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Shanghai copper firms capped gains due to soft demand and supply concerns
Shanghai copper prices rose on Friday as supply disruption worries arose following Freeport's declaration of force majeure. However, gains were limited due to weaker demand and high prices. The Shanghai Futures Exchange's most traded copper contract closed the day with a gain of 0.38%, closing at 82470 yuan per metric ton ($11,558.68), ending the week on a 3.39% increase. The benchmark three-month price of copper at the London Metal Exchange dropped 0.35% as of 0716 GMT to $10,223.5 per ton, but it is expected to finish the week with a gain 2.33%. The LME copper price was impacted by a stronger dollar. The dollar maintained its steep gains on the Friday after better than expected U.S. economic data dampened expectations of further Federal Reserve easing this year. Shanghai copper prices rose to their highest level in a year on Thursday, after Freeport announced that it expects its Indonesian unit’s production will be 35% less than originally estimated by 2026. Analysts at Chinese broker Haitong Futures stated that the high prices are due to restocking in anticipation of China's National Day Holiday from October 1 through October 8. This is expected to have an impact on demand. Further gains in copper prices will depend on downstream acceptance of high prices. A state-run news outlet reported that China was studying ways to regulate its capacity for copper smelting. Chen Xuesen is vice chairman of the China Nonferrous Metals Industry Association. Chen said that copper enterprises should oppose the "involutionary" style of competition which is harmful to both the industry's and country's interests. Other LME metals saw a decline of 0.85% in zinc, 0.62% in lead, 0.45% for nickel, 0.38% for aluminium, and 0.16% on tin. Nickel fell 1.05% for SHFE base metals. Lead remained unchanged. Tin added 0.16%. Zinc, aluminium, and tin showed little change.
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Eni and five oil companies fined for Italian anti-competitiveness
The Italian antitrust regulator fined Eni, a major energy company in Italy, and five other oil firms operating in Italy for unfair competition practices in the sale fuel for trucks. The regulator announced that more than $9 billion in fines had been imposed on Eni, Esso owned by ExxonMobil, Ip, Q8, Saras, and Tamoil. In a press release, the watchdog revealed that the companies had operated as a cartel to fix the price of biofuel components contributing to the cost of fuel between January 2020 to June 2023. It said that the value of this price component increased from 20 euros per cubic metre to 60 euros by 2023. The organization added that it was prompted to launch what they called a "complex inquiry" after receiving an anonymous tip. The authority fined Eni 336 million Euros, Q8 173 Million Euros, Ip 164 Million Euros, Esso 129MillionEuros, Tamoil 91MillionEuros and Saras 44MillionEuros. Eni and IP failed to respond to comments immediately and were unable to reach the other companies. Reporting by Gavin Jones Editing David Goodman
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ASIA GOLD - China gold prices hit a multi-year low, but other Asian hubs are continuing to purchase.
The physical gold demand in China has weakened this week with discounts reaching multi-year lows. Meanwhile, in other major Asian centers, despite high prices, steady purchases have continued in anticipation of future gains. The spot gold price reached a record-high of $3,790.82 Tuesday. It is currently up 1.4% this week. Dealers in China have increased discounts from $31 to $71 per ounce The price range is now $21-$36 higher than last week. The trading volume at the Shanghai Futures Exchange is still significant, despite the increasing discounts on gold. This trend could be due to the desire for quick profits on the CSI300 which may have a slight impact on gold's performance. Hugo Pascal is a precious metals dealer at InProved. China's blue chip CSI300 Index is up nearly 2% this week and has reached its highest level since February 2022. In India, premiums The price of gold, including import and sales taxes, was up to $7 an ounce higher than official domestic prices. This is the highest level since November 2024. Investors are buying up bars and coins. Ashok Jain of Mumbai's Chenaji Narsinghji, a gold wholesaler, said that they are paying premiums over the record prices in hopes that the rally will continue. On Friday, domestic gold prices were around 112,500 rupees for 10 grams after reaching a record of 114179 rupees this week. Mumbai-based dealers with a private banking firm noted that jewellers are increasing imports in anticipation of higher duty rates, which will be expected following a revision of the fortnightly import base price. In October, Indians celebrate Dussehra (Diwali) and Diwali (Diwali), when gold is regarded as auspicious. Hong Kong's premiums varied from $1.50 up to $2. Singapore is $1.50 - $2.50 . The trend of buying gold is expected to continue. This will be especially true if the prices drop, as this could lead to increased purchases, according Brian Lan, managing Director at Singapore's GoldSilver Central. Japan's bullion Traded at a $1 premium. A trader said, "I assume that stable money will support physical gold over the medium term." (Reporting from Anmol Choubey, Bengaluru; and Rajendra Jadhav, Mumbai; editing by Harikrishnan Nair).
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The biggest weekly oil gain in three-months as Russia reduces fuel exports
The oil prices rose on Friday. They are on course to reach their highest level since early June, as Ukraine's attacks against Russia's energy infrastructure led Moscow to restrict fuel imports and to be close to cutting crude production. Brent futures rose 13 cents or 0.2% to $69.55 per barrel at 0454 GMT. U.S. West Texas Intermediate crude futures increased 22 cents or 0.3% to $65.20 per barrel. Both benchmarks are up over 4% in the past week. This is their largest increase since the week ending June 13. The gains were backed by the ongoing Ukrainian drone attacks targeting Russian oil infrastructure and NATO's warning that it was ready to respond if Russia violated its airspace in future. Also, Russia's decision to halt exports of key fuels is a support for these gains," IG analyst Tony Sycamore stated. Alexander Novak, the Russian deputy prime minister, said that the country will introduce a partial export ban until the end the year on diesel and extend the existing export ban on gasoline. Moscow is on the verge of reducing its crude production due to a decline in refinery capacity. There are fuel shortages in several Russian regions. The NATO warning that it would respond to any further violations of airspace in its area has heightened tensions over the Russia-Ukraine conflict and increased the possibility of sanctions against Russia's oil sector, according to Daniel Hynes, analyst at ANZ. This week, both benchmarks hit their highest levels since the beginning of August. The drop in U.S. crude oil inventories was a shock and Ukraine's attacks against Russia's energy infrastructure were also factors. The Bureau of Economic Analysis of the Commerce Department released its latest estimate of Gross Domestic Product (GDP) growth in the United States at a rate of 3.8% annualized, which is an upwardly-revised rate, last quarter. Stronger-than-expected economic data could make the Federal Reserve more cautious about cutting interest rates. Last week, the U.S. Federal Reserve cut interest rates by 25 basis points, its first reduction since December. It had also signalled that more cuts would be coming. Prices were also impacted by the announcement made on Thursday by the Kurdistan Regional Government that oil exports will resume in 48 hours. In a note, ANZ's Hynes stated that "Geopolitical Tensions reversed previous losses after a historic agreement was reached allowing the resumption exports from Iraqi Kurdistan. This could return up 500kb/d on the global market." (Reporting and editing by Edwina Gubbs and Kate Mayberry; Sudarshan Varadhan)
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SBM Offshore Starts Construction of FSO for Trion Oil Field off Mexico
Dutch-based SBM Offshore has cut the first steel for Chalchi floating storage and offloading (FSO) at COSCO Shipyard in China, marking the start of construction of the unit bound for deployment at Trion deepwater oil field, offshore Mexico.The FSO’s name, Chalchi, is inspired by Chalchiuhtlicue, the Aztec water deity, symbolizing the project’s strong connection to Mexico’s rich heritage, SBM Offshore said.This Suezmax-based FSO will feature a Disconnectable Turret Mooring (DTM) system engineered by SBM Offshore and will be moored at the Trion field in 2,300 meters of water.It will be capable of storing up to 950,000 barrels of crude oil over its 27-year design life.To remind, SBM secured a contract with Woodside Energy, the operator of the Trion project, to build the FSO back in 2024, in addition to the transportation and installation job for the FSO and the floating production unit (FPU), secured earlier by SBM.“We are proud to support Mexico’s inaugural deepwater development in collaboration with Woodside, and its partner Pemex, leveraging SBM Offshore’s proven experience and commitment to innovation. Looking ahead, we’re eager to continue driving excellence and delivering results alongside our talented teams,” SBM Offshore said.The Trion project is a joint venture between Woodside Energy (60%, Operator) and PEMEX (40%).Woodside made final investment decision (FID) for Trion project in June 2023.Trion field will be developed through an FPU with an oil production capacity of 100,000 barrels per day.The FPU, to be built by South Korea’s HD Hyundai Heavy Industries, will be connected to the FSO vessel, with the first oil is targeted for 2028.Woodside Hires Subsea 7 for Trion Subsea Installation Services Offshore MexicoWood Secures Trion FPU Topsides JobSouth Korean Shipbuilder to Build Floating Production Platform for Mexican Offshore Project
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Ørsted Picks Port of Tyne to Support Hornsea 3 Offshore Wind Farm
Ørsted has signed a lease agreement for up to 100,000 square meters at the Port of Tyne, one of the UK’s major deep-sea ports, to support the development of its Hornsea 3 offshore wind farm.The site, located at Tyne Clean Energy Park in South Shields, will be fundamental to the construction and completion of the 2.9 GW Hornsea 3 offshore wind farm, which, once complete, is expected to be the world’s single largest offshore wind farm.The Denmark-headquartered company will use the site to marshal secondary steel components for the project before each unit is loaded onto the Wind Orca, a state-of-the-art jack-up vessel owned by Cadeler ahead of setting off to the Hornsea 3 siteLocated 160 kilometers off the Yorkshire coast, Hornsea 3 is an $11.3 billion (£8.5 billion) infrastructure project set to generate enough green energy to power more than three million UK homes, boosting energy security and delivering local and national economic growth through supply chain investment.“Ørsted’s decision to base its marshalling operations at the Port of Tyne marks another significant milestone for the North East. It represents a clear vote of confidence in the infrastructure, skills and capabilities we have developed at the Tyne Clean Energy Park.“This partnership is not only about delivering clean energy – it is about securing international investment, driving economic growth and creating the highly skilled jobs that will sustain our communities for generations, anchored by our best-in-class offshore wind base,” said Matt Beeton, Chief Executive Officer at the Port of Tyne.As well as partnering with the Port of Tyne for marine access to Hornsea 3, Ørsted is working alongside industry-leading partners to deliver the 197 offshore wind turbines needed for the project.Severfield, a U.K. structural steel contractor, and Smulders, a multidisciplinary construction firm located on the River Tyne, will fabricate and supply secondary steel components.“The construction of Hornsea 3 will greatly improve energy security for the UK, as well as bringing investment into the local and national economy. This means home-grown clean power, skilled jobs and economic growth.“Ørsted’s vision is to create a world that runs entirely on green energy and the dedication of skilled workers all over the U.K., including at the Port of Tyne, will help make that happen,” added Jason Ledden, Senior Project Director, Hornsea 3 at Ørsted.
