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Iron ore posted a weekly loss due to a slowdown in Chinese steel demand and property weakness
The price of iron ore futures fell on Friday, and the weekly loss was due to persistent property weakness in China along with a slowdown in demand for steelmaking ingredients. The September contract for iron ore on China's Dalian Commodity Exchange ended the daytime trading 1.24% lower at 718 yuan (US$99.73) per metric ton. The contract fell by 1.51% in the last week. As of 0707 GMT the benchmark June iron ore traded on the Singapore Exchange had fallen 0.76% to $98.25 per ton, a loss of 1.81% for this week. A poll shows that the property market in China is likely to continue to be weak this year, with home prices expected to fall by nearly 5%. Prices are also set to stagnate in 2026. Mysteel, a consultancy, said that "the inventories of finished products held by Chinese traders...decreased by 398.500 tonnes in one week" during the week between May 16-22. According to Mysteel, the pace of stock decline has slowed due to a combination of hot and rainy weather in China. Everbright Futures, a broker, stated in a report that on the demand side three new blast-furnaces were reopened and six others were overhauled. Everbright said that the hot metal production, which is typically used to gauge demand for iron ore, fell by 11,700 tonnes month-on-month in May to 2.436 millions tons. Analysts at ANZ say that "supply growth has disappeared as producers remain cautious of the weak demand and are increasing use of scrap steel." This should limit the downward movement of iron ore prices. Coking coal and coke, which are used to make steel, also fell, by a combined 4% and 1.81%. The benchmarks for steel on the Shanghai Futures Exchange have lost ground. The rebar fell by 0.42%. Hot-rolled coils dropped by 0.75%. Wire rods declined 0.15%. Stainless steels fell 0.04%. $1 = 7.1991 Chinese Yuan (Reporting and editing by Mrigank Dahniwala, Eileen Soreng).
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Australian shares finish slightly higher after miners limit bank's gains
Australian shares closed slightly higher on the Friday as investors remained cautious due to concerns about domestic growth and global uncertainty. The S&P/ASX 200 closed 0.2% higher at 8,360.9. The benchmark was mostly unchanged for the week. Caution prevailed after Republican-controlled U.S. House voted by a slim margin to pass U.S. President Donald Trump's proposed tax cut bill that could add $3.8 trillion to America's debt. The domestic economy's outlook was also clouded Thursday by a Purchasing Manager's Index reading that was the lowest in three months. The rate-sensitive financials increased by 0.5%, with the "Big Four" banks of the country ending between 0.1% to 0.9%. The Index has gained 0.4% this week, boosted by the Reserve Bank of Australia’s decision to reduce rates by 25 basis-points. Markets are betting that there will be more easing in the future due to potential global trade tensions impacting the local economy. The probability of a rate cut in July has now been priced at 60%, and a total ease of 65 basis points is expected by the end year. The real estate stocks added 0.8%. The sub-index is up over 1% this week. Michael McCarthy, Moomoo Australia's chief executive officer, says that the cautious approach of large funds after the RBA decision caused some volatility, as short-term investors moved quickly in. However, today's gains reflect a growing confidence in rate-sensitive industries offering defensive income streams. While uranium miner Paladin Energy, Boss Energy, and Deep Yellow all rose by 5.8%, 4.2%, and 1.2%, respectively, following reports that Trump planned to sign executive order supporting the nuclear industry. The benchmark S&P/NZX50 index in New Zealand ended 0.5% lower. It ended 1.5% lower after a three-week streak of gains. A poll indicated that the Reserve Bank of New Zealand will lower its cash rate on May 28 by 25 basis points. Sherin Sunny reports from Bengaluru.
