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Baosteel's first quarter net profit falls 8.6% due to Iran war, which increases costs and weakens demand.
Baoshan Iron & Steel Co, China's largest?listed steelmaker reported a?annual?fall of 8.6% in its first-quarter?net profit. This was due to?higher costs for?feedstocks, and sluggish domestic?demand. In a filing with the Shanghai Stock Exchange, the company known as Baosteel said that it had earned approximately 2.23 billion Yuan ($326.33 millions) in the first three months of 2026. This is down from 2.43 billion Yuan in the same period of 2025. Steel prices fell 4.4% during the first quarter of this year, while iron ore rose 3.2%. This has squeezed margins according to Baosteel. It is a subsidiary owned by the China Baowu Steel Group. The prolonged Iran War, which has pushed up energy prices and fuelled inflation fears, is partly responsible for the high iron ore price. China's steel consumption continued to decline, due in part to the prolonged property market slump. It fell 4.4% between January and March. Baosteel's 2025 net profit increased by 40.53%, to 10.3 billion yuan. This was due to lower raw material costs and robust steel exports. In the quarters of January-March, the company produced respectively 12.23 million metric tonnes of iron and 1321 million tons?steel. The company received orders from overseas for steel products worth?1,96 million tons in the last quarter. This is up from?1,55 million tonne in the same period in 2025. Steel exports for the company increased 6.8% on an annual basis to 6.48 millions tons.
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Bunge's strong processing margins boost its earnings outlook
Bunge increased its adjusted full-year?profit forecast Wednesday. Citing a'strong oilseeds processing outlook and removing the uncertainty that had weighed down on results in recent quarters after?the U.S. Biofuel mandate announcement. Bunge, based on the first-quarter results and the macro-environment, expects to earn adjusted earnings per share of between $9.00 and $9.50 for the full year 2026. This is an increase from its previous range?of $7.50-$8.00. Since the Iran War began, U.S. grain has surged in price. This has triggered a flurry of sales for corn and soya beans by farmers who had stowed away their harvests from last year due to low prices. Since the U.S. and Israel attacked Iran, farmers across the Midwest have ?capitalized on climbing prices by selling corn, soy and wheat ?from storage bins to ?ethanol producers and major traders, including Archer-Daniels-Midland and Bunge . The war also caused oil prices to spike, which led to a rise in the prices of crops used for biofuels. The conflict also disrupted important fertilizer shipments which led to a rise in corn prices. Greg Heckman, CEO of Greg Heckman & Co., said: "Looking forward, the visibility is limited due to current macroeconomic conditions." The U.S. Environmental Protection Agency released higher mandates for?biofuel blends last month after a long delay. In the third quarter, net sales of its soybean processing and refinement increased by 43.4% to $9.55 billion. Softseed Processing?and Refining Segment reported quarterly net sales $3.9 billion, up from $1.52 billion one year earlier. According to LSEG, the Missouri-based 'company' posted an adjusted profit of $1.83 for the three months ending March 31. This was higher than analysts' average estimates of 87c per share. (Reporting and editing by Vijay Kishore in Bengaluru, Katha Kalia is based in Bengaluru)
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Vedanta, an Indian mining company, has seen its quarterly profit almost double on the back of metal prices surging
Vedanta, an Indian conglomerate that converts metals into oil, reported a 92.3% increase in quarterly profit on Tuesday. This was attributed to strong base metal prices which boosted the margins. The Iran War caused a disruption in supply, which led to a spike in prices for 'base metals' during the March quarter. Vedanta is India's largest aluminium producer and its business accounts for nearly 40% of revenue. The conglomerate announced earlier this month that it had approved the demerger of its four listed companies. This will take place on May 1. Its?businesses such as steel and ferrous, oil and aluminum, and power?will be spun off, while the?base metals?unit?will remain with its parent. The net profit of the Mumbai-based miner rose from 34.83billion rupees to 66.98billion rupees (706.3m) in the first quarter. Vedanta’s operating profit margins increased to 32%, from 21% one year earlier. In the quarter, benchmark prices for three-month Aluminium, Zinc, and Copper rose by?21.8% (13.8%) and 36.7% (36.7%) on an annual basis. Mining companies tend to benefit from higher commodity prices by increasing their margins and selling prices. The aluminium segment revenue grew 17.4% over the past year, while the segment for zinc and lead India grew 21.4%. The copper segment revenue increased by 53.9% compared to a year ago, which boosted total?revenues up 29.5%. The total revenue excludes inter-segment revenues and includes discontinued operations. Hindustan Zinc, a subsidiary of Vedanta, beat its quarterly profit forecast last week due to a rise in metal prices.
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GLOBAL-MARKETS-European stocks fall as traders wait for tech earnings, Fed meeting
Investors struggled to find direction as they awaited the earnings of major U.S. technology firms. The latest Federal Reserve policy meeting and technology companies are key factors. U.S. technology?stocks? declined in the previous session following a report that OpenAI, a company specializing in artificial intelligence, had missed its internal targets. This raised concerns over the sustainability of AI's boom. Oil prices were also up as a result of the Iran war. At 0918 GMT European indexes were mostly down, with London's FTSE 100 and the STOXX600 down 0.3%. Microsoft, Alphabet and Amazon are expected to report earnings later in the session. Shaniel Ramjee is the co-head of Pictet Asset Management's multi-asset investment division. He said that investors will focus on capital spending plans by so-called hyperscalers who operate huge?data centers and AI infrastructure. OpenAI raised some questions yesterday about the spending targets and whether that would impact the overall budget. The market will pay close attention to what hyperscalers have to say today about how much money they are willing and able spend as well as where the money is coming from. IRAN WAR OIL PRICE There are few signs of an end to the Iran war two months after it began. U.S. president Donald Trump said he was not happy with Iran's newest proposal. The Wall Street Journal reported that he told his aides to be prepared for an extended blocking of Iran's port. Brent oil prices jumped more than 3%. Brent reached a new monthly high. Brent crude futures, for June, were last up by 3.2%, at $114.82 per barrel. This was the eighth day in a row of gains. U.S. West Texas intermediate futures, on the other hand, were up by 3.5%, at $103.42. Analysts say the United Arab Emirates decision to leave OPEC will not have a significant impact on oil prices in the near future, but it could weaken this group of oil producers. Russia claimed that the decision would increase output and reduce prices over time. Since the ceasefire of April 8, attacks on Gulf countries have slowed. FEDERAL REST Investors are also awaiting the Fed's upcoming?April meeting where policymakers will?likely keep rates the same, as they assess the economic impact of war in Iran. Pictet’s Ramjee stated that "inflation will be scrutinized with this impact, and to what extent the Fed wants look past energy price increases." The dollar index was 0.1% higher, at 98.723, and the euro was 0.1% lower at $1.1701. The dollar was a safe haven during the conflict. However, it has dropped this month from its peak in late March. The 10-year yield on U.S. Treasury bonds was 4.3576%, a 'little change'. The yields on government bonds in the Euro-zone were at their highest level in weeks as inflation concerns continued. On Thursday, the European Central Bank will likely leave rates unchanged. In the previous session, gold prices had fallen to their lowest level since April 2, a drop of 0.6%. Reporting by Gregor Stuart Hunter. Kate Mayberry, Mark Potter and Kate Mayberry edited the article.
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Gold falls as oil prices fuel inflation concerns ahead of Fed Chair remarks
As a result of?rising oil costs, gold?prices fell on Wednesday. The markets are now closely watching the remarks made by U.S. Federal Reserve Chairman Jerome Powell about the future course of interest rates. As of 0919 GMT spot gold was down by 0.3%, at $4,579.34 an ounce. It had fallen to its lowest levels since April 2, the previous session. U.S. Gold?futures delivered in June fell 0.4% to $4592.60. The efforts to end the Iran conflict are at a standstill, as U.S. president Donald Trump is unhappy with the latest Iranian proposal, which he says has informed the U.S. that it's in a state of collapse and trying to figure out its leadership. Zain Vawda is an analyst at?MarketPulse.com. She said, "Market sentiment has shifted towards skepticism about a potential U.S.Iran agreement. This reinforces the 'higher for longer' narrative." Investors are waiting for Powell's comments on whether or not the Fed is considering raising interest rates later this year, if inflation increases. Gold's appeal is impacted by high interest rates, as it is a non-yielding investment. Vawda stated that gold is "acutely sensitive" to the changing rate environment. The inflationary pressures caused by rising oil prices have exacerbated this situation, he said. If the U.S. and Iran reach a quick deal, bulls may return, pushing gold to finish between $5,300-$5,500/oz. Oil prices continued to rise as the markets assessed a recent report that stated the U.S. would extend its?blockade of Iranian ports. This will likely result in a prolonged disruption of supply from this key Middle East producing region. The World Gold Council reported that global gold demand increased 2% in the first quarter 2026, as an increase in central bank purchases and a surge of purchases of 'gold bars and coins' offset a decline of 23% in jewellery demand. Silver spot fell by 0.2%, to $72.92 an ounce. Platinum fell by 0.9%, to $1,922.83, while palladium fell 0.6%, to $1,451.46. (Reporting and editing by PhilippaFletcher in Bengaluru)
