By admin 
MARKET MOVEMENTS:
–Brent crude oil is up 1.1% to $73.13 a barrel
–European benchmark gas is down 0.8% to EUR45.35 a megawatt-hour
–Gold futures are flat on $2,628.50 a troy ounce
–LME three-month copper futures are up 0.15% at $8,950 a metric ton
TOP STORY:
Nippon Steel’s U.S. Steel Acquisition Plan Referred to Biden for Review
Nippon Steel’s plan to acquire United States Steel has been referred to President Biden after a government panel reviewing the plan failed to reach a consensus.
The Japanese steelmaker said Tuesday that it had been informed of the matter by the Committee on Foreign Investment in the United States, which reviews foreign investments in the U.S. for national security risks.
Nippon Steel said that it is confident that the transaction should be approved if it is fairly evaluated on its merits.
Nippon Steel urged the U.S. president to reflect on the steps the company has taken to address national security concerns and the significant commitments it has made to grow U.S. Steel and protect American jobs. The company has pledged to invest $2.7 billion in U.S. Steel’s older plants.
OTHER STORIES:
Driving an EV? Big Oil Hopes You Don’t Cut Down on Plastic Too
“One word: plastics.” Career advice given to Dustin Hoffman’s aimless character in “The Graduate” turned out to be pretty solid. Since the film’s 1967 release, global plastic use has risen twentyfold. But the plot is thickening just as Big Oil grows dependent on the wonder-material.
As people switch to electric cars, or at least buy more fuel-efficient versions of traditional vehicles, energy companies will have too much oil on their hands.
Transport currently accounts for over half of global oil demand. Ciaran Healy, an oil market analyst at the International Energy Agency, points out that even without a further uptick in EV sales, efficiency improvements in internal combustion engine cars mean the same amount of driving will be done with less gas in the future. The IEA thinks the world is on track to have eight million barrels a day of excess oil capacity by 2030.
Energy companies hope consumers will soak up the glut through their clothing, food and electronic goods. Exxon Mobil expects demand for products that have fossil fuel-derived components and shells like “cellphones and medical supplies, as well as products necessary to preserve food and improve hygiene” to increase. London-listed BP thinks growth in petrochemicals will offset fuel declines for another decade.
—
International Seaways Shares Rise 7%, Company to Join the S&P SmallCap 600
Shares of International Seaways were trading in the green after hours Monday, following news the company will join the S&P SmallCap 600 on Dec. 30.
After the bell, the company’s shares were trading 8% higher, at $36.52. The stock ended the day’s regular session with a gain of 3.8%, closing at $33.78.
International Seaways will replace Consolidated Communications Holdings, which is being acquired by Searchlight Capital Partners and British Columbia Investment Management Corporation, according to S&P Dow Jones Indices.
International Seaways transports crude oil and petroleum products.
MARKET TALKS:
Gold Futures Flat on Low Trading Volumes, Stronger Dollar — Market Talk
1400 GMT – Gold futures are flat on thin holiday trading and a stronger U.S. dollar. Futures hover at $2,627.60 a troy ounce. U.S. Treasury yields have risen, propelling the greenback up and suppressing gold prices, SP Angel analysts say in a note. The Federal Reserve’s monetary policy outlook for 2025 has turned hawkish on inflationary concerns, with the market slashing interest rate cut expectations, SP Angel says. Higher interest rates for longer typically damp investor appetite for non-interest bearing bullion. Western ETFs have also sold gold holdings, pivoting to rival safe-haven assets like Treasuries. That said, Chinese buyers are likely looking to diversify their holdings as the dollar’s strength continues to push the yuan lower, keeping a floor under gold’s price, SP Angel adds. ([email protected])
—
U.S. Natural Gas Futures Gain in Quiet Trade — Market Talk
0835 ET – U.S. natural gas futures are higher in light trade, with participants focused on weather forecasts suggesting strong heating demand for January after a warmup this week. “The overnight weather data maintains a frosty weather system sweeping across the U.S. Jan 2-6, initially over the Midwest, then gaining territory to cover nearly all the U.S. besides portions of the West,” NatGasWeather.com says in a note. Nymex gas for January delivery is up 2.1% at $3.732/mmBtu. ([email protected])
—
Metal Prices Rise; China Copper Demand to Be in Focus in 2025 — Market Talk
1325 GMT – Metal prices rise amid low holiday trading, with LME three-month copper up 0.2% at $8,955 a metric ton and LME three-month aluminum up 1% at $2,565 a ton. China is likely to continue to be a primary focus for copper in 2025, as the moribund property market is set to further contract following years of leverage-fuelled over-expansion, SP Angel says in a note. This would suppress demand for industrial metals further. A potential China-U.S. trade war under President-elect Donald Trump will also be a primary theme for industrial metal demand, SP Angel says. Demand should continue steadily for copper from China’s grid spending, the energy transition and data center growth, though Europe’s sluggish economy may potentially offset Asian growth drivers, SP Angel says. ([email protected])
—
Palm Oil Edges Higher; Investors Wait for New Catalysts — Market Talk
1007 GMT – Palm oil edged higher as investors wait for new catalysts ahead of the Christmas and New Year holidays, Kenanga Futures analysts say in a research note. From a technical standpoint, the crude palm-oil market has broken below its previous uptrend support line and the baseline of a double-top price pattern, signaling a shift towards bearish momentum, Phillip Nova analyst Lim Tai An says in a commentary. The Bursa Malaysia Derivatives contract for March delivery rose MYR13 to MYR4,555 a ton. ([email protected])
—
Oil Prices Drift Higher in Absence of Catalysts, Low Holiday Trading — Market Talk
0925 GMT – Oil prices rise, with Brent crude up 0.65% at $72.79 a barrel and WTI up 0.7% at $69.74 a barrel. Crude is clawing back some of the losses incurred on Monday’s session despite a firmer U.S. dollar and low trading volumes ahead of the holidays. Brent is down 0.5% on-week, while WTI sits up 0.2% on week. Oil prices are likely to trade in a narrow band over the Christmas period, as investors are unlikely to drive prices higher or lower without a firmer outlook over 2025. Traders are awaiting a U.S. initial jobless claim print due on Thursday and the start of the new year for fresh catalysts, with President-elect Donald Trump taking office on Jan. 20. ([email protected])
—
Gold Futures Mount Small Recovery After Lower Rate Cut Hopes Prompted Selloff — Market Talk
0905 GMT – Gold futures tick up, recouping some ground but remaining lower on-week. Futures are up 0.2% at $2,632.50 a troy ounce. The precious metal is down 1.1% on-week as market hopes for more than two U.S. interest rate cuts in 2025 wane, Pepperstone’s Ahmad Assiri says in a note. This reflects mid-December’s Federal Reserve decision to cut rates by 25 basis points, coupled with a more cautious stance towards monetary policy going forward given renewed inflation fears, Assiri says. Higher interest rates typically damp the appeal of non-interest bearing bullion. Gold should trade in a narrow range between $2,620 and $2,660 over the holiday period, given seasonally lower trading volumes, Assiri adds. ([email protected])
—
Palm Oil Rises, Following Gains in Soybean Oil — Market Talk
0239 GMT – Palm oil prices are higher in early Asian trading, tracking soybean oil’s strength overnight on the Chicago Board of Trade. However, technical analysis indicate that the CPO market has fallen below its previous support level, which indicates a move toward a downward trend, Phillip Nova analyst Darren Lim Tai An says in a note. Lim sees support for CPO futures at 4,400 ringgit and resistance at 4,700 ringgit. The Bursa Malaysia Derivatives contract for March delivery is up 11 ringgit at 4,553 ringgit/ton. ([email protected])
—
Iron Ore Edges Higher, Likely to Be Volatile in Near Term — Market Talk
0235 GMT – Iron ore prices are slightly higher in early Asian trade. Analysts reckon that the ferrous metal’s prices are likely to be volatile in the near term with the conclusion of all major economic meetings in China this year. Investors are uncertain about Beijing’s support policies in 2025. Supply and demand continue to weaken during the steelmaking off-season, Baocheng Futures analyst Tu Weihua says in a research note. Together with the high inventories, iron-ore prices are likely to be weighed in the near term, the analyst says. However, the expectation for replenishment and the depreciation of the yuan could limit its losses, he adds. The most-traded iron ore contract on the Dalian Commodity Exchange is up 0.4% at CNY776.0 a ton. ([email protected])
—
Copper Rises Amid Positive Demand Outlook — Market Talk
0145 GMT – Copper prices are higher in early trade, thanks to positive sentiment. The global energy transition is driving demand for copper, DWS analysts write in an email. Supply constraints and long-term structural shifts could trigger a commodity super cycle, DWS says. Policymakers in the West have introduced legislation supporting the green transition, while China has invested directly in the infrastructure and supply chain for essential resources related to decarbonization, DWS adds. The three-month LME copper contract is up 0.2% at $8,927.50 a ton. ([email protected]; @ivy_jiahuihuang)
Write to Barcelona Editors at [email protected]
(END) Dow Jones Newswires
12-24-24 0940ET