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ASIA GOLD - High prices dampen Indian demand for gold, but China premiums remain firm
The physical gold demand in India this week was subdued, as a rise in global prices, a weaker rupee and retail purchases were limited. Premiums in the top consumer China remained stable. This week, Indian dealers offered a discount Last week, the discount was up to $34, but this week it's up to $49 per ounce. Last week, prices were falling and buyers began to buy. Now that the prices have rebounded, buyers are stepping back from the market again", a jeweller in New Delhi said. On Friday, domestic gold prices traded at around 95,900 rupies per 10 grams after reaching a low of 90 890 rupies last week. The rupee dropped to 86.10 per dollar on Thursday. This was its lowest level for more than a week. Jewelers do not want to build inventory at these prices because retail demand is low. A Mumbai-based dealer of bullion with a private banking firm said that they were getting old jewellery for the new. As of Friday morning, 0526 GMT, spot gold was trading at $3,320.37 and was on track for its largest weekly gain in over a month. Prices reached $3,120.14, their lowest since April 10. Dealers in China, the world's largest gold consumer, charged premiums between $16 and $30 per ounce above the global benchmark spot rate. This compares to premiums ranging from $9 to $50 last week. "Chinese Investors seem to have not been spooked" by the gold price reversal, which shows a high degree of conviction. This was stated by Ross Norman an independent analyst. Peter Fung of Wing Fung Precious Metals, the head of trading, predicted that physical demand for gold will remain high in China over the medium and long term. In Hong Kong, gold Dealers in Singapore sold it at a premium of $2. Gold sold at a premium up to $2.50 over the benchmark global price. In Japan, bullion The price was $1 more than the flat rate. (Reporting and editing by Eileen Soreng in Mumbai, Rajendra Jadhav from Bengaluru)
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French and Benelux stocks: Factors to watch
Here are some company news and stories that could impact the markets in France and Benelux or even individual stocks. ARCELORMITTAL Bloomberg News, citing an individual familiar with the deal, reported that Aditya Mittal is the CEO of the steelmaker and will invest $1 billion into a group buyout of the Boston Celtics. EURONEXT It announced on Thursday that the stock exchange operator had placed convertible bonds until 2032, totaling 425 million euro ($481.14million), at a fixed coupon of 1.5% annually. The group of real estate investors announced Thursday that it had completed an bond buyback totaling 265 million euro. SODEXO The French caterer announced on Thursday that the purchase price for some of their outstanding notes due in 2026 will be $975.9. Satellite operator Impulse Space and SES signed a multilaunch agreement to help SES satellites reach their orbital positions faster. The first mission will be launched in 2027 according to the two groups. Pan-European market data: European Equities speed guide................... FTSE Eurotop 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurotop 300 sectors..................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt items......... CAC-40................. Paris items............ World Indices..................................... survey of world bourse outlook......... European Asset Allocation........................ News at a glance: Top News............. Equities.............. Main oil report........... Main currency report..... ($1 = 0.8833 euros)
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Trump presses EU to reduce tariffs or face additional duties, reports FT
Financial Times, Friday, reported that U.S. President Donald Trump’s trade negotiators were pushing the EU for unilateral tariff reductions of U.S. products, saying the bloc would not advance in negotiations without concessions to avoid additional "reciprocal", 20% duties. The newspaper cited unnamed sources to report that U.S. trade representative Jamieson Greer will be preparing to inform European Trade Commissioner Maros Sefcovic, on Friday, that the recent "explanatory notes" provided by Brussels in connection with the talks fall short of U.S. expectation. The FT also stated that although the European Union had been pressing for a framework text to be agreed upon by both sides, the two sides are still too far apart. The report could not be verified immediately. The European Commission and Office of the United States Trade Representative didn't immediately respond to an inquiry for comment. In March, the U.S. imposed tariffs of 25% on EU cars and steel and aluminum. They then imposed tariffs of 20% on other EU products in April. The U.S. then reduced the tariffs by half until July 8 and set a 90-day period for negotiations to reach a comprehensive tariff agreement. The EU, which is made up of 27 member states, suspended its plans to impose retaliatory duties on certain U.S. products and proposed zero duty on all industrial goods for both sides. (Reporting and editing by Jacqueline Wong, Sonali Paul and Mrinmay dey in Bengaluru)
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Two Wildcat Wells on Equinor’s North Sea Drilling Agenda
The Norwegian Offshore Directorate (NOD) has granted Equinor a drilling permit for two wildcat exploration wells in the North Sea.The permit is for wellbore 15/5-8 S and 15/5-8 A, in production license 1140.The license is operated by Equinor with 60% working interest, with partner Aker BP holding the remaining 40%.The drilling operation will be conducted using Odfjell Drilling’s Deepsea Atlantic semi-submersible drilling rig.The rig is sixth generation deepwater and harsh environment unit, which can operate at water depths of up to 3,000 meters.The dual derrick, dynamic-positioned rig incorporates enhanced GVA 7500 designs. Its maximum drilling capacity is 10,670 meters
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London copper prices rise as the dollar falls
The copper price in London rose on Friday. Supported by a weaker dollar, the prices are poised to rise for a week, but gains will be limited because of uncertainty surrounding U.S. Tariffs. As of 0334 GMT, the benchmark copper price on London Metal Exchange (LME), was up by 0.2%, at $9,516 per metric ton. This week, it has risen by 0.7%. The U.S. Dollar was weak on Friday, and it is expected to record its first weekly decline in five weeks versus the Euro and the Yen. This makes commodities priced in greenbacks more attractive for buyers who use other currencies. Investors have been forced to seek safe havens because of the weakness of the dollar. The U.S. has agreed to reduce tariffs on a tit-for -tat basis and implement a 90 day pause in actions. However, it is unclear what will happen after this temporary truce. Soni Kumari, ANZ Commodity Strategy Director, said that there are still many uncertainties about what will happen following the 90-day truce. Market will consolidate around the current range of $9,400 to $9,000 per metric tonne. Once we see a slowdown in copper imports to the U.S., prices will drop a little. Other London metals included aluminium, which was up by 0.2%, at $2,462, zinc, up by 0.2%, lead, up 0.5%, and nickel, up 0.01%, at $15,495. Tin rose 0.3% to $22,475. The Shanghai Futures Exchange's (SHFE) most-traded contract for copper was down by 0.1% to 77,830 Yuan ($10806.6) a tonne. SHFE aluminium fell by 0.1%, to 20,170 Yuan per ton. Zinc rose 0.1%, to 22,455 Yuan. Lead was up 0.3%, at 16,830 Yuan. Nickel was 0.7% lower, to 122660 Yuan. Tin was down 0.6%, to 264230 Yuan. ($1 = 7,2021 yuan). (Reporting and editing by Mrigank Dahniwala, Sonia Cheema).
