In September 2023:
Brent oil price increased by 9.7% m/m, driven by Saudi Arabia and Russia extending their production cuts by the end of 2023. The recent rally raised the prospect of US$ 100-a-barrel oil, but few are convinced of its sustainability in the near term.
Natural gas price increased by 19.7% m/m. S&P Global expects gas and power demand to be higher in 4Q23 and prices to remain sensitive to volatile supply.
Ammonium nitrate price decreased by 10.4% m/m, but the prices are expected to remain elevated due to volatility of natural gas price in Europe, a main input for fertilizer production.
Wheat price decreased by 7.7% m/m to the lowest level in three years, following the larger-than-expected US supplies. US Department of Agriculture showed domestic production and stockpiles to be above forecasts.
Copper price decreased by 2.3% m/m. Chinese copper production reached a record high in August according to the National Bureau of Statistics. Coupled with rising inventories on the London Metal Exchange and the Shanghai Futures Exchange, prices are expected to remain low.
Ferrosilicon – European ferrosilicon further decreased by 8.1% m/m, while Chinese gained 3.7%, first monthly increase since Jan-23.
Gold price decreased 4.7% m/m to US$ 1,848.6 per troy ounce, lowest since Mar-23. Investors bet on interest rates to remain higher for the upcoming quarters, thus preferring U.S. Treasury yields to the non-yielding gold.
