Latest Commodity News

Malaysian engineering group Gamuda announced that its Australian unit, DT Infrastructure, has secured two contracts worth a total of A$1.1 billion for solar power projects. The contracts cover the engineering, procurement, and construction (EPC) of the Smoky Creek and Guthrie's Gap solar power stations, each valued at A$550 million.

DT Infrastructure will also provide operational and maintenance services for both projects after completion. The solar plants are expected to boost Australia's clean energy capacity and support its transition towards lower carbon emissions once operational.

The contracts represent a significant investment in renewable energy infrastructure in Australia, highlighting the growing role of solar power in the country's energy mix. Gamuda, a Malaysian company, is expanding its presence in the Australian renewable energy market through these projects.

Asian stocks fell for a fourth straight session as inflation fears driven by war continued to hammer bonds. Treasury yields hit new highs, with the benchmark 10-year yield reaching 4.687% and the 30-year yield climbing to 5.198%, levels not seen since 2007. Oil prices remained elevated above $110 a barrel despite a slight dip, with the Strait of Hormuz effectively closed and geopolitical tensions involving Iran and the United States.

In corporate news, all eyes are on Nvidia's first-quarter earnings due after market close. Expectations are sky-high, with projected revenue increase of almost 80% to nearly $79 billion. However, some analysts question whether Nvidia can continue to surprise the market. The dollar strengthened against major peers, hovering near a six-week high, while gold prices slipped to their lowest since March.

Chinese leader Xi Jinping is set to host Russian President Vladimir Putin, highlighting ongoing geopolitical dynamics. European stock futures fell, while US futures were flat. The yen weakened past 159 per dollar, unwinding gains from recent intervention by Japanese authorities. The overall market sentiment remains cautious due to rising bond yields and inflation concerns.

India's power demand has surged to record levels due to heatwaves, reaching 260.45 GW on Tuesday. The National Solar Energy Federation of India has petitioned the Central Electricity Regulatory Commission against the existing price cap of 10 Indian rupees per unit, arguing it makes operations unprofitable for some players, including energy storage firms.

The industry body stated that a separate market segment intended to allow higher prices has not functioned well due to a lack of willing buyers. Power producers are forced to sell at low prices during weak demand periods but cannot compensate when demand rises because of the price ceiling.

The unchanged price cap is discouraging investment in energy storage, which could help manage future supply and demand swings. The petition highlights the need for regulatory changes to support profitability and investment in the power sector.

Oil prices edged lower on Wednesday after U.S. President Donald Trump reiterated that the war with Iran would end quickly, though investors remained cautious due to ongoing disruptions to Middle East supply. Brent crude fell 88 cents to $110.40 a barrel, while U.S. West Texas Intermediate dropped 67 cents to $103.48.

Market sentiment was mixed following comments from U.S. Vice President JD Vance that progress had been made in talks with Iran, but Trump also suggested the U.S. might need to strike Iran again if no deal is reached. Analysts noted that even if a peace agreement is concluded, crude supply is unlikely to return to pre-war levels immediately, keeping prices elevated.

Two Chinese supertankers carrying 4 million barrels of Middle East crude exited the Strait of Hormuz after waiting for over two months, while U.S. crude inventories fell for a fifth consecutive week. Citi forecasts Brent could rise to $120 a barrel in the near term, citing under-priced risks of prolonged supply disruption.

Markets are experiencing heightened volatility as highly anticipated earnings from Nvidia, the world's most valuable company, could swing its shares by $350 billion based on options pricing. Analysts expect another blockbuster report from the chipmaker central to the global AI boom, but the key question is whether Nvidia can maintain its dominance as the use of semiconductors evolves from training AI systems to running them.

Geopolitical tensions are adding to market fragility, with the Iran war pushing oil prices higher and stoking inflation fears. US President Donald Trump stated that the US may need to strike Iran again, while Chinese President Xi Jinping hosted Russian leader Vladimir Putin. Japanese Prime Minister Sanae Takaichi concluded a summit in Seoul, and Indian leader Narendra Modi is in Rome. These developments are contributing to a global shift in alliances and economic uncertainty.

Central banks are in focus, with the Bank of England's policymakers speaking to the Treasury Committee about rate cuts and the impact of the Iran war, and the US Federal Reserve releasing minutes from its April meeting, where there was a split over policy direction. Key data releases include UK CPI, Germany PPI, and Euro area HICP. Market participants are looking to incoming Fed Chair Kevin Warsh for guidance on monetary policy and central bank independence.

