Latest News
-
Iron ore prices fall as China's property data is sluggish
The price of iron ore futures fell on Tuesday, as the persistent weakness of China's real estate sector dampened investor confidence. Meanwhile, a decline in crude steel production and weather-related disruptions further affected steel consumption. As of 0250 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.07% lower. It was 765.5 Yuan ($106.75). The benchmark iron ore for August on the Singapore Exchange fell 0.59% to $99 per ton. China's new-home prices fell the most in June since eight months. This reflects a continued slowdown in the real estate sector. China's crude output of steel in June was down 3.9% on the previous month and 9.2% year-onyear, as steelmakers performed more equipment maintenance. As a result of the high temperatures in northern Canada and the heavy rains in eastern and southern United States, outdoor construction was limited, which in turn reduced the demand for steel. In a recent note, analysts at ANZ stated that "strong steel production, healthy margins and low inventories of steel appear to have encouraged mills to restock their raw materials." ANZ said that the gains are limited, however, by the concern that authorities will continue reducing steel capacity. China's Q2 Gross Domestic Product (GDP) grew by 5.2% from the previous year. Meanwhile, June industrial production grew 6.8%, exceeding analyst expectations despite the U.S. Tariffs. Hexun Futures, a broker, reported that iron ore shipments from Australia and Brazil, two of the world's top producers, were mixed. Australia's shipments declined due to maintenance in some ports while Brazil's shipments recovered significantly. Coking coal and coke, which are used to make steel, also fell on the DCE. They were down by 0.16% each and 0.59 % respectively. All steel benchmarks at the Shanghai Futures Exchange fell. The price of rebar fell by 0.35%. Hot-rolled coil dropped by 0.21%. Wire rod was down 1.37%. Stainless steel dropped 0.04%. ($1 = 7.1712 Chinese yuan). (Reporting and editing by Rashmi Liew)
-
Copper prices fluctuate when China GDP exceeds forecasts and markets focus on US data
The London Metal Exchange (LME) and Shanghai Futures Exchange (SFE) saw only small fluctuations in copper prices on Tuesday as China's GDP growth was forecast. Meanwhile, traders were awaiting U.S. inflation figures and possible monetary policy changes. As of 0203 GMT the LME's three-month copper contract was up by 0.27% to $9,644.5 a metric ton. The most traded copper contract on SHFE, however, fell 0.33% to $78,030 ($10,883.30). China's National Bureau of Statistics reported that the GDP of the country grew by 5.2% in April-June. This is slightly less than the 5.4% growth of the first quarter. The GDP growth of the country for the first half of the year 2025 will be at 5.3%. Fixed asset investment has increased 2.8% on an annual basis. The metals market won't react much as long as China's first-half GDP growth is over 5%. For the remainder of 2025, and the longer-term, it will be more about how Beijing deals with the overcapacity and fierce competition in many industrial sectors. A poll predicted that China's GDP would grow by 5.1% in April-June compared to 5.4% in the previous quarter. The dollar was near its three-week peak against other major currencies as traders awaited U.S. Inflation data to get clues about monetary policy, and the possible departure of Federal Reserve Chairman Jerome Powell in light of continued criticism by U.S. president Donald Trump. LME aluminium climbed 0.17% to $2,596.5 a ton. Nickel fell 0.13% at $15,045 and tin traded flat at $33,515. SHFE nickel dropped 1.1%, to 119.440 yuan for a ton. Tin fell 0.47% to 264.960 yuan. Zinc was down 0.36% at 22,125 yuan. Lead was down 0.18% to 17,030. Aluminium edged lower by 0.07% to 20,420. Click or to see the latest news in metals, and other related stories. DATA/EVENTS 0900 Germany ZEW Economic Conditions, ZEW Current Sentiment July 1000 EU Reserve Assets June 1230 US core CPI MM and SA June1230 US core CPI YY and NSA. June 1230 US MM and SA. June 1230 US YY.
