14th February 2025
*Coal*
European gas prices extended their downward trend through most of the day, dropping nearly 3% at one stage before recovering slightly by the afternoon to close marginally lower. The weakness in gas prices weighed on coal markets, with notable declines in both API2 and NEWC indices. Physical Newcastle coal for March 2025 loading traded $2.50 lower than earlier this week, adding further pressure on NEWC swaps.
*Brent Crude*
Brent crude prices are on track for their first weekly gain in a month, supported by U.S. efforts to curb Iranian oil exports and President Trump’s decision to hold off on reciprocal tariffs against trading partners. April Brent crude traded 1% higher for the week, though slightly down 0.12% on the day at $74.94.
*Dutch Gas TTF*
European natural gas prices fell below €51/MWh as forecasts of milder weather and increased wind generation are expected to reduce heating demand. Growing support for easing EU gas storage mandates, led by Germany, is also weighing on prices due to the high costs associated with maintaining storage targets.
*Iron Ore*
Iron ore futures rose in Asian trading despite weak market sentiment driven by lacklustre demand and high inventory levels. Additional U.S. tariffs on steel and aluminium are adding short-term pressure. Cyclone Zelia made landfall on Australia’s west coast, bringing heavy rains and 290km/h winds to the world’s largest iron ore hub, further impacting supply chains. March SGX TSI 62% Fe iron ore CFR China is trading at $105.95.
*Copper*
Copper prices surged to a three-month high on the LME, driven by improved demand prospects in China and a weaker U.S. dollar. The LME copper contract is up 6% this month, with U.S. Comex futures premiums over LME prices remaining above $1,000/tonne after hitting record highs this week. LME 3-month copper is currently at $9,470/mt.
