prices, a rise in costs, and a reduction of consumption of coking coal among steelmakers,' MMK Coal stated?in a press release. The report said that production costs at the mine were significantly higher than market prices for many quarters. It added that it would provide employment alternatives for mine workers. (Reporting Anastasia Lyrchikova, Writing by Gleb Brnski, Editing by Andrei Khalip.
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The Gulf disruption has squeezed Indonesia's nickel producers' sulphur supplies
Analysts said that nickel makers in Indonesia, who rely on the Middle East to provide 75% of their sulphur needs, may be forced to reduce production as Gulf shipping has been disrupted more and more by the conflict. The sulphur used in the production of sulphuric acids is vital for the leaching of metals from ore, especially in the nickel and copper refining processes. Some copper producers in Africa may face similar issues. According to the U.S. Geological Survey, around 24 percent of global sulphur was produced in the Middle East last year. This amounted to 83.87 millions metric tons. The disruption of shipping in the Strait of Hormuz as a result of U.S., Israeli and Tehran's retaliatory attacks on Iran is threatening supplies. Peter Harrisson, an analyst with consultancy CRU, says that Indonesia imports about three-quarters of its sulphur. Nickel from the country is mainly used to produce stainless steel. According to two unnamed sources from Chinese refiners in Indonesia who declined to give their names because they were not authorized to speak to the public, the sulphur stocks at high-pressure acid leaching nickel plants are only enough to last one or two months. Marco Martins, Project Blue analyst, said that sulphur costs accounted for half of the operating cost of HPAL plants before the conflict erupted. This was due to a massive rise in prices. He added that without alternatives, plants may be forced to cut production as early as next month. SCRAMBLE TO FIND SUPPLIES The scramble to get supplies will pit nickel refiners from Indonesia against copper mines in Africa and both with fertiliser manufacturers around the world, who are also looking for replacements for Middle Eastern Sulphur. CRU's Harrisson stated that sulphur had already risen to $500 per ton prior to the conflict and has, indicatively, increased another 10-15%. A logistics source in Zambia stated that the current stockpiles in southern Africa of sulphur, which are around 900 000 tons, will only last for a few short weeks. According to Harrisson, the Democratic Republic of the Congo imported between 1.3 and 1.4 millions tons of sulphur last year to produce copper, the majority of which came from the Middle East. Copper smelters can produce sulphuric acids as a byproduct. This means that copper miners who own or live near smelters in Africa will at least be partially protected from shortages. Anthony Mukutuma, the country director of First Quantum Minerals in Zambia, said that the company's copper operations are not affected because it sources acid from its smelters. Martins of Project Blue says that not all miner will have easy access to the smelter produced acid. Many still depend on sulphur. Robert Friedland of Ivanhoe Mines who co-owns a sulphuric plant that produces 1,200?tons a day at their Kamoa-Kakula Copper Project?in Congo with Zijin Mining, stated in a post 'on X' that prices will likely rise even further. Harrisson, of CRU, said that if vessel flows were constrained for longer than two weeks it was inevitable that the consumption would need to be deferred or slowed down.
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Why is the UK at risk of a surge in energy prices fueled by Iran?
