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

2250 ET - Banpu's profit is likely to recover in 2H, UOB Kay Hian analysts say in a report, as the brokerage anticipates a recovery in coal and gas prices. The Thai company has both coal and gas businesses. Coal futures could stay above $110 a ton, and gas prices will probably rebound after 2Q's low season, supported by ongoing declines in U.S. gas inventories, the analysts say. The brokerage maintains the stock's hold rating. However, it trims the stock's target price to THB4.80 from THB5.00 based on slightly lowered coal regional core price-to-earnings mean of 8.1X. Shares closed 4.0% higher at THB4.70 on Thursday. (ronnie.harui@wsj.com)

2140 ET - Petronas Chemicals' near-term earnings outlook may remain challenged by prolonged downtime at its Kertih and Pengerang plants, CIMB Securities analyst Nurzulaikha Azali says in a note. She expects its Pengerang petrochemicals complex's utilization rate to stay low in 2025 due to feedstock issues, and sees margin pressure from rising input costs and weak demand. While the company has minimal direct exposure to U.S. tariffs, structural issues and global trade risks may delay a meaningful rebound, even as a potential feedstock discount and demand recovery could support 2026 performance, she reckons. The analyst cuts her estimates for Petronas Chemicals' 2025-2027 earnings by 13%-26%. CIMB lowers Petronas Chemicals to hold from buy and trims the target price to MYR3.53 from MYR4.41. Shares are 0.6% higher at MYR3.47. (yingxian.wong@wsj.com)

1943 ET - The current quarter is a big opportunity for Aeris Resources now that its refinancing is squared away, according to Bell Potter. Analyst David Coates says it's positive that no copper or gold hedging was required by its new loan facility with Washington H. Soul Pattinson. "However, we also estimate that an increase in debt service costs of A$4 million-A$5 million per annum will partially offset the cash release and delayed repayment schedule," Bell Potter says. It sees the current quarter as a chance for Aeris to lift production materially "This would contribute to debt reduction by end 2025 and demonstrate the latent production capacity at Tritton--both key positive catalysts, in our view," Bell Potter says, referring to its copper mine. (david.winning@wsj.com; @dwinningWSJ)

1910 ET [Dow Jones]--Orica, the world's largest maker of industrial explosives, has the balance sheet to support more share buybacks, contends Jefferies. It expects leverage of 1.45x at 1H to move toward the bottom end of Orica's 1.25-2x target range through 2H. "We forecast leverage will moderate further in coming periods, which provides Orica with ample flexibility to top up the existing A$400 million buyback with further capital management initiatives, further underpinning the underlying EPS growth profile," analyst Ramoun Lazar says. Jefferies has a buy call on Orica. (david.winning@wsj.com)

1857 ET [Dow Jones]--Near term, North American lumber markets are expected to remain volatile, Interfor said, but added mid-term, lumber from Canada is expected to remain a key source of supply to meet U.S. needs. Interfor also said near-term volatility could be affected by potential tariffs on Canadian lumber exports to the U.S. Growth in U.S. lumber manufacturing capacity may be limited by labor constraints, lengthy equipment lead times, and other factors, Interfor said, adding it "expects that over the mid-term, lumber markets will continue to benefit from favorable underlying supply and demand fundamentals." (stephen.nakrosis@wsj.com)

(END) Dow Jones Newswires

May 09, 2025 12:20 ET (16:20 GMT)

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