Daily Brief Energy/Materials: Siam Cement, Rubber Future SGX TSR20, KEC International, Vedanta Resources, Bradespar SA, Zephyr Energy, Crude Oil, Eastman Chemical Co, Corteva and more

• As first discussed back in May (see here), shares in Krungthai Card (KTC TB), XSpring (XPG TB), BEC (BEC TB), and The Practical Solution (TPS TB) all went limit down. Twice.
• Pledging in those shares – in what I call the Prakitchaiwattana Complex – have been static, to down, in the month of October.
• Recent big-ish moves were seen in Siam City Cement (SCCC TB) (up), Bangkok Expressway and Metro (BEM TB) (up); Next Capital (NCAP TB) (down) and Banpu Public (BANPU TB) (down).

Highlights

• Choppy and rangebound price movement expected in November 

• Narrowing SIR 20 vs INE spread could encourage substitution

• September import and export trend diverged

• Downstream restocking was selective rather than programmatic, leaving spot premiums capped

• Power Grid Corporation of India (PGCIL) has barred KEC from new tenders for nine months starting November 18, 2025, though ongoing Rs.39,000 crore plus projects is unaffected.
• KEC’s diverse orders limit PGCIL’s impact, PGCIL’s share in new orders is only 4% YTD, much lower than last year.
• KEC’s Q2 success counters the PGCIL ban. With strong Q2 results and 8% FY26 margin guidance, the focus is now on execution and cash flow from its global pipeline.

• Vedanta Resources is a globally diversified natural resources company with a strong foothold in India, focused on zinc, aluminium, oil and gas, and other base metals. The company is currently undergoing a significant strategic transformation, including a planned demerger of its primary businesses into separate listed entities to unlock value and attract investment.
• The company has been aggressively deleveraging its balance sheet, having reduced debt at the parent level significantly over the past few years. Recent credit rating upgrades from agencies like S&P Global reflect improved financial flexibility and easing refinancing risks, supported by strong operational cash flows and successful bond issuances.
• Future growth is centered on a $20 billion, four-year investment plan focused on India, targeting expansion in technology, electronics, and semiconductors, alongside its core commodities. This ambitious plan aims to capitalize on India’s economic growth but faces execution risks and is dependent on volatile commodity markets.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Bradespar is a Brazilian investment holding company whose primary asset is a significant stake in Vale S.A., one of the world’s largest mining companies. Consequently, Bradespar’s financial performance is directly correlated with Vale’s operational success and the global demand for iron ore and other base metals.
• The company’s strategy focuses on active participation in Vale’s management to influence long-term value creation. Bradespar’s revenue and net income are predominantly derived from the dividends and interest on equity received from its investment in Vale.
• As a holding company, Bradespar’s valuation is often traded at a discount to its net asset value (NAV), which is primarily composed of the market value of its stake in Vale. The company has a history of distributing a significant portion of its earnings to shareholders through dividends.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Zephyr has nominated ~38,000 net contiguous Paradox acres for inclusion in upcoming federal lease sales by the U.S. Bureau of Land Management.
• If fully awarded, this would represent a material expansion of the current 46,000 net acre position, of which only ~20,000 acres are currently covered by seismic.
• Existing estimates of ~35 mmboe 2P reserves and 39 mmboe contingent resources are based solely on those 20,000 acres.

• Crude oil futures closed slightly lower Thursday following another choppy session amid huge uncertainty around sanctions on Russia, plus a mooted peace deal.
• Front-month Jan26 ICE Brent futures were trading at $63.34/b (1953 GMT) versus the prior settle of $63.51/b, while Jan25 NYMEX WTI was at $59.01/b against a previous close of $59.25/b.
• Benchmarks again tested one-week lows on rising US inventories and reports that the US was brokering a Russia-Ukraine truce, a move that would lower the geopolitical risk premium.

Highlights

• Ambitious yield goals target 1120 kg/ha

• China still takes around three-quarters

• Replanting financing remains a pivotal constraint

Production and yield dynamics in 2025 show rubber remains one of Myanmar’s industrial cornerstone crops. Available estimates place annual output around 300,000-350,000 metric tons, out of a total plantation area of over 600,000 hectares.

• Eastman Chemical Company recently held a conference call to discuss its third-quarter results for 2025 and provided some insights into its strategies and expectations for 2026.
• The call highlighted both positive and challenging aspects of the company’s current performance and future outlook, offering a mixed view of the company’s standing in the market.
• The company faced notable challenges in the third quarter, attributed to several factors.

• Corteva Agriscience has reported its performance for the third quarter of 2025, showcasing a blend of strategic realignment and solid financial results.
• The company is planning a strategic separation into two independent public companies by the second half of 2026, dividing its Seed and Crop Protection businesses.
• The rationale behind this move is to enable each unit to optimize their individual growth trajectories amid evolving agricultural market conditions.