6th February 2025
*Coal*
NEWC swaps faced notable weakness today, with the shorter-dated contracts seeing the largest declines. Physical Newcastle cargoes for March 2025 loading traded significantly lower than last week’s levels. Meanwhile, API2 was slightly weaker in early trading but recovered throughout the day, supported by a modest uptick in European gas prices. The front-month gas contract ended the session around 2% higher.
*Brent*
Crude oil prices dipped after Donald Trump stated at the National Prayer Breakfast that he plans to lower oil prices by ramping up US production. However, losses were limited as Saudi Aramco raised its March crude prices for Asian buyers by $1.00 per barrel, from $2.90 in February to $3.90. As of 16h44 GMT, Brent crude was trading at $74.66, up 0.12%.
*Dutch TTF Gas*
A fresh cold snap in Europe has driven natural gas prices above €54/MWh, adding pressure to already declining inventories in Northwest Europe. Storage levels now stand at 51% capacity, depleting at a faster-than-usual pace as heating demand rises.
*Iron Ore*
A weaker US dollar and supply disruptions in Australia caused by cyclones and severe weather have supported iron ore prices. The benchmark March iron ore contract on SGX was at $106.60 as of 16h27 GMT.
In China, Dalian iron ore futures opened lower but gained throughout the day, with the most-traded I2505 contract closing at 817.5 yuan/mt, up 1.43%. Market activity remained mixed, with traders actively offering cargoes while steel mills exercised caution in procurement.
*Copper*
Copper prices extended their gains, driven by a weaker US dollar and easing fears of an escalating trade war. China has responded cautiously to the 10% US tariffs on its goods, opting for measured countermeasures. Meanwhile, hopes for a de-escalation in trade tensions have grown ahead of an expected call between US President Donald Trump and Chinese President Xi Jinping. As of 17h02 GMT, LME 3-month copper was up 0.44% at $9,283.50.
