7th April 2025
Coal
Markets remained volatile as uncertainty around the scope of imminent US tariffs continued to unsettle global sentiment. Equity markets fell sharply overnight, and both European gas and oil prices opened significantly weaker this morning. However, as rumours around the extent of the tariffs fluctuated, energy markets staged a partial recovery. European gas, which was down over 5% intraday, rebounded to close more than 1% higher. Coal followed a similar path, recovering from early losses to finish the day in positive territory.
Brent Crude
Oil prices continued to decline in early Monday trading, with Brent crude falling below $64 per barrel, its lowest since April 2021. Hopes of a 90-day pause in US tariffs briefly lifted prices above $67, but markets reversed after the rumour was debunked. Investor sentiment remains fragile as escalating trade tensions raise fears of slower global growth and reduced energy demand. Adding to the bearish outlook are Saudi Aramco’s price cuts and OPEC+’s surprise production increase. Brent was down -2.91% at $63.98 as of 16h15 BST.
Dutch TTF Gas
European gas prices dropped 8%, driven by fears of reduced industrial demand amid escalating US-China trade tensions. China’s announcement of a 34% tariff on all US imports stoked inflation concerns and raised the risk of a slowdown in energy-intensive sectors. Despite President Trump dismissing recession fears, expectations of increased LNG flows to Europe—due to weaker Asian demand—and potential changes to EU storage targets add further pressure. Still, Dutch TTF rebounded slightly, up 1.33% to €37.18 at 16h16 BST.
Iron Ore
Iron ore futures tumbled on Monday, with DCE’s I2505 contract closing at 762.5, down 3.36% amid cautious sentiment and weak trading activity. Despite a sluggish spot market, supply has tightened slightly, and demand could find support as blast furnace operations resume and pig iron output increases. 62% Fe iron ore futures on SGX were trading at $97.75 for May at 16h26 BST.
Copper
Copper prices remain under pressure, down over 10% on the week amid global macroeconomic concerns driven by US tariff hikes. Although LME 3M copper recovered slightly to $8801 (+0.24%) at 15h15 BST, analysts at Citi advise against long positions, citing likely demand destruction and weak financial flows. Unless tariffs are reversed, rates are cut, or copper hits multi-year lows around $7,500/ton, bearish sentiment may persist.
