Japanese Companies closer to higher profits; Due to Surging metal prices

 Top 5 Important in Today’s Market:

• Wall Street volatility index at 23-year low
• Global stocks higher as traders look for next catalyst
• Dollar powers ahead on June rate hike bets
• Oil extends rebound as OPEC hints at supply cuts beyond 2017
• Bitcoin tops $1,700 for first time

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Main Economic Events today:

• Australia Retail Sales MoM fell to actual -0.1% while predicted was 0.3%
• United States JOLTs Job Openings rose to 5.743M, while expected was 5.655M

Mitsubishi & Mitsui

Heightened by elevating Iron one price, as well as the Coal prices, Japanese biggest trading houses (compared by assets) came back to profitability. In this financial year, at the end of March.

Many years Japanese top five trading houses were trying to change their businesses. In order to try diversifying their work into non-cyclical. But after long period of time they have confirmed and underlined the vulnerability and sensitiveness of their businesses. Because they still operate in ”the world of commodities”.

Regarding Today’s reports, Mitsubishi gave data about its profits. Which was 440 billion yen ($3.88 billion) in the last financial year. Rather than loss of circa 150 billion yen from previous year. While the second biggest trading house Mitsui reported a 306 billion yen profit. Which is up from an 83 billion yen loss, from year earlier.

Other Corps of the Japanese Big 5 family:

Today also, Sumitomo Corporation reported profit for the financial year went up for more than double. Taking off to over 170 billion yen. While Marubeni said their profit gain was a 150 percent, to 155 billion yen.

Itochu Corp, the least dependent among the big five trading houses on resources, last week reported record profit, partly driven by the rise in prices.

Their forecasts, for all the 5, are strongly positive for the following financial year. They also expect them to improve. Despite some prices decline trends in forthcoming weeks.

Japanese traders think that the China’s refreshed appetite for raw materials, would desirably lead to higher commodity prices. These opinion is also respected amongst the most global miners.

Regarding the year before, the top 5 trading houses gained up a total of about 1 trillion yen ($8.9 billion). These were in write-offs due to a slump in valuations. Mitsubishi and Mitsui were then announcing their first annual losses since they were founded. And they were founded after World War Two. Which represents them as very serious operating businesses.

Global trends

Observing the global trends anyway, commodity prices are very volatile.

The price of coking coal went up for more than three times. In period between March and late November 2016. Afterwards which it halved through March 2017. In the period of previous 2 months, iron ore prices have also came off roughly.