Latest News
-
Iron ore prices rise on account of high freight rates and energy prices
Iron ore futures rose Monday, boosted?by high shipping rates. Other steelmaking ingredients, such as coking coal, also gained, as countries booked coal cargoes to?use for their energy needs?due to a spike in oil and gas prices. As of 0324 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange was 0.86% higher. It was trading at 818.5 Yuan ($118.46), a metric tonne. The benchmark April Iron Ore at the Singapore Exchange was down 0.26%, or $107.95 per ton. According to a report from Shanghai Metals Market, iron ore and coke have held up well despite the Middle East conflict. This is due to rising ocean freight costs and transmissions from 'coal-coke energy replacement. The market was cautious as BHP negotiated with the'state-backed' iron ore buyer China Mineral Resources Group. This led to some investors making profits, according to a note from Shanghai Metals Market. Data from Steelhome, a consultancy, showed that the iron ore stock at major Chinese port cities fell by 0.74% on a week-to-week basis as of March 20. This is due to heightened hot metal production. The severe tropical cyclone Narelle brushed Australia's northeast coast and stoked fears that supplies from the iron ore hub would be disrupted. According to Australia's Bureau of Meteorology, Port Hedland is a major iron ore hub and will experience strong winds during this week. South Africa imposed steep import duties on structural steel imports coming from China, after finding evidence of dumped goods. According to the South African Iron & Steel Institute, imports account for about 36% (or 73%) of South Africa's total steel consumption. DCE coking coke and coal?increased 10.33% and 6.91% respectively. Benchmarks for steel on the Shanghai Futures Exchange rose. Hot-rolled coils rose 0.79%; wire rods advanced 1.37%; and stainless steel gained 1.11%.
-
Indian shares drop as oil-driven selling grips Asian markets
Indian equities fell at the market opening on 'Monday. This mirrored a risk-off movement 'across Asia, as an escalating conflict in the Middle East kept oil prices high and heightened concerns about growth and earnings prospects. As of 9:15 am, the Nifty 50 fell 1.26% and was now at 22,824.35, whereas the BSE Sensex?lost only 1.07% on 73732.58. IST. All 16 major sectors declined. Small-caps and mid-caps both fell by 1%. The rapid rise in risk aversion is reflected by the selloff. As 'tensions' in the Middle East intensified, Asian markets dropped 3.1%, undermining any hope of a de-escalation near-term in the U.S./Israeli conflict against Iran. Brent crude's price hovering around $113 per barrel is a particular challenge for India. It is one of the largest oil-importing countries in the world. High?oil costs fuel inflation, increase external imbalances, weaken the rupee and cause foreign capital to flow out. HDFC Bank - India's largest lender and the stock with the most weight on the benchmarks - fell 2.2%, after falling 7.4% in two sessions, following the resignation of Atanu Chakraborty, the part-time chairman, over differences relating to "values" and "ethics."
-
Trump sends ICE to strained US Airports after two dead in New York Jet Crash
Two pilots were killed in an accident on the runway at?New York LaGuardia Airport. President Donald Trump sent armed immigration agents into major airports Monday, as passengers faced long lines and a system that was strained by a lack of personnel. Air Canada Express' crash with a firetruck at LaGuardia resulted in dozens of injuries and hundreds of flight cancellations. This is the latest disruption to airports and airlines that have been thrown off balance by the weeks-long budget dispute in Congress. On Monday, the wreckage of the jet's cockpit was visible from the airport. Bryan Bedford, the head of the Federal Aviation Administration, stated that the two young pilots killed in the accident had only just begun their careers. He said, "It is an absolute tragedy" at a press conference. ICE IS DEPLOYED AT AIRPORTS In recent days, travelers have had to wait for hours at security checkpoints as the absence rates of Transportation Security Administration (TSA) employees have risen. These workers have been working without pay for over a month. If you work, then you should receive your money. Why is that a problem? Edwin Blain was 60 when he arrived four hours earlier to avoid missing his Atlanta Hartsfield-Jackson Airport flight. Witnesses report that U.S. Immigration and Customs Enforcement officers wearing bulletproof vests and guns stood guard at airports in Atlanta and New York on Monday. The agents 'were not wearing masks, which have become a symbol of