27th May 2025
Coal
Brent Crude
Brent crude traded above $65 per barrel early in the session, buoyed by relief that potential new US tariffs on the EU have been delayed. Sentiment was also supported by geopolitical tensions, as former President Trump reaffirmed his intention to consider additional sanctions on Russia in response to the latest wave of attacks on Ukraine, dampening hopes of Russian oil returning to global markets. However, the outlook remains uncertain, particularly regarding US sanctions policy. Meanwhile, OPEC+ is expected to proceed with a planned output increase of 411,000 barrels per day in July, following a similar hike scheduled for June, reinforcing the group’s strategy of gradually ramping up supply. By late afternoon, July Brent futures had fallen more than 1.28%, settling at $63.91/bbl at 16:08 BST.
European LNG
Dutch TTF gas prices posted a modest gain today, with front-month contracts rising by around 0.6% to €36.52/MWh. The market remains relatively stable, with limited volatility despite ongoing supply-side risks. An unplanned outage in Norwegian infrastructure and delayed ceasefire progress in Ukraine have added some bullish undertones. However, near-term demand remains soft, and a steady influx of LNG cargoes—some redirected from Asia—has helped contain upward pressure, keeping the market well-balanced for now.
Iron Ore
Iron ore futures on the Dalian Commodity Exchange were rangebound for most of the session, with the most-active contract (I2509) closing slightly higher at CNY727, up 0.14%. Prices remain supported by resilient steel demand in China, even as increased shipments from major exporters like Australia and Brazil introduce some downside risk. On the physical side, portside transaction activity was moderate, while spot prices for PB fines softened marginally in key regions. Market sentiment is cautiously optimistic, underpinned by constructive short-term fundamentals and steady mill production.
Copper (LME)
Copper prices were softer today, with LME 3-month contracts down 0.52% to $9,489/mt at one point. The market remains under pressure from rising global inventories and persistent macroeconomic uncertainty. While the recent easing in US-China trade tensions provided a temporary lift, concerns linger over the expiry of the current trade deal and the potential reintroduction of tariffs. Demand indicators remain mixed, with the build-up in COMEX stocks dampening bullish sentiment. Despite a weaker US dollar, copper is struggling to find firm support amid growing doubts over the pace of global industrial recovery. At last look LME 3 month copper was up 0.01% to $9609/ton
