Oil price below the threshold of 90 USD/barrel
Oil prices fell sharply below levels seen before the Russia-Ukraine conflict, as weak China trade data raised concerns about the risk of a recession.
Closing the session on September 7, Brent crude oil fell $4.83 to $88/barrel, falling below $90/barrel – the first time – since February 8, 2022 and West Texas Intermediate WTI crude fell 4. .94 USD, or 5.7%, to 81.94 USD/barrel – the lowest since January 2022.
Some world central banks are expected to continue raising interest rates to combat inflation. The dollar rose to 24-year highs against the yen and 37 years against the pound. A strong US dollar puts pressure on oil prices, as most of the world’s oil sales are done in US dollars.
China’s weak economic data and zero-Covid policy increase demand concerns. The country’s crude oil imports in August 2022 decreased by 9.4% compared to the same month last year.
Natural gas prices remain at 4-week lows
U.S. natural gas prices fell about 4% to a four-week low, as monthly output hit record highs and global oil and gas prices fell.
The price of natural gas for October term on the New York Stock Exchange fell 30.3 US cents, or 3.7%, to $7,842/mmBTU – the lowest since August 9, 2022 and had a second consecutive decline. .
However, since the beginning of the year, natural gas prices have increased by 110%, driven by rising gas prices in Europe and Asia, boosting export demand for liquefied natural gas (LNG) in the US. Global gas prices rose due to supply disruptions and the Russia-Ukraine conflict on February 24, 2022.
Gas prices are around $61/mmBTU in Europe and $55/mmBTU in Asia.
Gold price increases
Gold prices rose, boosted by the dollar’s fall from two-decade highs and profitable buying, but gold’s outlook remained overshadowed by the positive outlook for interest rate hikes.
Spot gold on the LBMA rose 0.9 percent to $1,716.59 an ounce and gold for December 2022 on the New York Stock Exchange rose 0.9 percent to $1,727.8 an ounce.
The dollar index hit a 20-year high, making greenback-denominated gold less attractive against other currencies. However, the dollar eased slightly from its peak at the end of the session, pushing gold prices higher.
Aluminum prices fall
Aluminum prices fell to a 17-month low, as slowing global economic growth weakened the demand outlook and boosted the dollar.
Aluminum prices on the London floor fell 1.1% to $2,236.5 per tonne, after touching the lowest level since April 2021 ($2,233 per ton). Since the beginning of the year, aluminum prices have decreased by 20%.
The dollar strengthened in 2022 more than in any year since 1981 and hit a 20-year high, making the dollar-denominated metal more expensive for buyers in other currencies.
Although supplies of aluminum and other metals are tight and inventories are low, the market’s focus has shifted to weak demand and a stronger dollar.
Prices of iron ore and rebar fell
Iron ore prices on the Dalian bourse fell after 2 consecutive gains, along with iron ore prices on the Singapore bourse, pressured by disappointing August 2022 trade data and iron ore inventories in China. National increase.
Iron ore futures for January 2023 on the Dalian bourse fell 1.7% to 680 yuan ($97.61/ton).
At the same time, the price of iron ore for October 2022 on the Singapore floor fell 1.3% to 95.75 USD/ton.
China’s exports in August 2022 increased 7.1%, while imports increased only 0.3%, both of which fell short of expectations.
China’s iron ore imports in the first eight months of the year fell 3.1%, as steel mills reduced output due to weak demand caused by Covid-19 restrictions, a downturn in the real estate sector forced to cut production. reduce output. At the same time, China’s exports of steel products in the first eight months of the year decreased by 3.9%.
On the Shanghai exchange, rebar prices fell 0.5%, hot rolled coil increased 0.2% and stainless steel increased 0.8%.
Rubber prices in Japan remain stable
Rubber prices in Japan remained stable, supported by the weakening JPY offset the drop in the rubber market in Shanghai.
The price of rubber for February 2023 on the Osaka floor remained stable at JPY 214.8 (US$1.49)/kg.
Meanwhile, the price of rubber for January 2023 on the Shanghai floor decreased by 30 CNY to 12,260 CNY (1,760 USD)/ton.
The weakening JPY makes rubber more expensive to buy in other currencies.
The price of rubber for October 10, 2022 on the Singapore Exchange fell 0.4% to 129.2 US cents/kg.
Coffee prices fall
The price of arabica coffee on the ICE floor fell 3%, pressured by a strong dollar and favorable rain for coffee trees in some areas of Brazil.
The price of arabica coffee for December 2022 on the ICE floor fell 7 US cents, or 3%, to $2,2325 per lb.
At the same time, the price of robusta coffee for November 2022 on the London floor decreased by 24 USD, or 1.1%, to 2,238 USD/ton.
Sugar prices move in the opposite direction
The price of raw sugar for October delivery on the ICE floor increased by 0.07 US cents, or 0.4%, to 18.05 US cents/lb.
Meanwhile, the price of white sugar in October 2022 on the London floor decreased by 2 USD, or 0.3%, to 571.2 USD/ton.
Wheat prices up, corn and soybeans down
Wheat prices in the US rose 3.3% to a nearly two-month high on supply concerns.
On the Chicago Mercantile Exchange, the price of soft red wheat, the winter crop for December 2022, rose 27-1/4 US cents to 8.44-1/4 USD/bushel. The price of corn for December delivery fell 5 US cents to 6.71 USD/bushel and soybean price for November 2022 fell 15-1/4 US cent to 13.83-1/2 USD/bushel.
China’s soybean imports in August 2022 decreased by 24.5% compared to the same month last year.
Palm oil price remains at 6-week low
Palm oil prices in Malaysia fell to a six-week low, as traders weighed prospects for increased supply, Covid-19 restrictions in key buyer China and weakness in other vegetable oil prices.
The price of palm oil for November delivery on the Bursa Malaysia exchange fell 93 ringgit, or 2.45%, to 3,704 ringgit ($823.11) a tonne – the lowest since July 25, 2022. Earlier in the session, palm oil prices fell 4%.
High palm oil inventories and increased seasonal output from top producing countries Indonesia and Malaysia, will boost ample global supply, pressuring the market, Refinitiv Commodities Research said.
Prices of some key items on the morning of September 8:
