Latest News
-
Dalian iron ore continues to decline as China property slump weighs
The price of iron ore futures eased on Thursday for a sixth consecutive session, as the protracted property crisis in China continued to weigh down on demand prospects. As of 0300 GMT, the most traded September iron ore contract at China's Dalian Commodity Exchange was trading 0.36% lower. It was priced at 692.5 Yuan ($96.32), per metric ton. The benchmark July ore traded on the Singapore Exchange at $92.35 per ton. Hexun Futures, a broker, stated in a report that the Chinese downstream demand has entered its off-season and inventories are continuing to build. Steelhome data shows that the total iron ore stocks across Chinese ports increased by 1.06% in a week to 133.4 millions tons as of June 13. Hexun added that the market has become cautious and real estate sales have slowed. Official data released on Monday showed that China's new house prices dropped in May, continuing a stagnation of two years. Goldman Sachs projected late Monday that demand for new homes will remain below the 2017 market peak in the coming years. This suggests that China, the second largest economy in the world, is in for a prolonged property slump. The dollar index (which measures the currency in relation to six other units) was at 98.957, and it is expected to gain 0.8% for the week. This will be its best weekly performance since the end of February. Dollar-denominated investments are less affordable for holders of currencies other than the greenback. Coking coal and coke, which are both steelmaking ingredients, fell by 1.07% and 0.69 %, respectively. The benchmarks for steel on the Shanghai Futures Exchange are mixed. The benchmarks for steel on the Shanghai Futures Exchange were mixed.
-
As Middle East tensions increase demand, gold prices are on the rise
Gold prices rose on Thursday as the Middle East tensions boosted demand for safe-haven assets. However, the cautious U.S. Federal Reserve stance regarding future rate reductions kept gains in check. As of 0215 GMT, spot gold rose 0.2% to $3,376.48 per ounce. U.S. Gold Futures fell 0.4% to $3393.70. Gold has seen a modest rise as we wait for the next step in the Israel-Iran dispute. "If the U.S. decides to directly get involved in the conflict, this could increase the geopolitical risks," KCM Trade's Chief Market Analyst Tim Waterer stated. As geopolitical tensions increased, U.S. president Donald Trump refused to confirm whether the U.S. will join Israel in its bombardment of Iranian missile and nuclear sites on Wednesday. Residents of Tehran were forced to flee the city as air strikes continued. Two U.S. government officials said on Wednesday that the U.S. military had moved aircraft and ships out of bases in the Middle East which could be vulnerable to an Iranian attack. Gold is used to store value in times of geopolitical or financial uncertainty. The Fed kept interest rates unchanged on Wednesday. Fed policymakers are still expecting to cut rates by a half-percentage-point this year but have slowed down the pace. Jerome Powell, Fed chair, warned against placing too much emphasis on this forecast, warning that "meaningful" inflation is coming as import tariffs increase. "The Fed wasn't as dovish and hawkish as many had hoped. I would argue Powell was just a little more hawkish than most people wanted. Matt Simpson, senior analyst at City Index, said that the U.S. Dollar is likely oversold and this will likely cap gold gains over the next couple of weeks. Platinum rose 1.5% to 1,342.36, and palladium increased 0.6% to 1,055.18.
