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

0752 GMT - Malaysia's oil and gas sector upstream service providers may be entering an earnings down-cycle that could extend into 2026, Kenanga Investment Bank analyst Lim Sin Kiat says in a note. Although upstream service providers' share prices have fallen about 50% from the peak, he advises waiting for the down-cycle to run further before adopting a "buy the dip" strategy. Downstream earnings are expected to bottom in 2025, with global petrochemical supply adjustments potentially supporting a recovery in 2026, he adds. Kenanga recommends a barbell strategy anchored by defensive midstream stocks. He pegs Petronas Chemicals as a top pick and maintains a neutral rating on Malaysia's oil and gas sector. (yingxian.wong@wsj.com)

0514 GMT - Iluka Resources, now in "cash harvest mode," could consider offloading its stake in Deterra Royalties, according to Macquarie analysts. "While we understand divestment of DRR stake could result in capital gains tax, the mineral sands market headwind present another opportunity for ILU to review its portfolio and recycle capital," the analysts say in a note. Iluka has a 20% stake in Deterra, a business it spun off in 2020. In an August investor presentation, Iluka said Deterra provides it with an additional source of long-term financial strength. It estimated the value of its stake at A$445 million. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0453 GMT - BHP's FY 2026 production guidance range for the BMA coal business is wide, which may give it some flexibility as it shutters the Saraji South mine, Morgan Stanley analysts say in a note. The miner estimates BMA FY 2026 output at 36 million-40 million metric tons, and says guidance is unchanged despite the decision to suspend low-margin Saraji South. The MS analysts say there is potential for additional tons to be produced elsewhere. Saraji South, part of the Saraji mine, has long haul distances, pushing up costs, they say. "The announced headcount reduction is likely to offset some negative impact to medium-term production." MS has an overweight rating and A$46.50 target on BHP. The stock is down 1.0% at A$39.905. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

0139 GMT - Northern Minerals' stock is too hot for Ord Minnett, which downgrades its recommendation to hold from speculative buy. Northern Minerals' valuation is up 90% in 2025 so far. But a definitive feasibility study into the Browns Range rare earths project in Australia wasn't as strong as Ord Minnett had hoped. In its base case, Northern Minerals forecasts a net present value of A$74 million after tax. That looks "soft relative to its market cap of A$326 million," analyst Matthew Hope says. The study suggests a payback of seven years from first production, with mining forecast to last 11 years. Ord Minnett says additional resources are needed. "These look likely given the Wolverine deposit remains open at depth, there are known satellite deposits, and Northern Minerals' tenement package is vast and largely unexplored," it says. (david.winning@wsj.com; @dwinningWSJ)

2335 GMT - Dyno Nobel is expected by Jefferies to shutter its Phosphate Hill fertilizer plant following a review due to conclude by end-September. "Our base case is closure ahead of a major turnaround given [long-term] uncertainties around gas cost and sulphuric acid supply," Jefferies analysts say. Yet a big improvement in fertilizer prices complicates the decision. Diammonium phosphate prices are up 30% year to date. That signals much higher earnings than the market expected and implies significant dilution if Phosphate Hill is closed, say the analysts. "We estimate operating PH could add A$0.35/share through the next turnaround providing a major conundrum for management and shareholders." Jefferies has a hold rating on the stock and raises its target to A$3.15 from A$2.60. Dyno Nobel last traded at A$2.92. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)

1434 GMT - Silver futures tumble ahead of the Federal Reserve's rate decision, with traders seen as locking in profits after prices rose to their highest level since 2011. Fundamental data also continues to show a deficit in silver supply versus demand, says Rhona O'Connell of StoneX in a note. O'Connell says "almost 13,000 metric tons of silver have effectively been withdrawn from the market so far this year" due to the appetite of ETFs for the metal and the general want for safe havens for investor money. Silver slides 1.3% to $42.38 a troy ounce. (kirk.maltais@wsj.com)

1036 GMT - Palm oil ended higher on strong export performance, according to David Ng, a trader at Kuala Lumpur-based Iceberg X, noting weaker soybean oil prices is weighing on market sentiment. He sees prices supported above 4,400 ringgit a ton and resistance at 4,550 ringgit a ton. Additionally, investor sentiment has also improved amid a broad rally in equities in Asia and the U.S. The Bursa Malaysia Derivatives contract for December delivery rises 0.1% to 4,474 ringgit a ton. (tracy.qu@wsj.com)

0917 GMT - Syensqo appointing company veteran Mike Radossich as CEO is a smart move that will drive organic growth, Bernstein analysts write. In January, Radossich will succeed Ilham Kardi, who will step down with the Belgian chemicals group in better shape than when she started, thanks largely to its late 2023 spinoff from Solvay, Bernstein says. That resulted in a stronger long-term structure, the analysts write. With the separation process complete, Syensqo can move on from a period of sluggish growth and focus on generating cash. Despite adverse chemicals-market conditions including strikes at Boeing Defense, Syensqo could return to growth next year under its new CEO, they add. Shares fall 1.6% to 70.58 euros. (william.gray@wsj.com)

(END) Dow Jones Newswires

September 18, 2025 04:20 ET (08:20 GMT)

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