Northern Star to Buy De Grey Mining in $3.26 Billion Stock Deal -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 1.3% at $72.76 a barrel.

--European benchmark gas is up 1.6% at 48.57 euros a megawatt-hour.

--Gold futures are down 0.7% at $2,663.30 a troy ounce.

--LME three-month copper futures are down 0.4% at $8,979.50 a metric ton.

TOP STORY:

Northern Star to Buy De Grey Mining in $3.26 Billion Stock Deal

Northern Star Resources agreed to buy De Grey Mining in an all-stock deal valued at roughly 5 billion Australian dollars, about US$3.26 billion, as gold companies race to secure new mines at a time when prices for the precious metal are near an all-time high.

For Northern Star, the deal secures one of the gold industry's biggest undeveloped projects, which De Grey has estimated could become one of Australia's top producing and lowest cost gold mines.

Northern Star, which runs gold-mining operations in Australia and the U.S., has been eagerly expanding production under a five-year strategy it laid out in mid-2021 to be producing 2.0 million troy ounces of gold a year, or roughly 25% more, by fiscal 2026.

OTHER STORIES:

U.S. Steelmakers to Trump: Bring On More Tariffs

Some U.S. steelmakers are backing President-elect Donald Trump's plans for tariffs on Mexico and China. They also want him to go even further.

The Steel Manufacturers Association wants tariffs to be reimposed on steel from the U.K., the European Union and Japan. The countries were included in Trump's 2018 tariffs, but President Biden later allowed some steel to enter the U.S. without duties. Among the association's members are Steel Dynamics and Nucor, the largest U.S. steel producer.

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Building Apple Products Has Become a Side Hustle for China's Biggest EV Maker

Apple products say on the box "assembled in China," leaving the mystery of who did the assembling. Owners of a new iPad might be surprised to learn one of the answers: China's biggest electric-vehicle maker.

BYD, known globally as Tesla's most formidable EV competitor, has a second business manufacturing electronics, and it has grown to assemble more than 30% of Apple's tablets, according to industry executives and analysts.

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Guangzhou Automobile Shares Surge After Disclosing Plans for Huawei EV Partnership

Guangzhou Automobile Group's shares surged after the Chinese state-owned automaker announced an electric-vehicle partnership with Huawei.

The carmaker's Hong Kong-listed shares jumped 19% to 3.55 Hong Kong dollars, equivalent to 46 U.S. cents, early Monday, on track for their largest one-day gain since March 2009. The Shanghai-listed stock rose 9.95%, making it the top gainer on the CSI 300 Index.

MARKET TALKS:

Lindt Is Better Protected Against Cocoa-Price Volatility -- Market Talk

1106 GMT - Lindt's prospects provide confidence despite the recent volatility in cocoa prices given its better position compared with peers, Barclays analysts say. This is particularly due to its seasonal gifting portfolio, which can drive market gains, the analysts say in a note. The Swiss chocolatier is better placed, with its hedging cover estimated at about nine months compared with about four to five months for some peers, they say. Lindt's pricing expectations for 2025 are increased to 13% from 11.5% and sales volumes are forecast to drop 3%, leaving organic growth at 10%, they say. "Although 2025 will be a challenging year for all cocoa players, we think Lindt will likely have a very good 2026," the analysts add. Shares are down 6.5% since the start of 2024. ([e-mail])

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Palm Oil Falls, Weighed by Decline in Malaysia Exports -- Market Talk

1003 GMT - Palm oil fell in Asian trade, reversing earlier gains after data from cargo surveyor AmSpec Agri Malaysia showed a marked on-month decline of 10.35% in Malaysia's palm oil exports over Nov. 1-30. This data could temper some bullish sentiment, Phillip Nova's Lim Tai An said in commentary. Also, traders are still cautious, given that palm oil's price premium gap over its closest competitor soybean oil might eventually damp demand owing to supply-demand imbalances, the analyst added. The Bursa Malaysia Derivatives contract for February delivery fell 62 ringgit to 4,958 ringgit a ton. ([e-mail])

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Metal Prices Slide; Significant Volatility Expected on Trump, China Policies -- Market Talk

0958 GMT - Metal prices fall, with LME three-month copper down 0.5% to $8,973 a metric ton and LME three-month aluminum down 0.7% to $2,066.50 a ton. Metal prices are likely to be volatile in 2025, with pressure from a stronger U.S. dollar and trade policy shifts under President-elect Donald Trump pitted against hopes for a long-awaited Chinese demand increase, BMI analysts say in a note. A stronger greenback makes it more expensive for international buyers to purchase dollar-denominated commodities. A potential deceleration in the energy transition and Trump's policy changes may damp to some extent the green sentiment that bolstered prices in 2024, notably for copper, BMI says. While the balance of risks is tilted to the downside, metal prices may get a boost from a possibly larger stimulus support package from China in 2025 to turnaround its moribund property sector, BMI adds. ([e-mail])

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Europe's Gas Prices Rise on Storage Fears -- Market Talk

0941 GMT - European natural-gas prices surge to their highest level this year, topping 49 euros a megawatt hour as faster storage draws drive supply concerns. Storage levels across the EU were 85.47% full as of Saturday, below the five-year average. "Lower-than-expected storage combined with the prospect of Russian piped gas via Ukraine coming to a stop at the end of this year is a worry for the market," ING analysts say. "While we still see a relatively comfortable balance by the end of the 2024/25 heating season, the region will still have a bigger task in refilling storage over the 2025 summer." Meanwhile, the EU set its target gas storage levels at 50% by Feb. 1 2025, up from 45% this year. The benchmark Dutch TTF contract currently trades 1.9% higher at 48.71 euros a megawatt hour. ([e-mail])

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Oil Rises on Chinese Data, OPEC+ Expectations -- Market Talk

0915 GMT - Oil prices rise in early European trade, supported by Chinese factory activity growth and expectations that OPEC+ will further delay its planned output hike at a meeting this week. Benchmarks Brent crude and WTI are both up 0.7% to $72.34 and $68.48 a barrel, respectively. An official gauge of China's manufacturing activity expanded modestly for a second consecutive month in November--a positive sign for the top crude oil importer's economy. Meanwhile, the market largely expects OPEC and its allies to hold oil production cuts in place for longer amid widespread concerns over weaker demand and prices. Still, "OPEC alone will hardly reverse the medium-term bearish pressures if the demand side of the equation doesn't improve," ING analysts say in a note. ([e-mail])

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Gold Futures Fall as Hopes for U.S. Interest-Rate Cut Wane -- Market Talk

0912 GMT - Gold futures slide as optimism around U.S. interest-rate cuts declines. Futures are down 1.05% at $2,652.80 a troy ounce. There are growing expectations that the U.S. Federal Reserve will skip a hoped-for interest rate cut in December, ANZ Research analysts say in a note. Higher interest rates typically damp the appeal of non-interest bearing bullion. Geopolitical tensions are mixed, with intensifying hostility in Ukraine and Israel signing a ceasefire with Lebanon. This safe-haven demand is keeping the downside for gold prices relatively protected, ANZ analysts say. The U.S. dollar is also stronger in early European trading, suppressing investor appetite for gold, ANZ says. Market focus short-term will be fixed on the next Fed meeting, set for mid-December, as well as key U.S. economic data this week including job openings and the nonfarm payroll report. ([e-mail])

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China's EV Makers May Face Slow Demand in 1Q Next Year -- Market Talk

0426 GMT - With China's trade-in subsidy program slated to finish by the end of the year, the country's EV makers could resort to aggressive promotions which may trigger front-loading of demand from 1Q of 2025 to 4Q this year, 24, Nomura analysts write in a note. This may lead to EV makers facing slow demand in 1Q 2025. The automakers may also offer promotions to attract new orders for achieving their annual sales targets in December, which may put some pressure on the demand in 1Q 2025, they say. Meanwhile, the auto export market has generally remained stable over the past two to three months, they note. Considering the potential geopolitical risks and higher tariffs, Chinese automakers may seek overseas expansion with more localized capacity as an alternative, they add.([e-mail]; @ivy_jiahuihuang)

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Iron Ore Edges Up on Strong Steel Exports, Profit Margins -- Market Talk

0231 GMT - Iron ore prices are higher in early Asian trade amid positive developments in the steel sector. Strong exports and destocking of steel have helped improve profit margins, supporting steel production, ANZ research analysts say in a commentary. Chinese steelmakers are likely to ramp up steel exports ahead of escalating global trade tensions, the analysts add. The most-traded iron-ore contract on the Dalian Commodity Exchange is up 0.75% at CNY802.0/ton. ([e-mail])

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Copper Edges Lower on Worries Over Possible U.S. Tariffs on China -- Market Talk

0213 GMT - Copper edges lower in the morning Asian session amid lingering worries over possible U.S. tariffs on imports from China. Such a move could disrupt global trade and decrease demand for metals like copper and aluminum, Saxo Bank's Ole S. Hansen says in a research report. Copper has also faced extra pressure from worries over a potential slowdown in energy transition, the head of Commodity Strategy adds. The three-month LME copper contract is 0.2% lower at $8,995.00/ton. ([e-mail])

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(END) Dow Jones Newswires

12-02-24 0826ET