-
Copper prices remain flat as traders evaluate geopolitical risk and supply constraints
The Shanghai Futures Exchange (SFE) and London Metal Exchange (LME) saw a largely flat price for copper on Thursday as the market focused mainly on the developments in the Israel/Iran conflict, while a tight supply supported the price. The LME’s three-month contract for copper was almost flat at $9,657.50 a metric ton as of 0107 GMT. SHFE’s most traded copper contract also showed little change, with a decline of 30 yuan, to 78 590 yuan (about $10,930.31) per ton. Investors closely followed tensions in the Middle East as U.S. president Donald Trump kept the rest of the world guessing as to whether Washington would join Israel’s bombardment against Iranian nuclear sites. The conflict entered its seventh-day. ANZ stated that in the long term, "any sustained increase in energy prices will likely end up weighing on the copper markets due to the higher costs to producers," Copper supplies are limited, and stocks are low In LME-registered storage warehouses, 107,350 tonnes has dropped 60% since March and is at its lowest level since May 2024. The U.S. Central Bank held interest rates at the same level on Wednesday, signaling that borrowing costs will likely continue to decline in 2025 (nL6N3SL0HH), while the U.S. Dollar Index traded higher against the majority of major currencies. Metals prices tend to rise when the dollar increases, limiting gains in price. LME aluminium remained flat at $2.546, tin rose by 0.3% to $22,465, while zinc gained 0.1%, reaching $2,640. Lead increased 0.1%, to $1.995.5. Nickel increased 0.1%, to $15,065. SHFE nickel rose by 0.6% to 119.030 yuan per ton. Tin increased 0.3% to 264,240 yuan. Aluminium advanced 0.2% at 20,680, lead advanced 0.2% at 16,870, and zinc fell 0.1% to 21980 yuan. Click or to see the latest news in metals, and other related stories. (GMT 1100 UK BOE June Bank Rate)
-
Nippon Steel CEO downplays risk of management freedom under US golden share
Nippon Steel's CEO stated on Thursday that the U.S. Government's ownership in a golden stake in U.S. Steel would not prevent it from taking management actions as it sees fit. Eiji Hashimoto spoke at a Tokyo press conference a day after Japan’s top steelmaker completed its $14.9 billion purchase of U.S. Steel. The companies confirmed they agreed to grant the U.S. Government unusual powers, which helped to end Nippon Steel’s 18-month struggle for a deal. The agreement on national security signed with the Trump Administration gives the government an economic golden share, and the president has the power to name board members. Hashimoto replied, "It will not prevent us from doing whatever we want," when asked about the impact of golden shares on management freedom. He said that Nippon Steel had proposed the golden share. After a long and rocky road to approval, spurred on by high-level opposition from politicians, the final deal reached with the U.S. Government represents an unusually high level of control that the companies conceded to save the deal. The golden share grants the U.S. Government a veto on any future acquisitions, relocation of U.S. Steel from Pittsburgh, a change in name, or a possible transfer of jobs abroad. Nippon Steel is also required to invest approximately $11 billion by 2028 in the U.S. as part of the agreement signed with the Administration. Hashimoto stated that he did not see any problem with this requirement, as the company intends to expand its investments beyond current plans. He said that the Trump administration's shift in policy towards higher tariffs increased the strategic value of the U.S. Steel purchase. (Reporting and writing by Yuka Obayashi, Editing by Sonali Paul; Written by Chang-Ran kim)
-
As the Middle East conflict escalates, Asian stocks fall and gold increases with yen.
The stock markets in Asia dipped on Thursday, while safe havens like gold and the Japanese currency gained. Investors remained on edge as they awaited the United States' possible involvement in the Israel-Iran war. Donald Trump, who spoke to reporters in front of the White House Thursday, said, "I might do it." I may or may not do it." The Wall Street Journal reported that Trump told his senior aides that he had approved plans for an attack on Iran, but was waiting to give the final order until Tehran abandoned its nuclear program. The Nikkei fell 0.8% in Japan, and the yen's strength, which lowers overseas revenue for Japan's major exporters, added to the downward pressure. Taiwan's benchmark stock index fell 0.9% and Hong Kong's Hang Seng dropped 0.8%. U.S. S&P500 futures were 0.4% lower on Thursday, despite the fact that most U.S. market are closed for a holiday. Gold rose 0.3% to $3.378 an ounce. Kyle Rodda is a senior financial market analyst at Capital.com. He said, "Market participants are still edgy. He said: "Speculations remain rife -- probably strategically fed by the Trump Administration -- that the U.S. would intervene. This would be a material escalation, and could invite direct retaliation by Iran against the U.S. This scenario could lead to a regional conflict that would have implications for the global energy supply, and possibly economic growth. Brent crude slipped to $76.32 a barrel but was still not far off the peak reached Friday, which was $78.50. The yen rose 0.2%, to 144.92 dollars, and the U.S. dollar itself gained 0.1%, to $1.1472 euros, and 0.2%, to $1.3398 against sterling. The Swiss Franc fell 0.1%, to 0.8193 dollars. Both the Bank of England (BOE) and the Swiss National Bank (SNB) will announce their policy decisions in the afternoon. The BOE is expected to maintain interest rates at current levels, while the SNB may cut rates by up to 25 basis points. The Federal Reserve sent mixed messages to the markets overnight. As expected, policymakers kept rates at the same level and maintained projections of two quarter-point cuts in interest rates this year. Jerome Powell, the Fed chair, was cautious about future easing, and said at a press conference that he expected "meaningful" inflation as a result Trump's aggressive tariffs.
