Korea Zinc to Build $7.43 Billion Smelter in U.S. -- Commodities Roundup

MARKET MOVEMENTS:

-- Brent crude oil is down 0.3% at $60.91 a barrel.

-- European benchmark gas is flat at 27.69 euros a megawatt-hour.

-- Gold futures are up 0.6% to $4,354 a troy ounce.

-- LME three-month copper futures are up 1.7% to $11,750 a metric ton.

TOP STORY:

Korea Zinc to Build $7.43 Billion Smelter in U.S.

Korea Zinc, the world's largest zinc smelter, plans to build a $7.43 billion U.S. plant to produce key metals and minerals, under a joint venture aimed at strengthening supply-chain ties between Seoul and Washington.

The move comes as the U.S. and South Korea have been seeking a stable and independent supply of rare earths amid concerns that China, which dominates the critical minerals market, could restrict or cut off their supplies.

OTHER STORIES:

NGP Seeks $1.5 Billion to Take Its Oil-And-Gas Strategy to Clean Energy

NGP Energy Capital Management is seeking $1.5 billion for a new fund to back entrepreneurs looking to buy and build clean-energy assets, expanding a strategy the private-equity firm has followed for decades in the oil-and-gas sector.

The fund

The Dallas-based firm so far has secured $450 million in anchor commitments for the fund, NGP Sustainable Real Assets II, from a handful of investors, said Sam Stoutner, an NGP partner who co-leads the firm's energy-transition group.

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SolGold Board Backs Sweetened $1.13 Bln Takeover Bid From Jiangxi Copper

Chinese state-owned miner Jiangxi Copper has won the support of SolGold's board after making a sweetened $1.13 billion bid for the U.K.-listed company backed by BHP and Newmont.

After two prior bids were rejected, Jiangxi's revised takeover offer has cleared the board hurdle, bringing it one step closer to the finish line.

MARKET TALKS:

Oil Futures Focused on Russia-Ukraine, Oversupply -- Market Talk

0923 ET - Oil futures are lower as the market heads into the final weeks of the year with eyes on Russia-Ukraine peace efforts and concerns about oversupply. Saudi Arabia's five-year low official selling price and the OPEC+ decision to pause output increases in the first quarter "are rather convincing indicators that core OPEC players understand the size of the potential balance problem that has emerged and should continue next year," Neil Crosby of Sparta Commodities says in a note. "Evidently we are waiting for this glut to get more real in the data, and that might take some weeks." WTI is off 0.6% at $57.11 a barrel and Brent is down 0.4% at $60.88. ([e-mail])

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U.S. Natural Gas Futures Tread Water -- Market Talk

0905 ET - U.S. natural gas futures are slightly lower with traders focused on the December weather outlook. The addition of heating degree days over the weekend was no surprise, as "there was little room to be any warmer," NatGasWeather.com says in a note. National demand should remain strong today, but is looking light for the next 10 days or so, the forecaster adds. "It's likely the weather data is too warm for Dec. 17-27 and a few additional HDDs get added in time." Nymex natural gas is down 0.5% at $4.094/mmBtu. ([e-mail])

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U.S. Dollar, Bond Yields Seen as Key Drivers of Gold This Week -- Market Talk

1317 GMT - Gold's direction this week will largely depend on U.S. bond yields and the dollar, according to Fawad Razaqzada from Forex.com. "Any further weakness in bonds, or strength in yields, could pressure low-and zero-yielding assets like gold," he says. Meanwhile, "if the USD were to bounce back this week, which is a busy one for data and Fed speak, then gold could lose some shine." The U.S. dollar came under pressure last week as the Federal Reserve left the door open to further rate cuts next year. All eyes are now on November's nonfarm payrolls report due Tuesday and consumer price data on Thursday. The market will also monitor New York Fed President John Williams' speech later on Monday and Governor Christopher Waller's remarks on Wednesday. ([e-mail])

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Gold Bolstered by U.S. Rate Cut Prospects, Haven Demand -- Market Talk

1300 GMT - Gold prices rise as investors weigh expectations of looser U.S. monetary policy next year and persistent geopolitical risks. "The metal benefited from expectations of additional interest rate cuts in 2026 following the Federal Reserve's recent rate reduction and a less hawkish tone than expected from Fed Chair Jerome Powell," says Christopher Tahir from Exness. Meanwhile, uncertainty surrounding peace talks in Eastern Europe, along with tensions in the Middle East and Latin America, have further reinforced gold's appeal as a safe haven. Demand has also been bolstered by steady inflows into gold-backed exchange-traded funds and continued buying by central banks, as well as concerns about the Fed's future independence, Tahir says. Futures in New York rise 1.2% to $4,378.80 a troy ounce, bringing gains for the year to more than 65%. ([e-mail])

