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

1000 ET - The dollar resumes the rally triggered by the conflict in the Middle East, as inflation jitters stoke fears that U.S. interest rates will take longer to fall. Natural gas-powered aluminum plants in the Middle East suspend production and deliveries because fuel supply has been hit and shipment routes are closed. That adds to inflation pressure stemming from an energy supply shock. CME's FedWatch tool puts odds of only one Fed cut this year at 36.2%, up from 22% a week ago, when the most expected outcome was two cuts. The WSJ Dollar Index rises 0.3%. The buck strengthens 0.3% against the euro and 0.4% versus the yen. (paulo.trevisani@wsj.com; @ptrevisani)

0540 ET - Palm oil ended higher, tracking higher crude oil prices amid escalating tensions in the Middle East, according to David Ng, a trader at Kuala Lumpur-based Iceberg X. The effective closure of the Strait of Hormuz continues to support oil prices. Ng sees prices of crude palm oil supported at 4,150 ringgit a ton and resistance at 4,300 ringgit a ton. The Bursa Malaysia Derivatives contract for May delivery rose 26 ringit to 4,205 ringgit a ton. (tracy.qu@wsj.com)

0021 ET - Asian economies could look to coal as a key alternative to liquefied natural gas for uninterrupted power, say Morgan Stanley analysts in a note. There is flex capacity for coal available in South Asia, which has opened new plants for the commodity recently, they say. Around 20% of Asian power is dependent on Middle East LNG, the analysts estimate. The disruption to LNG supply due to the Iran conflict is critical for data centers and grids in the region, they say. India and Thailand have among the highest exposure to spot LNG, while Malaysian and Indonesian utilities are likely to see limited effect from fuel availability, they add. Higher LNG prices could lead to higher power spreads for efficient operators, especially in merchant markets like the Philippines and Singapore. (megan.cheah@wsj.com)

2235 ET - Petronas Chemicals could benefit from a short-term rising trend in chemicals prices amid the Middle East conflict, Maybank IB analyst Jeremie Yap says in a note. Spot olefin and urea prices are surging on plant closures and supply disruptions linked to the Strait of Hormuz, while the trend's durability hinges on the duration of the conflict and shipping access, he says. The price jump is likely event-driven and may normalize once tensions ease, he adds. Higher naphtha costs and potential feedstock disruptions at unit Pengerang Petrochemical could result in wider losses, he adds. Maybank upgrades Petronas Chemicals to hold from sell and raises the target price to 3.56 ringgit from 2.23 ringgit. Shares are 1.2% lower at 3.41 ringgit. (yingxian.wong@wsj.com)

2218 ET - Press Metal Aluminium could see near-term earnings gain from a war premium in aluminum prices amid ongoing Middle East conflict, though gains are likely to be temporary, Maybank IB analysts Loh Yan Jin and Jeremie Yap say in a note. The Middle East accounts for about 8% of global aluminum capacity, and recent disruptions have lifted prices. Sensitivity analysis shows every $100 increase in aluminum prices raises Press Metal's revenue by about 3%, but adds less than 1% to net profit, they reckon. Historical precedent from the Russia-Ukraine conflict suggests price spikes tend to be short lived, they add. Maybank maintains a hold rating on Press Metal, citing uncertain conflict duration, keeps target price at MYR7.50. Shares are 2.7% higher at MYR7.60.(yingxian.wong@wsj.com)

2147 ET - Malaysia's petrochemicals sector could see short-term gains as disruptions at the Strait of Hormuz curb naphtha feedstock flows, Maybank IB analyst Jeremie Yap says in a note. Also, closures and force majeures have been declared at QatarEnergy's polymer, methanol and urea plants, as well as at Chandra Asri Pacific's petrochemical plants, he notes. The situation remains fluid as tensions in the Middle East escalate, but olefin and urea prices may experience short-term rises until the geopolitical conflict eases, he says. Maybank maintains a negative rating on Malaysia's petrochemicals sector as it doesn't see a structural oversupply narrative change. (yingxian.wong@wsj.com)

2110 ET - China's economy should be able to mitigate oil supply disruptions despite its relatively high exposure to the Middle East, Barclays analysts say in a research note. Large strategic petroleum reserves could be released to smooth short-term oil supply disruptions and dampen prices spikes, they say. Meanwhile, China can replace Iranian crude with Russian barrels, while increasing imports from Malaysia, Brazil, Angola and Canada. As China is significantly reducing its reliance on oil and shifting toward green energy, the analysts believe oil shocks linked to Middle East geopolitical tensions are likely to have a smaller macroeconomic impact than in the past. (sherry.qin@wsj.com)

2012 ET - Aluminum continued to extend gains in Asian trade, with the three-month contract on the London Metal Exchange rising 0.3% to $3,354.00 a metric ton. The metal's gains come amid tight supply stemming from the Middle East conflict. Aluminium Bahrain BSC suspended deliveries to some customers under a force majeure clause, ANZ Research analysts say in a note. Outbound shipments have also been hurt by an effective halt on voyages through the Strait of Hormuz, they add. This follows Qatar-based smelter Qatalum starting a controlled shutdown of aluminum output on Tuesday, with a full restart expected to up to twelve months. (megan.cheah@wsj.com)

(END) Dow Jones Newswires

March 05, 2026 12:20 ET (17:20 GMT)

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