Supply and demand pressure leads to fluctuations in world commodity prices

The MXV-Index fell 0.7% to 2,224 points, marking the second consecutive decline and hitting a one-week low.

The energy commodity market has 4/5 items decreasing in price. Source: MXV

According to MXV, the energy market was under strong selling pressure when 4/5 commodities decreased in price, in which Brent and WTI oil prices both lost nearly 1%, closing at 66.99 USD/barrel and 63.48 USD/barrel, respectively.

The biggest pressure came from unexpectedly rising US crude inventories, contrary to expectations of a decline. The latest reports from the API and EIA showed that commercial inventories rose by more than 2.4 million barrels, as many US refineries entered routine maintenance, reducing demand for crude. This signal overshadowed the supportive impact of falling gasoline inventories, suggesting that consumption is cooling.

Market sentiment is also influenced by the possibility that OPEC+ will increase production earlier than expected, by about 1.65 million barrels per day, which could loosen the global supply-demand balance.

The US economic picture shows that the services and composite PMI indexes both decreased in August, raising concerns about weakening energy demand.

Selling pressure increased in the metal group commodity market. Source: MXV

Meanwhile, iron ore prices rose 1.52% to $104.8 a tonne, bucking the downward trend of most metals. According to MXV, the main support came from expectations that Beijing would tighten its steel production to address overcapacity and compete with low prices. This positive sentiment helped prices remain stable above $100 a tonne, despite the current lack of strong actual demand.

Recently, five Chinese government agencies released a plan to stabilize the steel industry growth in 2025-2026, emphasizing tightening production capacity and output. It is forecasted that crude steel output in 2025 may fall below 980 million tons, lower than the level of more than 1 billion tons in 2024.

Domestically, domestic steel prices only increased once in August, reflecting a stable trend thanks to large infrastructure projects, especially 250 traffic works that started construction at the end of August. However, iron and steel exports in the first half of August decreased by more than 41% compared to the second half of July, showing increasing pressure from international trade defense measures.

Source: https://hanoimoi.vn/ap-luc-cung-cau-dan-dat-bien-dong-gia-hang-hoa-the-gioi-715172.html