Commodity market: Oil price rises, iron ore falls

The world raw material market has mixed developments, with oil prices rising and iron ore prices falling for the fourth consecutive session.

According to the Vietnam Commodity Exchange (MXV), the MXV-Index closed down slightly more than 0.1% to 2,179 points with selling pressure dominating.

The red metal commodity market dominates. Source: MXV

At the end of the first trading session of the week, the metal market witnessed overwhelming selling pressure when 8/10 commodities simultaneously decreased in price. The September iron ore futures contract extended its decline to the fourth consecutive session, falling nearly 0.5% to 101.43 USD/ton.

According to MXV, iron ore prices are under pressure mainly from weak demand in China – the world’s largest steel consumer. Pig iron production in July fell 1.4% to 70.8 million tonnes, while crude steel fell 4% to below 80 million tonnes, the lowest level since the beginning of the year.

In addition, the US dollar increased by 0.32% to 98.17 points, also contributing to increasing pressure, making iron ore more expensive.

In the domestic market, finished steel prices have remained stable since the beginning of July, with CB240 coil steel around VND13.23 million/ton and D10 CB300 rebar steel at VND12.83 million/ton.

Energy commodity market is quiet. Source: MXV

The energy market was relatively quiet as it awaited developments related to the meeting between the leaders of Russia and Ukraine. However, world oil prices still recorded a recovery of about 1% in yesterday's session.

Specifically, Brent oil price closed at 66.6 USD/barrel, corresponding to an increase of about 1.14%; while WTI oil also increased by nearly 1%, to 63.42 USD/barrel.

The main reason driving the increase in oil prices is said to stem from concerns about the risk of supply disruption from Russia.

Besides, the market is currently closely monitoring the moves of the US Federal Reserve (FED), especially signals about the possibility of interest rate adjustments in the near future.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-gia-dau-bat-tang-quang-sat-giam-713168.html