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Simandou iron ore project begins supply
Iron ore prices continued to fall on Tuesday as the 'Simandou' project in Guinea in West Africa shipped its first ore. This boosted the prospects of more supplies at a time when?demand for the top consumer China will decline due to falling steel production. The daytime closing price of the most traded iron ore contract at China's Dalian Commodity Exchange was 757.5 yuan (US$107.22). The session began with a?750 yuan low, the lowest since 10 July. It was headed to a fifth consecutive session of losses. As of 0940 GMT the benchmark January iron ore price on the Singapore Exchange was down for a third straight?session. It fell by 0.35%, to $101.7 per ton. This is its lowest level since November 12. Rio Tinto, the largest iron ore supplier in the world, announced on its WeChat page on Monday that the first shipment from the Simandou Project has left Guinea. The mine will have a production capacity of 120,000,000 tons per year, making it the largest iron ore mine in the world. China imports 80% of its iron ore from Australia and Brazil. Analysts say that the share of Guinean supply will likely decrease with increased production. Analysts at Xinhu Futures wrote in a report that the near-month contract 'will continue to be under pressure due to high supply, swollen inventory, and a decreasing demand. This year, crude steel production in China will be the lowest in six years. Coking coal and other steelmaking ingredients, coke and coke, also fell, by 2.21% and 2.7% respectively. This was due to lingering concern over an?increasing availability. The Shanghai Futures Exchange saw a decline in most steel benchmarks. Rebar fell 1.57%, while hot-rolled coils dropped 1.42%. Stainless steel also declined 0.32%. Wire rod rose 0.38%. ($1 = 7.0651 Chinese Yuan Renminbi)
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Gold prices rise as the markets prepare for Fed guidance regarding easing path
Investors positioned themselves for the widely anticipated December Federal Reserve rate cut. However, attention has now shifted to the policymakers' two-day meeting that begins later that day. By 0920 GMT, spot gold had risen 0.47% to $4208.39 an ounce. U.S. Gold Futures for February Delivery rose by 0.48% to $4237.80 an ounce. Linh Tran is a market analyst for XS.com. She said that although confidence in future rate cuts remains, their signals suggest a more cautious and gradual approach to easing. According to CME’s FedWatch Tool the markets now assign an 89% probability of a rate cut of 25 basis points when the policy meeting concludes Wednesday. However, the focus is on any signs about the future. Gold is a good example of a non-yielding asset that benefits from lower interest rates. Zain Vawda is an analyst with MarketPulse. Analysts expect to see a "hawkish" cut this week, accompanied by forecasts and guidance that indicate a high threshold of further easing next year. The U.S. The Fed's preferred inflation gauge, the Personal Consumption Expenditures Price Index (PCE), was in line with expectations. Consumer sentiment also improved in December. The private payrolls in November showed their biggest drop in over 2-1/2 years, but the jobless claims for the week ending November 28 fell to a 3-year low. Silver rose by 1.17%, to $58.80 an ounce. Analysts cite tight physical supply and depleted inventory as the main reasons for the rally, which is also aided by macro-economic conditions that are supportive and the expectation of Fed rate reductions. Dat Tong is a senior financial markets analyst at Exness. He said that silver prices may consolidate into a broad range of $55-60 depending on the monetary policy expectations. Palladium increased 0.6%, to $1474.00 an ounce. Platinum rose 0.68%, to $1653.40 an ounce. Reporting by Arunima Kumna, Pablo Sinha, and Ishaan Arora from Bengaluru. Editing by Sherry Jab-Phillips and Louise Heavens
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Twenty dead after fire breaks out in Indonesian Jakarta at a seven-storey building
An official confirmed on Tuesday that 20 people were confirmed dead after a fire broke out in a seven-storey structure in Indonesia's capital,?Jakarta. Susatyo purnomo condro, the head of Central Jakarta Police, told reporters that the fire had been put out and they were still searching for any other victims in the building. Condro reported that the fire started on 'the first floor around noon and spread to the upper floors. He said that some employees were eating lunch in the building at the time, while others had already left the office. He said that as of Tuesday afternoon the death toll was 20. "Now, our focus is still on evacuating the victims and cooling down the fire," Condro said. Terra Drone Indonesia is located in this building. They provide drones to clients for aerial surveys, from the mining and agriculture sectors. According to its website, the company is "the Indonesian division of Japanese drone company Terra Drone Corporation." Kompas TV broadcast footage of dozens fire fighters attempting to evacuate people from the building. Some were carrying bodybags. Some workers have also been seen using portable ladders to escape from high floors. Email requests for comments from both companies were not immediately responded to. (Reporting and editing by David Stanway; Ananda Teresia, Stefanno Sulaiman)
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Consultancy says that Russia could increase LPG exports from China to China by 40% by 2026.
