China Tightens Curbs on Exports of Materials With Chip-Making Applications to U.S. -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 1.5% at $72.94 a barrel

--European benchmark gas is flat at 48.63 euros a megawatt-hour

--Gold futures are up 0.7% at $2,676.90 a troy ounce

--LME three-month copper futures are up 1.7% at $9,146.50 a metric ton

TOP STORY:

China Tightens Curbs on Exports of Materials With Chip-Making Applications to U.S.

China will strengthen controls on U.S.-bound exports of some materials that are used in chip making and can have military applications, a move that comes amid rising trade tensions between the two countries.

The Chinese Ministry of Commerce said Tuesday that it will ban exports of so-called dual-use materials to the U.S. for military purposes. The restriction applies to gallium, germanium, antimony and superhard materials, the ministry said, citing national security concerns.

It also said it will conduct stricter end-user and end-use reviews for graphite going to the U.S.

OTHER STORIES:

Tesla's China Sales Fall as Competition Heats Up

Tesla's sales in China fell in November amid intensifying competition from Chinese rivals.

The U.S. electric-vehicle maker sold 78,856 China-made cars in November, down 4.3% compared with a year earlier but 15% higher from the previous month, data from the China Passenger Car Association showed Tuesday.

--

Enbridge Sets 2025 Growth Targets, Raises Dividend

Enbridge set its growth targets for 2025 and raised its dividend as global oil consumption rebounds and demand for natural gas increases.

For 2025, the Canadian pipeline and energy company Tuesday said it expects earnings before interest, taxes, depreciation and amortization to come in between 19.4 billion Canadian dollars ($13.81 billion) and C$20 billion.

--

SSAB's Americas Head to Retire Next Summer

SSAB said Tuesday that Chuck Schmitt, the head of its Americas business, will retire in the summer of 2025.

Schmitt has been head of SSAB Americas and a member of SSAB's group executive committee since 2011. He has been with the company since 1990, starting at the U.S.-based IPSCO, which was later acquired by SSAB.

MARKET TALKS:

Gold Futures Rise But Gains Limited Ahead of U.S. Economic Data -- Market Talk

1414 GMT - Gold futures rise but struggle to break out of a narrow range ahead of key U.S. economic data. Futures rise 0.2% to $2,664.80 a troy ounce. Gold has been kept in a tight range as persistent dollar strength continues to pressure commodities, Capital.com's Daniela Sabin Hathorn says in a note. The precious metal has been hovering around the $2,650-an-ounce mark for the past week as a breakaway rally was halted on Monday. That short-lived rally reflected escalating Eastern Europe tensions. The lack of follow-through and the farfetchedness of Russian nuclear threats saw the markets reverse some safe-haven buying, Hathorn writes. The Federal Reserve's policy outlook also continues to drive market sentiment toward gold and it might shift this week as U.S. jobs data is released on Wednesday, Hathorn adds. ([e-mail])

--

Europe's Gas Price Bolstered by Colder Weather, Stricter EU Storage Target -- Market Talk

1339 GMT - European natural-gas prices continue to hover around this year's record highs, driven by colder weather forecasts and stricter EU storage mandates. The benchmark Dutch TTF contract trades flat at 48.65 euros a megawatt hour and is up more than 24% on the month. Industry group Gas Infrastructure Europe shows EU storage was 85.17% full as of Sunday. According to market watchers, if lower temperatures raise heating demand and withdrawals continue at the same pace, it could be difficult to achieve the EU increased target for gas storage levels of 50% by Feb. 1. Stricter storage mandates could also result in higher need for gas imports to the EU and greater demand for liquefied natural gas. "Europe will be facing tough competition to secure LNG cargoes," ANZ research analysts say. ([e-mail])

--

Oil Price Reaction Likely Neutral if OPEC+ Postpones Output Hike -- Market Talk

1313 GMT - Oil prices are likely to have a muted reaction if OPEC+ decides to further delay a planned output hike as expected by the market, Commerzbank Research analysts say. "OPEC+ is expected to decide on Thursday to postpone the production increase for a further three months until the end of the first quarter," they say in a note to clients. Still, some uncertainties linger. The UAE was granted the right to gradually ramp up an additional 300,000 barrels a day of production starting from January. "It is hard to imagine that the voluntary production cuts will remain in place in full for another three months while one country is allowed to increase production," the analysts say. As traders await OPEC+'s meeting outcome on Thursday, Brent crude and WTI trade 1.7% and 1.9% higher at $73.05 and $69.39 a barrel, respectively. ([e-mail])

