Copper bounced this week on supply fears after a vast earthquake in top producer Chile, while Brent oil dived on the prospect of rebounding Libyan crude supplies, analysts said.
Other commodities experienced mixed fortunes as investors digested Friday’s broadly in-line non-farm payrolls data in the US, which is a leading consumer of many raw materials.
BASE METALS: The magnitude 8.2 earthquake in Chile late on Tuesday, which killed six people, sent copper rallying on Wednesday to US$6,734 per tonne, its highest since March 10.
Chile accounts for almost one-third of global supplies of copper. However, analysts said no earthquake damage to copper facilities had been reported.
Meanwhile, nickel soared to a one-year pinnacle amid Indonesia’s ongoing ban on exports of mineral ore, including nickel, copper and bauxite. The ban has been in place since Jan. 12.
“The lack of Indonesian ore in the market is seeing ever higher ore prices, feeding through to higher production costs in China,” Macquarie analyst Colin Hamilton said.
“Nickel can still go much higher through the course of this year,” he added.
By Friday on the London Metal Exchange, copper for delivery in three months rose to US$6,700 a tonne from US$6,635.75 week earlier.
Three-month aluminum increased to US$1,846 a tonne from US$1,754.75, while three-month lead eased to US$2,070 a tonne from US$2,079.
Three-month tin advanced to US$23,208 a tonne from US$22,866, while three-month nickel rallied to US$16,545 a tonne from US$15,850 and three-month zinc climbed to US$2,011 a tonne from US$1,989.25.
OIL: Prices hit a fresh five-month low, as Libyan supplies appeared set to return to the market, traders said.
London’s Brent North Sea crude sank on Wednesday to US$103.95 a barrel — the lowest level since Nov. 8.
“Brent fell to a five-month low ... [with] the expectation of a growing oil supply from Libya continuing to weigh on its price,” Commerzbank analyst Carsten Fritsch said.
Rebels demanding autonomy for eastern Libya said on Thursday they had made progress in talks with the central government on reopening key oil ports they closed to exports in July last year.
A rebel spokesman said a first port might reopen as early as next week, raising hopes of an end to a nine-month blockade Tripoli says has cost the country more than US$14 billion in lost oil revenues.
The oil market staged a modest rally on Friday after the US Department of Labor report showed job growth last month was roughly in line with expectations.
By Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in May dived to US$106.77 a barrel from US$108.04.
On the New York Mercantile Exchange, West Texas Intermediate or light sweet crude for May dipped to US$101.21 per barrel from US$101.67 a week earlier.
PRECIOUS METALS: Gold sank on Tuesday on profit-taking to a seven-week low of US$1,276.98 per ounce, before rebounding to end the week with gains.
“Gold prices fell in line with our expectations this week — before the US employment report gave gold a boost towards US$1,300 per ounce,” Barclays analyst Kevin Norrish said.
The safe-haven metal had last month forged a six-month high at US$1,392.22, as investors sought to shelter from Russia-Ukraine tensions — which have since receded.
By late Friday on the London Bullion Market, the price of gold rose to US$1,297.25 an ounce from US$1,294.75 a week earlier.
Silver firmed to US$19.93 an ounce from US$19.71.
On the London Platinum and Palladium Market, platinum advanced to US$1,444 an ounce from US$1,401. Palladium increased to US$789 an ounce from US$771.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure