Markets are worried about possible moves by Beijing to rein in the booming Chinese economy, which is a major consumer of raw materials.
OIL: Oil fell this week on a strong dollar and demand concerns but clawed back some ground on Friday after better-than-expected economic growth data in key energy consumer the United States, traders said. "The decline came amid a strengthening dollar, which rallied to a six-month high against the euro following the Fed's decision to keep interest rates in the US close to zero," said analysts at the JBC Energy consultancy in Vienna.
"Fresh woes for the oil market came from worse-than-expected builds in US product inventories, as well as weak Japanese oil import figures." Investors have been rattled ever since it emerged several weeks ago that China wanted to rein in its booming economy, which up to now has largely led the recovery from the worst global slump since the 1930s.
The US Department of Energy said Wednesday that distillates - including diesel and heating fuel - rose 400,000 barrels in the week ended January 22, instead of the much larger increase expected by the market. Gasoline (petrol) reserves also increased by a larger-than-expected two million barrels.
The euro, meanwhile, slid to a six-month low under 1.39 dollars on Friday as worries deepened about the state of the European economies in light of Greece's debt woes, dealers said. Oil is traded in US dollars and a rise in the currency makes the commodity more expensive to holders of weaker units.
Crude prices had dipped slightly Thursday on economic recovery concerns as the market shrugged off US President Barack Obama's moves to boost jobs and rein in debt. The market also fell as the head of Saudi oil giant Aramco sought to ease international concerns over dwindling crude stocks.
Khalid al Falih, Aramco's chairman and chief executive, hit out at "misleading" rhetoric that the world was weaning itself off fossil fuels, saying this did not give producers confidence to keep investing. He told a World Economic Forum session on the global energy outlook: "We feel that the whole issue that came to the surface and created a lot of concern about peak oil is behind us."
The head of the world's biggest producer company added that his firm was able to maintain a cushion of four million barrels a day of spare capacity even if global demand were to grow. By late Friday, New York's main futures contract, light sweet crude for delivery in March, was lower at 74.30 dollars a barrel compared with 75.15 dollars a week earlier. London's Brent North Sea crude for March fell to 72.84 dollars from 73.52 dollars.
PRECIOUS METALS: Prices sank as the dollar rallied. "The strengthening dollar and market uncertainty continue to weigh upon the complex," said Barclays Capital analyst Suki Cooper. By Friday on the London Bullion Market, gold slid to 1,078.50 dollars an ounce from 1,084 dollars the previous week.
Silver fell to 16.29 dollars an ounce from 17.28 dollars. On the London Platinum and Palladium Market, platinum decreased to 1,512 dollars an ounce from 1,540 dollars. Palladium dropped to 419 dollars an ounce from 432 dollars.
BASE METALS: Base metals prices mainly retreated. "Prices are dropping fast as risk is reduced in the face of nervousness over the path of global macro conditions," said Barclays Capital analyst Gayle Berry. By Friday on the London Metal Exchange, copper for delivery in three months tumbled to 6,820 dollars a tonne from 7,257 dollars the previous week.
-- Three-month aluminium fell to 2,100 dollars a tonne from 2,215 dollars.
-- Three-month lead dropped to 2,072 dollars a tonne from 2,255 dollars.
-- Three-month tin decreased to 16,910 dollars a tonne from 17,650 dollars.
-- Three-month zinc retreated to 2,135 dollars a tonne from 2,322 dollars.
-- Three-month nickel climbed to 18,700 dollars a tonne from 18,350 dollars.
SUGAR: Sugar prices reached a 30-year high in New York at 30.10 US cents a pound. "The balance of risks to prices remains on the upside, in our view, with continued downgrades to Indian production," said Barclays Capital analyst Sudakshina Unnikrishnan.
By Friday on the New York Board of Trade (NYBOT), the price of unrefined sugar for March rose to 29.70 US cents a pound from 28.68 cents the previous week. On Liffe, London's futures exchange, the price of a tonne of white sugar for delivery in March fell to 739.80 pounds from 741.90 pounds.
COCOA: Prices dropped on profit-taking, one week after striking a 33-year peak in London on worries about lower output from top producer Ivory Coast. By Friday on Liffe, the price of cocoa for delivery in March fell to 2,257 pounds a tonne from 2,320 pounds the previous week. On the NYBOT, the March cocoa contract slid to 3,242 dollars a tonne from 3,380 dollars.
COFFEE: Coffee prices were mixed amid an "unclear" outlook, said Sucden brokers analyst Ralph Hawes. By Friday on Liffe, Robusta for delivery in March edged up to 1,334 dollars a tonne from 1,330 dollars the previous week. On the NYBOT, Arabica for March fell to 133.50 US cents a pound from 137.55 cents.
GRAINS AND SOYA: Grains and soya prices fell. By Friday on the Chicago Board of Trade, maize for delivery in March dropped to 3.62 dollars a bushel from 3.64 dollars the previous week. March-dated soyabean meal - used in animal feed - slid to 9.33 dollars from 9.51 dollars. Wheat for March declined to 4.87 dollars a bushel from 4.98 dollars.
RUBBER: Malaysian rubber prices fell on profit-taking following the previous week's rally and amid weak demand from major consuming countries, dealers said. On Friday, the Malaysian Rubber Board's benchmark SMR20 dropped to 294.70 US cents a kilo from 304.10 cents a week earlier.