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Iron ore production in China is recovering.
The iron ore futures price rebounded Tuesday due to a rebound in Chinese concentrate production following weeks of declines. Meanwhile, gains in steel benchmarks were a reflection of improving sentiment, despite weak housing statistics. As of 0244 GMT, the most-traded contract for January iron ore on China's Dalian Commodity Exchange was trading 0.82% higher. It was 803.5 yuan (about $112.88) per metric ton. The benchmark iron ore for September on the Singapore Exchange rose 0.24% to $105.75 per ton. Chinese consulting firm Mysteel said that after weeks of decline, the production of iron ore by Chinese mining companies recovered last week. This is a sign of domestic miners gradually recovering their operations. China's crude output of steel in August fell for a third month in a row after steelmakers at Tangshan, China’s largest steelmaking hub, curtailed operations to prepare for upcoming military parades. Meanwhile, raw steel production in Brazil dropped 4.6% on an annual basis in August. As the property market continues to be weak, China's new homes prices dropped 0.3% month-on-month in August. On Thursday, the China Iron and Steel Association (a state-backed organization) will host a meeting for the heads of the iron ore purchasing at steelmakers. Coking coal and coke both increased by 5.42% and 4.03 % respectively. China's coal production fell by 3% in August compared to the same month last year, as production restrictions continued to be a drag. Mysteel, in a separate report, said that the capacity utilisation rate at coking coal mining was still up by 6.9 percentage points, to an average of 82.7%, and daily raw coal production increased by 9.1% from week-to-week. All steel benchmarks at the Shanghai Futures Exchange gained ground. Rebar increased by 1.41%. Hot-rolled coils grew by 1.34%. Wire rod rose by 0.52%. Stainless steel gained 0.19%. ($1 = 7.1184 Chinese yuan). (Reporting and editing by Rashmi Liew)
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Japan's Nikkei reaches record highs as tech stocks follow Wall Street gains
The Nikkei 225 index in Japan reached a new record on Tuesday as the technology stocks followed Wall Street's strong overnight performance ahead of this week's important policy meeting by the U.S. Federal Reserve. The Nikkei reached a high of 45,055.38, surpassing the important 45,000 mark for the first. By the end of morning trading, the index had risen 0.3% to 44,904.13. Monday was a holiday and the market was closed. The Topix index as a whole rose by 0.41% on Tuesday to 3,173.57. The Nikkei closed 4% higher on the week ending last Friday, reaching a record high for a third week in a row. Hikaru Yasuda is the chief equity strategist of SMBC Nikko Securities. He said that the rally was fueled by a strong corporate outlook which prompted analysts at SMBC Nikko Securities to raise their target prices for some local companies, as well as the expectation of a new premier following the resignation of Shigeru Shiba. He said that the Nikkei was also supported by the firm outlook for the global economy and the expectations of U.S. rate cuts. Yasuda said that the Nikkei could finish the year around the 45,000 mark, but it may briefly fall if expectations of U.S. interest rate cuts decline and Treasury yields increase. He said that "the market expectations are quite strong" for rate cuts in the U.S. Tokyo Electron shares rose by 2.17% and were the largest contributor to Nikkei's gains. Advantest, a maker of chip-testing equipment, recovered from losses early on to gain 0.04%. Sumco, a wafer manufacturer, soared by 9.8% and was the Nikkei's biggest gainer. Disco and Resonac Holdings, both chip-related companies, jumped by 6.9% and 5.4% respectively. Fast Retailing, the owner of the Uniqlo brand, fell by 1.26% and weighed the Nikkei most. On the Tokyo Stock Exchange, the prime market, 68% of the stocks traded advanced, 27% declined, and 3% were flat. (Reporting and editing by Sherry Phillips; Junko Fujita)
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Shanghai copper reaches a five-month high as Sino-US trade talks progress
The price of copper futures in Shanghai reached a five-month high Tuesday. This was largely due to the progress made in trade negotiations between the United States, China and the bets on a rate cut in the United States. U.S. officials and Chinese officials came to an agreement Monday on a framework for the short-video application TikTok. This has sparked hopes of a close trade deal. Analysts at Everbright Futures stated in a report that the progress made by trade talks between the two world's largest economies has boosted market sentiment. The U.S. president Donald Trump will call the Chinese President Xi Jinpingin on Friday. As of 0320 GMT, the most traded copper contract at the Shanghai Futures Exchange had risen by 0.36% to 81,120 Yuan ($11,396.62) per metric ton. The contract reached its highest level since 28 March at 81.530 yuan during the session. Analysts at Everbright Future said that the prices were also boosted by increased bets on a rate reduction this week by the U.S. Federal Reserve. The market is currently focused on whether or not there will be any more positive signals. Analysts at Benchmark Minerals Intelligence wrote in a report that rate cuts increase copper prices by leveraging a weaker currency and expectations of higher demand. Analysts said that the benchmark three-month copper price on London Metal Exchange fell 0.43%, to $10,142.5 per ton, due to profit-taking. On Monday, the contract reached a 15-month high of $10,192.5. Nickel, aluminium, and tin all saw a decline of 0.49%, while zinc, lead, and zinc were relatively unchanged. Aluminium fell by 0.11% on the LME, while nickel dropped 0.2%, and lead declined 0.12%. Zinc also fell 0.15%, but tin rose 0.32%. Click here to see the latest news in metals.
