Basic Materials Roundup: Market Talk

The latest Market Talks covering Basic Materials. Published exclusively on Dow Jones Newswires at 4:20 ET, 12:20 ET and 16:50 ET.

0541 GMT - Lotte Chemical could post a wider-than-expected 3Q operating loss, Hana Securities' Yoon Jae-sung says. The lagged effects of lower product prices and the won's appreciation likely weighed on the South Korean company's earnings in the July-September quarter, the analyst says. Yoon expects Lotte to post an operating loss of 223.4 billion won in 3Q, wider than the consensus estimate of a 163.2 billion won loss. The loss could narrow in 4Q as product prices rise, but the earnings improvement could be limited by the won's appreciation, he adds. Hana downgrades the stock to neutral from buy and lowers its target price to 60,000 won from 80,000 won. Shares are 4.2% higher at 56,900 won. (kwanwoo.jun@wsj.com)

0509 GMT - Press Metal Aluminium's recent sell-off may offer an attractive opportunity to accumulate shares, as its long-term outlook remains intact despite near-term cost pressures, RHB IB analyst Iftaar Hakim Rusli says in a note. However, further share-price declines remain possible if aluminum prices weaken, he says. Press Metal's 80%-owned Indonesian alumina refinery is expected to begin commissioning in 2Q 2027, with its expansion potentially bringing alumina self-sufficiency to nearly 100% and boosting smelting margins, he adds. The analyst cuts Press Metal's 2026-2028 earnings estimates by 4%-5% to factor in higher carbon anode costs. RHB cuts Press Metal's target price to 9.30 ringgit from 9.80 ringgit, while maintaining a buy rating on the stock. Shares are 2.6% higher at 6.67 ringgit. (yingxian.wong@wsj.com)

0246 GMT - Iron ore prices rise in early Asian trade. Pressure on mining margins could limit further price declines, Industrial Futures analysts say in a note. However, supply pressures are building as seaborne shipments rise seasonally and port inventories increase from both a year and a month earlier, they add. Expectations of rising supply and weakening demand continue to weigh on the market, though lower prices could make it more sensitive to supportive news, they add. Iron ore is likely to trade in a range, and warn that betting on further declines is becoming riskier at current prices. The most actively traded January iron ore contract on the Dalian Commodity Exchange is 1.5% higher at CNY684.0 a ton. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

0140 GMT - Gold edges higher in Asian trade. Traders are likely weighing the prospect of further Federal Reserve rate increases this year following a run of hotter-than-expected U.S. inflation data, says Commonwealth Bank of Australia's Trent Saunders in a note. Spot gold rises 0.1% to $4,170.90 a troy ounce. (megan.cheah@wsj.com)

0104 GMT - SKC's closure of its copper-foil production lines in South Korea as part of a restructuring is likely to trigger one-off charges in 2H, say Daiwa Capital's Henny Jung and Yoonki Bae. The analysts expect charges related to scrapping work-in-process materials and workforce restructuring to weigh on the South Korean industrial-film maker's near-term earnings. They project operating losses of 46 billion won in 3Q and 17 billion won in 4Q. The restructuring, aimed at consolidating production in lower-cost Malaysian operations, however, could help narrow losses in 1H 2027, they say. They forecast a return to operating profit in 2H 2027. Daiwa upgrades the stock to buy from hold while trimming its target price to 120,000 won from 130,000 won. Shares are 0.1% lower at 93,200 won. (kwanwoo.jun@wsj.com)

2229 GMT - Deep Yellow's bull at Jefferies cuts its price target by 37% to A$1.20/share after the aspiring uranium miner delays a final investment decision on its Tumas project. Deep Yellow decided to wait because equity and credit markets are too weak right now. Analyst Daniel Roden now assumes Deep Yellow proceeds with Tumas in June 2027, with first ore produced in October 2029. "Deferral preserves financing flexibility, although schedule slippage, capital escalation and higher operating costs erode net present value," Jefferies says. "We expect updated project metrics, funding and FID within 12 months, subject to market conditions." Deep Yellow ended last week at A$0.82. (david.winning@wsj.com; @dwinningWSJ)

2224 GMT - While PLS Group was expected to proceed with the P2000 lithium project, Jefferies notes a final investment decision was accelerated relative to prior company commentary. There weren't many shocks in PLS's announcement. Capex of A$1.9 billion and a timeline for maiden production of the September quarter of 2029 were largely in line with Jefferies's expectations. "PLS continues to demonstrate its countercyclical investment strategy with a development approach centred on being in the market to reap outsize benefit from price fly-up scenarios," analyst Mitch Ryan says. Jefferies retains a buy call, but trims its price target on PLS by 9.1% to A$5.00/share. PLS ended last week at A$2.98. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

October 19, 2026 04:20 ET (08:20 GMT)