久久久无码人妻精品无码_6080YYY午夜理论片中无码_性无码专区_无码人妻品一区二区三区精99

Economy

Markets

Industries

Insights

Reports

Events

Commodities hit as recession fears worsen

By Wang Lan (China Daily)
Updated: 2008-09-17 11:14

Commodity prices took a big hit yesterday from the fallout of the worsening US financial crisis, which deepened international traders' worries about a global economic recession that could seriously shrink demand for raw materials.

On the Shanghai Futures Exchange yesterday, the prices of five out of six commodity futures contracts fell sharply, in tandem with the international market trend.

Fuel oil and copper futures led yesterday's price drop in Shanghai.

Eleven out of 12 fuel oil contracts for delivery in different months dropped to the daily allowable limits, with the most actively traded contract for December delivery closing at 4,057 yuan per ton, down 5.7 percent from the previous trading day.

Meanwhile, 10 out of 12 copper futures contracts dropped to the daily allowable limits, with the most actively traded contract for December delivery falling 4.5 percent to 55,050 yuan per ton.

In contrast, gold futures rose yesterday. The most actively traded gold futures for delivery in December rose 1.7 percent to close at 172.9 yuan per gram.

Traders and analysts said international investment funds were seeking refuge in the precious metal after the sudden commodities plunge led by crude oil prices, which dropped below the $100-barrier on Monday.

"The bearish market mood made investors particularly sensitive to negative aspects of the news. They chose to ignore positive factors, such as Monday's credit relaxation by the central bank to stimulate economic growth," Jing Chuan, a non-ferrous metals specialist at Great Wall Futures Co in Shanghai, said.

Traders and analysts said the sharp price drop in a wide range of commodities on both the domestic and international markets was triggered by troubling reports surrounding Lehman Brothers and the sale of Merrill Lynch to Bank of America. These reports were widely seen as a clear indication that the US subprime mortgage crisis is in the process of spreading around the world.

Deepening worries about the global economic slowdown have heightened investor concerns about a sharp fall in consumption.

The latest China Customs figures show that the nation's total imports of copper concentrates in the first eight months dropped by 16.1 percent year-on-year to 1.02 million tons.

Industry experts estimate Chinese copper producers will operate at less than 50 percent capacity in the second half, as many struggle with inadequate operating capital and fewer orders from the international market, amid a further downshift in global demand.

The latest monthly oil market report released by the International Energy Agency forecast lower global oil demand for both 2008 and 2009. The report put global demand for oil at an average of 86.8 million barrels per day in 2008, 100,000 barrels lower than the previous estimate, and 87.6 million barrels per day in 2009, 140,000 barrels lower than the previous projection.