Commodity Snapshot shows China’s property sector stabilisation efforts are positive, but unlikely to boost demand for iron ore and steel, according to ANZ Research. Iron ore closed +1.1%, while futures held steady at $117.64.
New measures in China are expected to boost property sector construction, but will not stimulate new projects driving steel/iron ore demand. ANZ raised its short-term iron ore price target to $125/t, but fears over the Chinese property market may limit further price gains.
The World Steel Association reported a 5% year-on-year decline in global steel production to 155.7 million tonnes in April, largely due to lower output from major producers like China, Japan, Russia, and South Korea.
The Federal Open Market Committee meeting indicated a willingness to tighten policy further, as higher rates dent gold’s appeal and metals’ recent price strength, particularly copper, may attract profit-taking from speculators.
Energy
Crude oil (CL1:COM) +0.64% to $78.06.
Natural Gas (NG1:COM) -1.18% to $2.81.
Metals
Palladium (XPDUSD:CUR) -1.05% to $987.50.
Platinum (XPTUSD:CUR) -0.52% to $1,040.70.
Gold (XAUUSD:CUR) -0.83% to $2,362.47.
Agriculture
Corn (C_1:COM) +0.26% to $462.43.
Wheat (W_1:COM) -0.36% to $690.49.
Soybeans (S_1:COM) +0.14% to $1,247.27.
Must read book about investing – check here Commodity Snapshot European natural gas futures reached a two-week high of €31/MWh Commodity Snapshotdue to geopolitical tensions and supply disruption fears. Gas-fired power generation remains more profitable for utilities than coal-fired power.
European natural gas futures reached a two-week high of €31/MWh due to geopolitical tensions and supply disruption fears. Gas-fired power generation remains more profitable for utilities than coal-fired power.
Gold prices are expected to gain for the first time since October due to the US Federal Reserve’s anticipated interest rate cut in June. The Reserve Bank of India’s gold holding increased to 812.3 tonnes in January, from 803.58 tonnes in December 2023. However, Commerzbank sees limited upside potential due to the mystery surrounding the price increase. It is unlikely that gold prices will fall back to February levels, as the Fed is expected to cut interest rates in June.
Spot gold was trading -0.3% lower at $2,176.89 an ounce as markets awaited the release of U.S. CPI data, which could influence the Federal Reserve’s policy path. A hotter-than-expected reading could delay the central bank’s easing cycle. Low interest rates help bullion by reducing the opportunity cost of holding the zero-yielding asset. A mixed tone prevailed across commodity sectors, with China’s economic growth concerns affecting bulks and supply concerns supporting industrial metals.
Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.
Natural gas and crude oil prices were trading in the green, while oil prices fell earlier due to persistent demand concerns in China. NS Trading president Hiroyuki Kikukawa said that concerns over weak demand in China outweighed the extension of supply cuts by OPEC+. Mixed US jobs data prompted some traders to adjust positions. However, losses will be capped by increased geopolitical risk, with the possibility of a ceasefire in the Hamas-Israel war and conflict expansion in Russia and its neighbors. Europe remains the most impacted region, as oil product shipments from Asia have fallen since January. OPEC+’s voluntary production cut agreement could tighten the market as demand recovers from its seasonal lull.