GLNCY Glencore Plc (PK)

MARKET MOVEMENTS:

-- Brent crude oil is up 0.1% at $82.63 a barrel.

-- European benchmark gas is down 1.8% to EUR47.04 a megawatt hour.

-- Gold futures are flat at $1950.60 a troy ounce.

-- LME three-month copper futures are down 0.1% to $8,177 a metric ton.

-- Wheat futures are down 0.7% to $5.75 a bushel.

TOP STORY:

Glencore-Led Group to Buy Teck's Coal Business

Canadian miner Teck Resources said it is selling its coal assets to a group led by mining and trading giant Glencore in a deal that would cap a lengthy saga and be one of the biggest in mining this year.

The transaction would value the business at around $9 billion. Under the terms of the deal, Switzerland-based Glencore will pay $6.93 billion for a 77% stake. Japan-based steelmaker Nippon will hold a 20% stake after converting existing holdings in some of Teck's coal operations and paying cash, while South Korean steelmaker Posco will hold a 3% position after converting its holdings.

The Wall Street Journal previously reported a deal with Glencore was near. Shares in Glencore rose 3% in London on Tuesday.

The deal value reflects a robust market for so-called metallurgical coal, the kind used in steelmaking.

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OTHER STORIES:

US Oil Output Set to Hit Record This Year, IEA Says

The U.S. is pumping more oil than ever, amid better-than-expected demand and supply shortfalls from Saudi Arabia and Russia, according to the International Energy Agency.

In its monthly report, the Paris-based organization said overall supply of crude oil is expected to rise by 1.7 million barrels a day this year to a record 101.8 million barrels a day, thanks largely in part to booming oil production in the U.S., alongside Brazil and Guyana.

The U.S. has "shot ahead" in terms of supply from the big three nations--the other two being Russia and Saudi Arabia--with supply 1.2 million barrels a day higher than it was a year ago, according to the IEA. That is compared to Saudi Arabia, where supply has been cut by 1.8 million barrels a day, with Russia losing a further 170,000 barrels a day since October last year.

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RWE Renewable-Electricity Generation Helps Drive Earnings Growth

RWE's net profit rose in the first nine months, driven by renewable-energy generation and growth in its supply and trading division.

The German energy company said Tuesday that net profit rose to 3.81 billion euros ($4.08 billion) from EUR2.10 billion in the first nine months of 2022.

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MARKET TALKS:

Palm Oil Rises, Tracking Soybean Oil

1012 GMT - Palm oil rose, tracking soybean oil's gains overnight on the Chicago Board of Trade. There also was improved demand for Malaysia's palm oil products from some major buyers amid the Deepavali celebration, Affin Hwang Investment Bank's analyst Nadia Aquidah says in a research report. While demand for Malaysian palm oil will likely continue to be patchy, it should be supported by crude palm oil's price competitiveness against other vegetable oils, the analyst adds. The Bursa Malaysia Derivatives contract for January delivery closed MYR103 higher at MYR3,905 a ton. (ronnie.harui@wsj.com)

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Glencore's Coal Deal Could Hurt Reputation But Lift Valuation

0948 GMT - Glencore has finally sealed a deal for a majority stake in Canadian peer Teck Resources' coal business, in a move that will do little for its public reputation, but clearly makes business sense, AJ Bell investment director Russ Mould says in a market comment. Following completion, the Anglo-Swiss commodity miner plans to spin off the new assets and its own coal portfolio into a separate, listed business in a couple of years. "If it is successful in executing its spin-off plans then the remaining Glencore businesses would be free of the stink of coal and would likely attract a higher valuation as well as having scope to pursue the acquisition of new metals assets to help position it for the energy transition," Mould says. Shares are up 3.0% at 443.80 pence. (christian.moess@wsj.com)

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Metals Fall as Markets Look to US Inflation Data

0909 GMT - Metal prices fall in early trading in London, with the market looking ahead to U.S. inflation data released later.Three-month copper is down 0.2% to $8,169 a metric ton while aluminum is 0.5% lower at $2,218.50 a ton. Gold, meanwhile, is down 0.1% to $1,949.10 a troy ounce. "For today's CPI inflation print, investors are expecting a core headline number of 3.3% year on year, down from 3.7% last month," Peak Trading Research says in a note. Peak says a weaker inflation print, "something closer to 3.0%, would help keep Fed expectations dovish, push the U.S. dollar lower, keep this risk-on rally alive, and boost our dollar-denominated futures markets." (yusuf.khan@wsj.com)

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Oil Inches Higher as Market Fundamentals Tighten

0844 GMT - Oil prices are inching higher, with market fundamentals remaining tight despite worries over global growth. Brent crude and WTI are both up 0.3% to $82.76 a barrel and $78.50 a barrel respectively. Analysts at ING said that the recent sell off in oil prices has been extreme and that the market is much tighter than appears. "While fundamentals may not be as bullish as initially thought, they are still supportive, with the market likely to be in deficit for the remainder of this year. The surplus we see early next year could even be erased if the Saudis roll over their additional voluntary supply cuts," ING added in a note. (yusuf.khan@wsj.com)

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Iron Ore Steady Amid Uncertain Trajectory for China's Property Sector

0249 GMT - Iron ore is steady in the Asian morning session. China property sector's trajectory is a key uncertainty, says CBA analyst Vivek Dhar in a research report. Aid for China's beleaguered property developers is probably the focus for a sustainable stabilization of the real estate sector, but the challenge for China's government is achieving stability for developers, Dhar says. Given homebuyer confidence has been damped and new home prices fell from June to September, it is hard to see how the government can stabilize the property sector without more direct and active involvement, Dhar adds. The most actively traded January iron ore contract on the Dalian Commodity Exchange is steady at CNY963.0 a ton. (ronnie.harui@wsj.com)

Write to Barcelona Editors at barcelonaeditors@dowjones.com

(END) Dow Jones Newswires

November 14, 2023 06:42 ET (11:42 GMT)

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