Commodity Market: Iron Ore and Oil Prices Rise Strongly

The energy group became the focus of leading the rally of the entire raw material market, while iron ore prices reversed sharply due to the risk of supply disruption.

According to the Vietnam Commodity Exchange (MXV), the energy group was an important driving force, pushing the MXV-Index up 0.3% to 2,229 points.

Energy commodity market is on the rise. Source: MXV

According to MXV, the energy group witnessed dominant buying power when most prices of many key commodities increased sharply.

The focus was on Brent oil price, which recorded an increase of about 1.58%, to 68.8 USD/barrel; while WTI oil price stopped at 64.8 USD/barrel, corresponding to an increase of about 1.79%.

According to MXV, investors assess that peace negotiations are still dragging on longer than expected. In addition, small-scale attacks have disrupted oil supplies from Russia to Slovakia and Hungary, further reinforcing concerns about the risk of further escalation of geopolitical tensions.

Another notable point in the market is the increasing expectation that the US Federal Reserve (FED) will decide to cut interest rates after its meeting next September.

The metal commodity market is divided. Source: MXV

According to MXV, yesterday's trading session recorded clear differentiation when precious metals were under strong selling pressure, while most base metals maintained a positive trend.

The focus was on iron ore, as the September futures contract on the Singapore Exchange reversed and increased by 2.65% to $103.26/ton, erasing the previous decline thanks to unexpected information from the supply.

In China - the world's largest iron ore consumer, steel exports in July reached 11.4 million tons, up 5.2% compared to June and nearly 40% compared to the same period in 2024. In the first 7 months, China's steel exports increased by more than 20% to 75.5 million tons.

Domestically, construction steel prices have increased again after three consecutive downward adjustments. CB240 coil steel is currently at VND13.3 million/ton, and D10 CB300 rebar steel is at VND12.99 million/ton.

However, data from the Vietnam Customs Department showed that in the first half of August, iron and steel exports fell sharply by 41% compared to the second half of July, to 280,909 tons; while imports increased by 3.6%, reaching 671,230 tons.

This reflects improving domestic demand, but exports are under competitive pressure from abundant Chinese supply.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-gia-quang-sat-va-dau-tang-manh-714001.html