Commodity market flooded with red

Cautious sentiment continued to dominate global commodity markets last trading week, with pressure weighing on the oil market.

The Vietnam Commodity Exchange (MXV) said that at the close, selling pressure dominated, causing the MXV-Index to weaken more than 1% to 2,224 points.

Selling pressure dominated the energy market last week. Source: MXV

According to MXV, the energy market last week (from July 21 to 27) witnessed overwhelming selling pressure on all 5 commodities in the group.

At the end of the trading session on July 25, WTI oil price recorded a decrease of 1.35%, falling to 65.16 USD/barrel, the lowest level since the beginning of July. Brent oil price also stopped at the lowest level in nearly three weeks, 68.44 USD/barrel, corresponding to a decrease of 1.21%.

The focus of market concerns continues to be the US’s failure to reach a new trade agreement with key partners such as the EU and China, as August 1 approaches, raising concerns about the risk of a global economic slowdown, leading to a less positive outlook for energy consumption.

Pressure on oil prices continues to exist as Saudi Arabia and Kazakhstan, members of the OPEC+ group, simultaneously boost exports, significantly increasing supply to the market.

The green and red metal markets are mixed. Source: MXV

Meanwhile, the metal market recorded relatively mixed developments.

At the end of the trading session on July 25, the price of iron ore futures contracts for August recorded an increase of 2.24%, reaching 103.03 USD/ton, marking the 5th consecutive week of increase.

Iron ore prices briefly rose to their highest level since late February, mainly due to news that China had started construction on a hydropower project in Tibet with a total investment of up to 167-170 billion USD.

The project is expected to consume about 2–2.5 million tons of steel, equivalent to nearly 3% of China's average monthly crude steel output, thereby creating a significant driving force for demand for input materials such as iron ore in the coming period.

On the supply side, iron ore prices are also under pressure from a sharp increase in exports. According to data from the Pilbara Port Authority (Australia), at the world's largest iron ore export port, Port Hedland, export volume in June reached a record high of 54.6 million tons, up 2.8% compared to May. Of which, exports to China alone increased by more than 8%, to 49.2 million tons.

Source: https://hanoimoi.vn/thi-truong-hang-hoa-ngap-sac-do-710625.html