Inpex has agreed to acquire PetroChina's 10.67% stake in the Browse project, Australia's largest undeveloped gas resource. The project is intended to serve as backfill for the North West Shelf liquefied natural gas facility in Western Australia. The transaction is subject to regulatory approvals and joint venture partners' agreement, with completion expected in the future.

The Browse project, operated by Woodside, has been delayed and is estimated to cost A$48.7 billion ($35 billion), including carbon capture infrastructure. Inpex's acquisition is seen as a strategic move to potentially feed gas to its Ichthys LNG facility in Darwin. Woodside CEO Meg O'Neill indicated that the company would assess its pre-emption rights, but has not yet held discussions with Inpex.

Inpex has also recently taken a position in the onshore Beetaloo shale gas basin in the Northern Territory. The company has expressed interest in building a third train at Ichthys, while Santos CEO Kevin Gallagher noted that Beetaloo gas could support a second train at Darwin LNG. The deal underscores growing interest in Australian gas assets as companies seek to secure supply for LNG export projects.

Indonesian President Prabowo Subianto announced a new policy to centralize exports of key commodities, including palm oil and coal, through a state-owned enterprise. This move aims to increase state revenues by preventing under-invoicing and transfer pricing, which he claimed have cost the country up to $908 billion over the past 34 years.

The policy will designate a single government-chosen entity as the sole exporter for these resources. Prabowo stated that this regulation is a strategic step to strengthen management of commodity exports and ensure that natural resources benefit all Indonesians. The announcement confirms earlier reports from sources familiar with the plan.

Markets reacted negatively to the news, with Jakarta's main stock index dropping over 5% over two days due to concerns about changes in pricing mechanisms and reduced trader margins. The regulations needed to implement the plan have not yet been finalized, but the government intends to proceed with the centralization to optimize revenue from natural resources.

China has announced it will purchase 200 Boeing jets and seek to extend the trade agreement with the United States that was reached last year. This marks Beijing's first confirmation of the Boeing order, which was part of trade pledges made during a recent summit between U.S. President Donald Trump and Chinese President Xi Jinping in Beijing. Trump later suggested that the purchases could increase to as many as 750 planes, which would include General Electric Aerospace engines.

Under the deal, the U.S. will provide China with supply guarantees for aircraft engine parts and components. The two sides will also work toward reciprocal tariff cuts on goods worth $30 billion or more, with the condition that U.S. tariffs on Chinese products do not exceed levels set in the earlier Kuala Lumpur arrangement. That arrangement, which extended a tariff truce for a year, included U.S. tariff reductions on Chinese products and a pause on new Chinese restrictions on rare earth minerals and magnets.

The agreement represents a significant step in easing trade tensions between the world's two largest economies. The Boeing order and the potential for expanded purchases highlight the importance of aviation and trade in bilateral relations. The extension of the trade pact aims to provide stability and predictability for businesses, though uncertainties remain over the implementation of tariff cuts and supply guarantees.

Indonesian cabinet ministers met with Chinese firms operating in the country on Monday, following a letter from a Chinese industry group to the president seeking more business-friendly policies. The meeting included the Chinese ambassador and about 30 Chinese companies, mostly from the mining sector.

Energy Minister Bahlil Lahadalia said the coordination aimed to understand the companies' constraints, with the goal of ensuring their survival while generating state revenue. The meeting was described as a collaborative effort to address challenges faced by the firms.

It is unclear whether the meeting was a direct response to the letter, which alleged excessively stringent regulation, over-enforcement, and corruption by authorities. The letter was copied to the Chinese embassy and highlighted the need for policy improvements.

European airlines are falling behind global competitors and are urging the European Union to provide stronger support. They face rising regulatory costs, expensive sustainable jet fuel, and ineffective crisis management. The Airlines for Europe (A4E) group submitted its concerns to the EU, highlighting that the COVID-19 pandemic, the closure of Russian airspace, the Middle East crisis, and growing global protectionism have worsened the competitive disadvantage for EU carriers.

The airlines specifically ask for a better crisis management framework and an aviation waiver. This waiver would allow temporary suspension or adjustment of obligations when compliance is impractical or counterproductive. They also call for addressing the failure of the sustainable aviation fuel (SAF) market, airspace congestion, and the loss of market share to non-EU airlines, particularly Chinese and Middle Eastern carriers.

The sector was heavily impacted by the pandemic and recent disruptions from the U.S.-Israeli war with Iran. The EU is seeking feedback on a new Aviation and Aeronautics Strategy, with the submission deadline approaching. The airlines emphasize the need for immediate action to remain competitive globally.