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Iron ore prices fall on the back of a recovery in shipments and duties on Chinese steel
The price of iron ore futures fell on Tuesday due to a rebound in iron ore exports, as well as increased taxes and laws on Chinese steel imports. As of 0246 GMT, the most traded May iron ore contract at China's Dalian Commodity Exchange was trading 1.14% lower. It was priced at 821.5 Yuan ($113.27). The benchmark March ore price on the Singapore Exchange fell by 1.49% to $106.75 per ton. A group of bipartisan lawmakers has introduced a bill to address the issue of Chinese-supported firms moving parts of their production overseas to avoid American duties. This legislation will also strengthen anti-dumping regulations. According to the U.S. government, China is the main source of excess steel production in the world, despite only exporting a small amount of steel to it. According to a document from the trade ministry, Vietnam will also impose a temporary antidumping levy against some steel products imported from China. The U.S. announced tariffs of 25% on all steel imported earlier this month. South Korea imposed tariffs provisionally on Chinese steel imports the previous week. Analysts at ANZ stated that "Iron Ore Prices were also Lower, as Data showed a Pick-up in Supply which weakened Support for the Steelmaking Raw Material." According to Chinese consultancy Mysteel, the total volume of iron-ore shipped from companies in Australia, Brazil and other countries under Mysteel's tracking program ended a slump of two weeks and recovered to 25,8 million tons on February 23. This is doubling from week to week. Coking coal and coke, which are used to make steel, also lost ground. They fell by 1.89% and 1.90%, respectively. The benchmark steel prices on the Shanghai Futures Exchange fell. Rebar fell 1.29%; hot-rolled coils and wire rods were both down around 1% while stainless steel dropped 0.11%. $1 = 7.2527 Chinese Yuan (Reporting and editing by Rashmi aich; Michele Pek)
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London copper prices fall on stronger dollar and tariff risks
London copper prices fell on Tuesday due to a stronger dollar, and worries about metal demand after President Donald Trump announced his tariff plans. As of 0208 GMT, the price for three-month copper at the London Metal Exchange was $9,464 per metric ton. After falling to its lowest level in over two months at the beginning of the week, the dollar gained strength, thanks to safe-haven flows following Trump's announcement that tariffs against Mexico and Canada will proceed as planned. The dollar is stronger, and therefore the prices of commodities in U.S. dollars are higher for foreign buyers. Trump claimed that tariffs were "on schedule and on time" for Canadian and Mexican imports, despite efforts made by both countries in order to improve border security and reduce the flow of fentanyl entering the U.S. before the deadline of March 4. Benchmark Mineral Intelligence stated in a report that "Markets will continue to navigate a geopolitical landscape and macroeconomic environment which is becoming increasingly complex." Separately, the markets are closely monitoring any developments in advance of the implementation 25% tariffs for Canada and Mexico on March 5. China's Two Sessions Policymakers' Meeting is set to begin next week. This could shed light on China’s stimulus policy path and response to Trump’s trade policy," the report said. Nickel fell by 0.3% at $15,395, while tin dropped by 0.3% at $33,145. Lead rose 0.1% to $1989.5. SHFE aluminium fell 1.2% to 20480 yuan (2,822.03 dollars) a ton. SHFE copper dropped 0.3% at 77,000, zinc slipped 1.7% to 23610, nickel declined 0.7% to 124,510, and lead rose 0.3% to 17155 yuan. Tin eased by 0.9% to 263,260.
