*COAL*
International thermal coal markets extended their downward trajectory today, with API2 and NEWC futures continuing to decline. The persistent weakness in demand, coupled with ample supply and falling freight costs, has put significant pressure on prices. European gas prices also experienced substantial losses, adding to the bearish sentiment surrounding API2 swaps. Physical Newcastle markets remained relatively quiet, with NEWC swaps trading in a subdued range. As the year-end approaches, buyers are leveraging their position to secure discounts, while sellers face increasing pressure to finalize deals before the year-end.
*BRENT CRUDE*
Oil prices rose to over $72 on Monday, as China said it plans to loosen monetary policy as its economy struggles, while the rapid collapse of Syria’s government added fresh geopolitical risk.
*TTF GAS*
European natural gas prices dropped below €45 per megawatt-hour, the lowest in nearly four weeks, as mild and windy weather eased pressure on inventories. Over the weekend, Storm Darragh boosted wind power in the UK, reducing reliance on gas for electricity. While temperatures are expected to dip briefly and wind speeds slow, forecasts suggest mild and windy conditions will return next week, keeping gas demand low. Also, European LNG imports have surged to the highest level since January, with multiple shipments arriving despite some delays from the storm. In Asia, weak demand in China has prompted the country to resell LNG cargoes, taking advantage of higher spot prices.
*IRON ORE*
Iron ore fell toward $104 per ton in mid-December, halting a recent rally as investors awaited key policy announcements from China, the world’s top consumer. Markets are focused on the Central Economic Work Conference this week, which will outline China’s economic priorities and targets for 2025. Traders are speculating that Beijing will introduce additional economic support measures to address growing uncertainties, including the return of US President-elect Donald Trump. Meanwhile, data showed that consumer inflation in China slowed in November, while producer deflation continued, adding to concerns about the country’s economic outlook.
*COPPER*
Copper futures rose on Monday with LME three-month copper up 1.4% at $9,217.50 a metric ton, gaining fresh traction and tracking the rise for base metals after signals of large-scale economic support from China raised the outlook of manufacturing demand from the world’s top copper consumer. China is emphasizing the need to boost consumption and expand domestic demand in an effort to kickstart the economy. The Politburo, said Beijing must implement more proactive fiscal policies and moderately loosen monetary policies. This boosted investor appetite for some industrial metals.
