The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.
1322 ET - Tokenization, the process of putting real-world assets onto the blockchain, is growing exponentially in 2026 but may expand into a market worth over $1 trillion by 2030, according to Moulik Nagesh of Binance Research in a note. Nagesh says that currently, these tokenized assets account for $31.4 billion of value. That's already up 46% from the start of the year, and more than five times what they were worth in 2025, he says. But there is much more growth potential for tokens representing commodities like gold and oil ahead. "The long-term opportunity is large because current penetration remains extremely low," says Nagesh, assessing that penetration at 0.01%. Tokenization of 1% of the markets they represent would result in values over $1 trillion, Nagesh says. (kirk.maltais@wsj.com)
1257 ET - Demand for commodities is being seen in energy, agriculture, and industrial metals. Part of this uptick comes from returning focus on the "scarcity premium" -- the potential that the world is short on some materials it needs to keep running. "Investors are positioning for a world where physical assets matter again: power, grids, data centres, defence, reshoring and electrification all need more energy and materials," says analysts with eToro in a note. But behind this is the industrial health of China -- in that any sign of flagging activity in the country's industrial segment could reverse the scarcity sentiment. "If Chinese demand softens, metals may lose their growth signal," says eToro. (kirk.maltais@wsj.com)
1101 ET - International Paper is expanding its market presence on the East Coast and building out its capabilities with the acquisition of Delmarva Corrugated Packaging's facility in Dover, Delaware. "This acquisition strengthens our footprint in the region and supports our long term growth strategy," International Paper EVP Tom Hamic says in a press release. The Dover facility has a strong customer base and a strategic location, Hamic says. Delmarva CEO Dennis Mehiel says he can't think of an organization better suited than International Paper to help the Dover facility achieve its full potential. "We are highly confident this transaction will benefit all of DCP's stakeholders," he says. The financial terms of the deal weren't disclosed. (dean.seal@wsj.com)
0927 ET - Rio Tinto reducing its dependency on iron ore is positive even though the division will continue to deliver high margins as prices stay above the $100-a-metric-ton level, Baader's Varun Sikka writes. Iron ore prices are volatile and the price outlook is heavily dependent on Chinese economic growth. The miner has been diversifying into metals related to the transition to low-carbon energy, like lithium and copper. Copper is close to record-highs and aluminum gains on Iran war-induced supply disruptions, the analyst adds. Meanwhile, its bet on lithium might surprise markets as the war forces customers to reconsider electric vehicles, he says. As growth projects come online, there may be a material upgrade to 2026 earnings, he adds. Its London shares trade up 0.4% to 7,802 pence. (adam.whittaker@wsj.com)
0719 ET - Salzgitter is benefiting from its stake in Aurubis, the German copper refiner and recycler that recently reported a jump in earnings, Baader Europe says in a note. Baader raises its earnings forecasts for the German steel company based on its confidence regarding the impact of EU tariffs and carbon regulation on Salzgitter's business, as well as the positive effect of Aurubis's contribution. Baader analyst Fabrice Farigoule raises Salzgitter's stock rating to Add from Reduce, its 2026 EPS estimate to 5.13 euros from 3.23 euros, and for 2027 to 8.35 euros from 5.96 euros. Shares trade 0.2% higher at 54.50 euros. (sarah.sloat@wsj.com)
0619 ET - Palm oil futures closed higher, with the Bursa Malaysia Derivatives contract for August delivery ending 96 ringgit higher at 4,533 ringgit a metric ton. Prices likely tracked overnight gains in rival vegetable oils, say Kenanga Futures analysts in a note. Continued delays to the Strait of Hormuz's reopening due to the Middle East conflict could also support prices, say Kenanga Futures analysts in a note. They peg the support and resistance levels for the August futures contract at 4,400 ringgit and 4,520 ringgit, respectively. (megan.cheah@wsj.com)
0323 ET - London's miners decline on inflation and rate-hike concerns. Continued disruption of the Strait of Hormuz fuels inflation concerns that weigh on demand for non-yielding gold, MUFG's Soojin Kim writes. Gold fell nearly 4% last week with prices down around 15% since the U.S.-Iran conflict began, she adds. Silver futures are down 1.5% at $76.41 an ounce while gold falls 0.2% to $4,551.70 a troy ounce. Hochschild Mining is down 2.8% while Fresnillo slides 1.6%. Copper miner Antofagasta slips 1.2%, while diversified miner Anglo American slides 1.6%. (adam.whittaker@wsj.com)
0159 ET - China's overall consumption could remain pressured as household purchasing power weakens on higher inflation, ANZ Research strategists say in a note. They express concern about the economy's retail sales, which rose just 0.2% on year last month. "This is the weakest growth since the post-Covid reopening in early 2023," the strategists write. In particular, April jewelry sales declined a notable 21%, they add. (megan.cheah@wsj.com)
0138 ET - Posco Holdings' lithium business is likely to benefit from favorable pricing conditions in the coming years, Shinhan Securities' Kwangrae Park and Seunghun Han say. The analysts expect global lithium supply to tighten due to Chinese restrictions on lithium production at mines in Jiangxi province and Zimbabwe's suspension of lithium-concentrate exports. They forecast a surge in revenue and improved earnings this year and next for the Korean steelmaker's overseas lithium subsidiaries, Posco Argentina and Posco Pilbara Lithium Solution. They point to a profit turnaround in March for Posco Argentina and a narrower 1Q loss for Posco Pilbara. (kwanwoo.jun@wsj.com)
2135 ET - Macquarie wonders whether a combined Regis Resources and Vault Minerals could emerge as Australia's second-biggest primary listed gold producer by output. "MergeCo" has the potential to rival Evolution Mining in terms of production to be Australia's second-largest gold producer behind Northern Star, excluding America's Newmont, Macquarie says. Based on Macquarie's forecasts, Regis and Vault combined could produce about 772,000 troy ounces of gold in FY27. That compares with Evolution's expected gold output of roughly 716,000 ounces, the bank says. Macquarie notes Evolution also produces copper, volumes of which are anticipated to be around 80,000 metric tons in FY27. (rhiannon.hoyle@wsj.com; @RhiannonHoyle)
1911 ET - Iluka Resources gets a new bull in Ord Minnett, as the buzz around rare earths starts to overshadow its minerals sands business. Analyst Matthew Hope stays cautious about A$417 million of net debt in the mineral sands business. Still, he expects any capital raise will be pushed out until the end of the year at the earliest. "In the meantime, Iluka should be announcing rare-earths oxide offtake deals from mid-year keeping the REO news flow active," Ord Minnett says. "There is risk that offtake prices may disappoint, so we are not overly aggressive." Ord Minnett upgrades Iluka to buy, from hold, and raises its price target by 13% to A$9.00/share. Iluka ended last week at A$7.90. (david.winning@wsj.com; @dwinningWSJ)
1902 ET - Tin prices are likely to stay stronger for longer, underpinning Ord Minnett's bullish view of Metals X. Ord Minnett upgrades forecasts for tin prices through 2026, citing slower-than-expected restarts to supply from mines in Myanmar and Indonesia. "With strong Renison mine production likely to continue and sustained high prices, we project Metals X's cash balance will expand to A$444 million by December," analyst Matthew Hope says. This gives Metals X additional firepower to increase volumes. Ord Minnett retains a buy call on Metals X, and lifts its target price by 25% to A$2.00/share. Metals X ended last week at A$1.54. (david.winning@wsj.com; @dwinningWSJ)
(END) Dow Jones Newswires
May 18, 2026 16:50 ET (20:50 GMT)
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