New record for European gas prices


Black diamonds are skyrocketing in Asia after soaring oil prices. So to speak, coal is finding buyers in Indonesia and Australia at prices close to $ 500 per ton.

Asian traders have pointed out that it is difficult to find cargo in the spot market, but Chinese thermal power plants have been put into the domestic market. The search for coal by companies based in South Korea and Japan exacerbates overdemand.

Australia and Indonesia are the world’s largest coal exporters, with Russia just behind them.

Meanwhile, Xi Jinping, who attended a parliamentary meeting in China at the Inner Mongolia Autonomous Region, known for its abundant coal deposits, drew attention to his words on energy.

Chinese leaders said green transformation will not happen overnight, and energy security is essential in the short term.

The region located in the northern part of the country produces 1 billion tonnes of coal annually.

Rising palm oil

Palm oil futures rose again and Malaysian futures rose 4.7% in the morning to 65,72 rings. Futures, priced at $ 1,573 per ton, hit a record high of RM7,108 last week.

Indonesia and Malaysia account for the majority of palm oil production in the world. Measures against Covid have created a labor shortage, combined with the negative effects of the La Nina climatic conditions prevailing in the region, making production difficult.

Malaysian officials say production will recover this year, but growth of more than 4% will be difficult.

Rally at the oil hit rupee

While the Indian rupee fell to a record low, Asian emerging market currencies plunged against the dollar.

Historically high oil prices are putting pressure on India’s wealth. The Indian currency broke the previous record of 76.9088 against the dollar.

The country meets 85% of oil demand through imports.

Cooking oil prices in the world’s largest vegetable oil importer are also a major concern, threatening the central bank’s RBI maximum inflation limit of 6%.

Meanwhile, Thai baht and Korean won are also one of the best-selling currencies of the day.

China’s ambitious growth goals

The Chinese government has set a growth target of 5.5% this year. The rates announced by Prime Minister Li Keqiang, who addressed national representatives at the annual Extended Parliamentary Meeting in Beijing, are considered to be quite ambitious.

Economic growth, which has lost its high level since the first quarter of 2021, fell to 4.1% in the previous quarter. The real estate market continues to be weak and below the potential for domestic consumption. Zero tolerance measures for the Kovid case curb economic activity.

Given the Ukrainian occupation and the extraordinary rise in commodity prices, the government needs to step up its stimulus by both fiscal and monetary policies.

Analysts expect continued rate cuts in this direction and are expected to invest in infrastructure.

In fact, investment expectations have supported the prices of iron ore and steel in particular. Steel prices hit a high in the last five or six months, but ore prices fell to $ 80 last year, accelerating the rise, especially in the past few weeks, approaching $ 170 per ton.