Copper and tin prices nailed historic highs this week, and gold smashed above US$1,400 for the first time in history in a sustained record-breaking run fueled by hopes of economic recovery.
BASE METALS: Copper soared to a record peak of US$8,966 a tonne — beating the previous high of US$8,940 seen in July 2008 — on supportive Chinese economic data, tight global supplies and strikes in key producer Chile.
In addition, tin set an all-time high at US$27,500 per tonne, before both industrial metals ran into profit-taking.
Copper has rocketed by 50 percent since June.
By late Friday on the London Metal Exchange, copper for delivery in three months eased to US$8,695 a tonne from US$8,730 a week earlier. Three-month aluminum slipped to US$2,445 a tonne from US$2,466. Three-month lead rose to US$2,545 a tonne from US$2,525. Three-month tin pulled back to US$26,450 a tonne from US$26,600 from a week earlier.
PRECIOUS METALS: Gold soared to a fresh record of US$1,424.60 per ounce on the London Bullion Market, after hurtling past the US$1,400 barrier, boosted by its safe-haven status and the weak US dollar.
In the wake of gold, sister metal silver flew to a new 30-year peak at US$29.36 an ounce and palladium chalked up a nine-year high.
By late Friday on the London Bullion Market, gold surged to US$1,388.50 an ounce at the late fixing, from US$1,346.77 a week earlier.
Silver advanced to US$26.79 an ounce from US$23.96.
On the London Platinum and Palladium Market, platinum rallied to US$1,712 an ounce from US$1,700. Palladium increased to US$703 an ounce from US$640.
OIL: Crude oil prices neared US$90 for the first time in more than two years, stoked by expectations of increased demand amid tight supplies.
They pulled back on Friday when traders took their cue from a stronger US dollar and speculation over a Chinese interest rate rise which could curb consumption.
By late Friday on London’s Intercontinental Exchange, Brent North Sea crude for delivery in December edged down to US$87.86 a barrel from US$88.10 a week earlier.
On the New York Mercantile Exchange, Texas light sweet crude for December stood at US$86.62 a barrel, from 86.77.
SUGAR: Sugar futures soared to major multi-year highs before running into profit-taking.
Unrefined sugar for delivery in March jumped to US$0.3339 a pound — the best level for around three decades. In London, a tonne of white sugar reached a 23 year peak of £811 a tonne.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for delivery in March fell to US$0.28 a pound (0.45kg) from US$0.3181 a week earlier.
On LIFFE — London’s futures exchange — the price of a tonne of white sugar for December retreated to £735 from £776.
CHIP WAR: Tariffs on Taiwanese chips would prompt companies to move their factories, but not necessarily to the US, unleashing a ‘global cross-sector tariff war’ US President Donald Trump would “shoot himself in the foot” if he follows through on his recent pledge to impose higher tariffs on Taiwanese and other foreign semiconductors entering the US, analysts said. Trump’s plans to raise tariffs on chips manufactured in Taiwan to as high as 100 percent would backfire, macroeconomist Henry Wu (吳嘉隆) said. He would “shoot himself in the foot,” Wu said on Saturday, as such economic measures would lead Taiwanese chip suppliers to pass on additional costs to their US clients and consumers, and ultimately cause another wave of inflation. Trump has claimed that Taiwan took up to
SUPPORT: The government said it would help firms deal with supply disruptions, after Trump signed orders imposing tariffs of 25 percent on imports from Canada and Mexico The government pledged to help companies with operations in Mexico, such as iPhone assembler Hon Hai Precision Industry Co (鴻海精密), also known as Foxconn Technology Group (富士康科技集團), shift production lines and investment if needed to deal with higher US tariffs. The Ministry of Economic Affairs yesterday announced measures to help local firms cope with the US tariff increases on Canada, Mexico, China and other potential areas. The ministry said that it would establish an investment and trade service center in the US to help Taiwanese firms assess the investment environment in different US states, plan supply chain relocation strategies and
WASHINGTON POLICY: Tariffs of 10 percent or more and other new costs are tipped to hit shipments of small parcels, cutting export growth by 1.3 percentage points The decision by US President Donald Trump to ban Chinese companies from using a US tariff loophole would hit tens of billions of dollars of trade and reduce China’s economic growth this year, according to new estimates by economists at Nomura Holdings Inc. According to Nomura’s estimates, last year companies such as Shein (希音) and PDD Holdings Inc’s (拼多多控股) Temu shipped US$46 billion of small parcels to the US to take advantage of the rule that allows items with a declared value under US$800 to enter the US tariff-free. Tariffs of 10 percent or more and other new costs would slash such
Hon Hai Precision Industry Co (鴻海精密) is reportedly making another pass at Nissan Motor Co, as the Japanese automaker's tie-up with Honda Motor Co falls apart. Nissan shares rose as much as 6 percent after Taiwan’s Central News Agency reported that Hon Hai chairman Young Liu (劉揚偉) instructed former Nissan executive Jun Seki to connect with French carmaker Renault SA, which holds about 36 percent of Nissan’s stock. Hon Hai, the Taiwanese iPhone-maker also known as Foxconn Technology Group (富士康科技集團), was exploring an investment or buyout of Nissan last year, but backed off in December after the Japanese carmaker penned a deal