6th March 2025
*Coal*
European gas prices plunged, with the front month and quarter contracts down around 9% as talks on resuming Russian gas transit through Ukraine gained traction. Despite broader energy market weakness, NEWC swaps climbed, driven by apparent buying interest. API2 prices remained steady, ending the day largely unchanged despite the gas selloff.
*Brent Crude*
Brent made another attempt to break above $70 today but fell short. A brief rally followed reports that President Trump may scrap the 10% tariff on Canadian energy imports that comply with trade agreements. However, rising OPEC supply and persistent tariff uncertainty kept prices under pressure. April settlement Brent was at $68.50 at 16:24 GMT, down 0.57%.
*Dutch TTF Gas*
European natural gas extended its sharp selloff, with prices hammered again today. The European Commission’s delay in unveiling its plan to phase out Russian fossil fuels fueled speculation that a partial resumption of Russian pipeline gas could be part of a future peace deal. Additionally, the EU confirmed some flexibility in storage targets, though member states are still expected to reach 90% storage capacity by 1 November. Dutch TTF gas was down nearly 8% to €37.77/MWh at 16:44 GMT.
*Iron Ore*
DCE iron ore futures continued to slide, with the most-traded I2505 contract closing at 771 yuan/mt, down 1.34%. Traders held back offers, while steel mills adopted a wait-and-see approach, leading to sluggish transactions. PB fines fell by 5 yuan/mt in both Shandong (775 yuan/mt) and Tangshan (785 yuan/mt).
A key domestic meeting confirmed that crude steel production controls will remain in place through 2025, reinforcing bearish sentiment. Adding to the pressure, the US imposed additional tariffs on China, driving iron ore prices to new lows. Market attention now shifts to tomorrow’s SMM steel inventory data—any decline could support pig iron demand. TSI 62%Fe iron ore on SGX is $100.72
*Copper*
Copper prices surged again as traders and smelters scrambled to secure supply ahead of the impending 25% US tariff, which would force a heavier reliance on domestic production. COMEX copper jumped around 5%, widening the spread against LME copper. The LME 3-month contract was at $9,728.50 at 16:36 GMT, up 1.51%.
