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Norsk Hydro's profit forecast is beaten as the Iran war drives up aluminium prices
Norsk Hydro announced a?larger-than-expected quarterly profit on Wednesday as the Middle East war?leaded to tightening aluminum markets and pushed?up the prices of the metal. The 'Iran - war is showing how dependent Western Aluminium buyers are on Gulf Supply, with disrupted Exports and increasing Premiums. Hydro reported that higher metal prices and volume offset lower alumina prices - a chemical component used as a raw material in aluminium production. It also said that a stronger Norwegian krone had a negative impact on the power output. Hydro said that the aluminium producer's adjusted earning before interest, tax, depreciation, and amortisation fell about 8% in the first quarter 2026 to 8.67 billion Crowns ($930.1 millions). Analysts polled by company?expected a core profit average of 7.13 billion Crowns. Hydro's shares opened in Oslo 2.5% higher. Analysts at J.P. Morgan noted the 'earnings beat,' but also said that weaker cash generation and higher debt, as well as a mixed outlook on?the second-quarter, took away some of the shine from these results. The company stated that higher aluminium premiums, and increased recycling margins, should support earnings in the second quarter, while lower energy output, increased input costs, and war-related disruptions to sales are expected to be a drag. Trond Olaf Chrissen, the finance chief, said that production will also fall below historic second-quarter levels because of low water levels in Norwegian reservoirs, and due to the lowest levels of snow in many decades. SUPPLY DISRUPTIONS CAUSE PRICES TO INCREASE The Norwegian group has direct exposure to the Middle East conflict via?Qatalum - its joint venture in Qatar. Output cuts have reduced available metal, just as disruptions to Gulf supply forced?buyers into a scramble to find replacement units. The market is vulnerable to new disruptions because London Metal Exchange stocks are already low. This is especially true since many Western buyers can't easily switch from Gulf metal to Russian supplies. Aluminum prices rose to a four-year peak earlier this month. This is a sign that worries about supply are driving up prices across the board. In a press release, CEO Eivind KALLEVIK said that "strong operational performance across our upstream businesses and recycling business, combined with favorable metal prices drove a solid?first quarter". Hydro reported that the Middle East smelter closures reduced the demand for alumina and increased the global oversupply of alumina excluding China.
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Iron ore gains from China's plan to increase loan issuance
Prices of iron ore futures rose on Wednesday, as the central bank of China announced a new policy to increase loan issuance. This eased concerns about consumption. The September contract for iron ore on China's Dalian Commodity Exchange closed the day trading 0.9% higher, at 787.5 Yuan ($115.24). As of 0702 GMT, the benchmark June iron ore traded on the Singapore Exchange had risen by 0.54% to $106.35 per ton. Sources said that the People's Bank of China had asked banks to "expand the loan issuance" and make sure the outstanding loan balances showed positive growth month-over-month in April, so as to support the economy. The consultancy Mysteel said that restocking in anticipation of China's May Day holiday, which lasts for five days, and the?steady demand? for construction steel, also helped to support ore prices. The state-sponsored China Iron and Steel Association told reporters that?China's apparent raw steel consumption in the 1st quarter fell by 4.4% on an annual basis to 220 millions tons. This shows a tepid market for the material. Four sources familiar with the situation said that on Tuesday, China's iron ore state buyer lifted its ban on certain BHP ore products which had piled up in ports. Sources, who spoke on condition of anonymity, stated that steelmakers could now purchase and take delivery at ports where BHP products, such as Jimblebar Fines, a type medium iron ore, were previously "frozen". Coking coal and coke, two other steelmaking ingredients, both increased by 0.71%. The majority of steel benchmarks at the Shanghai Futures Exchange rose. Rebar rose 0.57%. Hot-rolled coils traded at a 0.8% increase, and stainless steel climbed by 0.71%. Wire rod fell 3.56%. ($1 = 6.8333 yuan) (Reporting by Ruth Chai; Editing by Subhranshu Sahu)