-
China's crude steel production in June falls as demand wanes
China's crude output of steel in June was down 3.9% from last month and 9.2% from a year ago, as steelmakers maintained equipment amid seasonal demand declines. Data from the National Bureau of Statistics revealed that the world's biggest steel producer produced 83.18 millions metric tons of raw steel in the last month. This is the lowest monthly level so far this season. Calculations based on data show that the average daily production in June was 2,77 million tonnes, down by 0.7% from May's 2.79 million tonnes. Heavy rains and high temperatures in the east and south regions of the country have curtailed outdoor construction, reducing demand for steel. Some mills began annual maintenance of equipment, which resulted in lower production. According to data provided by consultancy Mysteel, the daily hot metal production averaged 2,42 million tons during June, a 0.8% decrease from the 2.44 million tons produced in May. The first half of this year saw a total output of 514.83 millions tons, a 3% decrease from the previous year. (Reporting and editing by Amy Lv, Lewis Jackson and Saad Sayeed).
-
Gold prices rise as US inflation data is emphasized
Gold prices rose on Tuesday ahead of U.S. Inflation data that will be released later in the day. This could provide more clarity on the Federal Reserve’s interest rate policy. As of 0151 GMT, spot gold was up by 0.1%, at $3,346.94 an ounce. U.S. Gold Futures were unchanged at $3,355.60. Tim Waterer, KCM Trade's Chief Market Analyst, said that gold has historically been an asset of preference when tensions over tariffs increase. The precious metals' move to $3,350 shows this pattern is repeating itself. In the absence of geopolitical tensions, a drop in USD or Treasury yields could be needed to allow gold to continue its upward trajectory towards $3400. After weeks of failed negotiations, U.S. president Donald Trump threatened on Saturday to impose a 30 percent tariff on imports coming from Mexico and the European Union beginning on August 1. The focus of traders now turns to the U.S. Consumer Price data for June due at 1230 GMT, Tuesday. The economists surveyed by predict that headline inflation will increase from 2.4% to 2,7% annually, up from the 2.4% recorded in the previous month. Core inflation is forecast to increase to 3.0% from 2.8%. Trump renewed his attack on Jerome Powell on Monday, saying that interest rates should be 1% or less. The markets are pricing in a 50 basis point rate cut by the end of the year, with a first reduction anticipated in September. In a low interest rate environment, gold, which is often viewed as a safe haven during economic uncertainty, does well. Silver spot gained 0.3%, to $38.24 an ounce. It had reached its highest level since Sept. 2011 on Monday. Silver is benefiting from growing industrial demand and supply concerns. Silver has risen as investors have sought value elsewhere due to the rise of gold over the last 18 months, Waterer added. Palladium and platinum both rose by 0.1% to $1,194.50. Platinum was up 0.3% at $1,368.30.
-
JGB yields soar as Asian shares surge, the dollar strengthens before US earnings
The dollar gained on Tuesday, as the trade talks were still in the spotlight. This week will also see important readings for U.S. bank earnings and inflation. Oil prices fell after U.S. president Donald Trump set a deadline of 50 days for Russia to stop the war in Ukraine or face energy sanctions. As a crucial upper house election approached, Japanese government bond yields reached a multi-decade peak. Trump indicated he would be open to discussing tariffs following his threat at the weekend to impose 30% duty on Europe and Mexico starting August 1. Japan is trying to set up high-level discussions with the U.S. on Friday. Rodrigo Catril, a strategist at National Australia Bank, says that the market has reacted rather positively to the uncertainty surrounding tariffs. This makes earnings this week in the United States all the more significant as cues. Catril, in a NAB Podcast, said that it would be interesting to hear what the companies have to say, especially in regards to the future-looking outlook. He added, "I believe that the idea of complacency comes from the fact that we don't know how this entire thing will play out." MSCI's broadest Asia-Pacific share index outside Japan rose 0.4% after U.S. shares ended the previous session with modest gains. Japan's Nikkei gauge added 0.2%. The EU warned that if a deal is not reached, it will take countermeasures. Trump said that he would be open to more discussions with the EU, and other trading partners. The Yomiuri reported that Japan's Shigeru Shiba will meet U.S. Treasury Sec. Scott Bessent on Friday in Tokyo, before the August 1 deadline for 25% tariffs to go into effect. Ishiba will also have to deal with an election on Sunday. Polls show that his ruling coalition could lose its majority in the upper chamber to political opponents advocating expansive spending. The benchmark yield on 10-year JGBs jumped to 1,595%, the highest since October 2008. Meanwhile, the 30-year yield reached a record high of 3,195%. The U.S. earnings period will begin Tuesday with the release of major bank's second-quarter results. According to LSEG, S&P profits will rise 5.8% over the past year. The outlook for the S&P 500 has changed dramatically since Trump's trade war began in early April, when he predicted a 10.2% increase. Investors will also be watching for the U.S. consumer prices data for June due Tuesday and any price increases that may result from tariffs. After reaching a new three-week high, the dollar was barely changed at 147.71yen. The euro was unchanged at $1.1672. U.S. crude fell 0.3% to $66,80 per barrel. Trump announced on Monday new weapons shipments to Ukraine and threatened sanctions against buyers of Russian exports until Moscow agreed to a 50-day peace agreement. Spot silver rose 0.1% to 38.15 dollars per ounce after reaching its highest level since the previous session. Early trades showed that the Euro Stoxx futures for all regions were up by 0.1%. The German DAX was also up by 0.1% and FTSE Futures were also up by 0.2%. U.S. Stock Futures, S&P500 e-minis were down by 0.1%.
