Asian financial storm hits commodities marts<\/p>\n
LONDON (AFP): Asia's financial turbulence wreaked havoc with
\nthe commodities markets this week, as economic instability and an
\nexpected slump in growth rates there ravaged consumption of
\nmetals and edible goods.<\/p>\n
Sharp losses in regional currencies, such as the Indonesian
\nrupiah, which tumbled below 10,000 to the dollar during the week,
\nset alarm bells ringing in dealing rooms across the City of
\nLondon.<\/p>\n
Dealers forecast that the reduced buying power from the region
\nthat was formerly a key consumer of metals and other commodities
\nwould hit demand for a long time to come.<\/p>\n
A slump on regional stock exchanges added to the downbeat
\nprognosis of western market-watchers.<\/p>\n
The turmoil knocked gold prices down to their lowest level
\nsince mid-1979 and base metal prices also slumped to their lowest
\nlevels for several years.<\/p>\n
U.S. soya and sugar prices also caught the eastern bug as the
\nyen fell sharply against the dollar.
\nCrude oil prices plummeted in the wake of a resumption of Iraqi
\nexports after a month-long pause.<\/p>\n
Gold: meltdown. Gold plunged to an 18-1\/2 year low this week
\non the London Bullion Market in reaction to the financial turmoil
\nin East Asian markets.<\/p>\n
Prices slumped below US$280 per ounce at one point, but
\nrecovered slightly to $280.45 at the end of the week, far below
\nthe $289.15 recorded last week.<\/p>\n
The gold market was affected by the fall in Asian stock
\nmarkets and sharp losses in currencies across the region.<\/p>\n
Silver: stable. Silver prices closed at almost the same level
\nas last week, after a sharp rise earlier in the week was reversed
\namid rumors of legal proceedings to be launched against dealers
\nembroiled in a price fixing ring.<\/p>\n
Prices closed at $6.04 per ounce from $6.03 last week.<\/p>\n
Platinum and palladium: sparkling. The prices of these two
\nmetals rose a little higher still, as supplies from Russia, by
\nfar the biggest producer of the metals, have been held back from
\nthe market so far this year. Shipments were suspended for several
\nmonths in 1997.<\/p>\n
Palladium prices rose by $1.5 to $363.50 per ounce.<\/p>\n
Platinum prices rose by $4.5 to $208.5 per ounce.<\/p>\n
Copper: dulled. Copper prices fell sharply over the week under
\npressure from the Asian financial crisis and an increase in
\nreserves on the London Metal Exchange.<\/p>\n
The three-month copper price sank $78.5 to $1,674.5, the
\nlowest level since December 1993.<\/p>\n
Aluminum: lighter. Aluminum prices fell amid heightened
\nturmoil across southeast Asia, where regional currencies slumped
\nfurther this week.<\/p>\n
Dealers said that speculative U.S. investment funds were
\nbehind the selling of metal contracts.<\/p>\n
Three-month prices fell by $80 to $1,490 per ton.<\/p>\n
Market reserves fell slightly to 619,425 tons from 626,050
\ntonnes last week.<\/p>\n
Nickel: meltdown. Nickel prices fell to their lowest point
\nsince August 1994 as demand from the troubled economies of
\nsoutheast Asia ran dry this week.<\/p>\n
Three-month prices fell by $307.5 to $5,782.5 per ton.<\/p>\n
Stocks of the metal held in LME warehouses fell marginally to
\n66,138 tonnes from 66,240 tonnes.<\/p>\n
Tin: tumble. Tin prices tumbled under the weight of increased
\nstocks of the metal held in LME warehouses and persistent concern
\nover devaluation of east Asian currencies, which threatens to
\nfurther erode demand from the region.<\/p>\n
Three-month prices fell by $157.5 to $5,257.5 per ton.<\/p>\n
LME reserves rose to $13,100 tons from 12,950 tons last week.<\/p>\n
Oil: Flooded. Oil prices fell sharply as Iraq was given the
\ngreen light to renew exports of crude under a United Nations (UN)
\noil-for-food deal.<\/p>\n
Brent North Sea oil, the benchmark for the commodity, fell
\nbelow the 16-dollar barrier to $15.73 a barrel, down 81 cents.
\nPrices were at this low level in October 1995.<\/p>\n
Rubber: bouncy. The plunge in east Asian currencies hit the
\nrubber market, with the ringgit making Malaysian rubber a bargain
\nbuy.<\/p>\n
Prices on the RSS1 index rose to 46.75 pence a kilo, up 25
\npence, while on the London index rubber was unchanged at 545
\npounds a ton.<\/p>\n
Cocoa: warm. Cocoa prices rose slightly this week, in the
\nlight of a fall in the value of the pound which made sterling-
\ndenominated contracts quoted on the London market relatively
\ncheaper to overseas investors.<\/p>\n
Prices for delivery in March rose by three pounds to 1,085
\npounds per ton.<\/p>\n
The price rise was capped by a rise in European cocoa stocks
\nto 846,882 tons at the end of last year.<\/p>\n
Coffee: strong. Robusta prices rose this week as demand from
\nroasting houses strengthened, while supplies of beans on the
\nexport market started to slow.<\/p>\n
Robusta prices for delivery in March rose by $28 to $1,760 per
\nton.<\/p>\n
The International Coffee Organization said that exports
\ntotaled 5.11 million sacks in November 1997 compared with 6.9
\nmillion sacks the previous year.<\/p>\n
Tea: strong. High grade Assam teas commanded strong demand in
\nthe London auction houses this week.<\/p>\n
Medium quality consignments were sold for between 152 and 166
\npence.<\/p>\n
Vegetable oils: flowing. The Malaysian palm oil market was
\nmuch stronger after the ringgit's plunge in value, which sparked
\na wave of buying.<\/p>\n
Palm oil for delivery in March traded at 2,492 ringgits a
\nton, up 367 ringgits from the week before, in heavy trading and
\nwith demand far outstripping supply, traders said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-financial-storm-hits-commodities-marts-1447893297",
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