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Sunrise Energy, Australia, secures US funding interest for Scandium Project
Sunrise Energy Metals Ltd, a Canadian company backed by Robert Friedland and specializing in mining in New South Wales, received a letter from the U.S. Export-Import Bank expressing interest in a $67 million debt financing to fund its Syerston Scandium Project. The miner's shares surged up to 38.8%, reaching A$4.65, the highest level since November 2018. This was a far greater increase than the 0.4% gain in the benchmark S&P/ASX 200. The company stated that the financing is equivalent to half of the estimated costs of development for the project. The U.S. government's support for scandium underscores its strategic importance, following China's April restrictions on rare earth metals exports that have disrupted the global supply chain. Alternative sources are becoming increasingly valuable for the Western defence and technology sector. Robert Friedland, Co-Chair of the Committee, said that Australia is a major ally of America and its significant supply of strategic metals makes it an important supplier. The company plans to finish its feasibility study in late October and incorporate the new metal inventories to ore reserves estimates for the project. The company stated that if Sunrise submits a formal loan application, EXIM would conduct due diligence prior to making a final commitment. (Reporting and editing by Anjali Sing in Bengaluru)
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Australian shares rise as commodities soar, traders focus on jobs data
Australian shares rose on Tuesday as investors were cautious in anticipation of important unemployment data which could affect the Reserve Bank of Australia’s rate-cutting policy. As of 0023 GMT, the S&P/ASX 200 was up 0.3% to 8,874.90. The benchmark index closed Monday flat. The markets in Sydney bet that the RBA will adopt a cautious stance on policy easing at its two-day September 29-30 meeting following a string of positive domestic data. Swaps indicate that the odds of a RBA cut in this month are minimal. What was once priced as a near certainty move in November is now priced at 70%. The focus is now on the local jobs data, due on Thursday. These numbers have been strong for months. Australian heavyweight miner's gained 1.4%, hitting a 2-week high. The weaker dollar helped global copper prices reach a 15-month-high on Monday. BHP, Rio Tinto, and Fortescue all gained between 1% to 1.6%. Stocks of gold rose by 1.2% as bullion prices reached a record high. A weaker dollar made the precious metal priced in greenbacks more attractive to holders of other currencies. Evolution Mining shares rose up to 2.4%. The energy sector gained 0.6% as oil prices rose. New Hope Coal, which is a major contributor to the subindex's growth, has risen as high as 8.3%. This is its highest level in seven months despite reporting a 8% decline in annual profits. Financials captained broader gains by a 0.1% drop. According to CME’s FedWatch tool, the odds of a 25-basis point cut by the U.S. Federal Reserve at the conclusion of its two-day meeting are near 100%. New Zealand's S&P/NZX 50 Index traded flat at 13,218.22, with attention on GDP data that are likely to show 0.3% quarter-on-quarter contraction. This will reinforce expectations for two additional rate cuts before early next year.
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The market is weighing the supply risks from Russian refinery attacks.
The oil prices remained stable in early trading on Tuesday, after increasing in the previous session as participants considered a potential disruption in supply from Russia following Ukrainian drone attacks against its refineries. Brent crude futures were up 4 cents at $67.48 per barrel as of 0000 GMT, while U.S. West Texas intermediate crude was up 2 cents at $63.32. Brent crude futures settled at $67.44, up 45 cents. WTI closed 61 cents higher on Monday at $63.30. Ukraine intensified its attacks on Russia's infrastructure to undermine Moscow's military capability as the talks to end their war have stagnated. In a note to clients, Tony Sycamore, IG's market analyst, said that "heightened fears of supply disruptions by Russia, a major producer accounting for more than 10% of the global oil output", is helping oil price. U.S. Treasury secretary Scott Bessent said on Monday that the government will not impose any additional tariffs on Chinese products to encourage China's purchase of Russian oil, unless European countries impose steep duties on China and India. Investors will also be watching the U.S. Federal Reserve meeting on September 16-17, where the bank is expected to reduce interest rates. Lower borrowing costs may boost fuel demand. Sycamore stated that "a weaker U.S. Dollar, driven by the expectation of a Federal Reserve interest rate cut this coming week, has further supported crude oil." The U.S. Dollar Index, which measures the strength of the greenback against six other currencies, has fallen to a near-week's low. Oil becomes cheaper for holders of currencies other than the dollar when the dollar falls. Axios, citing Israeli officials, reported that the Israeli military launched an offensive to occupy Gaza City on Monday, adding to the risk profile for Middle Eastern oil supplies. In a rare breakthrough after months of talks, U.S. officials and Chinese officials announced on Monday that they had reached a framework deal to transfer the short-video application TikTok under U.S. control. The easing of U.S.-China tensions has boosted the risk sentiment, and therefore increased expectations for oil demand. (Reporting and editing by Christopher Cushing in Bengaluru, Anjana Anil)
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Mariners win 10th consecutive game against Royals
Seattle's trip to Kansas City a little over a week earlier had the potential of being important for both teams as they raced to earn wild cards in the American League. This three-game series, which begins on Tuesday, has lost its luster. The Mariners are aiming to win their 10th consecutive game, while the Royals are stuck in an untimely bad stretch. Kansas City's third straight win on Sept. 6 allowed it to remain one game behind Seattle in the AL for the final wild card spot. Since then, however the Mariners have won nine consecutive games, beating Atlanta, St. Louis, and the Los Angeles Angels 66 to 23. The Mariners are now one game ahead in the AL West before the Astros play the Texas Rangers on Monday night at home. Cal Raleigh's 54th season-long home run, hit against the Angels on Sunday, tied Mickey Mantle as the most home runs in a single-season by a switch hitter. Raleigh told ROOT Sports that the job was not done. "We have to win every game and continue our work," Raleigh told ROOT Sports. ... "Put ourselves in a position of strength." The Royals (75-75) have lost 42-27 points during a 2-6 streak, which has put them six games back of the Astros in the race for the final wild card spot. The Royals are now six games behind the Astros for the final wild-card spot. The Royals have been trying to stay afloat under the leadership of catcher Salvador Perez. He hit his 300th home run in his career Saturday at Philadelphia, and ended the weekend with 3 home runs in 2 games. Perez said to FanDuel Sports Network, "You just never know what will happen." "Play hard to the end." Seattle is looking to win its third straight road game after a 7-0 run at home. Raleigh is two home run short of Ken Griffey Jr.'s club record 56 in a single season, set in 1997 and equaled in 1998. Raleigh has four of his six home runs in career against the Royals. He is 0-for-12, with a strikeout and a walk, against the scheduled Royals starter Michael Wacha (11-11, 3.45 ERA). J.P. Crawford is 7-for-17 and has a homer against the veteran right hander, batting.348 in the last 14 games. In a 6-2 win at home on June 30, the Mariners took advantage of one big inning in order to beat Wacha. Wacha did not allow a run until his fourth inning, and then four runs in his final inning. Randy Arozarena sent Wacha into the stratosphere with a solo blast in the fourth inning and a triple-run blast in fifth inning. Wacha will make his first appearance since September 5, when Kansas City beat Minnesota 2-1 at home. He gave up a single run, two walks, and four hits in five 2/3 innings. Logan Gilbert, who has a 3.54 ERA and a 1-1 record with a 2.38 ERA over his last four starts for the Mariners, is their counter. The right-hander struck out eight batters in four and a half innings against the Cardinals on Wednesday, allowing a single home run among five other hits. Seattle won 4-2 in 13 innings. Gilbert only allowed one run, three hits and seven strikeouts in a 3-2 victory over Kansas City. He only lasted four and a half innings because he walked. Perez and Bobby Witt Jr., another Royals' star, are combined at 12-for-28. They have three home runs against Gilbert. Field Level Media
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California's top environmental regulator retires amid Trump battles
California's top environment regulator, who helped lead the state in its effort to ban gasoline-only vehicle sales starting in 2035 will retire on 30 September as the state spars over climate change regulations with President Donald Trump. Lauren Sanchez, the senior advisor to Governor Gavin Newsom for climate, will replace Liane Randolph. She has been a California Air Resources Board chair since 1992. Donald Trump has criticized the state's plans to reduce emissions and California has filed a lawsuit on several fronts against federal efforts that would loosen regulations related to climate change. In June, he approved three resolutions by lawmakers that barred California's diesel engine and electric vehicle mandates. Randolph was responsible for the adoption of a California plan to achieve carbon neutrality in 2045. This included efforts to reduce air pollution, and to promote green vehicles. About a quarter (25%) of California's new vehicle sales are now EVs. Eleven other states, which represent about a third in the U.S. automobile market, have adopted California's landmark proposal to stop selling gasoline-only cars by 2035. Trump has taken a number of steps to discourage EV sales, and to make it easier for gas-powered cars to be sold. This includes ending EV tax credit. In August, Trump's administration sued California in order to prevent the Air Resources Board (ARB) from enforcing strict emission standards for heavy duty trucks which Trump had recently declared null. The Environmental Protection Agency announced that it will also revoke the long-standing conclusion that greenhouse gas emission endangers human health. Randolph stated that this is "polluter fantasy over proven science." While back on Earth the planet continues suffering the consequences of unchecked CO2 pollution. Trump's Transportation Department also canceled grants of nearly $4.2 billion for California's high speed rail project. The project is part the state's emission reduction plan which California has challenged.
EUROPE GAS-Prices touch four-month high up on gas supply worries
LONDON, May 22 - Dutch wholesale gas costs rose on Wednesday to a four-month month high on concerns that Russia could stop gas streams to Austria's OMV.
The benchmark front-month contract at the Dutch TTF hub was up 0.98 euro at 33.90 euros per megawatt hour (MWh). by 11.16 GMT, according to LSEG information.
The contract previously struck an intra-day high of 34.11. euros/MWh, its greatest level given that January.
In the British market, the front-month agreement. was 2.85 pence higher at 82.20 p/therm.
The OMV news has included tinder to currently smouldering. cinders offered where we are with the Ukrainian-Russian war too. as Middle East situation, stated Nick Campbell, director at. consultancy Influenced Energy.
Provided the expiration of the transit deal and capacity for. disruption to LNG provides it feels very much like the market is. taking a risk-off approach, he said.
Austrian oil and gas group OMV said on Wednesday. that gas materials from Russia's Gazprom may be. suspended in connection with a foreign court ruling, without. identifying the case.
Gazprom has actually typically delivered around 40 million cubic. metres (mcm) of gas a day through Ukraine transit routes in 2024. with around half of this gas going to Austria via pipelines. through Ukraine and then Slovakia.
LSEG expert Tomasz Marcin Kowalski said the market was likewise. viewing news that the lead professional, who is building a Texas. liquefied gas (LNG) plant for QatarEnergy and. Exxon Mobil, declared Chapter 11 insolvency defense. on Tuesday, pointing out obstacles at the job.
Market participants may see this as a prospective danger for. delaying the ongoing LNG export job in Texas, as Europe is. much more dependent on LNG supplies, he said.
The increase in costs came versus a background of higher supply. from Norway as upkeep reduced.
On the positive side, a few of the Norwegian assets are. back online which has increased the output considerably compared. to yesterday, experts at Auxilione stated in a daily research study. note.
Flows began increase from Norway's Kollsnes processing. plant with total Norwegian exports to the UK up by 24 million. cubic metres a day (mcm/d) to 60 mcm/d LSEG information showed.
In the European carbon market, the benchmark agreement. was 0.02 euro lower at 76.23 euros per metric load.
(source: Reuters)