-
Oil prices drop as the market considers possible sanctions and tariffs
Oil prices fell on Tuesday, as investors digested U.S. president Donald Trump's deadline of 50 days for Russia to end its war in Ukraine and avoid sanctions against buyers of their oil. Meanwhile, concerns over Trump's tariffs on trade continued to linger. Brent crude futures dropped 5 cents, to $69.16 per barrel, by 0000 GMT. U.S. West Texas intermediate crude futures were down to $66.69, a 9-cent drop. The two contracts were settled at a lower price than the previous session. Trump announced on Monday new weapons for Ukraine and threatened sanctions against buyers of Russian exports, unless Moscow agreed to a peaceful deal within 50 days. The news of possible sanctions caused oil prices to rise, but they later lost these gains, as the deadline of 50 days raised the hope that sanctions would be avoided. Traders also speculated whether the U.S. actually imposed steep tariffs on those countries who continued to trade with Russia. The pause has eased fears that sanctions against Russia may disrupt crude oil flow. The rising tensions in trade also weighed on sentiment, wrote ANZ senior commodity analyst Daniel Hynes in a client note. Trump announced on Saturday that he will impose a 30 percent tariff on imports from Europe and Mexico starting August 1. He also issued similar warnings to other countries, giving them less than 3 weeks to negotiate framework agreements to lower the tariff rates. Tariffs could slow down the global economic growth and lower oil prices. According to Russian media, the secretary general of the Organization of Petroleum Exporting Countries said that oil demand will remain "very strong" throughout the third quarter. This will keep the market in a tight balance over the short term. Goldman Sachs raised its oil prices outlook for the second-half of 2025. The company cited potential supply disruptions and shrinking oil stocks in Organisation for Economic Co-operation and Development (OECD) countries as well as production constraints in Russia. (Reporting by Anjana Anil in Bengaluru; Editing by Jamie Freed)
-
Texas flood toll rises as new storms approach
On Monday, the official death toll from storms in Texas surpassed 131. Authorities warned that another round of heavy rainfall is expected 10 days after an Hill Country flash flooding turned the Guadalupe River deadly torrent. The National Weather Service issued a flood warning until Tuesday morning, predicting heavy rains up to a half-foot deep in central Texas from the Rio Grande eastward to San Antonio and Austin. The advisory covered Kerr County, other areas of Texas Hill Country along Guadalupe that are still recovering from July 4's flood disaster. This ravaged Kerrville county seat and a riverside Christian Summer Camp for girls in Hunt. Residents along the riverfront, as well as the search teams that are still combing the bank of the waterway, were advised to move higher ground until this latest danger has passed. On Sunday, the search for more victims along Guadalupe River was also suspended because of flood concerns. Texas Governor Greg Abbott said on Monday that storms have claimed at least 130 lives in Texas since the 4th of July, with most deaths occurring in and around Kerrville. This is up from the 120 reported on Friday. He said that 97 people are still missing in the Kerrville region, compared to the 160 or so who authorities reported were unaccounted last week. Around a third are children. Most of them died at Camp Mystic, a girls-only retreat that was flooded by floodwaters before dawn on the morning of July 4. The authorities have not saved anyone alive since the day the floods occurred. More than a foot fell in less than one hour in a region called "flash flooding alley", sending a deadly flood wall down the Guadalupe River Basin. Abbott said that state lawmakers will investigate the circumstances surrounding the flooding and disaster preparedness, as well as emergency response to flooding during a special session of the legislature to be held later this month. The high number of casualties, which ranks as one of the most deadly U.S. flooding events in decades has raised concerns about the lack flash flood warning sirens and vacant National Weather Service offices due to staff cuts under Trump's administration.