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Prices of oil rise for the second day in a row as US sanctions against Iran increase supply concerns
Oil prices increased for the second day in a row on Tuesday, as new sanctions were imposed by the United States on Middle Eastern oil producer Iran. This raised concerns about a possible shortage of supply. Brent crude futures were up 38 cents or 0.51% to $75.16 per barrel at 0217 GMT. U.S. West Texas Intermediate Crude Futures rose 43 cents or 0.61% to $71.13 per barrel. After a drop of $2 on Friday, both contracts rose in the session Monday. Tony Sycamore said that WTI was looking for a support area between $65-$70 per barrel. "As long as it remains above this level, there will be a return to normalcy." On Monday, the U.S. imposed new sanctions against more than 30 brokers and tanker operators as well as shipping companies who were involved in the transport of Iranian oil. Donald Trump said that he wanted to reduce Iran's crude oil exports to zero. According to a report on OPEC's output, Iran was the third largest producer, with 3.2 million barrels of oil per day, in January. The uncertain outlook for demand capped gains. Donald Trump, the U.S. president, said Monday that the tariffs on Canadian and Mexican imports are scheduled to begin on March 4, and they will be "on schedule and on time" despite attempts by both trading partners to address Trump’s concerns regarding border security and fentanyl. Analysts believe the tariffs will have a negative impact on global oil demand. In Europe, Ukraine welcomed European leaders for the three-year anniversary to mark Moscow's invasion. U.S. officials, however, stayed away as a symbol of President Trump’s closer relationship with Russia. Markets have interpreted Trump's warming relationship with Moscow as an indication of a possible easing of sanctions against Russia, which could add to the global oil supply. (Reporting and editing by Christian Schmollinger; Colleen howe)
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Argentina relaxes transit regulations along key grain transport river
The Argentinean security minister announced on Monday that the country has loosened the safety regulations for shipments travelling on a river, which is a major grain transport corridor. This move could increase cargo transported through the waterway up to 7%. The Parana-Paraguay river will be able carry more cargo now, said Security Minister Patricia Bullrich on social media site X. She added that it would increase efficiency and lower costs without compromising safety. Argentina is the top exporter in the world of soy oil, flour and corn. It's also a major supplier of wheat. Over 80% of Argentina's agricultural products are transported along the river. In recent weeks, the government has refocused on the Parana River after a scandal involving an auction for maintenance contracts was halted and scrapped after only one company entered the bid. Bullrich stated that "clear rules, predictability, and firm decisions will guarantee a competitive waterway." The Rosario Grains Exchange referred to the change in regulation as "important progress" towards improving efficiency of agricultural exports. The decision of the prefecture to implement the new security measures is welcomed by Gustavo Idigoras the president of Argentina's CIARA CEC grains export chamber. He added that the measure will have "concrete effects" on loading and navigation. He added that it was now more important than ever to continue with the waterway-auction process to benefit from this change. The National Ports Chamber did not respond immediately to a request for comment. After the investigation into possible sabotage of the auction is completed, a new tender will be issued for the contract. The Belgian dredger DEME Group was the sole bidder in the first round. DEME claimed it didn't know why other firms did not bid, but the government is investigating possible "pressure" DEME could have put on its competitors. DEME said, however, that the tender was biased against Jan de Nul. The current concession holder. (Reporting and writing by Maximilian Heath, Kylie Madry, Lincoln Feast, Christian Schmollinger and Natalia Siniawski)
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Brazilian fuel distributor Vibra’s net profit plunges by 85% in fourth quarter
Vibra Energia, a Brazilian fuel distributor, reported a 84.5% drop in its fourth quarter net profit compared to a previous year. The company's final figure was 510 million reais (88.3 millions dollars), which is also lower than the 555,000,000 reais that analysts polled for LSEG estimated. The company has approved the payment of interest on equity of a total amount of 1,07 billion reais in February, August and May 2025. Why it's important Vibra is a major fuel distributor in Latin America. It operates a network of gas stations, and sells fuel to businesses directly. By the Numbers Vibra's adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) was 1.3 billion reais. This is a 44% decrease from the year prior. The adjusted EBITDA has dropped by nearly 43% on an annual basis to 145 reais for each cubic meter. The volume of sales dropped by 1.7% to 9 million cubic metres in the December quarter. Vibra's financial lever - measured by net debt/EBITDA, remained at 0.9 times a year ago. This is down from the previous 1.1 times. KEY QUOTES Vibra's report stated that its fourth quarter sales volume and EDITDA reflect "the company's ability to maintain profitability at a high level even in a challenging environment."
