Commodity trading company stock suffered heavy losses, and a Japanese shipping company filed for bankruptcy Tuesday,
Commodity trading company stock suffered heavy losses, and a Japanese shipping company filed for bankruptcy Tuesday, and further confirms the energy and raw material prices slump that is triggering a crisis in the industry.
Mining and trading giant Glencore shares fell 30 percent in London on Monday to a record low, Hong Kong shares tumbled 27 percent on Tuesday, opening at the occasion of the recent decline in commodities, corporate debt problems become more serious.
Glencore in 2011 in time for the commodity bull market highs last rush to market, since the stock has fallen 87 percent, the first time below the current market value of 10 billion pounds ($ 15.16 billion) over the past week, more than 7 billion market value evaporated GBP.
Asian commodities trader Noble shares fell 15 percent Tuesday, fell in 2008 during the worst global financial crisis clinics low, the current share price of about S $ 0.40 per share, market capitalization of only 3 billion Singapore dollars (2.1 billion US dollars).
"The market there has been a crisis of confidence, people continue to reduce commodity stocks," chief executive of the hedge fund LBNAdvisers BenjaminChang said. The fund's assets under management of approximately $ 600 million.
Glencore and Noble Group's credit default swaps (CDS) prices rose sharply this year. CDS price is the cost of hedging the risk of companies defaulting on its debt.
Energy stocks also fell in Australia, Santos, OriginEnergy and KaroonGas Tuesday fell about 8%.
Energy stocks fell root cause lies in commodity prices collapsing. Crude oil prices have fallen since last June nearly 60%, thermal coal fell more than 60 percent compared TRAPI2Yc1 2011 highs, iron ore prices have fallen compared with the 2010 high point of 70 percent. Copper prices are also low in nearly six years.
Energy and commodity prices, mainly due to the large number of investment flows to the new assets, production increased, while Asian demand has slowed. In which China's economic growth hit the slowest in decades.
"In the past month, the reaction commodities become more sensitive to macroeconomic news," head of Asia commodities research at Societe Generale Bank MarkKeenan representation.
"Affected macroeconomic data, correlation between the price of different commodities on the rise."
** ** Shipping enterprise bankruptcy filing
The crisis has also spread to the shipping industry. Dry bulk Broker - first central Kisen Kaisha (DaiichiChuoKisenKaisha) filing for bankruptcy protection Tuesday, the news the weight of other ocean stocks.
With Chinese demand for iron ore and coal fell, the company has recorded losses for four consecutive years, as of the end of March, its debt reached 108 billion yen ($ 900 million), the market value of only $ 96 million.
Affected by this news, shares of major Japanese shipping companies tumbled across the board.
Commodity market weakness, the currency of those countries heavily dependent on exports of energy or raw materials also affected.
In the oil and gas major producing countries of Malaysia, Malaysian Ringgit (MYR) fell 1 percent against the dollar on Tuesday, to the Asian financial crisis since the 1998 peak of the lowest point. Indonesian rupiah is hovering near 17-year low, Indonesia is the world's largest thermal coal exporter.
The same was against the Australian dollar since June 2014 oil prices began to slump against the dollar tumbled more than a quarter. Australian dollar and Australian iron ore, coal, oil and natural gas and other commodity exports are closely linked.