Trump’s immigration crackdown. They were also a topic of negotiation in Congress. Tom Homan, White House immigration czar, said that agents were deployed in 14 airports including New York, Chicago Atlanta and Houston. The authorities?said that the agents would provide crowd-control, but Trump said that they could also arrest. This raised concerns that the chaotic raids which have taken place in Minneapolis, Chicago and elsewhere, might be repeated at the airports of the United States. "They are now able to arrest illegals when they enter the country." Trump told reporters that this was fertile ground. But that's certainly not the reason they're there. "They're there to help." There was little indication that the standoff between Trump’s Republicans and the opposition Democrats in Washington would be resolved soon. Democrats refuse to fund Homeland Security unless new restrictions are placed on immigration agents who have killed U.S. Citizens and caused public outrage in their crackdown. Trump, despite the fact that the White House is in negotiations, said on Monday that he wouldn't sign off on a compromise until Congress passed a set of voting restrictions, which Democrats rejected. This could add another roadblock to any deal. Fuel costs have also risen since the U.S., Israel and Iran attacked Iran three weeks ago. United Airlines announced on Friday that it will reduce flights during the busy summer travel period, citing high oil prices. LAGUARDIA COLLISION KILLS TWO, SEVERAL HOSPITALIZED The pilot and first officer were killed in New York when an Air Canada Express jet collided while taxiing with a firetruck. Nine other people suffered serious injuries and were taken to hospital. The CRJ-900 aircraft, operated by regional partner Jazz Aviation had carried?72 passengers along with four crew members. Over 50% of LaGuardia’s daily flights were cancelled. Some flights resumed Monday afternoon. However, the FAA announced that the runway where the accident occurred would remain closed until Friday. This will cause delays all week. U.S. aviation is facing a 'chronic shortage' of air traffic control, but U.S. Transport Secretary Sean Duffy says that this problem does not exist at LaGuardia. He said at a press briefing that the airport was "very well-staffed". Kathryn Garcia said that earlier that day, the fire truck had responded to an aircraft that reported a "problem with odor." A controller is heard in the?audio of air traffic control telling a craft that a fire truck was on its way and clearing a truck for it to cross a runway. A few moments later, the controller was heard saying "Stop, Stop, Stop, Truck 1, stop, Truck 1, stop." Federal Aviation Administration reported that a separate 35-minute stop was made at the nearby Newark Liberty International Airport, after air traffic controllers evacuated due to a burning odor from an elevator. Reporting by David Shepardson, Jayla Whitfield Anderson and Rich McKay, in Atlanta; and Allison Lampert, in Montreal. Additional reporting by Bhargav Asharya. Writing by Andy Sullivan. Editing by Scott Malone.
-
Asia shares slide, yields climb as Gulf war rages
As the United States and Iran exchanged escalating threat, and Israel planned "weeks" of more fighting, oil prices went on another roller-coaster. Iran warned on Sunday that it would attack?the water and energy systems of its Gulf neighbors if the?U.S. President Donald Trump has followed through on his threat to strike Iran's power grid within 48 hours. This effectively ends any hope for an early conclusion to the war which is now in its fourth weeks. Trump warned Iran that it had only two days to open up the Strait of Hormuz. The Strait is currently closed for all vessels and there are few prospects of naval protection. Nikkei, the Japanese stock exchange, fell by 3.8%. This brings March's losses to more than 13%. South Korea's stock market fell 5.2% for a total of 12% in one month. The MSCI broadest Asia-Pacific index outside Japan fell 2.5% while the?Chinese blue chip index dropped 1.9%. Brent crude oil prices were once again volatile, with Brent closing at $112.62 per barrel and up 55% on the month. U.S. crude rose 0.8% to $99.98. The U.S. has allowed Iranian and Russian oil from tankers to be sold in the near-term, but the risk of shortages over the longer term is pushing futures prices down. Brent for September, for example, was up $1 to $92.90, suggesting that high prices are here to stay. Shane Oliver is the head of investment strategy for fund manager AMP. He said that oil prices could rise to $150 a barrel in upcoming weeks. "And because of the destruction to energy infrastructure, it will be longer before supply returns to normal." It's worth