11th June 2025
*Coal*
European gas and power prices climbed around 3% amid renewed safety concerns surrounding the French nuclear reactor fleet, sparking fresh fears over summer supply stability. API2 coal prices initially followed the move higher, rising by roughly $1 in early trading. However, a wave of selling in the afternoon erased those gains, leaving prices largely unchanged by the close. In contrast, Newcastle (NEWC) coal swaps rebounded modestly, recovering some of the ground lost in the previous session.
*Brent Crude*
Brent crude traded at a five-week high on Wednesday, buoyed by a tentative U.S.–China trade agreement that eased tensions and raised hopes for improved global trade flows. The two-day talks in London concluded with a framework under which China will loosen restrictions on rare earth exports, while the U.S. will relax controls on advanced semiconductor shipments. Adding to the bullish tone, U.S. crude inventories unexpectedly declined last week, with the American Petroleum Institute reporting a 370,000-barrel draw, against analyst expectations for a 700,000-barrel build. August Brent futures were up 1.48% at $67.85/bbl by 16:15 BST.
*European LNG (Dutch TTF Gas)*
Dutch TTF gas futures rebounded on Wednesday, rising 2.8% to €35.75/MWh, snapping a three-day losing streak. A surge in cooling demand across Europe—driven by hotter-than-average temperatures forecast to persist into late June—lifted gas prices. With summer demand intensifying across both Europe and Asia, pressure is building on global LNG supply. Although EU storage levels have surpassed 50%, they remain below seasonal averages following a depleted end to winter.
*Iron Ore*
Iron ore futures reversed earlier losses, supported by improved sentiment following progress in U.S.–China trade talks. The two nations agreed on a framework to reduce trade barriers, including easing export restrictions on rare earths and advanced technology. Despite the diplomatic boost, concerns about China’s domestic steel demand persist. The China Iron and Steel Association warned that the ongoing electric vehicle price war is squeezing steelmakers, as automakers push for lower steel input costs. August SGX 62% Fe futures were down 0.53% at $94.10/mt by late afternoon.
*Copper (LME)*
Copper prices declined on Wednesday, pressured by renewed concerns over Chinese demand despite trade developments. While U.S.–China negotiations yielded a framework deal, it fell short of easing broader market anxieties around tariffs and growth. China’s copper imports dipped 2.5% month-on-month in May to 427,000 tonnes, weighing on sentiment. Still, falling LME inventories lent some support, with total stocks halved over the past three months to 119,450 tonnes. A further 70,700 tonnes are earmarked for withdrawal via cancelled warrants. LME 3-month copper was down 1.02% at $9,664.50/mt at 16:15 BST.
