Asian gas reached ‘peak’ for 6 years
The price of liquefied natural gas (LNG) on the Asian market increased sharply this week, adding 17% to the highest level in 6 years, due to the deep cold air in some countries boosting the import into the region. increased to a record high.
LNG futures for February 2021 delivered to Northeast Asia this week averaged 14.6 USD / mmBtu (British thermal power unit), up 2.1 USD from the previous week.
The strong import demand in Asia was the main reason driving LNG prices to record highs and at the same time making the shortage of LNG supplies in Asia even worse.
LNG imports into Asia in December 2020 were estimated at nearly 27 million tons, far exceeding the old record of 23.6 million tons in December 2019 and even higher than the 22.8 million tons in November. / 2020. In which, China in December 2020 imported over 9.05 million tons, up about 40% from the previous month; Japan imported 8.1 million tons (up 27% over the previous month); Pakistan continues to have demand for LNG for delivery with a maturity from now to April.
Besides, there was news that Gujarat State Oil and Gas Group of India (GSCP) bought a lot of LNG for February delivery at 10 • 10.5 USD / mmBtu; while Petronas may have sold a batch of LNG from Gladstone LNG (Australia) to JERA (of Japan) for 13 USD / mmBtu.
Regarding the exporting countries, it is reported that Novatek of Russia has sold a batch of goods to Europe through a tender on 30/12, delivery in March.
Gold trading in Asia is active, except in India
The level of discount on physical gold prices in India this week widened as customers stopped participating in the market, as Indian consumers avoided buying gold during the holy Khar Mass – a period that was not considered good. (lasting from December 15 to January 14). Meanwhile, demand in Singapore and other gold trading centers in Asia increased this week as customers increased buying before the holiday season.
“People focus on holidays rather than buying gold,” said Mukesh Kothari, director of the RiddiSiddhi Bullions gold dealer in Mumbai, while also forecasting that demand will continue to decline next week.
Dealers in India this week have reduced prices by 2 USD / ounce compared to the official price (including 12.5% import tax and 3% sales tax), double the reduction of 1 USD / ounce of the previous week. For the whole week, spot gold price in India decreased for the first week within 4 weeks.
In China, the deduction rate narrowed to 15 – 20 USD / ounce, compared to 16-20 USD of the previous week, while in Hong Kong, the plus rate this week was 0.50 – 1.50 USD / ounce, compared with + 0.5 USD of the previous week.
Gold dealers in China forecast that holiday prices and curbed demand could drive up demand in the near future. (Physical gold trading in China has decreased significantly. from March to now due to the influence of Covid-19).
In Singapore, gold is being sold at + 0.9-1.2 USD / ounce compared with the world reference price, compared with + 0.8-1.2 USD of the previous week, due to the need to buy gifts. rose before Christmas. However, demand in Singapore decreased this year as Covid-19 “lost the season” of tourism. In Japan, gold was offered for sale at a price level 0.5 USD higher than the world reference price.
Iron ore fell this week
Iron ore prices in China rose during the final trading session of 2020 due to pre-holiday buying demand.
Iron ore futures in May 2021 on the Dalian floor – the most traded contract – price rose 2.1% in the session on December 31 to CNY 996 ($ 152.45) / ton. However, for the whole week, the price decreased by about 2.5%.
Rebar price on the Shanghai floor in the same session rose 3.3% to 4,388 CNY / ton; HR coil increased similarly to 4,554 CNY / ton; stainless steel rose 0.7% to 13,440 CNY / ton.
Soybean meal record high
Soybean meal prices on the Chinese market this week rose to a historic high due to a sharp rise in world soybean prices and investors are confident that China’s livestock industry will continue to recover, dragging demand for soybean meal. relative increase.
The last session of 2020, soybean meal term in May (the most traded) on the Dalian stock exchange increased by 4.2% to CNY 3,423 (USD 523.96) / ton.
Coffee transactions in Asia are sparse
Coffee transactions in Asia this week were not active due to the lack of containers causing shipping costs to skyrocket while demand decreased. The Indonesian market stopped operations this week because of a holiday.
In the Central Highlands, coffee beans are offered for sale for 33,200 VND (1.44 USD) / kg, down slightly from 34,000 VND of the previous week. Robusta coffee type 2 (5% black and broken) offered plus 135 – 145 USD / ton compared with the reference contract on the floor of London, up from the plus 100 USD / ton of the previous week.
Palm oil increased
The price of Malaysian palm oil in the last session of 2020 increased by 14 ringgit (0.4%) to 3,602 ringgit ($ 896.02) / ton (March 2021 term on Bursa) due to the country’s palm oil export increase.
In the period 1-25 / 12, Malaysia exported 1,290,257 tons of palm oil, up 14.4% over the same period last month.
Update prices of some key products
