*Coal*
Announcements earlier today that the United States and China would substantially reduce tariffs—albeit temporarily—boosted equity, oil, and gas markets through the morning session. European oil and gas prices climbed around 3% before easing back slightly in the afternoon, reflecting improved risk sentiment and hopes of stronger global demand.
Coal prices also found support, with API2 trading up by as much as $2 at one point before retreating to near flat levels by day’s end. Activity in NEWC swaps was muted, though early gains were similarly met with selling interest later in the session, pushing prices lower again.
*Brent Crude*
Oil prices rallied over 3% on Monday after the US and China agreed to a 90-day tariff truce, easing trade tensions and boosting demand outlooks for crude. The US will reduce tariffs on Chinese goods from 145% to 30%, while China will cut duties on US imports from 125% to 10%, both temporarily. This détente between the world’s two largest oil consumers offered much-needed relief to global markets, supporting both oil and broader commodity sentiment. However, gains were partially capped by bearish supply-side developments, including OPEC+ plans to accelerate production hikes in May and June. A potential US-Iran nuclear deal, which could bring more Iranian oil to market, also weighed on sentiment. June Brent was last up 2.29% at $64.88 (15:52 BST).
*Dutch TTF Gas*
European natural gas prices tracked higher, extending last week’s gains amid strong LNG demand from Asia and mounting long-term supply concerns. Competitive bidding from India and China has driven up prices, as EU utilities continue to restock ahead of peak summer cooling demand. European gas storage was only 40% full at the start of May, well below last year’s 62.7%. Sentiment was further lifted by the US-China tariff pause, seen as a boost to industrial demand in Asia. Meanwhile, the EU is preparing legal measures to ban all Russian spot LNG by end-2025 and fully phase out Russian imports by 2027. The gas storage target has also been revised downward to 83% by November. Dutch TTF Gas was up 3.24% at €35.41/MWh at last check.
*Iron Ore*
Iron ore futures on the DCE surged, with the benchmark I2509 contract closing at 718.5, up 3.16% on the day. Strong speculative interest and moderate selling activity drove prices higher, although steel mills remained cautious, limiting procurement to near-term needs. Market transactions were stable but unremarkable. In contrast, SGX TSI 62% Fe futures slipped 0.60% to $99.40/mt, reflecting some divergence between domestic Chinese sentiment and international benchmarks.
*Copper*
Copper extended gains, buoyed by easing US-China trade tensions and improving investor sentiment. Over the weekend, trade officials from both nations met in Switzerland and reported meaningful progress, with a joint statement expected later today. The prospect of reduced tariffs helped reverse April’s bearish tone, which had been fuelled by concerns over a global slowdown and strong mine output from South America. LME 3-month copper was last up 0.57% to $9,503.50 (15:58 BST).