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Despite the closure of Hormuz, spot crude premiums are down from their record highs
Analysts and traders said that spot premiums on physical crude are down from the record highs they reached during the Iran war. This is because refiners have been drawing on their inventories to make up for lost Middle East supplies and have reduced processing. Citi analysts say that since the 'U.S. and Israel war against Iran, which began on February 28th, caused a near-total closing of the Strait of Hormuz the global'market has lost access to 500,000,000 barrels of crude oil and refined products. This led to a spike in prices due to panic buying. However, the increased prices have also destroyed demand among consumers and refiners. Refiners searched the world for alternatives and paid premiums. Some grades reached record highs earlier this month of over $30 per barrel. Premiums are decreasing as refiners opt to reduce production and focus on barrels sanctioned previously, while Chinese state-owned companies Sinopec, and PetroChina, tap commercial reserves and trade spot market crude. Analysts at Kpler said that "Asian demand has started to ease, as refiners reduce their production, moving the market from panic-buying and towards more selective procurement. Russian barrels dominate incremental demand." This is feeding into the Atlantic Basin where a weaker Asian pull coupled with rising supply puts pressure on medium sweet and light sweet differentials. While strategic reserve releases and inventory drawdowns provide a buffer, they are insufficient to cover the 15-million-barrel-per-day loss ?in Middle East crude supply, meaning prolonged disruption from the Strait of Hormuz closure will continue to exert upward price pressure. June Goh is a senior analyst with Sparta Commodities. She said that the correction has brought prices to "affordable levels". "The physical shortage of crude oil in the market is still present, so premiums will remain higher than pre-crisis levels. She said that it shouldn't reach the record panicked levels we experienced previously. RESERVE RELEASES, FALLING PREMIUMS Sinopec will receive approximately 1 million barrels per day of crude oil from its reserves between April and June, according to two traders who are familiar with the situation. This will allow its trading arm Unipec the opportunity to sell some West African, Brazilian, and Canadian cargoes on the spot market in this month. CNOOC and PetroChina have also exported Canadian crude from the Trans Mountain Pipeline (TMX) in this month. Requests for comment from the companies were not immediately responded to. Two trading sources said that earlier this month, Canada’s Access Western blend exported through TMX was sold at a record-breaking $8 a barrel for ICE Brent to be delivered to Asia in July. However, the price dropped to $4 last week. The premiums on European and West African crudes have also weakened. Ekofisk, a North Sea crude, was offered Tuesday at a price of less than $10 per barrel compared to Brent dated two weeks earlier, a reduction of half. The premiums for African grades like Forcados Bonny Light, and Qua Iboe have fallen to $7.75 per barrel compared to just over $10 in mid-April. Brazilian crude premiums also fell after the offers?rose above $30 a barrel in early this month, traders who are familiar with the market reported. They said that Formosa Petrochemical, a Taiwanese company, purchased 2 million barrels on a delivered-ex-ship basis of Brazilian crude for a premium between $8 and $9.00 per barrel compared to Brent dated. The traders reported that Indian refiners purchased Brazilian crude at a premium of almost $5 compared to Brent. Middle East crude prices that reached record highs in March have also fallen sharply this past month, which may lead Saudi Aramco?to cut term prices for the month of June. The premiums for WTI Midland oil from the U.S., delivered to Asia, have fallen from record highs near $40 per barrel over Dubai quotes. Two traders in this market say that recent deals for August delivery to Japan are at $20 to $22 - similar to a month earlier. WTI was trading at $7.40 per barrel above Brent in Europe on Tuesday. This is a significant increase from the $22 premium that WTI had two weeks ago. Spot premiums also fall as consumers'simply cut back on consumption' of a variety of oil products, including naphtha, for petrochemical manufacturers, liquefied petroleum gases for cooking, diesel, for hauling cargoes, and fuel oil, for ocean-going vessels. Morgan Stanley estimates demand destruction at 4.3 million barrels per day (bpd) in the second quarter. This will lead to an 800,000-bpd drop in 2026 total oil consumption. It would be the first decline since the COVID-19 epidemic.
