25th February 2025
Brent Crude
Brent crude continued its decline, with the April contract falling over 2.5% as concerns grew over the inflationary impact of Trump’s trade policies, raising caution at the US Federal Reserve. In Europe, speculation over a potential Trump-brokered peace deal between Russia and Ukraine also pressured prices, as it could lead to the return of Russian oil currently restricted by US sanctions. Brent crude was last trading at $72.96 as of 16h37 GMT.
Dutch TTF Natural Gas
European natural gas prices dropped over 7% to €43.82 at 16h54 GMT, as demand expectations weakened despite ongoing supply concerns. Milder weather across Europe has reduced consumption following a recent cold snap, while optimism surrounding Russia-Ukraine peace talks has added to the bearish sentiment.
Iron Ore
Iron ore futures on the DCE extended losses, with the most-traded I2505 contract closing at 813 yuan/mt, down 2.17%. Traders continued to offload cargoes, while steel mills remained selective in their purchases. PB fines in Shandong traded at 808-816 yuan/mt, down 10-15 yuan/mt, while Tangshan prices fell to 820-825 yuan/mt.
Blast furnace maintenance impacted pig iron production by 167,420 mt this week, with another 43,000 mt reduction expected next week, further weighing on demand. Additionally, restrictive steel policies in Vietnam and South Korea targeting Chinese imports have added to market pessimism. Despite this, steel mills remain profitable with low inventory pressure. 62% Fe iron ore on SGX was slightly up at $107.19, gaining 0.06%.
Copper
Copper prices declined as US President Trump’s latest restrictions on Chinese investments rattled market sentiment, weighing on both metals and equities. Despite copper’s 8% gain year-to-date, escalating trade tensions and the administration’s push for financial and technological decoupling between the world’s two largest economies raised concerns. LME 3-month copper traded at $9,402.50, down 1.01% at 16h53 GMT.
