London Commodity News
19th January 2026
Prices at 17h00 GMT
Thermal Coal: January API2 $97.20/mt, January API4 $88.75/mt
Brent Crude: $64.18/bll – Up 0.06%
Iron Ore SGX 62%Fe: $106.05/mt – Down 0.05%
LME 3-Month Copper: $12,971/mt – Up 1.15%
LME 3-month Lead: $2,061/mt Up 0.83%
Chrome Ore South African 40%-42%: $278/mt CIF China
Markets opened the week on a softer footing as easing Middle East tensions reduced risk premiums in energy, while metals diverged on policy signals, demand concerns and supply-side disruptions.
Coal
The energy complex remained volatile, with European gas prices falling around 8% early in the session after last week’s sharp gains, before recovering through the afternoon to finish about 4% lower. Shifting weather forecasts and ongoing concerns around storage levels continued to drive price swings.
API2 also softened in the morning before clawing back some losses to end marginally lower. Newcastle (NEWC) swaps found support, underpinned by firmer bids and offers in the physical Newcastle market.
Brent Crude
Oil prices eased as fears of imminent U.S. strikes on Iran faded, with Brent slipping below USD 64/bbl early Monday. The pullback followed last week’s rally above USD 66/bbl, as tensions around Iran’s protests appeared to cool and President Trump stepped back, for now, from military action. Trading was thinner due to the U.S. holiday, adding to subdued price action. Attention shifted to renewed U.S.–EU trade friction after Trump threatened tariffs on several European allies over Greenland, pressuring broader risk sentiment. Despite softer flat prices, prompt Brent spreads remained firm, signalling some tightness in the physical market. China’s increased intake of discounted Russian Urals crude, as India reduces purchases, continues to reshape global flows.
Iron Ore
Iron ore fell sharply, with the DCE I2605 contract down 2.6% to 794 yuan/mt and spot prices lower by 10–15 yuan. Sentiment weakened on market rumours of an accident at Baogang that temporarily reduced pig iron output, triggering panic selling despite limited regional impact. While prices retreated, underlying fundamentals remain supportive. Pre-holiday restocking has begun, providing spot demand support, and any further clarification around production impacts could allow prices to stabilise or rebound later in the period.
Copper (LME)
Copper firmed on the LME as a weaker dollar and safe-haven flows into metals offset concerns about softer Chinese physical demand. LME three-month copper rose back toward USD 13,000/t, while Shanghai copper slipped on profit-taking and rising inventories. Chinese data showed full-year GDP growth met the 5% target, though property weakness persists. Despite near-term demand softness, copper remains underpinned by mine disruptions and continued stock movements into the U.S. ahead of potential tariffs, keeping regional supply tight outside North America.
Chrome Ore
Chrome ore prices continued to strengthen, supported by firm spot offers, rising futures prices and tightening supply. Zimbabwe’s higher taxes and port congestion, combined with flood-related shipment risks in South Africa, have lifted costs and reduced availability, while port inventories declined. Winter stockpiling by ferrochrome producers has increased inquiries, and futures offers for South African concentrate jumped to USD 280/mt. Market sentiment remains bullish, though sustainability will depend on downstream stainless steel demand and export policy developments.
Lead
Lead markets remain weak amid soft downstream consumption. For primary lead, ample circulating supply continues to weigh on spot pricing, while secondary lead saw limited relief from regional production cuts linked to smog controls. Lead-acid battery demand has slowed sharply in January, inventories are building, and spot discounts have widened. With macro support fading and consumption subdued, lead prices are expected to remain under pressure in the near term.
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Overall, easing geopolitical risk has tempered energy prices, while metals remain caught between policy uncertainty, uneven demand and structural supply issues. Volatility is likely to persist as markets recalibrate after recent extremes.