Britain is at greater risk from an increase in inflation due to the Middle East conflict than other European countries. This comes just as Britain's rate of price rise was about to slow down. Investors have reduced their bets that the Bank of England will cut interest rates this year. Why have British gas prices risen? Wholesale British gas prices have risen by 70% in the last week, as energy shipments through the Strait of Hormuz were stopped and Qatar - the country that produces a fifth of all liquefied gas produced worldwide - has halted its production. Qatar supplies only 1% of Britain’s gas, but the global price has soared due to this disruption. Gas-fired power stations in Britain provide around 30% of the electricity used in Britain. This compares to 17% in Germany, and only 3% in France. It is also used in heating homes in over 70% of cases. Gas is the main price-determinator, as it is more expensive than electricity from renewable sources. BRITAIN HAS LITTLE GAS STORAGE Gas storage sites in Britain can store around 12 days of gas demand, compared to 90 in Germany and over 100 in France. The UK does not have the same gas storage targets as the European Union. This was set by the EU after the energy crises caused by Russia’s full-scale invasion in Ukraine 2022. About half of England's storage capacity is located at a gas storage facility off the coast in northern England. The site, which belongs to utility Centrica?, was built by the company. The site was closed last year because it became uneconomical to run. Centrica hopes that the government will provide support to make this site viable. When will bills? go up? Ofgem, the UK's power regulator, has capped gas prices on a quarterly base. This means that household energy bills won't go up. Prices will drop?in April, after the government moved some levies into a general taxation. Ofgem will use its "observation period" to set prices for the next three months, starting July 1, which will include the current price surge that runs from February 18 through May 18. Analysts predict a 10% increase in the price cap. The majority of businesses have hedged energy supplies, which protects them for the short-term. How will this affect inflation and growth? Analysts believe that the impact on headline inflation in the Eurozone could be higher than in Britain, where fuel and utilities make up a smaller portion of the inflation basket. Oxford Economics estimated that UK inflation would be 0.4 percentage point higher if the Strait of Hormuz was closed for two months compared to 0.5 percentage points in euro zone. The longer-term effects of an inflation shock may be greater in Britain, where the inflation rate has fallen more slowly after it reached 11.1% in 2022 than in any other country. In January, it was 3%, while the eurozone averaged 1.7%. The British public's long-term expectations of inflation are higher now than they were before the Ukraine crisis began, which raises the risk that the energy price shock will be absorbed into wages and prices in the future if it continues. Analysts believe that economic growth may be lower than expected due to the impact of inflation on households. WHAT POLICY REACTIONS MIGHT COME? It is?too soon to tell how the Bank of England and the government will respond. The need to?act might be reduced if energy prices drop soon. If prices do not fall, policy pressures could mount on the two institutions responsible for Britain's economic. The Conservative government spent 44 billion pounds ($58.6billion) between 2022 and 2023 to'soften' the Ukraine-linked surge in energy prices for businesses and households. The previous Conservative government spent a total of 44 billion pounds ($58.6 billion) in 2022 and 2023?to soften the Ukraine-linked energy price surge for households and?businesses. BoE will likely slow down its rate-cutting spree as it watches to see how long energy prices continue to rise. Investors think that the possibility of a rate cut by a quarter point this year is 50/50. Last week, investors fully priced two rate cuts for 2026. ($1 = 0.7504 pounds)
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Stocks slide as oil price fears, US jobs data rattle markets
U.S. Futures and European Stocks fell?on a Friday, as the U.S. - Iran?war drove up oil prices to the?highest level in two years. This caused traders to reduce their bets for interest rate reductions and worry about the effect on economic growth. The global economy was further affected by the much weaker-than-expected U.S. employment data. This showed that non-farm payrolls fell unexpectedly sharply in Februrary. After the data, U.S. Treasury rates fell and the dollar softened. Futures on the S&P 500 in the United States fell by 0.84% while Nasdaq futures declined by 1.02%. The STOXX 600 index in Europe fell 1%. The MSCI world stock index is expected to fall 2.9%, the largest weekly drop since March 2025. Qatar's Energy Minister told Financial Times that all Gulf producers will shut down their exports in a few weeks, driving oil prices up to $150 per barrel and causing extensive economic damage. The 'warning by Qatar's Energy Minister that a prolonged conflict may bring economies down around the globe has once again rattled financial market, said Susannah Streeter. Chief investment strategist at Wealth Club. The U.S. crude price rose more than 5%, to $86.70 per barrel. This is the highest level since April 2024. Brent crude oil also reached its highest level in almost two years, at $89.50 per barrel. The data released on Friday revealed that non-farm payrolls in the United States?fell 92,000 during February after rising 126,000 over the month before. Economists expected a rise of 59,000. The unemployment rate increased to 4.4% from?4.3% at the end of January. Money market traders now predict around 45 basis point reductions from the U.S. federal reserve this year. This is more than the 35 basis points predicted before the employment data but lower than the 55 basis points a week ago. In Europe that imports energy, traders believe there is a high probability the European Central Bank will raise rates in this year. The 10-year Treasury yields in the United States fell by 2 bps to 4.125% on Friday, but they were expected to increase 16 bps weekly, which would be the biggest move?since April 20,25. The dollar index (which?tracks currency against six peers) dipped after the data, and was the last to rise by 0.1%. The dollar index, which tracks the currency against six peers, dipped slightly after the data and was last up 0.1%. (Reporting and editing by Kate Mayberry; Alex Richardson, Jan Harvey and Kate Mayberry)
