Metals: Copper +1.2% to $4.29/lb, iron ore -1.92% to...

Metals: Copper +1.2% to $4.29/lb, iron ore -1.92% to US$130.50/t, Gold +0.3% to US$1,795/oz

Energy: Brent crude -1.8% to US$71.3/bbl, spot Asia LNG +0.1% to $20.40/MMBtu, thermal coal -1.2% to $175.1/t

Key overnight stock moves: BHP LND -1.7%, Rio Tinto LND -2.7%, S32 (LDN) -0.8%, Anglo -0.6%, Glencore -0.6%, Vale +0.4%, Alcoa +3.9%, Shell -1.1%, BP -1.2%, Exxon +0.1%, Chevron -0.4%, ConocoPhillips +0.5%

Global Indices: S&P 500 -0.46%, DOW -0.43% & FTSE -1.01%

The iron ore price sank to an eleven-month low on Thursday amid concerns that the global economic recovery is stalling. According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $130.26 a tonne, down 1.46% from Wednesday’s closing. The iron ore price has dropped 40% from more than $220 in July, mainly due to lower imports by China following its move to control steel production to meet carbon emission norms. The Chinese government asked 20 steel mills in Tangshan city to suspend operations for a week in August in order to reduce emissions as the Chinese steel sector makes up 15% of the country’s total carbon emissions. (Mining.com)

Brazilian red tape may keep the global iron ore market tighter than expected after Vale SA lowered its forecast for production capacity because of sluggish permitting. While capacity isn’t the same as actual production, the slower-than-expected expansion will give Vale less scope to increase supply over the coming years. Vale’s ongoing recovery from an early-2019 tailings dam disaster makes it a major swing factor in a market that’s looking for direction after tumbling 40% from a mid-July peak amid China’s efforts to curb emissions. Vale cut its targeting capacity to 370Mt by end of 2022 from 400mt target previously. (Bloomberg)

China may be forced to reassess its campaign to rein in commodities prices after producer inflation accelerated last month to a 13 year-high. The statistics bureau blamed elevated steel, coal and chemicals prices for the surge, indicating that Beijing’s months-long effort to cap raw material markets has so far had little effect. While logistical disruptions during the delta outbreak will have played their part, the core problem for Beijing is that factories continue to be squeezed and growth threatened in large part because of its pursuit of energy efficiency and lower emissions. (Bloomberg)