Tariffs continue to influence commodity prices

The world's raw material market has just closed a volatile trading week with contrasting colors.

The market for industrial raw materials is "bright green". Source: MXV

Closing the last trading week (from August 11 to 17), green covered most industrial raw material groups, in which the prices of two coffee products continued to recover strongly.

Specifically, the price of Arabica coffee recorded an increase of more than 10%, to 7,532 USD/ton, while the price of Robusta coffee increased by nearly 18%, reaching 4,201 USD/ton.

The spike in coffee prices is due to high tariffs imposed by the US on Brazilian coffee, which continue to disrupt trade between the two countries. Coffee imports and exports have been temporarily suspended as US coffee inventories are sufficient to meet demand for the next 30-60 days.

In the domestic market, export bidding activities from domestic coffee enterprises are quite slow.

According to the update to August 14, the price of raw coffee beans purchased by businesses fluctuates around 111,000-112,000 VND/kg, while warehouses in need of goods must accept paying from 113,000-114,000 VND/kg to be able to buy. The main reason comes from the pressure of scarce supply, when both domestic and global inventories are at low levels.

Energy commodity market is "red". Source: MXV

On the other hand, the energy market witnessed overwhelming selling pressure across all five commodities in the group. Brent oil price fell more than 1% to $65.8/barrel, while WTI oil price also recorded a decrease of nearly 1.7%, stopping at $62.8/barrel.

The focus of the market revolves around the meeting between US President Donald Trump and Russian President Vladimir Putin taking place on August 15 (local time) in Alaska, USA.

After the meeting, signs of easing tensions in US-Russia relations, along with the prospect of easing sanctions on Russian crude oil, contributed to downward pressure on world oil prices.

In addition, newly released reports from the International Energy Agency (IEA), the American Petroleum Institute (API) and the US Energy Information Administration (EIA) continue to reinforce the forecast of a supply surplus in the coming time.

Source: https://hanoimoi.vn/thue-quan-tiep-tuc-chi-phoi-dien-bien-gia-hang-hoa-713035.html