In a fast-moving week for commodities, copper rocketed to a new record high, coffee and sugar hit impressive multi-year peaks and crude oil struck two-year pinnacles before the Christmas break.
BASE METALS: Copper prices surged to a record US$9,392 per tonne on Tuesday on the back of upbeat Chinese data and after a key Chilean mine halted its exports.
“Copper has continued to rise this morning on supportive Chinese trade data and news that Collahuasi had called force majeure on concentrate shipments,” Barclays Capital analysts said in a note to clients. “The full and final data set for Chinese base metals November trade data paints an encouraging picture. Imports of all the metals increased — apart from nickel — with the rise in copper and tin particularly noteworthy.”
Chile’s massive Collahuasi copper mine on Monday suspended exports following a ship-loading crane accident that killed three workers at the port where its concentrate is shipped.
Meanwhile, a mystery buyer has snapped up 90 percent of the copper on the London Metal Exchange (LME) amid sky-high prices for the industrial metal that is used in plumbing, heating, electrical and telecommunications wiring.
“Dominant long positions are not unusual and the LME has proven processes for dealing with these positions,” said Diarmuid O’Hegarty, LME head of regulation and compliance.
He added that the LME had “strict rules” that would require traders to lend back to the market at pre-agreed rates.
By late Friday on the LME, copper for delivery in three months rallied to US$9,339.50 a tonne from US$9,081 a week earlier. Three-month aluminum rose to US$2,446 a tonne from US$2,337.25.
OIL: Prices hit a 26-month peak, lifted by freezing weather and upbeat US data, before running into modest profit-taking before the festive break.
London Brent North Sea crude for February delivery soared to US$94.74 per barrel — the highest point since October 2008 — while New York’s light sweet crude struck a similar peak at 91.63.
By Friday afternoon on London’s Intercontinental Exchange, Brent North Sea crude for delivery in February soared to US$93.46 a barrel, compared with US$91.78 a week earlier.
By Thursday on the New York Mercantile Exchange, Texas light sweet crude for February had jumped to US$91.51 a barrel, from US$88.01 for the now-expired January contract on Friday of the previous week.
COCOA: The market rallied as a result of ongoing violence in Ivory Coast. By Friday on LIFFE, London’s futures exchange, cocoa for March rose to ￡2,022 a tonne from ￡1,975 a week earlier.
By Thursday on the New York Board of Trade (NYBOT), cocoa for delivery in March climbed to US$3,020 a tonne from US$2,965.
PRECIOUS METALS: Gold crept toward its recent record high pinnacle.
“The price of gold should continue to be supported by demand for a safe haven from other potential economic and financial shocks,” Capital Economics analyst Julian Jessop said.
By late Friday on the London Bullion Market, gold advanced to US$1,380.50 an ounce at the late fixing from US$1,368.50 a week earlier. Silver rose to US$29.07 an ounce from US$28.78.
On the London Platinum and Palladium Market, platinum increased to US$1,725 an ounce from US$1,696.
Palladium gained to US$764 an ounce from US$738.
COFFEE: Coffee soared to a fresh 13-year high at US$2.4225 per pound (0.45kg) in New York, driven by concerns over stretched global supplies.
By Friday on NYBOT, Arabica for delivery March increased to US$2.3590 a pound, from US$2.1935 the previous week. On LIFFE, Robusta for March leapt to US$1,998 a tonne from US$1,974.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion