MXV-Index approaches 3,000 points for the first time.

The global commodities market is showing strong signs of recovery as buying interest returns across many product groups, particularly metals and industrial raw materials.

The MXV-Index approached the 3,000-point mark for the first time. Source: MXV

At closing, the MXV-Index rose 2.69% to 2,994 points, nearing the 3,000-point mark for the first time in history.

According to the Vietnam Commodity Exchange (MXV), the metals market continues to attract investment, with copper being a prominent commodity as its price reached a new record high on the COMEX exchange.

At the close of trading, the COMEX copper price rose to $6.50 per pound, equivalent to $14,243 per ton – its highest level ever.

The main driver supporting prices comes from ongoing tensions in the Middle East disrupting energy and industrial chemical supply chains, tightening the supply of sulfuric acid, a key ingredient in copper mining and smelting. The risk is further heightened by China's expected halt to sulfuric acid exports from May. Last year, the country accounted for approximately 23% of global supply.

Chile's copper production – the world's largest copper producer. Source: MXV

Meanwhile, copper production in Chile – the world's largest copper producer – shows no clear signs of recovery, consistently remaining lower than the same period last year.

On the demand side, manufacturing activity in China continues to support the market. The April manufacturing PMI reached 50.3 points, remaining above the 50-point threshold, indicating continued expansion in the manufacturing sector. Simultaneously, strong investment trends in data centers, power grids, and renewable energy globally also bolster the long-term outlook for copper consumption.

In addition, concerns that the US might impose import tariffs on refined copper also spurred activity in stockpiling and shipping copper back to the US.

In Vietnam, the persistently high price of copper has led to a slowdown in imports during the latter half of April. According to customs data, Vietnam imported approximately 20,553 tons of copper between April 16 and 30, a decrease of 22.5% compared to the first half of the month. Conversely, copper exports reached 2,934 tons, 2.6 times higher than the previous period.

Along with metals, the industrial raw materials group also recorded positive developments, most notably cotton. At the close of trading, the July cotton futures price rose 3.6% to $1,935 per ton, the highest level in two years.

According to MXV, the main cause stems from the severe drought in the United States – the world's largest cotton exporter. Data from the US Drought Monitor shows that more than 90% of cotton-growing areas in the Southern United States are affected by drought, with approximately 26.7% of the area experiencing "extreme" or "exceptionally severe" conditions.

Vietnam's cotton import volume in recent times. Source: MXV

In addition, tensions in the Middle East have caused fertilizer prices to rise sharply, putting further pressure on the production costs of American farmers. The market also expects China to increase imports of American agricultural products following an upcoming meeting between the leaders of the two countries, thereby providing further support for cotton prices.

In Vietnam, cotton imports in April reached approximately 170,000 tons, an increase of over 21% compared to the previous month, with a value of about $305.2 million.

Source: https://hanoimoi.vn/mxv-index-lan-dau-ap-sat-moc-3-000-diem-749494.html