Petromarket 'consultancy' said that Russia could increase its liquefied gas supply to China next year by 40%, to?1.125 millions metric tons, as Moscow pivots towards the East. In response to Western sanctions regarding its invasion of Ukraine in 2022, Russia has redirected oil flows from Europe towards China and India. The European Union's sanctions against Russia's LPG?took effect December 20, 2024. Russia now aims to increase its natural gas and LPG exports?to China. LPG (or propane and butane) is used primarily as fuel in?cars and heating systems, and for the production of other petrochemicals. Russia also supplies LPG to:?Turkey and Mongolia. The traders have stated that Russia's China exports are likely to grow. Petromarket estimates that Russia's LPG imports to China are expected to increase to 800,000 tonnes this year, up from 416,000 tonnes in 2024. Gazprom’s Amur Gas Processing Plant?in Eastern Siberia has increased LPG exports into?China since it began processing gas earlier this summer. Sergei Stepanov, the Gazprom manager in St. Petersburg told a conference last week that his plant is primarily supplying LPG to China. He did not provide figures. According to industry sources the Amur Gas Processing Plant now produces between 40,000 and 45,000 tonnes of LPG each month. (Reporting and Editing by Joe Bavier).
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Copper prices drop from record highs; Market awaits Fed policy
The price of copper fell from its record high on the previous day as traders continue to be dominated by talk about this week's Federal Reserve rate decision, and the possibility of a?tight supply. The Shanghai Futures Exchange's most traded copper contract closed the daytime trading at 91,090 Yuan ($12,883.65) a metric ton, down 1.46%. As of 0717 GMT, the benchmark three-month price for copper at the London Metal Exchange was also down by 1.59%. It stood at $11,450 per tonne. Shanghai copper is up 25% in the last year, while London benchmark copper is up more than 30%. Sucden Financial analysts expect that copper prices will be "characterized by sharp rallies, followed by shallow consolidation", since there is little interest in selling?at the present level. Investors are expecting a U.S. interest rate cut this week, as well as comments from Fed chair Jerome Powell that will be hawkish about further reductions. Markets now predict fewer rate reductions in 2026 due to lingering concerns about inflation and the resilience of the U.S. economy. Copper is a market that continues to be affected by supply issues due to the disruption of mines and the constant dislocation of copper stocks into the U.S. After reaching a record on December 5, the Comex copper stocks continued to rise on Monday. They now total 439,510 short tonnes (398,717 tons metric tons). Lead fell 0.89%. Nickel declined 0.58%. Tin dropped 1.36%. $1 = 7.0702 Chinese yuan renminbi $1 = 7.0702 Chinese Yuan Renminbi (Reporting and editing by Mrigank Aich and Rashmi aich; Mrigank Duan and Lewis Jackson)
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EU scientists predict that 2025 will be the second or third hottest year in history.
