The final weeks of summer 2025 brought a mixed picture for energy markets. While oil and gas prices adjusted downward, deeper shifts in global trade and supply are forming a new baseline. From LPG and diesel to metals and green steel, the energy markets in August 2025 show signs of calm before potential volatility.
LPG and Oil Products: Building Ahead of Autumn Demand
The liquefied petroleum gas (LPG) market has likely exited its summer slump. In August, traders began increasing positions in anticipation of colder weather. Prices for propane and butane rose along key European routes, especially from Brest and ARA. Meanwhile, in Asia, the Argus Far East Index (AFEI) held strong above $530 per tonne. The East-West differential is widening again — favoring Asian importers.
Diesel prices remain firm. Despite weaker demand in agriculture and logistics, European ULSD stayed above $760/t. Reduced refinery output and seasonal trends are giving the market support.
Crude oil prices also softened. Brent crude is near $67 and WTI crude around $63, but there’s no sign of panic selling. Market players are tracking OPEC+ actions and inventory levels closely.
Steel and Iron Ore: Cooling in China, Stability in India
In the steel market, Asia cooled off. Chinese rebar and billet fell — with billet touching $460/t FOB and rebar dropping to $505/t. High inventories, weak construction, and falling futures on SHFE drove the trend.
India’s steel sector, however, remained strong. Domestic demand held up, and export prices for billet stayed between $545–555/t.
Freight rates for iron ore — particularly on Australian and Brazilian capesize routes — rose in August. This suggests Asian steelmakers are quietly ramping up imports. Iron ore with 62% Fe content is holding at $100–102/t, and pellet/lump premiums are increasing.
Metals Outlook: Calm With Selective Growth
Base and minor metals markets have entered a phase of stable uncertainty. Prices are mostly sideways — with few strong triggers.
China’s imports of copper, zinc, and aluminum increased in August. But some of this rise may reflect short-term trading or arbitrage, not actual demand growth.
Nickel and stainless steel weakened in China. NPI costs stayed high, but sales of finished stainless products declined. SHFE stainless prices fell to their lowest in three months.
In Europe and the Middle East, demand for ferroalloys like molybdenum and vanadium is growing. Ferromolybdenum spot prices are climbing — supported by limited imports and steady demand from energy and construction sectors.
Green Commodities: From Concept to Contract
August also showed that the green energy transition is no longer just theory. New contracts and technologies are reshaping commodity flows:
UAE’s Emsteel delivered its first batch of hydrogen-based rebar for a sustainable mosque project.
Fortescue Metals Group in Australia announced new processing tech for low-grade ore to support green steelmaking.
In India, demand for DRI and HBI (as scrap alternatives) is rising in eco-friendly steel production.
Even shipping is adjusting. More cargoes are being planned with carbon footprint and fuel efficiency as priorities.
Outlook for Q4 2025: What to Watch
While August ended quietly, the broader energy markets outlook for Q4 2025 suggests big moves ahead. Infrastructure, energy policy, and recycling will play key roles in reshaping oil and gas prices, steel demand, and green investments.
Stay tuned: the calm of late summer may be the setup for a dynamic and disruptive autumn.
Follow the news of the Evicor.
For inquiries, email us at contact@evicor.ch
See also: How Trump’s New Tariffs Are Reshaping LPG and Base Oil Trading