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Fed's Waller says current oil prices shock will not have a persistent impact on inflation. BBG TV
The U.S. Federal Reserve's Christopher Waller stated on Friday that while the price of gas may have risen after the U.S. launched airstrikes in Iran, the increase in global oil prices is unlikely to cause a 'persistent rise in inflation, or to warrant a monetary policy change. You'll see an increase in gas prices. "Americans will be shocked when they see the price of gasoline at the pump," Waller said on Bloomberg Television. "If the coil is unwound within a few weeks, or even two months then it won't be a major factor in the future." Oil prices have risen to almost $90 per barrel, compared to $72 just before President Donald Trump launched an air attack on Iran in order to replace its hardline islamist government. Gas prices in the United States have increased by around 10%, from under $3 per gallon to $3.32. Gas prices are expected to be short-lived. This is in contrast to the successive oil disruptions that occurred during the 1970s, which never allowed for prices recover. "This is...more of a one-off,"?Waller stated about the current rise in crude oil prices. Oil prices and other commodities - like food - fluctuate, which is why the Fed looks at "core" inflation, which excludes these volatile items, to try to reach the 2% target. Trump has not given a timeline for the conflict. Shipping through the Strait of Hormuz, which is critical to the flow of oil and gas across the world's oceans, has almost stopped. Some regional officials warn of future price increases depending on how long the conflict continues or the success of Iranian counterattacks. The markets have become more sceptical about further Fed rate cuts. Waller said that the Fed's outlook would be at risk if the oil price shock "became more permanent...then it will start leaking through to other areas of the economy."
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Asia refineries and petchem firms reduce runs as Mideast conflict disrupts feedstock supply
The U.S./Israel war on Iran caused a disruption in crude and feedstock imports from the Middle East, forcing several Asian refineries and companies to declare force majeure and cut back production. Asian steam crackers have declared force majeure on petrochemical deliveries to customers, despite sourcing more than 60% of their feedstock for naphtha from the Middle East. Three operators said they were reducing run rates in order to carry over some of the feedstock they have into next month. This will allow them to keep their plants operating and avoid shutting down even if they don't get enough imports. Two operators reported that it can take up to two weeks for a steam cracker to be restarted. Plants typically keep no more than a month's worth of feedstock in stock. Here are the latest developments in technology: Shell's joint venture in south China with China's CNOOC is planning to close a steam-cracker and inform domestic customers that it will not be able to supply certain products. CNOOC, Shell Petrochemicals Co Ltd (CSPC), plans to close a 1.2-million-metric-ton-per-year-capacity (tpy),?cracker, in Huizhou. This is one of two crackers that have 2.2-million-tpy total capacity, according to the sources. The disruptions in feedstock supply are to blame, they said. Zhejiang Petrochemical Corp, a major Chinese refiner backed by ?Saudi Aramco, shut a 200,000-barrel-per-day unit, bringing forward maintenance in response to the Middle East conflict's impact on crude supply. Two industry sources said that another Chinese?refiner backed Aramco, Fujian Refining &?Petrochemical Co., or FREP shut down its 80,000 bpd unit - the smallest of its kind - for a period not specified. People familiar with the situation said that China also asked refiners not to sign new contracts for fuel exports and to cancel any shipments already made. India's Mangalore Refinery and Petrochemicals has shut a crude unit and some secondary units at its 300,000-barrel-per-day refinery due to oil shortage, sources said. SOUTH KOREAN According to a source familiar with the situation and an internal letter of the company, the South Korean petrochemical firm Yeochun NCC has cut its production and declared force majeure over its supply because it cannot receive naphtha due to the Strait of Hormuz Blockade. SINGAPORE According to three people familiar with the situation, Singapore's petrochemical company PCS declared force majore on its shipments due to the Middle East conflict disrupting maritime transportation and supply chains. Aster Chemicals and Energy, a major Singaporean refiner and petrochemical company, declared force majeure on Friday regarding the?supplies', according to a spokesperson for the company. The force majeure covers ethylene and propylene. Sources said that Aster's steam?cracker, which was restarted in February, ran at 50% capacity on Friday. INDONESIA In a press release reviewed by the, Indonesian petrochemical manufacturer Chandra Asri declared force majeure for all contracts because 'the Middle East conflict disrupted their raw material supply. VIETNAM In a recent statement, Binh Son Refining & Petrochemical Company in Vietnam asked the government to limit crude oil exports to the Dung Quat Refinery until the end of this year's third quarter to ensure national safety. (Reporting and editing by Ruth Chai, Tony Munroe, Diti Pujara).