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Senators demand answers about EPA's attempt to claw back $20 Billion in Climate Funds
The U.S. Senate Democrats asked Environmental Protection Agency administrator Lee Zeldin on Monday to stop his campaign of clawing back funds previously awarded for greenhouse gas reduction project, saying that this effort is illegal. The senators who are members of the Senate Environment and Public Works Committee said that Zeldin’s social media campaign, which was widely publicized, to seize the $20 billion allocated through the 2022 inflation reduction act, is against the law and will result in the destruction of jobs across the US. The letter was signed by nine Democrats in the committee headed by Senator Sheldon Whitehouse. It stated that "Your announcement is yet another example of Trump Administration officials and their government efficiency experts" using unfounded claims about waste, fraud and abuse to avoid congressional spending authority, ignore court orders, and freeze or terminate programs intended to reduce carbon emissions. Democrats are increasing pressure on the EPA and Justice Department over their illegal attempts to seize funds that Congress had appropriated. Four senators requested that the office of inspector general investigate these attempts last week. Zeldin praised what he called the agency's finding of billions in funds awarded through the Greenhouse Gas Reduction Fund to support clean energy projects across the U.S., which he claimed was fraudulently distributed. He also accused the Biden Administration of obligated the money "in haste and with little oversight." Officials in the Trump administration had asked Denise Cheung to launch a criminal investigation into the funding to try and recover the money currently held by Citibank. Citibank has a financial agency contract with the Treasury. Cheung, who resigned last week from the U.S. attorney's office because she felt the request wasn't supported by evidence, said that her belief was that the request had not been supported by any evidence. In their letter, the senators stated that Zeldin’s claim that the Biden Administration rushed to send billions of dollars out the door is undermined by the truth that the agency announced the selection of Citibank for the Greenhouse Gas Reduction Fund Grants in a press release seven months prior to the election. The senators requested that Zeldin respond by 3 March to explain the plan to terminate the financial agency agreement between the agency and Citibank, as well as what will be done with funds that Citibank has not yet released to grantees. (Reporting and editing by Sonali Paul; Valerie Volcovici)
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Coterra Energy beats quarterly profit estimates on higher production, raises dividend
Coterra Energy announced Monday that it had beaten Wall Street's fourth-quarter profit estimates and increased its dividend by 5%. The oil and gas company has benefited from a higher production of oil and natural gases liquids (NGLs). U.S. Energy Information Administration (EIA) reported that the oil production of the United States reached a new record in the last quarter, as improved drilling efficiency helped producers pump out more. Houston-based company announced a production increase of 681,500 barrels equivalent per day (boepd) in the fourth quarter, exceeding its high-end outlook of 630,000-660,000 boepd. This was driven by improved well performance and cycle times. The company's mix of oil and NGLs was higher than in the previous quarter but overall, it was lower than the 697.400 boepd that were produced during the quarter. Coterra forecasts that the total production in 2025 will be between 710,000 to 770,000 boepd with an increased oil mix. Natural gas production, however, is expected to remain relatively flat at midpoint. Coterra, betting on organic growth for its legacy assets in the Permian and other areas, expects a growth in oil of at least 5% from 2025 to 2027. It also anticipates an annual capital range between $2.1 and $2.4 billion. This includes proforma growth in 2026-2027. Coterra purchased certain assets from Avant Natural Resources, Franklin Mountain Energy and others for $3.95 billion in November of last year to expand their operations in the Delaware Basin. The company anticipates that capital expenditures will be 28% higher in 2024 than the $1.76 Billion spent in 2024. The company also expects capital expenditures for drilling and completion of projects in the Marcellus Basin to be $50 millions higher than they were in November 2011 as it begins activity in the basin in the early second quarter. They could also rise by $50 million during the second half. According to LSEG data, the company's adjusted profit for the three-month period ended December 31 was 49 cents a share compared to the average analyst estimate of 43 cents a share.
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US lawmakers target China's trading practices
On Monday, a bipartisan group is introducing legislation to strengthen U.S. laws on trade enforcement and to address the impacts of Chinese-backed companies shifting portions of their production overseas to avoid American duties. The legislation is being introduced by Republican Senator Todd Young from Indiana and Democratic Sen. Tina Smith from Minnesota. They are joined by more than a dozen other senators. The bill aims to give the U.S. Commerce Department more tools to deal with concerns over China's trading practices and Belt and Road Initiative. This is a Chinese international project that aims to boost trade and connect Asia, Europe and Africa. Young stated in a press release that "China has distorted the free market through dumping products at low prices and subsidizing industries. These actions are designed to harm American workers and businesses." The U.S. House of Representatives is introducing a companion bill. Smith stated that foreign competitors such as China have been engaging in unfair trade practices for too long. This has undermined the domestic industry and threatened national security. The Chinese Embassy at Washington has not yet commented. The American Iron and Steel Institute applauded the bill because it "addresses the growing problem [of cross-border subvention] where foreign governments subsidise industries like steel not only in their home countries, but also in other countries." The bill allows the Commerce Department, through the Countervailing Duty Law, to apply translational subsidies. This law allows the government the ability to target specific products coming from different countries. The law would also strengthen antidumping regulations, set specific deadlines for inquiries into anti-circumvention, and ensure that the law could be applied to currency manipulators. It also aims to tackle imports such as kitchen cabinets from China. Donald Trump raised the tariffs on imports of steel and aluminum to 25% two weeks ago. Tariffs will be implemented on March 4, 2019. In 2000, the U.S. produced 3.7 million metric tons. In 2023, steel imports will account for approximately 23% of American consumption. According to the U.S. government, China is the main source of excess steel production in the world, despite only exporting a small amount of steel to it. American steel companies claim that subsidized Chinese production forces other countries, such as the U.S., to export more steel. This is done to avoid tariffs and trade restrictions. (Reporting and editing by Leslie Adler, Nia Williams, and David Shepardson)
Andy Home: China tightens its grip on global nickel supplies with Anglo's sale
Anglo American’s sale of its Brazilian Nickel business to China’s MMG Ltd. is a win-win for both companies.