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Dollar strength and slowing Chinese steel production are causing a decline in iron ore prices
The price of iron ore futures eased on Friday, and the prices were expected to decline modestly for the week due to a stronger dollar and a slowdown in demand for steelmaking materials from China, which is regarded as he biggest consumer. As of 0301 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange fell by 0.28% to $725 yuan (US$100.67) per metric ton. This week, the contract has fallen by 0.55%. The benchmark June ore price on the Singapore Exchange fell 0.2% to $98.8 per tonne, and has lost 1.26% this week. Mysteel, a consultancy, said that "the inventories of finished products held by Chinese traders...decreased by 398.500 tonnes in one week" during the week between May 16-22. According to Mysteel, the pace of stock decline has slowed due to a combination of rains and heat in China. Everbright Futures, a broker, stated in a report that on the demand side three new blast-furnaces were reopened and six others were refurbished. Everbright said that the hot metal production, which is typically used to gauge demand for iron ore, fell by 11,700 tonnes month-on-month in May to 2.436 millions tons. Analysts at ANZ say that "supply growth has disappeared as producers remain cautious of the weak demand and are increasing use of scrap steel." This should limit the downward movement of iron ore prices. The stronger dollar also pushed up prices. After three days of losses the dollar gained strength on Thursday, making assets denominated in dollars less affordable for holders of other currencies. Coking coal and coke, which are both steelmaking ingredients, were down by 2.87% and 1.31 %, respectively. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell by 0.1%, while hot-rolled coil, wire rod, and wire rod all declined around 0.2%. Stainless steel rose 0.27%. ($1 = 7,2016 Chinese Yuan) (Reporting and editing by Eileen Soreng; Michele Pek)
Official: US panel split over Nippon Steel bid but sees path forward
The White House said that a national security panel had divided opinions on its recommendation to Donald Trump regarding Nippon Steel’s bid for U.S. Steel. However, most members of the panel believe any security concerns posed by this deal can be addressed.
According to an executive order Trump signed last month, the Committee on Foreign Investment in the U.S. on Tuesday submitted a report to Trump regarding the national security implications of the proposed merger.
The document was submitted by Nippon Steel after it increased its investment pledge in U.S. Steel from $14 billion to $14 trillion in a desperate bid to get approval.
The White House official stated in a press release that "we've received the reports and the President will examine the recommendations of each agencies to determine if further action is needed on this issue." The CFIUS agencies did not agree on their recommendations, but the majority believed that any risks could be mitigated through mitigation, the person said, declining to give his name because the matter wasn't public.
Nippon Steel refused to comment. U.S. Steel didn't immediately respond to an inquiry for comment.
The recommendation is in line with the executive order that was signed by Trump last week, and which instructed CFIUS to determine whether the measures proposed by companies would mitigate the national security threats previously identified by CFIUS.
In the April directive, it was also requested that a statement be made describing each agency's position as a CFIUS member as well as its reasons.
Trump has 15 days from now to decide on the fate of this transaction. However, the timeline may slip.
In January, after a CFIUS review of the previous deal, Joe Biden, then President of the United States blocked it on grounds related to national security.
Companies sued each other, claiming that they had not received a fair evaluation process. The Biden White House rejected this view.
This week, it was reported that Nippon Steel had said if the merger were approved, they would invest up to $14 billion in U.S. Steel operations. That includes $4 billion for a new mill. (Reporting and editing by Leslie Adler, David Gregorio, Alexandra Alper)
(source: Reuters)