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Stocks fall as Gulf oil supply concerns rattle markets
European stocks and U.S. Futures fell on Friday, as renewed concerns over oil supplies arose from the U.S.Iran War. This led traders to re-evaluate their interest rate bets and rethink the global impact. Benchmark global and U.S. Oil prices reached their highest level in nearly two years, as U.S. Treasuries dropped for the fifth consecutive day. Global stock markets are heading for their largest weekly decline in a year. Futures on the U.S. S&P500 fell by 0.62%, while Nasdaq's futures declined by 0.75%. The STOXX 600 Index in Europe fell 1.04% during choppy trading. This reversed a rise of nearly 0.5% that had occurred earlier as oil prices seemed to have stabilized. QATAR WARNS ABOUT DRAMATIC IMPACT OF ENERGY MARKETS Qatar's Energy Minister told Financial Times that all Gulf producers will halt exports in a few weeks, pushing oil prices up to $150 per barrel and causing extensive economic damage. The warning by Qatar's Energy Minister that a prolonged war could bring economies down around the globe has once again rattled financial market, said Susannah Streeter. Chief investment strategist at Wealth Club. The U.S. crude prices rose more than 5%, to $86.22 per barrel. This is the highest price since April 2024. Brent crude rose to $89.48 per barrel, its highest level in almost two years. It was on course for a 23% increase in a week, the biggest since the COVID-19 Crisis rocked global economies in 2020. TRADERS?SLASH RATE CUTS BETS Money market traders that?bet interest rates now predict around 30 to 35 basis point (bps) reductions by the U.S. Federal Reserve in this year. This is down from approximately 55 bps one week ago. The 10-year Treasury yields in the United States rose by 3 basis points on Friday, to 4.173%. They are on course for a 21-basis point weekly rise. This is the biggest move since April 2025. However, the biggest impact was felt by Europe which relies more on imports of oil and gas. After erasing previous bets that the European Central Bank would cut interest rates, traders now believe the bank will increase rates by the end of this year. After betting on two rate cuts in February, they now expect one this year. This has caused the British bond markets to crash on Friday. Matt Britzman is senior equity analyst at Hargreaves Lansdown. He said that oil was in a dominant position, and its movements directly affected inflation expectations and?rate forecasts. We'd expect volatility levels to remain high as long as this uncertainty persists. STOCKS Slack as Dollar Gains Investors woke up this week to the possibility that the Middle East conflict could last longer than originally anticipated. They sought the "safety" of cash. The dollar index (which tracks the currency against 6 peers) rose 0.33% Friday, and was on course for a weekly gain of 1.8%, the largest since September 2024. The MSCI world stock index was expected to fall 2.9%, the largest weekly drop since March 2025. MSCI's broadest Asia-Pacific share index outside Japan dropped 0.3%, and was on track to drop 6.6% in the coming week. This is its steepest weekly decline since March 2020. At 8:30 am ET, 1330 GMT, the U.S. government will release potentially market-moving data. This includes non-farm payrolls. ET). Gold spot was unchanged at $5,086 per ounce. However, it was heading for a weekly decline of 3%. Harry Robertson, Jamie Freed and Kate Mayberry edited the story.
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Kyodo reports that Japan could use a portion of its national oil reserves amid the Iran war supply crisis.
