Basic Materials Roundup: Market Talk

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

0733 GMT - Capital expenditure momentum in the mining industry remains solid with growth expectations of 5% for 2025, a small uptick from the 4% previously expected, RBC Capital Markets analysts say. Capex for copper and gold, the most relevant commodities for original equipment makers, should grow faster at 10% and 11% respectively, from a previous 9% estimate for both, RBC says. Still, much of the recent increase ratio can be attributed to inflation and implies little investment beyond what is required to sustain current output, RBC says. "Our view therefore remains that mining capex can continue to grow mid-single digit to high single digit on average for the remainder of the decade," RBC says. Antofagasta shares are up 3.5%, with Glencore up 3% and Rio Tinto up 1.75%. (anthony.orunagoriainoff@dowjones.com)

0630 GMT - AIA Engineering's demand outlook for its products appears uncertain, Nomura's Umesh Raut says in a research report. Management didn't share FY 2025 earnings guidance given uncertain demand, the analyst notes. The Indian company's U.S. exports are currently subjected to antidumping duty of roughly 10% and Section 232 tariffs of 50%, the analyst says. The high tariffs have resulted in uncertainties in the U.S. and have substantially dented the company's visibility for U.S. demand beyond the near-term. Nomura cuts its FY 2026-2027 revenue forecasts for AIA Engineering by 6%. It lowers the stock's target price to INR3,078.00 from INR3,140.00, with an unchanged reduce rating. Shares last closed at INR3,114.90. (ronnie.harui@wsj.com)

0321 GMT - Iron ore is lower in early Asian trading. Investors' sentiment has cooled on tighter market regulation, leading to sharp declines in prices of coking coal, according to Nanhua Futures analysts. That in turn dragged down iron-ore prices, they say. Overall, prices are likely to stay rangebound in the near term, as iron ore's fundamentals remain stable, they write in a commentary. The most-traded iron-ore contract on the Dalian Commodity Exchange falls 1.4% to CNY774.0 a ton. (tracy.qu@wsj.com)

0220 GMT - Aluminum trades higher in the Asian session, with the three-month LME contract adding 0.2% to $2624.00 a ton. China's demand for aluminum appears to be picking up, compared with a year earlier. Citi says its calculations made with inventory data from Chinese consultant Mysteel show China's year-to-date overall aluminum apparent consumption is likely 4.9% higher on year. Apparent consumption of aluminum ingots and billets over the same period are also 4.2% and 8.0% higher, respectively, Citi estimates. Citi views ingot and billet inventory data as more representative for calculating overall aluminum demand. (megan.cheah@wsj.com)

1357 GMT - Norsk Hydro, a major player in producing raw aluminum and downstream aluminum products globally, has announced that it plans to cut its workforce by 750 workers. "By taking this step now, rather than later, we strengthen Hydro's resilience and position ourselves to compete and succeed in a world where geopolitical unpredictability accelerates volatility and creates new risks," says President and CEO Eivind Kallevik in a press release. The cuts follow a hiring freeze instituted in June, and is part of a NOK 1 billion reduction to the company's operations. In June, the White House announced that it would raise a U.S. tariff on aluminum imports to 50% from 25% previously. (kirk.maltais@wsj.com)

0948 GMT - Antofagasta's share price has been on a strong run in recent months which explains the relatively muted reaction to its solid first-half earnings, AJ Bell investment director Russ Mould writes. The Chilean copper miner is not only benefiting from a robust price environment but also an improved operational performance and higher production, he adds. This has allowed the miner to deliver a big increase in its dividend, he writes. Given its focus on copper, it could become an acquisition target, but its controlling shareholder--the Luksic family--could complicate any deal, he adds. Shares trade up 0.3% at 2117 pence and are up 14% over the past three months. (adam.whittaker@wsj.com)

0926 GMT - U.K. and South African listed gold miners trade down in mid-morning European trade as the precious metal drops 0.42% to $3,393.90 a troy ounce. Investor appetite for stocks has been rising, reducing the safe-haven demand for gold. In London, Fresnillo trades down 0.47% and Hochschild Mining drops 0.54%. In Johannesburg, Gold Fields, Harmony Gold and Sibanye-Stillwater all drop around 1.9%. (adam.whittaker@wsj.com)