4th June 2025
*Coal*
API2 swaps were supported today despite a minor dip in European gas prices, with front-month contracts down just under 1%. Firmer bids in the physical DES ARA market helped lift sentiment, particularly for shorter-dated API2 swaps. Physical Newcastle saw early weakness but recovered through the session, ending slightly stronger, with overall pricing remaining relatively stable.
*Brent Crude*
Oil prices slipped on Wednesday, weighed by weak global demand, rising OPEC+ output, and growing concerns over US tariffs that could dampen the economic outlook. Gains earlier this week, driven by Canadian wildfire supply risks and stalled US-Iran nuclear talks, faded as profit-taking set in. Analysts noted that while geopolitical concerns remain, the market is struggling to build on gains. August Brent futures were down 0.35% at $65.40/bbl at 15h45 BST.
*European LNG*
European gas prices held steady near €36/MWh as the continent faces ongoing storage challenges. Norwegian maintenance reduced flows by 14 mcm/day, with further disruptions expected. Ukraine’s attacks deep into Russia added to supply concerns, though milder weather tempered demand. European storage remains just 48.3% full. Despite this, May gas demand fell nearly 5%, while LNG imports stayed strong. Some cargoes are being diverted to the Middle East amid rising summer demand. July TTF Gas was up 0.02% at €35.85 by 15h51 BST.
*Iron Ore*
Iron ore futures rebounded, with DCE’s I2509 contract closing up 1.37% at 704.5. A more optimistic tone emerged as steel mills increased procurement and bullish sentiment in the coking coal market lifted the broader ferrous complex. Stable pig iron output due to limited blast furnace maintenance also lent support. On SGX, July 62% Fe futures were up 0.05% to $95.40/mt at 16h03 BST.
*Copper (LME)*
Copper prices were flat amid lingering uncertainty around US tariff policy. The US doubled tariffs on steel and aluminium to 50% this week, raising fears that copper could follow, especially as an investigation into copper imports continues. LME inventories fell to 143,850 tons—lowest in nearly a year—after 4,600 tons were delivered out. US copper futures rebounded above $4.85/lb after Tuesday’s drop. LME 3M copper edged up 0.10% to $9,652 at 16h02 BST.
#Commodities #OilMarkets #EnergyMarkets #OPEC #NaturalGas #LNG #IronOre #Metals #Copper