The Copernicus Climate Change Service of the European Union (C3S), said Tuesday, that this year will be the second or third warmest in history, possibly only surpassed by the record-breaking heat in 2024. The latest data from C3S is the result of last month's climate?summit at which governments failed to agree on substantial new measures to cut greenhouse gas emissions. This reflects strained geopolitics, as the U.S. rolled back its efforts and some countries sought to weaken CO2-cutting mechanisms. C3S stated in a bulletin that this year is likely to be the last of the three-year period where the average global temperature has exceeded 1.5 degrees Celsius. (2.7 degrees Fahrenheit). This was the time when humans first began using fossil fuels in industrial quantities, between 1850-1900. Samantha Burgess is the strategic lead for Climate at C3S. She said, "These milestones do not reflect abstract figures - they show how climate change is accelerating." Extreme weather has continued to affect?regions across the globe in this year. Last month, Typhoon Kalmaegi caused the deaths of more than 200 people in the Philippines. Spain suffered the worst wildfires in 30 years due to weather conditions scientists said were more likely because of climate change. The planet was at its hottest ever last year. Scientists have confirmed that the primary cause of global warming over time is greenhouse gas emission from fossil fuels. World Meteorological Organization reported earlier this year that the last decade has been the 10 hottest years since records began. The Paris Climate Agreement of 2015 set a global warming threshold of 1.5 degrees Celsius as the limit that countries would try to avoid, in order to avoid the worst consequences of climate change. Technically, the world hasn't yet?breached this target. This refers to a global average temperature of 1.5 Celsius for decades. The U.N. stated this year that the 1.5 Celsius target is no longer achievable and encouraged governments to reduce CO2 emissions more quickly to avoid overshooting. C3S records date back to 1940 and are cross-checked against global temperature records dating back to 1850. (Reporting and editing by Michael Perry; Kate Abnett)
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Gold prices drop as markets prepare for Fed's hawkish tone
Gold ?edged down on Tuesday as investors, having mostly priced ?in ?a Federal Reserve rate cut, looked ahead for clues that the U.S. central bank might opt for a gentler-than-expected easing cycle when its two-day policy meeting begins later in the day. As of 0609 GMT, spot gold was down by 0.3% at $4,174.91 an ounce. U.S. gold futures for delivery in December fell 0.4% to $4.202.70 an ounce. Kelvin Wong, senior market analyst at OANDA, said that investors are largely repositioning themselves ahead of the Federal Reserve's meeting. During his press conference earlier in the month, Jerome Powell signaled hawkish guidance on rate cuts. Investors in the U.S. Treasury Market are now adjusting their "positions." The benchmark 10-year Treasury yields in the United States held close to a peak reached?on Monday, which was a two-and-a half month high. Analysts expect to see a "hawkish" cut this week, accompanied by forecasts and guidance that indicate a high threshold of further easing next year. The U.S. The Fed's preferred inflation indicator, the Personal Consumption Expenditures Price Index (PCE), was in line with expectations. Consumer sentiment also improved in December. The private payrolls for November recorded their sharpest decline in over 2-1/2 years. However, jobless claims for the week ending November 28 fell to a 3-year low. According to CME’s FedWatch Tool, the markets now give an 89% chance of a quarter point cut at the Fed’s meeting on December 9-10. Gold is a non-yielding asset that tends to be favoured by lower interest rates. Silver fell by?0.6%, to $57.76 an ounce. The white metal reached a record high of $59.32 per ounce on Friday. Wong stated that silver was a more risky play than gold, due to its low inventories, high industrial demand and the expectation of Fed rate reductions. Palladium fell 0.4%, to $1459.78, while platinum lost 0.2%, to $1638.35. (Reporting and editing by Sumana Aich, Rashmi aich and Sherry J. Phillips in Bengaluru)
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Russell: China's steel exports are up, but its aluminium exports are down.