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Iron ore to drop weekly as EU prepares steep tariffs against China steel
The European Commission's plan of imposing steep tariffs on Chinese imports of steel weighed on iron ore futures, which fell on Friday. As of 0310 GMT the most traded January iron ore contract at China's Dalian Commodity Exchange was trading 0.56% lower, at 799.5 Yuan ($112,10) per metric ton. It was expected to end the week with a 0.74% decline. The benchmark September Iron Ore on the Singapore Exchange dropped 0.09% to $100.55 a ton and was expected to end the week with a 0.19% loss. Handelsblatt, a German business newspaper, reports that the European Commission intends to impose tariffs between 25% and 50% on Chinese steel products. This measure is designed to protect domestic producers and limit imports of steel as global overcapacity continues putting pressure on profit margins. Analysts predict that China's steel imports will hit a record this year. This trend is exacerbated due to the weak demand for domestic real estate. A Singaporean trader, who spoke on condition of anonymity because he was not authorized to speak to the media, stated that limiting steel imports is intended to support domestic steel producers as well as ensure the survival of local industry. The trader said that these measures are a reflection of the growing concern as Western economies recognise the importance to maintaining some manufacturing capability in the country for strategic resilience. According to Mysteel, the Chinese consultancy, inventories of five major carbon steel products rose by 0.7% during the week ending September 25. This reversed the declines that had occurred in the two previous weeks. Analysts from ANZ have noted that inventory growth has accelerated in the last few weeks, supporting the steel and raw materials markets. Coking coal and coke, which are used to make steel, also fell on the DCE. They lost 0.98% each and 1.49% respectively. The benchmark steel prices on the Shanghai Futures Exchange have fallen. Rebar dropped 0.73%. Hot-rolled coils fell 0.63%. Wire rod fell 0.43%. Stainless steel declined 0.58%. ($1 = 7,1322 Chinese yuan). (Reporting and editing by Sumana Nady; Reporting by Lucas Liew)
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Shanghai copper catches up to Freeports; prices are high but still limit gains
Shanghai copper prices rose on Friday, with supply disruptions a concern following Freeport's declaration of force majeure. However, gains were limited due to weaker demand and high prices. As of 0212 GMT, the most traded copper contract on Shanghai Futures Exchange rose 0.48%, trading at 82470 yuan (11,559) a metric ton. As of 0212 GMT, the benchmark three-month price for copper at the London Metal Exchange had increased by 0.03%. It was now $10,263 per ton. Shanghai copper prices rose to their highest level in a year on Thursday, after Freeport announced that it expects its Indonesian unit’s production will be 35% less than originally estimated by 2026. Analysts at Chinese broker Haitong Futures stated that the high prices are due to restocking in anticipation of China's National Day Holiday from October 1 through October 8. This is expected to have an impact on demand. Further gains in copper prices will depend on downstream acceptance of high prices. A state-run news outlet reported that China was studying ways to regulate its capacity for copper smelting. Chen Xuesen is vice chairman of the China Nonferrous Metals Industry Association. Chen said that copper enterprises should oppose a "style of involution" competition which is detrimental to both the industry as well as the country. Nickel, lead, and zinc were all down, but aluminium, tin, and zinc remained unchanged. Nickel fell 0.87% for SHFE base metals. Zinc rose 0.3%. Lead dropped 0.18%. Aluminium and Tin were little altered.
Dalian iron ore ends four-week rally after EU tariffs weigh
Dalian iron ore prices fell on Friday, ending a rally of four weeks and ending the week at a lower level. This was due to the European Commission's plan to impose high tariffs on Chinese imports.
The January contract for iron ore on China's Dalian Commodity Exchange traded at 790 Yuan ($110.74), a decrease of 1.74%. Overall, the market fell by 1.12%.
As of 0709 GMT the benchmark September iron ore price on the Singapore Exchange had fallen 0.33%, to $105.25 per ton. It was expected to finish the week with a 0.43% loss.
Handelsblatt, a German business newspaper, reports that the European Commission intends to impose tariffs between 25% and 50% on Chinese steel products.
This measure is designed to protect domestic producers and limit imports of steel as global overcapacity continues putting pressure on profit margins.
Analysts predict that China's steel imports will hit a record this year. This trend is exacerbated due to the weak demand for domestic real estate.
A Singaporean trader, who spoke on condition of anonymity because he was not authorized to speak to the media, stated that the primary goal of restricting imports of steel from China was to support domestic steel producers.
The trader said that these measures are a reflection of the growing concern as Western economies recognise the importance to maintaining a certain level of domestic manufacturing capability for strategic resilience.
According to Mysteel, the Chinese consultancy, inventories of five major carbon steel products rose by 0.7% during the week ending September 25. This reversed declines in the previous two consecutive weeks.
Analysts from ANZ have noted that inventory growth has accelerated in the last few weeks, supporting the steel and raw materials markets.
Coking coal and coke both fell by 2.64% and 2.79 % respectively.
The benchmarks for steel on the Shanghai Futures Exchange have fallen. Rebar dropped 1.58%, while hot-rolled coils fell 1.22%. Wire rods also declined 1.02%. Stainless steels dropped 0.58%. ($1 = 7.1339 Chinese yuan). (Reporting and editing by Sumana Nandy, Ronojoy Mazumdar).
(source: Reuters)