International oil prices have plummeted, leading to a new round of decline in industrial products ?
04 May 2023
International oil prices have plummeted, leading to a new round of decline in industrial products ?
This week, the trend of commodities has been weak, especially with a significant decline in industrial products. Copper, aluminum, and zinc in the non-ferrous metal sector fell significantly; The black sector continued its downward trend, with coking coal and coke experiencing the largest decline; The chemical industry sector has significantly weakened with crude oil, with methanol, ethylene glycol, LPG, and soda ash leading the decline; The agricultural products (6.440, 0.00, 0.00%) sector is relatively strong, with sugar hitting new highs, cotton and rapeseed meal significantly rising, and palm oil hitting new lows.
Crude oil breaks through and falls. LPG stops rising and falls back:
This week, crude oil prices broke through and fell, driving the decline of the energy and chemical sector. LPG futures, which had previously risen more, stopped rising and fell back this week, with a significant decline. LPG prices have remained relatively strong, supported by the recovery of PDH demand and the strength of civilian gas, but supply in the Middle East and the United States is still high, and combustion demand is approaching the off-season, and there is always pressure above. The oil price fell below $80/barrel this week, and the psychological threshold hit market sentiment greatly. After the cost side weakened, the LPG trading logic shifted from the demand side to the supply side.
Steel mills reduce production, increase coke coal, and significantly decrease coke:
This week, the black sector continued its decline, with coking coal and coke leading the decline. The data shows that the new construction and construction area of real estate continue to decline year-on-year, indicating that the terminal consumption performance of steel is currently weak. Due to the decline in steel prices, the profits of steel mills have weakened, and some steel mills have started production reduction plans, which is negative for upstream furnace materials. The overall supply of coking coal and coke is also on the high side, with more imports of Mongolian coal and Australian coal. Coke enterprises are operating normally, but shipments are weak. In the situation of strong supply and weak demand, the weakness of coking coal and coke is difficult to improve.
Increase in supply and weak demand, palm oil hitting a new low:
Palm oil prices continue to decline, and the Indonesian Ministry of Commerce announced on Thursday that it will force palm oil producers to reduce their sales volume in the Indonesian market from the current 450000 tons to 300000 tons starting from May, allowing for more palm oil exports. At the same time, palm oil from the production area has entered a production cycle, and the increase in supply has suppressed the market atmosphere. Domestic palm oil inventories are relatively high, but imports are low, leading to a decline in high inventory levels. In addition, Brazil's abundant soybean production has offset Argentina's reduction in production, putting greater pressure on soybean oil prices and also dragging down palm oil prices.
This week, the trend of commodities has been weak, especially with a significant decline in industrial products. Copper, aluminum, and zinc in the non-ferrous metal sector fell significantly; The black sector continued its downward trend, with coking coal and coke experiencing the largest decline; The chemical industry sector has significantly weakened with crude oil, with methanol, ethylene glycol, LPG, and soda ash leading the decline; The agricultural products (6.440, 0.00, 0.00%) sector is relatively strong, with sugar hitting new highs, cotton and rapeseed meal significantly rising, and palm oil hitting new lows.
Crude oil breaks through and falls. LPG stops rising and falls back:
This week, crude oil prices broke through and fell, driving the decline of the energy and chemical sector. LPG futures, which had previously risen more, stopped rising and fell back this week, with a significant decline. LPG prices have remained relatively strong, supported by the recovery of PDH demand and the strength of civilian gas, but supply in the Middle East and the United States is still high, and combustion demand is approaching the off-season, and there is always pressure above. The oil price fell below $80/barrel this week, and the psychological threshold hit market sentiment greatly. After the cost side weakened, the LPG trading logic shifted from the demand side to the supply side.
Steel mills reduce production, increase coke coal, and significantly decrease coke:
This week, the black sector continued its decline, with coking coal and coke leading the decline. The data shows that the new construction and construction area of real estate continue to decline year-on-year, indicating that the terminal consumption performance of steel is currently weak. Due to the decline in steel prices, the profits of steel mills have weakened, and some steel mills have started production reduction plans, which is negative for upstream furnace materials. The overall supply of coking coal and coke is also on the high side, with more imports of Mongolian coal and Australian coal. Coke enterprises are operating normally, but shipments are weak. In the situation of strong supply and weak demand, the weakness of coking coal and coke is difficult to improve.
Increase in supply and weak demand, palm oil hitting a new low:
Palm oil prices continue to decline, and the Indonesian Ministry of Commerce announced on Thursday that it will force palm oil producers to reduce their sales volume in the Indonesian market from the current 450000 tons to 300000 tons starting from May, allowing for more palm oil exports. At the same time, palm oil from the production area has entered a production cycle, and the increase in supply has suppressed the market atmosphere. Domestic palm oil inventories are relatively high, but imports are low, leading to a decline in high inventory levels. In addition, Brazil's abundant soybean production has offset Argentina's reduction in production, putting greater pressure on soybean oil prices and also dragging down palm oil prices.