-
Oil prices fall as investors consider the possibility of US intervention in Iran/Israel conflict
Oil prices fell on Thursday, as investors were hesitant to make new investments after U.S. president Donald Trump's mixed signals about the country's possible involvement in the ongoing Israel/Iran conflict. Brent crude futures dropped 37 cents or 0.48% to $76.33 per barrel at 0110 GMT, after rising 0.3% during the previous session, which was marked by high price volatility. Prices fell as much as 2.7%. U.S. West Texas Intermediate Crude for July dropped 28 cents or 0.37%, to $74.86 per barrel. It had risen 0.4% the previous month despite a drop of up to 2.4%. The August contract, which is more active, was down 21 cents or 0.29% to $73.29 per barrel. Tony Sycamore said that traders are still waiting to see if the next step in the Israel-Iran conflict will be a U.S. military strike or peace negotiations. Sycamore stated that the former could cause prices to increase by $5, while peace talks may lead to a decline of about the same magnitude. Trump told reporters on Wednesday that he could decide to have the U.S. join Israel's missile attacks against Iran. On Thursday, the conflict entered its seventh day. Analysts say that direct U.S. involvement in the conflict would escalate the conflict and increase the risk of an attack on the energy infrastructure. Iran is OPEC’s third largest producer. It extracts about 3.3 millions barrels of crude oil per day. The Strait of Hormuz is a vital waterway that transports 19 million barrels of oil per day (bpd) and its products. There are widespread concerns about the impact of the fighting on trade. The U.S. Federal Reserve held interest rates at the same level on Wednesday, but penciled in two rate reductions by the end the year. Jerome Powell, the chair of the Federal Reserve, cautioned that rate cuts will be "data dependent" and said more consumer inflation was expected as a result of President Trump's import tariffs. Lower interest rates could stimulate the economy and increase demand for oil. However, this could also lead to an increase in inflation. (Reporting and editing by Christian Schmollinger; Colleen howe)
-
Australian shares fall to 2-week lows as gold and miners stocks drop; Fed keeps rate
Australian shares fell to a new two-week low on Thursday morning, as miners and gold stocks were weighed down. Investor sentiment was dampened by the cautious tone of the U.S. Federal Reserve regarding rate cuts. By 0039 GMT the S&P/ASX 200 Index was down 0.2% to 8516.2, its lowest level since 6 June. The benchmark index ended Wednesday 0.1% lower. Investors around the world viewed the Fed as being steadfast in its rate setting, even though the U.S. central banks has left the door open to two reductions this year. Jerome Powell, Fed Chair, struck a cautious note when he stated that the Trump administration's proposed import tariffs would increase prices for consumers. Iron ore prices dropped on a slowdown in demand from China, the world's largest steel consumer, and the miners fell back 1% on the stock exchange, reaching their lowest level since 2 May. BHP Group, a mining giant, fell 0.5% and Rio Tinto, a miner of iron ore, lost 0.1%. The yellow metal's price fell 1.7% after the Fed suggested a slower pace for future rate cuts. The Financials subindex rose 0.3%, while the "Big Four banks" gained between 0.2% to 0.7%. In corporate news, National Australia Bank was forced to pay A$751,200 for alleged violations of the Consumer Data Rights Act. NAB shares rose by 0.7%. Despite a rise in oil prices, energy stocks fell by 0.7%. Woodside Energy, a major oil and gas company, fell by 1.2% while Santos, a smaller competitor in the industry dropped by 0.3%. New Zealand's benchmark S&P/NZX 50 Index was mostly unchanged at 12,600.23. The central bank has more time to decide when to reduce interest rates if the economy grows faster than expected.