Anglo delivers on its shareholders' promise to simplify its portfolio, and pockets up to $500m.
MMG, a producer of zinc, copper and cobalt, can diversify and grow its geographical footprint by expanding into Brazil.
The market for nickel is one of the few that has shown signs of resilience in the face of a glut.
It's not good news for western countries that want to escape China's tightening of the global nickel supply chains.
China already controls around 75% the refining capacity of Indonesia, which is rapidly emerging as the world's biggest supplier.
China's dominance of the nickel market could grow even more as two other Western producers look to sell their nickel operations because of low prices.
Price Devastation
Anglo's Brazilian assets include two mines and processing plants, with a combined annual capacity of 40,000 tons of nickel.
The two plants produce ferronickel, which is used in the stainless steel industry. This sector consumes the most nickel despite its increasing use in batteries for electric vehicles.
The nickel market in this segment was the first to be affected by the Indonesian production boom. This initially took the form of nickel pig iron, a stainless steel competitor.
These Class II Nickel products are always sold at a lower price than the Class I high purity refined metal that is traded on the London Metal Exchange.
According to MMG's investor presentations on the deal, Indonesia's production boom caused the discount from LME prices to soar from an average of 8.4% in 2001 up to 27.2% by 2023.
The LME was also falling, which was bad news for Class II producers.
According to Macquarie Bank's Jim Lennon, around half of ferronickel production in the world outside of China or Indonesia has been suspended.
CARBON EDGE
Anglo-Brazilian operations is among the survivors.
The nickel price on the London Metal Exchange has fallen to a four-year low of less than $16,000 per tonne.
Anglo's Ferronickel is sold at a higher price than other Class II products because of its superior quality and environmental credentials compared to Indonesian NPI.
The carbon footprint has become more important in the stainless steel sector. Carbon Border Adjustment, a tax on imports with higher carbon content, will be implemented by the European Union next year.
TURNAROUND
The Class II nickel market has turned around, even as the LME Nickel price continues to fall under the weight rising inventories, largely Chinese and Indonesian.
According to MMG, the discount on the LME Nickel price has decreased by an average of 25% in the first half last year. The discount for Anglo nickel material has decreased to 15.9%, down from 20.8% by 2023.
The closure of large capacity in the West, as well as a shift in product mix in Indonesia have both impacted the supply.
Many Indonesian operators switched from producing NPI in the stainless steel sector, to either producing nickel matte or mixed hydroxide in the battery sector.
Macquarie’s Lennon believes that the Class II segment was best balanced in the last year, as the surplus Indonesian imported into the Class I segment.
This glut can be seen in the LME warehouse stock, which has risen by 30,000 tons this year, bringing it to 192 828 tons.
STRATEGIC METAL
MMG believes that the glut of stainless steel will not last past this decade. This is when the combination of a steady increase in global production and a surge in demand for batteries will lead to soaring supply deficits.
The company would be in a good position to reap the benefits if it did. Anglo's Nickel assets are located on the third largest nickel resource in the world, which could transform MMG into the largest producer of the metal outside of Indonesia.
Although the Brazilian operations produce ferronickel at the moment, they could easily be reconfigured into battery components.
China still views nickel as a strategic metal, despite its diminished value in the West.
Vale, a Brazilian company, has announced a $1.4bn impairment on its Thompson Nickel operations in Canada. Vale also launched a review of their business. Thompson nickel is not the only nickel-related asset that could be acquired by Chinese investors.
South32, an Australian miner, also plans to sell off its Cerro Matoso ferronickel operation in Colombia in response to "structural changes in the nickel markets", it stated in its Q4 report for 2024.
These structural changes were brought about by Chinese investments in Indonesia. China is now able to double down on the long-term bet it has made that nickel will still be a key metal in the energy transition due to the supply tsunami and price crash.
The author is a columnist at
(source: Reuters)