The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0859 GMT - Oil prices fall more than 1% as immediate concerns over supply disruptions ease after U.S. President Trump paused tariffs on Mexico and Canada, the country's biggest foreign suppliers of crude. Brent is down 1.3% at $74.95 a barrel, while WTI falls 2% to $71.70 a barrel. Meanwhile, as a 10% U.S. tariff on Chinese imports came into effect Tuesday, Beijing announced its decision to retaliate with a 15% tariff on U.S. coal and liquefied natural gas imports and a 10% levy on American crude oil and agricultural machinery, starting Monday. The move raised fears of a trade war that could ultimately hurt global growth and dampen demand, putting further pressure on prices. (giulia.petroni@wsj.com)

0344 GMT - LG Chem is set to post weaker-than-expected 2025 earnings partly due to sales declines at its electric-vehicle battery and advanced-material businesses, Nomura analyst Cindy Park writes in a note. Park cuts her operating-profit forecast for the South Korean company by 37% for 2025, lowering the valuations of its battery and advanced-material units. Still, she says the stock could gain on a possible earnings improvement for chemicals and a potential cathode restocking at its EV battery affiliate later in the year. Nomura cuts its target price for the stock by 33% to KRW280,000 but keeps a buy rating. Shares are 3.2% lower at KRW215,000. (kwanwoo.jun@wsj.com)

0313 GMT - Palm oil prices fall in early Asian trading, tracking weakness in soybean oil on the Chicago Board of Trade, says David Ng, a trader at Kuala Lumpur-based Iceberg X. However, the price weakness won't persist, he adds, citing expectations for weak palm oil output. CPO production for Jan. 1-31 is estimated to have fallen 15% on month, according to Malaysia's Southern Peninsular Palm Oil Millers Association. Ng pegs CPO support at 4,250 ringgit/ton and resistance at 4,400 ringgit/ton. The Bursa Malaysia Derivatives contract for April delivery is 43 ringgit lower at 4,324 ringgit/ton. (yingxian.wong@wsj.com)

0023 GMT - Drivers of Westgold's downgrade to FY 2025 production guidance are likely to spill into the following year as well, reckons Macquarie. Westgold expects to produce 330,000-350,000 oz of gold in FY 2025, down from a prior projection of 400,000-420,000 oz. It expects to dig up gold at a higher cost, forecasting all-in sustaining costs, or AISC, of A$2,400-A$2,600/oz. "We also assume the slower ramp-up of Bluebird and Beta Hunt, and softer grades at Big Bell, carry over into FY 2026 and cut production 10% while AISC lifts 4%," says Macquarie, referring to Westgold's mines. Still, Macquarie's revised outlook equates to a 32% year-over-year increase in production in FY 2026. It retains an outperform call on Westgold's stock. (david.winning@wsj.com; @dwinningWSJ)

2258 GMT - The proposed 25% tariff on Canadian shipments to the U.S. could cost Rayonier Advanced Materials up to $3.5 million per month while in place, the company said. "Even with these potential tariffs at currently announced levels, the company expects to cover all fixed charges, including maintenance capital and interest expenses," it said. Last year, about 11% of the company's total revenues were generated from Canadian Paperboard exports to the U.S., it added. The company also said it sees 2025 Cellulose Specialties average sales prices increasing mid-single-digit percentage from 2024 levels. (stephen.nakrosis@wsj.com)

2201 GMT - Aeris Resources held less cash at the end of 2Q than expected by Ord Minnett, which retains a hold call on the stock as it balances long-term value with a stretched balance sheet. Aeris reported A$26 million in cash at end-December, some A$4 million less than projected by Ord Minnett and despite a lower capital spend. Aeris experienced operational challenges at its Tritton copper mine, with output some 27% below Ord Minnett's forecast and costs around 27% higher. "The Tritton issues appear to have been somewhat rectified as FY 2025 guidance is unchanged with improved grades/tons set to come from Bugderygar, Avoca Tank and Murrawombie," says Ord Minnett, referring to other Aeris-owned pits. (david.winning@wsj.com; @dwinningWSJ)

11:35--U.S. tariffs increase the need to find new ways to diversify a portfolio, as they make bonds more volatile, Harbor Capital's Jake Schurmeier says. "If you're worried about higher and more volatile inflation, you are not going to get that traditional ballast from a fixed income portfolio against your basket of riskier securities," Schurmeier says. He looks at gold as a diversifier. "You get that stored value and you get kind of a different set of return streams that can do well, even if both equities and treasuries are underperforming." He says Trump tariffs add to inflation uncertainty markets have been dealing with since the pandemic. (paulo.trevisani@wsj.com; @ptrevisani)

1512 GMT - Canada's steel producers warn of significant disruption and economic hardship in Canada and the U.S. after the President Trump launched a 25 tariff on imports of steel and other goods from Canada. Catherine Cobden, president of the Canadian Steel Producers Association, says the steel industry is highly integrated across the U.S.-Canada border. With C$20 billion in annual steel trade between the countries, tariffs will hurt businesses and workers, she says. The United Steelworkers Union also says the tariffs will be devastating for workers. "This is not about fair trade; it's about political posturing at the expense of good-paying jobs," USW Canadian Director Marty Warren says. (robb.stewart@wsj.com; @Robb.Stewart)

1254 GMT - Cleveland-Cliffs Chairman and CEO Lourenco Goncalves applauds the White House's tariff strike against Canada, Mexico and China. Goncalves says President Trump's agenda, including tariffs announced over the weekend, will have an outsized benefit on the steel producer. He also anticipates benefits for Stelco, the Canadian steel company Cliffs bought last year. "Country-specific tariffs on adversaries as well as allies are a great first step, and we look forward to continuing to work with the Trump administration on further tariff action to come on steel specifically, against our adversaries and allies who have taken advantage of our market," he says. (robb.stewart@wsj.com)

1025 GMT - London-listed miners trade down as investors assess the risk of a global trade war following new tariffs imposed by U.S. President Trump. China-exposed mining stocks are among the FTSE 100 index's biggest fallers, Interactive Investor's Richard Hunter writes. Copper miner Antofogasta is the largest faller, trading down 3.8% at 1659.00 pence followed by diversified miner Glencore, which falls nearly 3% to 340.20 pence. Anglo American falls 2.8% to 2314.50 pence while Rio Tinto's London shares are down 1.9% to 4,798.50 pence. Fresnillo trades down 0.9% at 690.00 pence.(adam.whittaker@wsj.com)

1014 GMT - Palm oil ended higher, supported by a weaker Malaysian ringgit and soybean oil's gains on the Chicago board of Trade on Friday, Kenanga Futures says in a research note. A cheaper Malaysian ringgit makes the vegetable oil more appealing to foreign buyers. However, the upside may be limited due to global policy uncertainties after President Trump's fresh tariffs on Canada, Mexico and China, it adds. Meanwhile, the reduced purchasing activity from India, Pakistan and the Middle East, who have already made recent substantial purchases, may limit gains in palm oil, it adds. The Bursa Malaysia Derivatives contract for April delivery ended 84 ringgit higher at 4,373 ringgit a ton. (sherry.qin@wsj.com)

(END) Dow Jones Newswires

February 04, 2025 04:20 ET (09:20 GMT)

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