Posted: November 1st, 2013 | Author: Rod Sherkin | Filed under: Commodities | Tags: commodities, commodities glut, commodities price | No Comments »
Commodities dropped to a four-month low, paced by declines in crude oil and gold, on signs of climbing supplies of raw materials at a time when the prospect of reduced Federal Reserve stimulus may cut demand.
The Standard & Poor’s GSCI Spot Index of 24 raw materials lost 1.7 percent to 611.72 at 3:03 p.m. in New York, after touching 611.65, the lowest since July 1. West Texas Intermediate fell below $95 a barrel for the first time since June. Gold reached a two-week low. Hog futures capped the longest slump in three months, and cotton fell to the lowest since January.
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Posted: June 23rd, 2011 | Author: Rod Sherkin | Filed under: Commodities | Tags: commodities | No Comments »
Commodities dropped the most in seven weeks after the International Energy Agency announced plans to release emergency oil supplies and U.S. jobless claims rose more than economists forecast.
The Standard & Poor’s GSCI index of 24 commodities fell as much as 4.7 percent, the most since May 5, and was down 3.7 percent at 648.65 by 5:40 p.m. in London. Brent crude oil in London led the decline, falling 5.5 percent. The IEA will make available 60 million barrels of crude to alleviate possible shortages following the loss of Libyan oil.
The U.S. will release 30 million barrels from its Strategic Petroleum Reserve, as part of the IEA effort. U.S. jobless claims increased to 429,000 last week, exceeding the highest estimate in a Bloomberg News survey of 47 economists.
via Commodities Fall Most in Seven Weeks After Plan to Release Crude – Bloomberg.com.
Posted: March 12th, 2011 | Author: Rod Sherkin | Filed under: Plastics | No Comments »
Chemical prices are set globally by naphtha-based producers. That lets Dow and its peers charge the higher industry price and bank the margins from using cheap natural gas.
Cheap natural gas is giving U.S. chemical companies an edge over European rivals, many of which are increasingly anxious about soaring crude oil prices resulting from uprisings in the Middle East.
That edge should lift 2011 margins and earnings at Dow Chemical Co., Westlake Chemical Corp., LyondellBasell Industries NV and other American-based commodity chemical producers.
Large-scale exploitation of shale formations in the United States has driven down natural gas prices by 12 percent in the past year, highlighting the growing disconnect between the costs of crude oil and natural gas.
Both natural gas and crude are used to make ethylene, propylene and other basic chemicals. They in turn are used to produce swimming pool liners, pantyhose, diapers and other common products.
Brent crude prices have jumped 46 percent in the same time period—and 17 percent in the last month alone—as democratic revolts have rippled across the Middle East, causing supply concerns among Europe’s chemical leaders, including Lanxess AG and BASF AG.
via Crude oil price surge helps U.S. chemical makers.
Posted: November 12th, 2010 | Author: Rod Sherkin | Filed under: Commodities, Energy | No Comments »
Oil prices fell below $85 a barrel Friday amid a wide selloff in commodity and equities markets, as worries grow that China may soon raise interest rates in an effort to slow growth in the energy-hungry country.
Light, sweet crude for December delivery was recently down $3.12, or 3.5%, at $84.69 a barrel on the NYMEX, the lowest level since Nov. 3. Brent crude on the ICE futures exchange fell $2.97, or 3.4%, at $85.84 a barrel.
Data from China released Thursday showed inflation rising faster than anticipated, which could force China’s central bank to raise interest rates or take other steps to slow the growth of its economy. The Chinese government Thursday reported consumer prices rose by 4.4% in October. Average inflation this year has now reached 3% and will likely rise unless readings slow sharply in the next two months.
via OIL FUTURES: Crude Tumbles Below $85 Amid Broad Selloff – WSJ.com.
Posted: September 11th, 2010 | Author: Rod Sherkin | Filed under: China, Metals, Steel | No Comments »
“The magnitude of China’s steel production cuts is unprecedented, and likely to expand,” Hu said in a Sept. 8 note.
Crude steel production in China, the world’s biggest maker of the metal, fell to a six-month low in August as companies sought to cut overcapacity. Output was 51.64 million metric tons, according to data from the National Bureau of Statistics today. That was the lowest since February and a drop from 51.7 million tons in July, according to data compiled by Bloomberg News.