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S&P reduces CEZ's outlook on the spin-off of regulated assets to negative
S&P, the ratings agency, has lowered its outlook for the Czech utility CEZ due to a potential divestment?of its distribution operations. This is part of a planned 'carve-out' as the government aims to control generation assets. CEZ, a central European listed company with a market capitalisation of 31 billion dollars, has proposed to spin off non-production assets and sell up to 49 percent of the new unit. At a?general meeting on June 1, shareholders will vote on plans. CEZ is owned by the Czech government to the tune of nearly 70%. S&P maintains a 'A' rating on CEZ and said that a divestment would make future cash flows less stable. S&P stated that the divestment of regulated assets could result in a drop of one notch, or even two. S&P stated that "such a change could affect our rating of CEZ, as it would shift the company away from regulated activities." This transaction provides investors with a'regulated asset' that offers predictable returns, while also generating cash to invest in gas-fired plants. The government could use the CEZ's financial resources to raise money for a plan that would buy out minority shareholders. S&P stated that "we see a danger?that the proceeds from the sale of some operations could be used by the state to increase its control over CEZ."
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ADNOC advises its clients to avoid the Hormuz Strait by loading crude oil outside of the Gulf
Abu Dhabi National Oil Company notified customers that two crude grades could be 'loaded outside of the Gulf next month, as the Strait of Hormuz was closed. ADNOC is moving the crude grades Das and Upper Zakum from the terminals on Das Island (and Zirku Island) located in the Gulf, to outside locations for loading. The exports of these terminals are down dramatically as there have been fewer ships willing to cross the strait after the U.S. - Iran?war began in late February. ADNOC informed clients that it would make cargoes available to be loaded outside the Arabian Gulf on a case by case basis, to ensure customers could continue to carry out their contractual liftings. The note did NOT say how ADNOC intended to move the "cargoes". ADNOC staff can be contacted to confirm plans to lift term loads by using alternative delivery points. ADNOC didn't immediately respond to a request for comment. The notice did not specify alternative delivery points, although sources claimed that they included ship to ship transfers "off Fujairah" in the United Arab Emirates and off Sohar (Oman). Sources added that the producer also did not specify if there would be any additional costs associated with such transfers, and if they will be paid by ADNOC of the buyer.
Gold prices drop on rising oil prices as markets wait for Powell's remarks
Gold prices dipped on Wednesday as investors awaited comments from U.S. Federal Reserve chair Jerome Powell to assess the economic impact of the Iran War.
As of 0740 GMT spot gold fell 0.4% to $4,574.26 an ounce after dropping to its lowest level in April 2 the previous session.
U.S. Gold Futures for June Delivery?fell by 0.4% to $4,579.70.
Brent crude oil soared above $112 per barrel following reports that the U.S. would extend its blockade against Iranian ports. The latest Iranian proposal has left President Donald Trump unhappy.
Ilya Spivak is the head of global macro at Tastylive. He said that higher oil prices fuelled the idea that "costlier energy would translate into inflation and steer?central banks in a hawkish direction."
Gold is often seen as an inflation hedge, but high interest rates make it less attractive as an asset that doesn't yield. Investors anticipate that the Fed will hold the interest rates at their two-day meeting in the afternoon.
The market's resilience has been largely built on the assumption that the Fed will be ready to intervene if the situation worsens. "If it sets a high bar, gold could extend lower," said Spivak. The World Gold Council said that global gold demand increased 2% on an annual basis to 1,230.9 tons in the first quarter of 2026. This was due to a rise in gold bar and coin purchases, as well as the growth of central banks buying gold.
Goldman Sachs said in a late-Tuesday note that it expects the gold price to reach $5400 by year's end as central banks continue their diversification.
The bank said that "gold is still vulnerable to liquidation if the disruptions caused by Hormuz continue and bond or equity prices correct further."
Silver spot was unchanged at $73.12, platinum was down 0.6% at $1,927.70 and palladium fell 0.4% to $1,453.63. (Reporting and editing by Subhranshu, Rashmi, Harikrishnan Nair and Noel John from Bengaluru)
(source: Reuters)