27th January 2025
*Coal*
There was notable weakness across indices today, with prices dropping by up to $3 along parts of the curve. Front-month European gas prices fell nearly 4%, contributing to further declines in API2. Physical markets for DES ARA and Newcastle remained quiet, partly due to reduced activity from the Australia Day holiday limiting market participation.
*Brent*
Brent crude oil futures were trading at $76.25 per barrel down by 2.88% on Monday afternoon, weighed down by geopolitical and economic developments. The U.S. delayed tariffs on Colombia following concessions on migration policy, while broader trade tensions with China, Canada, and Mexico persisted. Calls from the U.S. for OPEC to lower oil prices aimed at reducing Russia’s revenue added to market uncertainty. Signs of economic slowdown in China, including contracting factory activity in January, also stoked fears of weakened global oil demand.
*Dutch TTF Gas*
European natural gas futures dipped to €47.80 down 3.81% per megawatt-hour as unseasonably warm temperatures reduced heating needs. Strong renewable energy output further cut demand for gas in power generation. However, outages at Norway’s Troll gas field provided some support. The European Union, grappling with halted Russian gas flows through Ukraine, pledged €30 million in emergency aid to Moldova for energy relief. Talks with Ukraine, Hungary, and Slovakia are ongoing to secure gas supplies via alternative routes, while Gazprom faced criticism for the crisis.
*Iron Ore*
Dalian iron ore futures gained on Monday, buoyed by steady demand in China and easing U.S.-China trade concerns following recent comments by President Trump. The most-traded May contract on the DCE rose 1.06% to 810.5 yuan ($111.54) per metric ton, marking a 4.31% increase for January. With Chinese markets set to close for the Lunar New Year holiday from Jan. 28 to Feb. 4, traders anticipate quieter activity in the near term.
*Copper*
LME three-month copper prices slipped 1.77% to $9,112 per metric ton amid weak Chinese manufacturing data, which showed a contraction to the lowest levels since August. Slower growth in China’s services sector and caution ahead of the Lunar New Year holiday added to the bearish outlook. Analysts also noted broader concerns over cooling demand from China, a key copper consumer.