Chinese steel prices gained an average 5.6 percent in August from July, after steelmakers cut output to trim overcapacity. Production may fall in September as local governments start power restrictions to meet energy efficiency targets, according to Hu Yanping, an analyst at researcher UC361.com.via China’s Crude-Steel Output Declines to Six-Month Low Update1 – Bloomberg.com.
Posted: September 1st, 2010 | Author: Rod Sherkin | Filed under: Energy, Energy | No Comments »
Crude futures tumbled Tuesday, settling below $72 a barrel as investors turned their attention toward increasingly high U.S. oil supplies and the slowing economy.
Light, sweet crude for October delivery settled $2.78, or 3.7%, lower, at $71.92 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled down $1.96, or 2.6%, at $74.64 a barrel.
via Crude Falls Below $72 as Stockpiles Grow – WSJ.com.
Posted: November 10th, 2013 | Author: Pascal Blanc | Filed under: Commodities | Tags: commodities, commodity 2013, commodity forecast, commodity outlook, commodity risk | No Comments »
The recent fortunes made by investors in rare earth metals and gold are just two shining examples of what an extremely profitable investment class commodities can be. From aluminum and platinum to zinc and silver, oil and gas to cocoa and wheat, this Guide to Commodities from the Economist Intelligence Unit is a comprehensive overview of the forces at work in the world of commodities.
The price volatility of so many commodities over the past decade has underlined their economic importance and how dependent we are on them: the price of gold has soared to new peaks (before tumbling in the last few weeks) as currencies have endured a crisis of confidence, demand from China has pushed metal prices up, instability in the Middle East and North Africa has had its effect on the oil price and food prices have been increasing in parallel with worries about whether there is enough to feed the world. Read the rest of Guide to Commodities 2013 » » »
Posted: October 22nd, 2013 | Author: Rod Sherkin | Filed under: Energy, USA | Tags: diesel, diesel price, diesel usa, gasoline, gasoline price, gasoline usa | No Comments »
October supplies of gasoline are at a three-year high for that month, but refiners are still running at high speed because they are earning fat profits exporting diesel, which is made using the same process that converts oil to gasoline.
A gallon of regular gasoline cost an average $3.35 on Monday, down 14 cents in the last month and hovering at their lowest level since January, according to AAA. The automobile club predicts retail prices could drop another 15 cents to 20 cents by the end of the year.
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Posted: September 5th, 2013 | Author: Pascal Blanc | Filed under: China, Commodities, Metals, Stainless Steel, Steel | Tags: china steel, stainless steel, steel, steel index, steel inventory, steel output, steel price, steel production | No Comments »
Steel reinforcement-bar or rebar advanced 10 percent to 3,735 yuan on the Shanghai Futures Exchange since reaching this year’s low on June 14 and may extend the rally to 20 percent by the end of 2013, meeting the common definition of a bull market according to a Bloomberg News survey of analysts.
In August this year, the purchasing managers’ index (PMI) of China’s steel sector increased to 53.4 percent, up 0.9 percentage points month on month, as announced by the China Steel Logistics Committee which is part of the China Federation of Logistics and Purchasing.
Also, the new order index for China’s steel sector stood at 57.9 percent, up 0.6 percentage points compared to previous month. Meanwhile, the export order index was stable month on month.
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Posted: August 31st, 2013 | Author: Pascal Blanc | Filed under: Chemicals, Commodities, Europe, Potash | Tags: Potash, potash belarus, potash market, potash price, potash russia | 2 Comments »
Potash is produced worldwide at amounts exceeding 30 million tonnes per year, mostly for use in fertilizers. In 2013, almost 70% of potash production was controlled by two cartels, Canpotex (Canada) and the Belarusian Potash Company (Russia/Belarus).
The latter was a joint venture between Belaruskali (Belarus) and Uralkali (Russia), but angered by a law passed in Belarus last year allowing Belaruskali to make sales outside the marketing venture, Uralkali quit the cartel on July 30, saying it would seek to maximize its own volumes. It warned that prices could fall as much as 25 percent this year to less than $300 per tonne.
On August 26th, Belarusian officials detained Vladislav Baumgertner, CEO of Russia’s Uralkali, as he was departing the Minsk airport after he was invited to the capital by the Belarusian Prime Minister. Baumgertner is charged with ‘abusing power’ as chairman of Belarusian Potash Company and causing damages of about $100 million.
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