-
US nuclear regulator asks job seekers political questions
The U.S. Nuclear Power Regulator posted a job posting asking applicants to answer political questions, as President Donald Trump's administration seeks to gain more influence over the independent agency. On Monday, the posting asked applicants to explain how their commitment to U.S. Constitutional principles and the founding document of the United States inspired them to apply for the job. The job is for a senior operation engineer who will serve as an inspector at the Nuclear Regulatory Commission's division of operating reactor security. The questions also asked about how the applicants would improve government efficiency and effectiveness and "how would you promote the President's executive orders and policy priorities as this role?" Trump is trying to accelerate the approval of nuclear power plants by the NRC, as the United States is facing the first surge in electricity demand in the last 20 years due to the growth in artificial intelligence (AI) and data centers. In May, the Republican president signed executive order seeking to overhaul NRC. The agency was created as an independent regulator and is now directed to issue new licenses in 18 months. Scott Burnell said that NRC was following the Office of Personnel Management's requirements for job postings. This is the U.S. Government's Human Resources agency. A person working at the NRC who asked to remain anonymous said that under previous U.S. administrations the questions on job postings focused more on the applicants' work experience in operating a reactor than their political views. A former NRC chairman told reporters on Monday that questions about the posting are a kind of political litmus. "If I were Chairman and saw this, I would immediately tell my staff to replace it with professional questions that are relevant, not a chapter of 'Animal Farm,' which explains how to destroy the professional expertise within government," said Greg Jaczko. He served as NRC chair from 2009 to 2012. Jaczko referred to George Orwell’s 1945 satirical book. Not all six questions in the job description at issue were about politics. For example, one question asks about the contribution of work ethics to an applicant's success, while another asks if they used AI to answer. Trump fired Chris Hanson last month, a Democratic NRC Commissioner, an action that was criticised by almost 30 former NRC employees and officials. David Wright, current NRC Chair, said to a Senate Committee last week that an official from Trump's Department of Government Efficiency was working with the NRC in order to reform the agency.
China's demand for iron ore is likely to increase in the near future
Iron ore futures prices rose on Tuesday due to a near-term increase in demand from China, the world's largest consumer. However, lingering concerns about tariffs limited the price rise.
As of 0253 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange rose by 0.49% to $71.35 per metric ton.
The benchmark May ore price on the Singapore Exchange fell 0.76% to $98.6 per ton.
ANZ analysts wrote in a report that "strong iron ore purchases by steel mills, and lower imports, saw inventories drop sharply."
ANZ reports that despite the government's efforts to reduce capacity, steel production grew by 4.6% in March to 93 tonnes.
Steelhome data shows that the total iron ore stocks across China ports fell by 2.39% in a week to 134.6 millions tons on April 18.
According to a report by Mysteel, the volume of iron ore exports from Australia and Brazil increased 0.1% compared with the previous week.
Galaxy Futures said that tariffs are still weighing down on steel exports and affecting demand for iron ore during the second quarter.
China accused Washington's abuse of tariffs, and warned other countries not to strike a wider economic deal with America at its expense.
India implemented a temporary 12% tariff on certain steel imports (locally known as safeguard duty) to stop a rush of cheap shipments, mainly from China.
Coking coal and coke, which are used to make steel, also lost ground. They fell by 1.89% each and 1.51% respectively.
The benchmarks for steel on the Shanghai Futures Exchange have declined. The price of rebar fell 0.13%. Hot-rolled coils dropped around 0.2%. Wire rod fell 0.06%. Stainless steel declined 0.55%. $1 = 7.3125 Chinese Yuan (Reporting and editing by Eileen Soreng; Michele Pek)
(source: Reuters)