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Wacker Chemie reports higher first-quarter profits on cost reductions and early orders
Wacker?Chemie, a German company, posted a 45% increase in its first-quarter core profits on Wednesday. This was due to cost reductions and orders from customers that were brought forward because of disruptions related to the Iran War. Sales, however, fell compared to a year ago. Speciality chemicals manufacturer reported earnings before interest taxes, depreciation, and amortisation of 172.9 millions euros ($202.4million), up from 119.3million euros?a year ago. Sales fell 5% to 1,41 billion euros due to currency effects. Vara - Research polled analysts who predicted that the first quarter EBITDA would be 154.9 millions euros. Christian Hartel, Chief Executive, said that "given the continued weakness of the market, we started off the year well." He cited savings from a reorganization programme, and orders received earlier than anticipated as customers sought supplies. Wacker launched a cost-savings program in 2025 to reduce expenses by more than 300 million euros per year. The plan calls for the elimination of more than 1,500 positions worldwide, with most in Germany. Talks are ongoing with employees' representatives. The group stated that uncertainty about global supply chains coupled with higher raw material and energy costs related to the Middle East conflict prompted customers to place orders earlier, which boosted earnings in the third quarter. EBITDA FORECAST IS UNCHANGED Wacker reported higher earnings by division despite lower sales. This was due to lower operating costs. The polysilicon unit was the exception, with sales and EBITDA slipping due to weaker demand for solar-grade material, partly offset by ?stronger semiconductor-related business. Wacker's full-year EBITDA projection remains unchanged, at between 550 and 700 millions?euros. This is due to the continued uncertainty surrounding demand, energy costs and geopolitical risk. Hartel noted that there have been no signs of a turnaround thus far. The group's sales forecast was raised to a high single-digit growth rate from a low single-digit range. It said it passed on higher raw materials and energy prices to its customers. Chemicals players were among the 'hardest hit' in a global analysis of actions taken during the first quarter. Just over half of the 27 actions in the sector were a result of financial pressures, guidance reductions or price increases in response to the rising cost for fuel and petrochemicals.
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Finland's Neste tops expectations for core profits as fuel prices soar
Neste, the Finnish oil refiner and biofuel producer, reported a higher-than-expected core income?for its first quarter of 2026, citing the soaring fuel costs due to the Middle East conflict. However, the company kept its forecast for the full year unchanged. Neste reported that its adjusted operating income before interest, tax, depreciation, and amortization (EBITDA), more than tripled in the first quarter to?861 millions euros ($1.0 billion). This was higher than the 755.8 million euros expected by average analysts in a poll conducted by Neste. Neste CEO Heikki?Malinen said in a press release that "we have benefitted from?the?fact that we source crude oils primarily from the North Sea, and the renewable feedstock supply chain is highly diverse." Malinen said that neither Neste's crude oil nor its renewable feedstock are transported through the Strait of Hormuz. The demand for renewable fuels is increasing globally due to the blockade of Iran's Strait of Hormuz, which has caused a shortage of fuel and pushed up prices. Neste said that it still expects sales of renewable fuel to be similar in 2026 as they were in 2018. Analysts on average expected $725 per metric ton. The sales margin for its renewables segment rose?276%, to $856 in the third quarter. The volume of sales in the?business fell by 2%, to 874,000 tonnes. This included 69,000 tons sold of sustainable aviation fuel (SAF), a drop from 130,000 during the same period last year. European airlines have been pointing out the "scarcity" of SAF and calling for changes to EU rules that require them to use it.
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Powell's remarks on Iran War impact are expected to be heard soon.