-
Ternium, a steelmaker, wants a stronger USMCA in the face of tariffs
Ternium, an American steelmaker with a large business in Mexico, demanded on Wednesday that the terms of a trade agreement for the region be strengthened ahead of a review. This was despite the current challenges posed by steel tariffs levied by President Donald Trump's government. Why it's important Steel products are subject to a 50% tariff on all shipments from Mexico into the U.S., but shipments from Mexico under the U.S. Mexico-Canada (USMCA), trade agreement, are exempted from tariffs. Last week, it was reported that the U.S. is negotiating with Mexico to reduce or remove steel tariffs for imports of a certain amount. CONTEXT Some officials think it could happen sooner. The USMCA agreement is due for review in 2019. Ternium, in a presentation made to analysts on Wednesday in New York, pushed for stricter "rules" of origin as part of this review to protect the area against unfair trade. Steelmakers accuse China of dumping, a practice in which it sells its product overseas below the market value. Products can travel through another country to reach their final destination. This makes their origin difficult to determine. KEY QUOTE Analysts at J.P. Morgan wrote to clients that "while management acknowledges adverse effects on global economic growth, they see the U.S. tariffs as beneficial for globalization over the long term." By the Numbers Ternium reported that the U.S. sent 2.28 million more metric tons of steel to Mexico in 2024 than Mexico did to the U.S., despite the fact that the U.S. had previously accused Mexico's government of over-supplying its domestic steel market. What's Next? Management stated that Ternium aims to increase its market share on the local Mexican market in coming years. It said that Chinese imports are continuing to pressurize the Brazilian market. The analysts at J.P. Morgan said that Ternium may also purchase the remaining shares in Brazil's Usiminas. However, this is not a top priority for the moment. (Reporting and editing by Kylie Madry.
Gold Reserve group makes bid for Citgo parent
Gold Reserve's subsidiary Dalinar Energy Corporation submitted a better bid on Wednesday for the parent company of Venezuelan-owned refiner Citgo Petroleum, as part of an auction organized by a U.S. federal court. The mining company announced this in a press release.
The deadline to improve the bid of Contrarian Funds affiliate Red Tree Investments for Citgo Holding's parent company PDV Holding was set by a federal judge in Delaware on June 18. This bid, worth $3.7 billion, had been selected earlier in the year as the opening bid.
The court wants to reach a settlement to compensate companies for expropriations and debt defaults in Venezuela. Compensation of up to $19 Billion is being offered.
A court officer who oversees the auction is expected to recommend a winner by 2 July. Sources close to the preparations revealed that other consortia, including affiliates from trading house Vitol as well as hedge fund Elliott Investment Management were also considering bids.
Gold Reserve reported that Dalinar Energy’s revised offer, which is based on a combination equity and debt funding, has the support of a consortium, including Rusoro mining and two units from U.S. conglomerate Koch.
The revised bid would, if accepted by the Court and completed, satisfy in cash or other non-cash payment, all judgments attached to Gold Reserve's senior waterfall creditors. In a release, the company stated that the revised bid would also satisfy a significant percentage of Gold Reserve’s attached judgment.
(source: Reuters)