--

Metal Prices Rise Though Copper Demand and Supply Outlook is Muddy -- Market Talk

1149 GMT - Metal prices rise, with LME three-month copper up 0.8% at $9,071 a metric ton, and LME three-month aluminum up 0.2% at $2,605.50 a ton. Copper has been hovering around the $9,000 a ton mark since mid-November and has been hardly able to break out as the demand outlook remains subdued and the supply side outlook is mixed, Commerzbank analysts say in a note. The metal has barely benefited from slight improvements in sentiment indicators in the U.S. and China, they say. Chilean copper production rose in October, pointing to easing supply worries. However, input for Chinese copper producers is under threat, as importers have stopped buying U.S. copper scrap. There are fears the shipments, which would arrive in January, could be subject to trade conflicts, Commerzbank adds. ([e-mail])

--

Palm Oil Rises Amid Worries Over Bad Weather Conditions -- Market Talk

1017 GMT - Palm oil rose in Asian trade amid worries over ongoing bad weather conditions that could disrupt supply. There are also concerns over lower palm oil production, Phillip Nova's Lim Tai An says in commentary. The Southern Peninsular Palm Oil Millers Association reported a 5.3% decline in November's production, the analyst notes. The Bursa Malaysia Derivatives contract for February delivery rose 121 ringgit to 5,076 ringgit a ton. ([e-mail])

--

Oil Gains 1% But Trading Range Remains Narrow Ahead of OPEC+ -- Market Talk

0915 GMT - Oil prices rise in early European trade but remain in a narrow range ahead of an OPEC+ output policy meeting on Thursday. Both crude benchmarks Brent and WTI are up 1% to $72.52 and $68.81 a barrel, respectively. "Investors are in wait-and-watch mode," ANZ Research analysts say. "The market is widely expecting that the cartel will delay its planned production restart beyond January 2025 to rebalance the market and protect prices." Meanwhile, China's expanding factory activity raised hopes that oil demand could improve, with analysts now waiting to see if the world's second largest economy will soon unlock new stimulus measures to boost growth. In the Middle East, the U.S.-brokered ceasefire deal between Israel and Hezbollah is already being put to the test, with both sides accusing the other of violating it.([e-mail])

--

Gold Futures Rise as Volatility Stays Low With Few Catalysts -- Market Talk

0907 GMT - Gold futures inch up, but keep within a narrow range. Futures rise 0.3% to $2,665.60 a troy ounce. Volatility has sharply lowered and the five-day average daily price range has reduced to just $26, Pepperstone's Chris Weston says in a note. There have been six consecutive days of indecision, with most gold investors lacking the conviction to push prices higher or lower, Weston says. Futures appear to have found a fair value and for the time being the market now looks incredibly comfortable at current levels, regardless of the U.S. dollar, interest rates or geopolitical tensions, he writes. That said, calm won't likely persist for long, and if the usual seasonal December rally comes into play there may one last upwards push by year-end, he adds. ([e-mail])

--

AngloGold Ashanti's Centamin Acquisition Boosts Net Asset Value, Cash Flow -- Market Talk

0854 GMT - AngloGold Ashanti's acquisition of British peer Centamin is a logical combination that offers net asset value and free-cash-flow accretion, RBC Capital Markets analysts write in a research note. The gold miner's high free-cash-flow profile is a key differentiating feature into 2025, they say. They expect the company to release a new capital-return framework to underscore this, the analysts add. The global company acquired Centamin, and its 50% interest in the major Sukari mine, last month. On the back of this, RBC lifts its share rating to outperform from sector perform. ([e-mail])

--

China's Domestic Auto Sales Could Grow by Mid-Single-Digit Next Year, Fitch Says -- Market Talk

0801 GMT - China's domestic auto sales may grow at a mid-single-digit rate next year, supported by the government's trade-in subsidies and innovative hybrid and electric-vehicle offerings, Fitch Ratings analysts write in a note. The Chinese EV market is projected to sustain over 20% growth, they say. Meanwhile, the internal-combustion-engine vehicle market may continue to shrink as the major players have scaled back their Chinese joint ventures' operations due to falling profit, the analysts add. Steady domestic demand could help Chinese automakers weather the impact of higher tariffs on exports, Fitch says. Chinese carmakers may rely on overseas sales and plug-in hybrids to enhance margins, while some global automakers may gain EV market share in the country after embracing Chinese technologies, they add. ([e-mail]; @ivy_jiahuihuang)

--

China's Auto Export Volume Growth May Slow Next Year -- Market Talk

(MORE TO FOLLOW) Dow Jones Newswires

12-03-24 0942ET