Gold was largely unchanged on Wednesday as investors awaited the comments of U.S. Federal Reserve Chair Jerome Powell to assess the economic impact of the Iran War as peace negotiations stall. As of 0611 GMT spot gold was down 0.1%, at $4,590.80 an ounce. It had fallen to its lowest level in April 2 the previous session. U.S. Gold futures for delivery in June?fell by 0.1% to $4604 Investors are expecting the Fed to maintain interest rates at the end its two-day meeting, later that day. War-driven energy shocks have reignited already-high inflation. "Much market resilience since last April's panic-driven by tariffs has been based on the assumption that Fed will step in if the conditions deteriorate. Ilya Spivak is the head of global macro at Tastylive. The efforts to end the Iran conflict are at a standstill. U.S. president Donald Trump is unhappy with the latest Iranian proposal, saying that Tehran had told the U.S. they were in a state of collapse and were figuring out their leadership situation. Brent crude oil remains above $111 per barrel on reports that the U.S. is extending its blockade against Iranian ports. The likelihood of interest rates increasing is increased by higher crude oil prices. Gold is often seen as an inflation hedge, but high interest rates reduce its appeal as a non yielding asset. Investors are also focusing their attention on the central bank decisions of the Bank of England and the Bank of Canada this week. Goldman Sachs said in a late-Tuesday note that it expects the gold price to reach $5400 by year's end as central bank diversification continues. The bank said that "gold is vulnerable to further liquidation if the disruptions caused by Hormuz continue - and if bond or equity prices correct further." Silver spot rose by 0.8%, to $73.63 an ounce. Platinum fell by 0.3%, to $1,934.40. Palladium dropped 0.3%, to $1,455.57. (Reporting and editing by Subhranshu, Rashmi, and Harikrishnan Nair in Bengaluru)
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Stocks rise on optimism about earnings as Fed meeting nears
The markets found their feet in Asian trading on Wednesday, as concerns about the Iran conflict, the health of the AI industry, and corporate earnings eased. Investors also focused more attention on the Federal Reserve decision due later. MSCI's broadest Asia-Pacific share index outside of Japan reversed earlier losses and rose 0.2% as gains in Hong Kong stocks stabilized the index. The Japanese markets were closed on a public holiday. S&P 500 futures rose by 0.2% while Brent crude climbed 0.2% to $111.51 a barrel, as efforts to resolve the Iran conflict reached a deadlock. Kate Moore, Chief Investment Officer at Citi Wealth, said, "For us, the earnings are most important right now." She said that Q1 earnings were tracking growth year-over-year and increasing. Analysts usually spend the earnings season revising down numbers. The opposite seems to be occurring this season." Corporate America has shown resilience against the Iran conflict. With slightly more than one-third of S&P500 sectors already reporting profits, 81% have beaten expectations. The AI-driven rally will be further tested by the earnings of U.S. technology giants Microsoft Alphabet, Amazon, and Meta Platforms due on Wednesday. The Wall Street Journal reported on Tuesday that AI giant OpenAI missed its internal targets of weekly users and revenue. This raised concerns about the parent company ChatGPT's ability?to support massive expenditure on data centres. Shares of Oracle and CoreWeave were impacted by the report on Wall Street on Tuesday. The S&P 500 fell?0.5%, while the Nasdaq Composite dropped 0.9%. Investors also assessed the Iranian impasse. U.S. President Donald Trump was not happy with the latest proposal by Tehran, as he wanted nuclear issues addressed from the start. The Journal reported Tuesday, citing U.S. government officials, that Trump instructed his aides on how to prepare for a prolonged blockade against Iran. The market will focus on the Federal Reserve meeting in April, which is Jerome Powell's final meeting as Fed chairman. The traders believe that a hold will be a certainty. Fed funds futures price a 100% implied probability that the U.S. Central Bank will maintain rates. No policy changes are expected until the end of 2027. Analysts from ING wrote a research report that "given the challenging inflation environment caused by war, it will not?cost the Fed much to adopt a hawkish stance; while remaining on a wait and see mode." There will also be questions about the intention of Powell and Kevin Warsh to remain or leave. The yield on a 10-year Treasury bond in the United States was up by 0.8 basis points at 4,344%. Meanwhile, the U.S. Dollar?index which measures the strength of the greenback against a basket six currencies edged up by 0.1% to 98.71. This is the second consecutive day that the index has risen. The markets also digested United Arab Emirates' surprise withdrawal from OPEC. However, the rest of OPEC is expected to remain together. The UAE produces around 10% of OPEC's output. This news could have caused the Brent price to drop $5 or $6 on any given day. Brent futures front-month quickly recovered the initial loss. Gold fell 0.2% to $4,583.40. Bitcoin gained 1.1% to $77,296.62 and ether rose 1.5% to $2,331.23. (Reporting and editing by Jacqueline Wong, Kate Mayberry and Gregor Stuart Hunter)
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Siltronic's quarter results are affected by a slow inventory recovery, despite AI-driven growth.