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Palm Oil Prices Drop Amid Demand Concerns -- Market Talk

1013 GMT - Palm oil prices ended lower on continued concerns about weak demand. Rising production, which risks raising overall stock levels in Malaysia, is also weighing on prices, says David Ng, a trader at Kuala Lumpur-based Iceberg X. He sees support for crude palm oil futures at 3,950 ringgit a ton and resistance at 4,100 ringgit a ton. The Bursa Malaysia Derivatives contract for February delivery fell 12 ringgit to 4,006 ringgit a ton.([e-mail]; @ivy_jiahuihuang)

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Copper Rises on Tight Supply-Demand Balance -- Market Talk

0958 GMT - Copper prices rise in early trading after hitting a new record last week on fears of supply shortages and a strong demand outlook. Futures on the London Metal Exchange are up 1.2% to $11,690 a metric ton, having reached past $11,900 in intraday trading on Friday. The surge is driven by persistent concerns over a supply squeeze due to heavy stockpiling in the U.S. and a series of mine disruptions this year. However, "the length of the rally suggests there is more to this than just supply disruptions," ANZ analysts say. "Demand continues to beat expectations, despite concerns over the global economy and the fall in China's economic growth." Copper prices are also supported by lower interest rates in the U.S., which tend to boost economic activity and demand for commodities. ([e-mail])

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Antofagasta Shares Are Expensive and Vulnerable to Copper-Price Weakness -- Market Talk

0957 GMT - Antofagasta shares are expensive and are very exposed to negative sentiment on short-term copper prices, Peel Hunt analysts write. The copper miner's shares trade above its average enterprise-value-to-earnings ratio, they say. However, the London-listed company is currently benefiting from strong copper and gold prices. Its share price does have some upside potential, but it relies on investors having confidence that copper prices will settle at well over $10,000 a metric ton in the long term and that Antofagasta can deliver on growth opportunities, the analysts say. Peel Hunt reiterates its sell recommendation, but raises the stock's target price to 24 pounds from 22 pounds. Antofagasta shares currently trade up 3% at 30.18 pounds. ([e-mail])

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Oil Inches Higher But Ukraine Talks, Oversupply Concerns Cap Gains

0908 GMT - Oil prices edge higher in early trading, though gains are capped by diplomatic efforts to end the war in Ukraine and concerns of an oversupplied market. Brent crude is up 0.1% to $61.19 a barrel, while WTI rises 0.2% to $57.33 a barrel, supported by growing tensions between Washington and Venezuela and positive data on oil demand and refinery activity in China. Despite the uptick, both benchmarks continue to hold near their lowest level since late October. The Trump administration has stepped up pressure to secure a peace agreement between Russia and Ukraine by the end of the year-a development that would likely lead to the lifting of sanctions on Moscow. Traders also remain concerned about excess global supply next year as OPEC+ and rival producers increased output despite soft demand growth. ([e-mail])

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Anglo American-Teck Resources Tie-Up Faces Some Challenges -- Market Talk

0848 GMT - Anglo American and Teck Resources will find it hard to deliver on their copper growth promises, Baader analyst Varun Sikka writes. The tie-up is one step closer to happening after shareholders voted in support of the deal, but the upside for Anglo American from here is limited, he writes. There remains some uncertainty over both companies, he says. Teck is currently restructuring its marquee copper assets, meanwhile Anglo has problems disposing of its Australian steelmaking coal unit and still needs to take a decision on its diamond business De Beers, he adds. Anglo American's shares trade up 1% at 2,845 pence.([e-mail])

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Gold Rises as Traders Await U.S. Data -- Market Talk

0848 GMT - Gold prices climb on a softer dollar and as investors await the release of key U.S. data. Futures in New York are up 1.1% to $4,377.40 a troy ounce in early trading, while the dollar index--which measures the greenback against a basket of other major currencies--is flat at 98.36. All eyes will be on the delayed November jobs report and CPI inflation data later this week for more cues on the Federal Reserve's policy outlook. "The question for many right now is the pace of Fed easing next year," says Aaron Hill from FP Markets. Non-yielding assets like gold typically benefit from lower-interest-rate environments. Meanwhile, silver futures rise 2.7% to $63.68 an ounce, while platinum is up 2.9% to $1,757.10 an ounce. ([e-mail])

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Comex Gold Futures Seeking to Test Resistance at $4,400/Ounce, Chart Shows -- Market Talk

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