noting, too, that previous oil shocks were spread out over many months as the full impact of rising oil prices became more apparent - about four months in 1973 and one year in 1979." Analysts from HSBC reported that Singapore jet fuel prices were up 175% in this year, reaching a record high. Asian liquefied gas was also up 130%. Bunker fuel, which is used to transport goods by ship, has blown out and increased the cost. Fertiliser prices are also on the rise. Fatih Birol, the head of the International Energy Agency, warned that the crisis is "very severe", and worse than both oil shocks in the 1970s combined. SEND OFF RATE CUTTINGS In Europe, EUROSTOXX50 futures and DAX Futures both fell 1.2% while FTSE futures dropped 0.8%. S&P 500 Futures on Wall Street fell 0.2% while Nasdaq Futures dropped 0.3%. Energy inflation has caused markets to abandon their hopes of further monetary ease globally, and instead price in rate increases across the majority of developed nations. Futures have erased expectations of?50 basis point easing by the Federal Reserve in this year. There is even a slight chance that the next move will be upward. The hawkish sea change has caused bonds to fall and yields to rise, increasing borrowing costs for governments who are already facing deficits and debt. While the rise in yields has made equity valuations look more stretched, the prospect of higher costs as well as softer consumer demand have clouded corporate profit outlooks. Last week, bond yields increased by double digits around the world due to the energy shock and pressure on fiscal budgets caused by higher defense spending. The yield on ten-year U.S. Treasury bonds has reached a high of 4.415% after a steady climb of 44 basis points. As a result of the increased volatility on the markets, the U.S. Dollar has become a more reliable store of 'liquidity. The U.S. also is a net exporter of energy, giving it a comparative advantage over Europe and most of Asia which are net importers. The euro fell a little to $1.1545 but was still a long way off major supports of $1.1409 or $1.1392. Investors are wary of Japan intervening if the dollar breaks 160.00. Gold fell 2.6% on the commodity market to $4,371 per ounce, as investors bet on rising interest rates worldwide. (Reporting and editing by Lincoln Feast; reporting by Wayne Cole)
-
Grain prices in Chicago are rising as investors assess the impact of US-Iran War
Chicago soybean futures rose on Monday, as investors considered?U.S. Iranian threats of targeting energy facilities could escalate the war, adding further pressure on the global commodities markets. Futures for wheat and corn edged higher. As of 0340 GMT, the most active soybean contract at?the Chicago Board of Trade (CBOT), was up 0.34% to $11.65-1/2 per bushel. CBOT corn rose 0.8% and wheat gained 1.1%. Iran has warned that it will strike water and energy infrastructure in the Gulf region if U.S. president Donald Trump follows through with his threat to attack Iran's?electricity network. U.S. president Donald Trump threatened on Saturday to "obliterate Iran's" power plants if Tehran didn't reopen the Strait of Hormuz in 48 hours. This was a significant step up from the day before when he spoke about "winding down" the war. Oil markets opened choppy early in Asia trading due to the prospect of tit for tat attacks on civilian infrastructure. The price of grains and oilseeds has closely tracked the fluctuations in crude oil during the U.S. Israel war on Iran. This is due to the use of corn and soybean oil in biofuels, and the interest investors have shown in these crops as a hedge against inflation. Claire Adams, agricultural analyst at Bendigo Bank Agribusiness said that wheat futures firmed due to concerns about drought conditions in the US Plains. Vaisala, a weather forecaster, said last week the continued dry weather in the central and southern Plains will maintain low moisture levels for winter wheat during next 30-60 days. The Rosario grains exchange reported on Friday that Argentina is shipping grains out at a rapid pace, as record sunflower exports, and booming corn sales, help absorb one of Argentina's largest harvests in recent years. Local media in Brazil reported that China had eased the rules regarding the presence of weeds on?Brazilian soya bean cargoes. This was based on a document issued by the local government. China is not going to implement a ?zero-tolerancepolicy for weed contamination in shipments, ?according to the report. According to Patria AgroNegocios, Brazilian farmers harvested 66.79 percent of the soybeans expected for 2025/26, a lower percentage than the 73.84 percent seen this time last season, but still close to the five-year median of 66.96%.
-
South Korean stocks fall 5% and the won reaches a 17-year low due to Mideast conflict
South Korean shares fell on Monday on the back of a geopolitical conflict that has intensified in the Middle East. The won hit a 17-year low. U.S. president Donald Trump and Iran have threatened to?escalate? their war by attacking oil facilities in the Gulf. This could lead to a worsening of regional tensions and increase concerns on global markets. The benchmark KOSPI dropped 289.24 points or 5% to 5,491.96 at 0131 GMT. This was despite a trading limit being activated earlier in the day. The won fell 0.3% to 1,509.4 dollars on the?onshore Settlement Platform, reaching its lowest level since February 2009. Huh Jaehwan, analyst at Eugene Investment & Securities said: "Hopes of a quick end to the war are fading." "We do not have to be pessimistic, because Asian countries enjoy a stronger position now than ever before due to their robust tech sectors. The government is also planning to increase its budget. Huh stated that the market has lost patience. Budget Minister nominee Park Hong Keun said Monday that the government will draft a supplementary buget as soon as possible. This comes a day after both the government and ruling party agreed to spend an extra 25 trillion won (16.58 billion dollars) in order to help those affected by the surging oil price. Shin Hyun Song, who was appointed to lead the Bank of Korea on Sunday, stated that he would pursue a "balanced policy" with inflation, financial stability, and growth all taken into consideration. Only 74 of the 926 stocks traded on the stock exchange advanced, while 834 fell. Among the index heavyweights chipmaker Samsung Electronics dropped 4.81%, and SK Hynix fell 6.06%. The index fell by 1.8 trillion won as foreigners led the way, followed by institutional investors. KOSPI, a stock that was on a 'world-beating artificial intelligence-driven rally before the war began, has dropped 12% so far this month. The KOSPI is still up by 30% so far this year. The benchmark 10-year yield in the country jumped 14.4 basis points, to 3.802%. This is the highest level since November 2023.
-
Saudi Aramco reduces oil supply to Asia in April for the second consecutive month
Saudi Aramco has cut 'crude oil supply' to Asian buyers in April for a second month,>>,>>,>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>?two sources?knowing the situation? said on Monday. This is after the U.S./Israeli war against Iran disrupted the trade via the Strait of Hormuz. Sources said that the producer will only supply 'Arab Light crude from the Red Sea port of Yanbu in April to customers on a term basis. This is to limit supplies to Asian refineries and to cap their output. Aramco couldn't be reached immediately for comment outside office hours. Kpler data shows that Saudi Arabia exported 4.355 millions barrels of crude per day so far in March. This is down from the 7.108 million barrels per days in February. In March, the producer will load record amounts of crude via Yanbu to offset the disruption in the Strait of Hormuz. Sinopec, China's largest refiner, is expected to load 24 million barrels of Saudi oil from Yanbu during March. On Thursday, oil loadings at the Yanbu port were briefly interrupted after a drone crashed into Saudi Aramco SAMREF refinery.
-
As the Gulf War escalates, Asia's yields are rising.
As the United States and Iran exchanged escalating threat, and Israel planned "weeks" of more fighting, oil prices went on another roller-coaster. Iran announced on Sunday that it would attack the 'energy' and water systems of its Gulf neighbors if U.S. president Donald Trump carried out his threat to strike Iran’s electricity grid within 48 hours. This ended any hope for an early conclusion to the war which is now in its 4th week. Trump said Iran only had 48 hours before it would have to reopen the Strait of Hormuz. The Strait is currently closed to most ships and has little naval protection. Nikkei, the Japanese stock market index, fell 3.9%. This brings March's losses to more than 13%. South Korea's stock market fell?4.5% for a total of 12% in one month. The broadest MSCI index of Asia-Pacific stocks outside Japan dropped 1.2%. The oil prices are again volatile, with gains quickly fading away. Brent is down by 0.2% to $111.90 per barrel but has still risen 55% in the last month. U.S. crude oil was almost flat at $98.35. Shane Oliver is the head of investment strategy for fund manager AMP. He said that "the war could continue for many more weeks?yet" and oil prices would rise to $150 a barrel. "And the constant destruction of energy infrastructure will mean it will take longer to return supply to normal." It's worth noting, too, that previous oil shocks were spread out over a long period of time as the full impact became apparent. In 1973 it took about four months and in 1979 an entire year. Analysts from HSBC reported that Singapore jet fuel prices were up 175% in this year, reaching a record high. Asian liquefied gas was also up 130%. Bunker fuel, which is used to transport goods by ship, has blown out and increased the cost. Fertiliser prices are also on the rise. SEND OFF RATE CUTTINGS EUROSTOXX50 futures and DAX Futures fell 1.2% in Europe. S&P 500 Futures on Wall Street fell 0.1% while Nasdaq Futures dropped 0.2%. Energy inflation has prompted markets to abandon their hopes of further monetary easing and instead price in rate increases across the majority of developed nations. Futures have erased expectations of 50 basis points easing by the Federal Reserve in this year. There is even a slight chance that the next move will be upwards. The hawkish "sea-change" has caused bonds to fall and yields to rise, increasing borrowing costs for governments who are already facing deficits and debt. The prospect of higher costs and softer consumer demand have clouded corporate profit forecasts, while the rise in yields has made equity valuations appear ever more stretched. Last week, bond yields increased by double digits across the globe due to the energy shock and pressure on fiscal budgets caused by higher defense spending. The yield on ten-year U.S. Treasury bonds was at a high of 4.410% for the past eight months, after having risen by 44 basis points. As a result of the increased volatility on the markets, the U.S. Dollar has become a more liquid store. The U.S. also is a net exporter of energy, giving it a comparative advantage over Europe and most of Asia who are net importers. The euro was slightly lower at $1.1555, though still far from the major supports of $1.1409 or $1.1392. Investors were wary of Japan intervening if the dollar broke 160.00. On the commodity markets, gold rose 0.4% to $4,511 per ounce after losing ground last week, as investors bet on rising interest rates worldwide. (Reporting and editing by Lincoln Feast; Reporting by Wayne Cole)
Markets react to Trump’s tariffs on imports of steel and aluminum
Donald Trump, the president of the United States, announced on Sunday that he would impose new tariffs of 25% on all imports of steel and aluminum into the U.S. on top existing metals duties. He said that he would announce reciprocal tariffs either on Tuesday or Wednesday.
On Monday, shares of steelmakers in Asia fell mainly except for those that have operations in the United States. The dollar grew and U.S. Treasury rates ticked up.
What market participants say:
DAMIAN ROONEY, INSTITUTIONAL SALE DIRECTOR, ARCONAUT, PERTH
"Trump's tariffs are causing an enormous amount of uncertainty and that is something no one wants!
The market is trying to digest Trump's economy and his policies.
CHARU CHANANA IS THE CHIEF INVESTMENT STRATEGIST AT SAXO IN SINGAPORE
These threats seem legitimate, and Trump has the power to implement them on national security grounds. After the 2018 tariffs, China is not a major steel supplier to the U.S. and therefore the old playbook cannot be used. The impact on countries such as Canada, Mexico and the EU will be greater than that of other countries.
The immediate concern may not be inflation as there could also be other effects, such as a slowdown in demand. The greater concern is uncertainty and a shift to a more protective world.
TONY SYCAMORE MARKET ANALYST IG SYDNEY
"It was a different reaction. The week began much like the last - headlines about tariffs were made, but the response was different. U.S. stock futures were trading higher and even the ASX 200 had a slight bounce off its lows. The Aussie dollar continues to struggle, but I feel that after last week's whipsaw ride, it will be harder to just shoot and then ask questions.
DANIEL HYNES SENIOR COMMODITY STRATEGIST ANZ SYDNEY
"I think U.S. producers will be forced to pay higher prices due to these 25% tariffs." The country is heavily reliant on imports, relying on aluminium at 40-45% and steel at 12-15%.
I suspect that regional pricing will be the first to react. U.S. Prices are likely to be much higher as traders are anxious to secure metals before tariffs are implemented. Reporting by Asia Markets Team; Editing done by Lincoln Feast.
(source: Reuters)