German semiconductor materials provider Siltronic reported lower-than expected quarterly sales on Tuesday, as the company continued to be affected by an?uncertain market environment. According to a LSEG poll, the average analyst's forecast was 317 million euro. The German company's EBITDA (earnings before interest, tax, depreciation, and amortization) was?65.1 million euros compared to 78.3 millions euros last year. This is below analysts' expectations of 67.4million euros. It is encouraging that the growth of AI-driven end market has continued to strengthen. But capacity constraints at our customers, particularly in the memory-chip sector, and persistently high inventories for 200 mm products are dampening confidence," said CEO Michael Heckmeier in a press release. The slowdown in recovery of inventory levels among customers has affected chip makers and suppliers, since the demand for AI chips only partially offsets weakness in other sectors, such as automotive, PC, and memory chips. Quarterly results of companies in the 'chip -industry', such as TSMC, Texas Instruments, Intel. ASML, ASM International, and Besi, show that this sector continues to benefit from the surging demand for AI.chips and memory chip shortages. Heckmeier said that geopolitical uncertainty related to the Middle East has no direct impact on the company's business at the moment, but the company monitors the situation closely. Siltronic has confirmed its full-year guidance. Reporting by Ozan Egenay, Gdansk; editing by Matt Scuffham.
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India's gold demand tops jewellery in the March quarter for the first time.
India's gold investment demand surpassed jewellery consumption for the first quarter in history, according to the World Gold Council. Investors turned to the precious metal due to a subdued equity market. The WGC reported that a rise in gold prices had led to a drop in jewellery sales in the second largest consumer of the metal. This helped keep the overall demand steady. Sachin Jain is the chief executive officer of WGC's Indian operations. He said that for the first time, investment demand has surpassed jewellery. Investors will be more interested in gold, both retail and financial. The World Gold Council (WGC), in a report released on Wednesday, said that investment demand in the quarter of March rose?52% compared to the same period a year ago, to 82 tons. Meanwhile, jewellery demand dropped 19.5% to 66 tons. The data shows that total gold consumption in the nation increased 10.2% during the third quarter to 151 tons. The investment demand has now accounted for more than half of the total consumption, reaching 54.3%. Investors are now buying gold bars, coins and exchange-traded fund (ETF)s due to rising prices. WGC reported that inflows to gold ETFs increased 186% from a year ago, reaching a record of 20 tons. Jain said that investors have been drawn to gold ETFs by the weak stock market performance of recent quarters. This trend is likely to continue. Since the beginning of 2025 the domestic gold price has nearly doubled, and India's benchmark index Nifty 50 is up 2.4%. (Reporting and editing by Rashmi aich; Reporting by Rajendra jadhav)
TotalEnergies' earnings increase by 29% due to oil price and trading, which offset supply disruptions
* The Refining & Chemicals segment quadruples earnings
* All businesses experienced growth despite Middle East?output outages
* British counterpart BP also reported significant increases in trading (Add?details of paragraph 3-13.
By America Hernandez
PARIS, 29 April - TotalEnergies exceeded market expectations on Wednesday with a 29% increase in its 'first-quarter earnings,' boosted by strong trading, high oil prices tied to the Iran War, and regional disruptions that shut down 15% of their upstream production.
The French oil giant's net profit for the first quarter of this year was $5.4 billion. This compares to $4.2 billion last year. LSEG data shows that analysts had been expecting $5 billion.
The energy crisis has caused European companies to make billions in profits from the spike in oil prices.
Benchmark Brent crude futures reached multi-year highs of near $120 a bar after U.S. and Israeli strikes against Iran began?inlate February. This was followed by Tehran closing the Strait of Hormuz and its attacks on gulf neighbours.
The Iranian attacks damaged the liquefied gas facilities in Qatar that supply Total and Saudi Arabia’s SATORP refinery, which is co-owned by French energy company.
The war-related boost in trading boosted the net income of British rival BP by more than two-fold.
ALL SEGMENTS UP - OIL TRADING THE STONE
Total stated earlier this month that strong trading, war-driven increases in oil prices and new production would "significantly" boost its income. This will offset Middle East outages, and keep production constant.
The earnings from Total's Oil and Petroleum Products Trading, which is part of the Refining and Chemicals segment, have more than quadrupled in value to $1.6 billion.
Earnings from marketing and services rose by 9%, to $262 millions. The first quarter of 2025 saw an increase in earnings from upstream exploration and production by 5%, to $2.58 Billion.
The segment that includes LNG and gas trading saw a 2% increase at $1.3 billion.
The integrated power segment (which includes gas-fired plants, renewables, and batteries) was up by 8% to $545 million.
(source: Reuters)