Exports of China's steel products are surging this year, as the domestic demand – particularly in property development – is slumping. However, those of aluminum have fallen due to increased activity in the manufacturing and energy sector. China produces more steel and aluminum than the rest of the world combined. Beijing has set informal production ceilings for both sectors in order to curb overcapacity. Informally, steel production is limited to no more than 1.005 billion metric tonnes. Given that production for the first ten months of this year was 817.87 millions tons, 2025 production will likely dip below 1 billion metric tons. This would be the first time since 2019. Steel mills are trying to compensate for the soft demand by increasing exports. Customs data released on Monday shows that China's steel exports increased 6.7% in the first eleven months of this year, compared with the same period of 2024. If December exports are on par with the average of the year, then China's steel shipment will be around 117 million tonnes, which would?mark an all-time high, surpassing the 112,39 million tons in 2015. Steel mills are currently able to benefit from exports as domestic prices have been near their lowest levels in five years. On Monday, Shanghai exchange rebar ended at 3,128 Yuan ($442.43) per?ton, after trading mostly sideways, since the low of 3,012 Yuan was reached early June. Chinese steel is competitively priced against other benchmarks. Last week, LME contracts for Turkish rebar ended at $560.50 per ton. China has been able to increase steel exports, despite the fact that several countries have placed tariffs on imports to protect domestic producers. Buying cheaper Chinese steel is a good idea, as much of China's production goes to other Asian nations, particularly those with limited steel production. ALUMINIUM SLUMP China's exports of refined aluminum and its products, which have fallen by 9.2% in the first 11 month of the year, totalled 5.59 million tonnes. China's aluminum production is expected to be very close to the 45-million-ton annual cap. More demand for metal from the manufacturing and energy sectors of the country has also led to less available metal to export. Loss of Chinese aluminum on global markets pushed benchmark London prices up to $2,920 per?ton in December 5th. This was the highest price since May 2022. The contract has increased by 27% from its early April 2025 low price of $2,300. The rising prices of metals have provided some relief to Western based smelters that have been struggling to stay competitive in the past few years. This is especially true for those in Europe and Australia who have had to contend with increasing energy costs. Beijing's annual aluminum output cap of 45 million tons is likely to further tighten global supply in 2026. It is a question of whether China's Steel sector will follow in the footsteps of aluminium. It will depend on the speed of recovery in domestic demand if Beijing limits annual steel production at a maximum 1 billion tons. While construction is a drag on China's steel industry, the mills are likely to continue trying to reduce capacity or export their way to profitability by retiring old furnaces. You like this column? Open Interest (ROI) is your new essential source of global financial commentary. ROI provides data-driven, thought-provoking analysis on everything from soybeans to swap rates. The markets are changing faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, X. These are the views of a columnist who writes for.
Gold falls for fourth day as dollar firmness and Fed rate-cut betting eases.
Gold dropped for the fourth consecutive session on Tuesday. The dollar was strong and there were fewer prospects for an interest rate reduction in the United States next month.
As of 0646 GMT, spot gold was down by 0.8%, at $4,011.85 an ounce. U.S. Gold Futures for December Delivery fell 1.6%, to $4.010.90 an ounce.
"The dollar has strengthened a little bit today, and some speculative positions have been cut back in the past week." "The gold market will consolidate for the time being," said Marex analyst Edward Meir.
After a steep rise in the session before, the dollar remained stable against its competitors. Gold becomes more expensive when the dollar is stronger.
Last week, Congress reached an agreement on the end of the longest U.S. Government shutdown in history. The absence of official data about the economy dampened expectations that the Federal Reserve would cut rates again in December.
Fed Vice-Chair Philip Jefferson said Monday that the U.S. Central Bank needed to "proceed gradually" with additional rate cuts. This has dented expectations of a reduction next month.
Gold that does not yield tends to perform well in low interest rate environments and times of economic uncertainty.
This week, the focus will be on U.S. economic data, such as the nonfarm payrolls September report, which is released on Thursday. These releases can provide clues about the health of the largest economy in the world.
"Expectations that the Fed would cut again next months dropped from a peak of almost 100% shortly after the September announcement to just 42% over night. ANZ noted that this has impacted investor appetite for the yellow metal.
The medium- and longer-term investment demand is expected to be supported by structural tailwinds such as geopolitical uncertainties, concerns over U.S. debt sustainability and de-dollarisation.
Spot silver dropped 1.1% to $49,63 an ounce. Platinum fell 1.3% to $1514,35 and palladium declined 1.2% to 1,369.78. (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)
(source: Reuters)