BlueScope Relegates Plans for U.S. Midstream Growth -- Commodities Roundup

MARKET MOVEMENTS:

--Brent crude oil is up 1.1% to $68.48 a barrel.

--European benchmark gas is up 0.3% to 30.99 euros a megawatt hour.

--Gold futures are down 0.8% to $5,008.20 a troy ounce.

--LME three-month copper futures are down 0.1% to $12,864.50 a metric ton.

TOP STORY:

BlueScope Relegates Plans for U.S. Midstream Growth

BlueScope Steel's plans to expand further in the U.S. by investing in midstream capacity have fallen down the agenda, as the steelmaker focuses on raising output at its Ohio mill and turnaround efforts in its coated-products business, its new chief executive said.

The Australian company last year deferred a proposed US$1.2 billion cold-rolling and metal-coating investment in the Midwest, citing heightened market uncertainty, and said it would explore buying some existing midstream capacity instead.

OTHER STORIES:

The Shale Boom that Made the U.S. the World's Top Oil Producer Is Nearing a Crucial Turning Point

The shale-oil revolution that transformed the U.S. into the world's top oil producer is entering a new phase - one that could see America's hard-fought lead in energy erode in fewer than five years as oil production growth peters out.

The issue is a simple one. Shale well output declines rapidly. On average, a well produces roughly 80% of its total output within the first two years, and production from a typical new well in the Permian's Midland Basin plunges nearly by 90% after three years, according to the American Petroleum Institute.

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Smithfield Foods to Build New South Dakota Pork Plant

Smithfield Foods plans to build a large hog slaughterhouse in South Dakota, marking the first new facility built by America's top pork producer in decades.

Virginia-based Smithfield said it will spend about $1.3 billion over three years on a new facility in Sioux Falls, S.D. When in operation, the plant is expected to employ about 3,000 workers and be able to slaughter about 20,000 hogs a day. The new project replaces Smithfield's existing, more than 100-year-old facility in the city.

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Rio Tinto Says Work at Simandou Project Suspended After Contractor Killed

Rio Tinto said that work at its Simandou project in Guinea has been suspended after an employee of a contracting company was killed on Saturday.

The worker died following an incident at the SimFer mine that Rio Tinto is developing with a Chinese consortium and Guinea's government, the miner said, without providing further details.

MARKET TALKS:

OPEC+ Expected to Resume Output Increases, Kpler Says -- Market Talk

1143 GMT - OPEC+ is forecast to resume oil output increases after pausing hikes in the first quarter, according to Kpler's senior crude analyst Naveen Das. The alliance is expected to unwind the remaining portion of its 1.66 million barrels per day in voluntary cuts over six months. However, not all member countries can fully meet their quotas--Russia, for example, has limited capacity to increase output. As a result, Das doesn't anticipate a major downside impact on Brent crude prices, which Kpler currently forecasts at an average of $65 a barrel this year. OPEC+ members are scheduled to meet virtually on March 1 to discuss production policy for the coming months.

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Fed Rate-Cut Prospects Could Boost Equities, Bonds, Gold -- Market Talk

1132 GMT - Improved prospects for U.S. Federal Reserve interest-rate cuts are likely to favor equities, bonds and gold, UBS strategists say in a note. The Fed is expected to cut interest rates in the coming months after last week's weaker-than-expected U.S. inflation data, they say. "We believe the Fed remains on track to ease further, and we expect two 25 basis-point rate cuts between June and September." ([e-mail])

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Palm Oil Prices Fall After Data Show Muted Exports -- Market Talk

1008 GMT - Palm oil prices fall after data from cargo surveyor AmSpec Agri Malaysia showed exports during the Feb. 1-15 period fell about 15% on month. A stronger ringgit and profit-taking activities amid a shortened trading week is also seen to be pressuring prices, Kenanga Futures says in a note. The analysts peg support for the crude palm oil May futures contract at 4,000 ringgit a metric ton and resistance at 4,080 ringgit a ton. The Bursa Malaysia Derivatives contract for May delivery ended 32 ringgit lower at 4,014 ringgit a ton.([e-mail])

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Base Metals Fall Amid Rising Copper Stockpiles, Aluminum Tariff Report -- Market Talk

0955 GMT - Copper prices fall as stockpiles continue to build, with futures on the London Metal Exchange down 0.5% to $12,867 a metric ton. Readily available inventory in LME warehouses rose at the fastest pace since July, pushing combined exchange stockpiles in Shanghai, London, and New York past 1 million metric tons on Friday. Meanwhile, aluminum falls 0.3% to $3,082 a ton after a report last week that the U.S. administration is planning to scale back some tariffs on the metal. However, the broader market fundamentals remain largely unchanged. "Global aluminum supply remains tight, inventories thin, speculative positioning elevated, and regional markets increasingly fragmented by policy risk," ING analysts say. ([e-mail])

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European Gas Prices Fall As Supply Holds Steady Despite Tight Storage -- Market Talk

0935 GMT - European natural gas falls nearly 5%, with prices expected to remain highly sensitive to revisions in temperatures forecasts. "With six weeks to go until the end of the heating season, Europe's storage tanks are set to emerge from this winter even more depleted than in 2025," analysts at ANZ Research say. "However, LNG and Norwegian piped gas flows have held steady." According to industry group Gas Infrastructure Europe, inventories across the European Union are at less than 34% of capacity. In early trading, the benchmark Dutch TTF is down 4.8% to 30.88 euros a megawatt-hour.([e-mail])

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Gold Above $5,000 But Holiday-Thinned Trade Limits Gains -- Market Talk

0920 GMT - Gold prices trade above $5,000 after softer-than-expected U.S. inflation data lifted hopes for further interest-rate cuts this year. New York futures are down 0.3% to $5,032.20 a troy ounce, pressured by thin trading volumes due to local public holidays in the U.S. and China. "China--a key engine behind the month-long rally in precious metals and selected industrial metals--will remain closed through Feb. 23, potentially limiting additional upside in the near term," analysts at Saxo Bank say. "Key levels to watch are $4,860 on the downside and $5,140 on the upside." Meanwhile, silver futures are down 1.3% to $76.96 an ounce. ([e-mail])

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Oil Broadly Steady Ahead of U.S.-Iran Talks -- Market Talk

0902 GMT - Oil prices are broadly steady ahead of a second round of talks between the U.S. and Iran this week. Brent crude rises 0.1% to $67.60 a barrel, while WTI is flat at $62.30 a barrel after posting weekly losses last week. "Absent any Middle East supply disruption, the scope for a sustained move above $70 appears limited, given continued emphasis on ample supply and indications that some OPEC members see room to resume output increases in April," analysts at Saxo Bank say. Traders are also keeping a close eye on the U.S.-brokered talks between Russian and Ukrainian officials aimed at ending the four-year war.

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Gold Supported by U.S. Rate-Cut Expectations -- Market Talk

0803 GMT - Gold trades back above $5,000 a troy ounce after getting a boost from weaker-than-expected U.S. inflation data. This raises bets the Federal Reserve will cut rates, ANZ analysts write. Lower borrowing costs typically support nonyielding assets like gold. Swap traders are pricing in about 50% chance of a third rate cut by December, they add. Rate cuts will support inflows into the precious metal, while geopolitical and economic uncertainties will fuel additional demand, they say. In New York, gold futures are down 0.4% at $5,024 a troy ounce. ([e-mail])

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(END) Dow Jones Newswires

02-16-26 1214ET