Kyodo News Agency reported on Friday that the Japanese government may use a part of its oil reserves to help with the current Iran crisis, which has disrupted global energy supplies. This could be done in conjunction with other countries, or on its own. Around 95% of Japan's oil comes from the Middle East, with 70% of that coming through the Strait of Hormuz. This is now effectively closed because of the Iran war. Tokyo has emergency reserves that are equivalent to 146 days' worth of consumption. It also maintains private stockpiles, and it shares joint stockpiles in oil-producing nations. Japan has some of the world's largest oil reserves, which are equivalent to 254 days worth of imports. Officials in Japan earlier this week stated that they have no plans to release their stockpiles. The Japanese industry ministry did not respond to a request for comment immediately on Friday. Kyodo stated that the government will monitor the situation, and decide whether to release a part of its national reserves located throughout the country to local companies in order to ensure stable supplies. Kyodo's report said that the government would study whether it should do this in coordination with other nations or "on its own" and how much of the existing stockpile to offer to offset any shortages due to the?Strait of Hormuz Blockage. Japan, in coordination with other countries and the International Energy Agency, released some of its oil reserves after Russia invaded Ukraine in 2022.
As the Iran war intensifies, stocks are gaining but will still suffer steep losses each week
European stocks were up while U.S. Futures were little changed on Friday, as oil prices stabilized. Global equities are still on course for their steepest drop weekly in a decade - the Middle East conflict is showing no signs of abating.
The dollar, which had risen by around 1.4% in the past week, is now 'flat'. Treasuries and Asian stocks both steadied, as investors awaited important U.S. employment data due later that day. Matt Britzman is a senior equity analyst with Hargreaves Lansdown. He said that global markets were looking more positive, even if just a little, today. This was largely due to a drop in oil prices following a volatile energy market week.
In early European trading the STOXX 600 index in Europe rose 0.45%, while Germany's DAX grew 0.75%. The FTSE 100 of Britain also increased by 0.48%.
The futures on the U.S. S&P 500 index and Nasdaq index were unchanged. Investors were frightened by the possibility that the U.S. and Israel war against Iran could last longer than originally anticipated. They sought safety in cash.
The MSCI world stock index is on course to fall 2.6%, the largest weekly drop since March 2025.
The traders also began to price in the more hawkish expectations of major central banks. They were frightened by the prospect that inflation would rise if energy prices continue to spike.
The yields on U.S. Treasuries jumped 18 basis points, the highest in almost a year, and the dollar is set to make its biggest weekly gain in sixteen months.
OIL STEADIES as U.S. mulls action
Oil prices stabilized on Friday, as investors weighed up U.S. attempts to limit fuel price increases. This helped ease market concerns over inflation and economic damage.
Brent crude futures are roughly stable at $85.60 a barrel, the highest level since July 2024. They are on course for a weekly increase of 18%, the biggest since Russia's full-scale invasion in Ukraine in February 2022.
U.S. crude remained flat at $81 per barrel, bringing its weekly gain up to over 20%.
A senior White House official revealed that the U.S. Treasury Department was considering actions to curb the rise in energy prices. The U.S. granted a temporary waiver on Thursday to allow India the right to purchase Russian oil.
Investors are increasingly concerned that the spike in oil prices will continue, pushing inflation up around the globe, said Jim Reid of Deutsche Bank, the global head of macro-research.
He said: "The truth is that we continue trading competing headlines with risk appetite swinging in and out over the past 24 hours."
High-Flying Trades TUMBLE
MSCI's broadest Asia-Pacific share index outside Japan rose by 0.2% but was expected to drop?6% this week. This would be its biggest weekly?drop in six years. South Korea's Kospi is on track to have its biggest weekly drop in six years, with a 10.5% decline. This is part of an ongoing trend where previously high-flying investments are now falling as investors look to reduce their exposure to global markets.
The U.S. dollar paused Friday, but it was still on course for a gain of up to 1.4% on a weekly basis. This was boosted by the demand for safe havens and lower expectations about rate easing in the U.S. The euro, still vulnerable to an increase in energy costs, is expected to drop 1.7% this week. Investors now expect the Federal Reserve to ease by 40 basis points this year, down from 56 bps last week. Investors expect the European Central Bank to raise rates before year's end.
At 8:30 am ET, 1330 GMT, the U.S. government will release potentially market-moving data. This includes non-farm payrolls. ET).
The yield on the benchmark 10-year U.S. Treasury bonds was last stable at 4.15%.
Gold spot was unchanged at $5,106 per ounce in other parts of the world, but it was heading for a weekly decline of 3%. Reporting by Harry Robertson, Rae Wee and Jamie Freed in Singapore. Editing by Muralikumar Anantharaman and Kate Mayberry.
(source: Reuters)