Commodities Update — Gold down, silver up; China iron ore, steel futures rebound

Spot gold was down 0.4 percent at $1,897.86 per ounce, as of 0612 GMT. (Shutterstock)
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Updated 27 April 2022
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Commodities Update — Gold down, silver up; China iron ore, steel futures rebound

RIYADH: Gold prices fell on Wednesday as the US dollar consolidated at its highest level in more than two years and pressured demand for greenback-priced bullion.

Spot gold was down 0.4 percent at $1,897.86 per ounce, as of 0612 GMT. US gold futures slid 0.3 percent to $1,898.80.

Silver gains, platinum dips

Spot silver gained 0.2 percent to $23.53 per ounce. 

Platinum dipped 0.1 percent to $920.23, and palladium firmed 0.6 percent to $2,200.40.

Wheat eases

Chicago wheat ticked lower on Wednesday after climbing more than 2 percent in the previous session, although concerns over tightening world supplies limited the losses.

Corn fell after two straight sessions of gains, while soybeans slipped for the fourth day.

A decline in the US winter crop rating and delays in spring planting provided some support to prices.

The most-active wheat contract on the Chicago Board of Trade fell 0.5 percent to $10.89-1/4 a bushel, as of 0405 GMT. 

Corn gave up 0.3 percent to $7.99 a bushel, while soybeans slid three-quarters of a cent to $16.71 a bushel.

China iron ore, steel futures rebound

Chinese iron ore and steel futures rose on Wednesday after falling for two consecutive days, as concerns stoked by the COVID-19 outbreak eased.

Benchmark iron ore futures on the Dalian Commodity Exchange had plunged more than 8 percent this week until Tuesday, while construction-used rebar on the Shanghai Futures Exchange lost some 3 percent on fears over sluggish demand outlook due to recurring COVID-19 outbreaks in China.

The most-active iron ore contract for September delivery jumped as much as 3.5 percent to $127.19 a ton in the morning session. 

Spot prices of iron ore with 62 percent iron content for delivery to China rose 50 cents to $139.5 a ton on Tuesday, according to SteelHome consultancy.

Indonesia widens palm oil export

Indonesia’s planned export ban on cooking oil’s raw material will cover crude palm oil, refined palm oil and used cooking oil, among other palm oil products, its chief economic minister said on Wednesday.

The announcement was a reversal of the minister’s statement a day earlier, in which he had said the export ban would only cover refined, bleached, and deodorized palm olein. The ban comes into force at midnight, 1700 GMT Wednesday.

(With inputs from Reuters) 


Saudi industrial output rises 8.9% in December: GASTAT 

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Saudi industrial output rises 8.9% in December: GASTAT 

RIYADH: Saudi Arabia’s industrial production rose 8.9 percent in December from a year earlier, driven by stronger mining and manufacturing activity, signaling continued momentum in the Kingdom’s non-oil and energy sectors. 

The Industrial Production Index reached 113.6 in December, up from 104.3 a year earlier, the General Authority for Statistics said.  

The latest IPI figures underscore continued momentum in the Kingdom’s industrial sector as Saudi Arabia pursues economic diversification under its Vision 2030 agenda. 

In its latest report, GASTAT stated: “Preliminary results indicate an increase of 8.9 percent in the IPOI in December 2025 compared to the same month of the previous year, supported by the rise in mining and quarrying activity, manufacturing activity and water supply, sewerage and waste management and remediation activities.”  

Mining and quarrying activity — the largest component of the index — increased 13.2 percent year on year after Saudi Arabia raised oil production to 10.1 million barrels per day from 8.9 million bpd a year earlier. Manufacturing expanded 3.2 percent, supported by a 13.4 percent rise in chemicals output and a 7.3 percent increase in food production. 

The sub-index of electricity, gas, steam and air-conditioning supply activity recorded an annual decrease of 2.5 percent. 

The sub-index of water supply, sewerage and waste management and remediation activities increased 9.4 percent. 

Compared to November, Saudi Arabia’s IPI recorded a marginal decline of 0.1 percent. 

On a monthly basis, the sub-index of mining and quarrying activity increased 0.3 percent. 

Manufacturing activities also rose 0.3 percent in December compared to the previous month, driven by a 2.8 percent increase in the manufacture of chemicals and chemical products. 

Compared to November, the manufacture of food products increased 9.6 percent in December. 

Overall, the index of oil activities advanced 10.1 percent year on year in December, while non-oil activities increased 5.8 percent. 

Compared to November, oil activities decreased 0.3 percent, while non-oil activities increased 0.4 percent. 

The IPI measures changes in industrial output based on the International Standard Industrial Classification framework and covers mining, manufacturing, utilities and waste management sectors.