Commodity News Update

US Monetary Policy: Strong US employment data has increased market uncertainty over the Federal Reserve’s next policy move. August nonfarm payrolls rose by 162,000, well above market expectations of around 55,000. The stronger-than-expected data lifted expectations of a September rate hike to nearly 60%, putting near-term pressure on precious metals.

Fed Outlook: Fed officials Beth Hammack and Kevin Hassett maintained a hawkish stance. Hammack said current monetary policy does not appear sufficiently restrictive, while Hassett indicated that a rate hike remains an option. The hawkish signals have further strengthened expectations of tighter policy.

Trump’s Comments: US President Donald Trump praised the strong August jobs data while again calling for significant interest-rate cuts. He also threatened to reduce trade ties with countries running trade deficits with the US. His comments contrast with the Fed’s hawkish stance, adding to market uncertainty.

European Steel: European HRC prices continued to rise amid tightening supply. Northwest European HRC offers increased to around EUR 745/tonne ex-works, while Italian prices were around EUR 733/tonne ex-works. Some Northwest European mills have already secured nearly 10,000 tonnes of October orders at EUR 740–750/tonne. Planned blast-furnace maintenance at Thyssenkrupp, along with limited import alternatives, is adding to supply concerns.

Indonesia Nickel: According to SMM data, on September 7, the FOB price of Indonesian MHP nickel fell by $36/tonne Ni from the previous day. The FOB price of Indonesian MHP cobalt declined by $168/tonne Co, while high-grade nickel matte fell by $38/tonne Ni.