The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
0755 ET - Wacker Chemie's plans to shrink its workforce comes at a tough time for the company and the wider chemicals industry, analysts at Jefferies write in a note. The German chemicals manufacturer said Thursday that it plans to cut more than 1,500 jobs, largely domestically, as part of a drive to save 300 million euros a year. That comes after the company warned last month that it will likely make a net loss this year due to rising competition and a frosty backdrop for the sector. Weak end-markets for chemicals and a prolonged earnings trough for the company add further context to the planned layoffs, Jefferies says. Shares gain 1.8% to 66.50 euros. (joshua.kirby@wsj.com; @joshualeokirby)
0635 ET - Canadian efforts aimed at supporting the country's steel industry promise to be positive for Algoma Steel, though the extent to which the measures support profitable steel pricing in Canada remains uncertain, RBC Capital Markets' James McGarragle says. The analyst says the government believes the measures will unlock over C$1 billion in new domestic steel demand, which compares with the consensus 2025 revenue forecast for Algoma of C$2.1B. McGarragle says that taking these numbers at face value, and assuming Algoma can capture 25% of the upside--which is roughly its percentage of Canadian capacity--implies solid upside potential to next year's estimates. RBC has a sector perform call and C$5.46 target on the stock. (robb.stewart@wsj.com)
0328 ET - Gold prices are steady but remain elevated on strengthening bets that the U.S. Federal Reserve will cut rates in December, MUFG's Soojin Kim writes. Futures in New York are down 0.1% at $4,196.20 a troy ounce. Higher interest rates weigh on non-yielding assets like gold. New jobless-claims data is unlikely to shift the outlook for interest rates, she adds. "Confidence in lower rates grew further as Kevin Hassett, a top economic adviser to President Trump and known for a dovish stance, emerged as the leading candidate for the next Fed chair," Kim adds.(adam.whittaker@wsj.com)
0120 ET - The growing copper supply shortage could drive prices of the commodity higher, DBS Group Research's Eun Young Lee says in a note. Average prices of the base metal are likely to increase by 3.1% to $9,900 a ton in 2026, as the supply dearth could rise to 316,000 tons next year, the analyst says. The shortage likely stems from sustained demand growth, driven by investments in data centers and power grids, she adds. The analyst also notes limited supply growth in mined copper, given severe disruptions and falling ore grades. Chinese copper-mining companies could benefit, with Zijin Mining and MMG as DBS's top picks. The former has a strong gold and copper asset portfolio, while the latter is an ideal copper proxy as it derives 74% of its revenue from the metal. (megan.cheah@wsj.com)
1900 ET - Investors will seek a few things when Rio Tinto holds its capital markets day next week, Morgan Stanley analysts say. Firstly, "investors will look for quantifiable cost reduction targets--both opex and capex making it more competitive vs peers such as BHP," the analysts say in a note. In lithium, Rio Tinto is expected to trim its growth pipeline and phase projects more gradually. It could also closely assess the carrying value of its lithium book, the analysts say. The market will be eager to hear potential plans to exit noncore businesses such as borates and titanium. "In our view, a clear articulation of disposal priorities and timelines would boost investor confidence." MS has an equal-weight rating and A$129.50 target. The stock is little changed at A$134.20. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1802 ET - There's more to the pullback in metallurgical-coal forward prices than seasonal drivers, Panmure Liberum analysts say in a note. They say that "despite feeding into the profoundly seasonal iron ore/steel industries of Asia, the global met-coal trade itself is only very weakly seasonal." The analysts think the recent dive in forward prices might be linked to China's shift away from Australian cargoes to ex-seaborne supply from Russia and Mongolia. China's "modest import dependency is a key factor," they say, adding that its "ongoing, proactive restructuring of those import flows is now distorting/undermining broader price action." The analysts say they also suspect multiple Australian mine sales in recent years have undermined price stability. Weakness in thermal-coal prices is likely a drag, too. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
(END) Dow Jones Newswires
November 27, 2025 12:20 ET (17:20 GMT)
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