*Coal*
Coal markets saw increased activity today, with further weakness in the API2 swaps, which fell around $1 across the curve. Softer European gas prices—down nearly 1%—and easing bids in the physical DES ARA market contributed to the downside. In contrast, physical Newcastle markets remained more stable, showing limited movement on the day.
*Brent Crude*
Front-month Brent rose early in the session, supported by tightening supply and safe-haven flows amid renewed Middle East tensions. The gains follow three consecutive days of drone strikes on oil facilities in Iraq’s Kurdistan region, shutting in around 150,000 bpd. No group has claimed responsibility, but Kurdistan officials suspect Iran-backed militias. Separately, Israeli airstrikes on Syria—targeting the defence ministry in Damascus and government forces in the south—have also fuelled haven demand. September Brent was trading $68.93, up 0.60% at 16h06 BST.
*European LNG*
Dutch TTF gas traded in a narrow range, as soft demand limited the market impact of planned and unplanned outages in Norway. Gassco revised its estimate for reduced output at the Kollsnes Gas Processing Plant, now expected to fall by more than 41.5 mcm/day. Meanwhile, gas storage in Europe stands at 63.49%—over 20% below the 2024 benchmark. On the political front, EU diplomats failed again to approve new sanctions on Russia, with Slovakia reportedly seeking exemptions related to gas supply. At last look, Dutch TTF Gas was €34.68/MWh, down 0.07%
*Iron Ore*
Iron ore futures climbed as improved steel mill margins and declining port inventories in China boosted sentiment. On the Dalian Commodity Exchange, futures closed up 1.81% at CNY 785.5. Trading activity picked up, with mills buying moderately and speculators more active. Market confidence remains steady, helped by tight near-term supply and continued slight destocking in finished steel inventories. On SGX, August TSI 62% iron ore futures were up nearly 1% at $102.25/mt by 15:49 BST.
*Copper (LME)*
Copper edged lower in London ahead of a looming 50% U.S. tariff on copper imports, due 1 August. Trade talks are ongoing, with deals nearing finalisation with India and possibly Europe, while Canadian negotiations remain uncertain. Meanwhile, the LME began operating eight new warehouses in Hong Kong, receiving 5,975 tonnes of copper. This raised exchange inventories to 121,000 mt, reflecting increased market accessibility into China. LME 3-month copper slipped 0.06% to $9,625.50/mt at 15:47 BST.
*Chrome Ore*
The chrome ore market remained steady, with most participants awaiting the next round of steel tenders. Ferrochrome producers showed limited buying interest, having already met restocking needs and anticipating lower prices. Traders were slightly more active but cautious, buying only small volumes amid the unclear market outlook. Short-term stability is expected. South African 40–42% held firm at $265–270/mt.
