Due to the Dollar's Strong Surge, Commodity Prices Including Copper Are Also Declining

[Asia Economy Reporter Jeon Jin-young] Due to the ultra-strong US dollar, commodity prices are also showing a downward trend.

According to Bloomberg on the 26th, the price of West Texas Intermediate (WTI) crude oil fell more than 7% last week, reaching its lowest level since mid-January. The decline has continued for four consecutive weeks, marking the longest period this year. WTI is down about 26% from the closing price at the end of June (105.76 dollars). North Sea Brent crude oil is also trading around $84.29 per barrel, down 0.87%.

Commodity prices, centered on tin and copper, also fell on the Shanghai Exchange.

Bloomberg reported that the stock prices of PetroChina, a subsidiary of the state-owned China National Petroleum Corporation (CNPC), as well as China Hongqiao Group, the world's largest aluminum producer, fell to their lowest levels of the year on the Hong Kong stock exchange.

It explained, "Concerns over reduced commodity demand within China have increased due to the combination of the Chinese government's zero-COVID policy, real estate market slump, power shortages, and the rising import costs caused by the strong dollar."