23rd October 2025
Commodity markets traded firmer today, buoyed by renewed strength across the energy complex. Oil led the gains following fresh U.S. sanctions on Russian producers, lifting sentiment in both gas and coal markets.
Coal
Coal prices strengthened today, posting moderate gains across indices as broader energy markets rallied. Front-month Brent crude rose more than 5% after reports that the U.S. had imposed sanctions on major Russian oil producers, lifting sentiment across the complex. European gas prices also advanced, adding to the bullish tone. Physical DES ARA and Newcastle markets saw improved bids, reflecting firmer buying interest and renewed confidence across the physical coal sector.
Brent Crude
Oil prices climbed nearly 5% before easing slightly, supported by fresh U.S. sanctions on Russian energy giants Rosneft and Lukoil over the war in Ukraine. The measures follow similar action from the U.K. and an EU decision to ban Russian LNG imports under its latest sanctions package. Prices moderated after Kuwait’s oil minister said OPEC was prepared to offset potential supply losses by adjusting output cuts if needed. Reports that Chinese state oil firms have halted seaborne purchases from the sanctioned Russian suppliers also contributed to early strength in crude markets.
Spot Brent at 16h30 BST – $65.75/bll, up 5.03%
European LNG
European gas prices rose over 2% after the EU approved its 19th sanctions package against Russia, including a 2027 ban on LNG imports and tighter restrictions on oil firms and sanctioned shipping vessels. The measures mirror recent U.S. and U.K. actions targeting Russian energy exports. Despite the political developments, prices remained within their recent range, underpinned by ample storage and consistent LNG inflows. EU gas inventories stand at 82.8%, with Italy at 94.2%, France at 92.7%, and Germany at 75.4%. Traders are watching winter demand forecasts, with mild temperatures and firm supply helping to stabilise the market for now.
Spot Dutch TTF Gas at 1645 BST – €32.42/MWh, up 2.07%
Iron Ore
Iron ore prices edged higher, with the most-traded I2601 contract closing at CNY 777, up 0.39%. Spot cargoes at major ports gained around CNY 3, supported by steady mill demand and moderate trading activity. Hot-rolled coil inventories rose slightly while construction steel stocks declined, suggesting uneven consumption across sectors. Market sentiment remains cautious ahead of upcoming policy announcements following the conclusion of China’s key political meeting, with near-term prices expected to remain rangebound.
Spot SGX 62% iron ore at 15h30 BST – $105.30/mt, down 0.05%
Copper (LME)
Copper advanced as optimism grew that China’s new five-year plan would include further stimulus to boost domestic demand. LME copper has gained 23% year-to-date after touching a 16-month high of USD 11,000/mt earlier this month. The Chinese Communist Party concluded its Fourth Plenum on Thursday, pledging to strengthen industrial development and internal consumption. On the Shanghai Futures Exchange, copper rose 1.3% to CNY 86,070/mt, its largest daily gain since 9 October. Lead prices also rallied on both the SHFE and LME after Hebei province imposed restrictions on high-emission truck traffic, tightening regional supply.
LME 3-month copper at 16h30 BST – $10,873.50/mt, up 1.84%
The session ended on a stronger note, with oil, gas, and coal all supported by tightening supply expectations and improved market sentiment. Physical demand appeared steadier, and traders closed the day cautiously optimistic after a week of heightened volatility.
