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Pure gold price drops back to below K2 mln per tical

The prices of pure gold fell back to below K2 million per tical (0.578 ounce, or 0.016 kilogramme), according to the Yangon Region Gold Entrepreneurs Association (YGEA). At present, 24-carat gold is worth K1,989,000 per tical. The price dip happens to track the fall in global prices. The gold price stands at $1,865 per ounce in the worldwide market. When a 24-carat gold hit $1,950 per ounce in the third week of April, the domestic gold fetched K2,085,000 per tical.

Therefore, the global gold price saw price dips of $85 per ounce within two weeks. Consequently, the domestic gold price was down by K96,000 per tical. In a bid to stabilize the gold market, gold transactions had better made according to the reference foreign exchange rate of the Central Bank of Myanmar (K1,850 per USD), according to the CBM’s statement released on 3 April. YGEA called for an urgent meeting on 8 April. The meeting determined to carry out gold transactions depending on the CBM’s reference exchange rate.

However, it has not come into force yet, said U Myo Myint, chair of YGEA. Last 23 April, officials from the department concerned, YGEA and Mandalay Region Gold Entrepreneurs Association, discussed gold price stability at the meeting. Gold transactions on the CBM’s reference rate, at sight payment, and avoiding price manipulation were also discussed, according to YGEA. The current market condition impedes transactions based on the reference rate. Yet, it will be implemented later, U Myo Myint continued. The US dollar stands at K2,000 in the unofficial black market. Additionally, the domestic gold price is highly correlated with the global gold price, YGEA stated. During the end of September 2021, a dollar value hit an all-time high of over K3,000 in the gold exchanges and consequently, the pure gold reached a record high of K2.22 million per tical in history. 

Source: The Global New Light of Myanmar

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Domestic oil price jumps to approximately K2,000 per litre on global cues

Fuel oil prices inched higher, around K2,000 per litre in the domestic market on the devaluation of Kyat against the US dollar and a sharp increase in crude oil prices, the market data in the Yangon Region showed. According to a market observer, the rumours spreading in the domestic market, setting a sales limit at the retail stations, and panicked consumers’ buying are other problems of price hikes. The prices soared to nearly K2,000 for Octane 92, K2,025 for Octane 95, K2,320 for diesel and K2,350 for premium diesel on 2 May 2022.  On 1 January 2022, the prices stood at K1,390 for Octane 92, K1,440 for Octane 95, K1,375 for diesel and K1,385 for premium diesel.

According to the local fuel oil market, there is a large gap of K600-960 per litre within four months. The fuel oil price is highly correlated with the foreign exchange rate. The exchange rate is now pegged at around K2,000 at the unofficial exchanges. When a dollar was valued at only K1,330 in early February 2021, the fuel oil was estimated at K590 per litre for Octane 92, K610 for Octane 95, K590 for diesel and K605 for premium diesel then in the domestic retail market. Additionally, domestic oil prices are positively related to the global market. Oil prices jumped in the worldwide market as the Russia-Ukraine crisis escalated, with US$104.2 per barrel for WTI crude and $106.5 for Brent crude at present.

Additionally, the Central Bank of Myanmar has directly sold over $87 million to the fuel oil sector so far.
Myanmar has inventories of about 45 million gasoline and 70 million diesel. According to the Petroleum Products Regulatory Department under the Ministry of Electricity and Energy, there is no need to worry about a shortage of fuel oil. Myanmar imports oil from Singapore, Malaysia and the Republic of Korea. The rumour raised the concerns of the consumers and resulted in panic buying. Consequently, the Petroleum Products Regulatory Department stated that the retail stations were out of hand. Usually, Myanmar yearly imports six million tonnes of fuel oil from external market, the Ministry of Commerce stated. 

Source: The Global New Light of Myanmar

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54 cargo ships to arrive at Yangon Port in May

According to Myanmar Port Authority, the shipping lines are increasing their services to facilitate exports and imports, and 54 cargo ships carrying many containers are to enter Yangon Port in May. A total of container ships from 12 shipping lines will arrive at Yangon Port.

The turnaround time at the Port was designated as approximately three days, under the guidance of the Myanmar Port Authority and the cooperation of the ocean liners, exporters and importers. Therefore, the arrival of the ships has increased again.

Myanmar Port Authority and Yangon inner terminals provide services to ensure the fast and reliable cargo handling and withdrawal of the containers for trade flow to return to normalcy. A total of 54 ships – 13 cargo ships run by Sealand Maersk Asia, seven by SITC Line, five each by New Golden Sea (COSCO) and Samudra Line, four by I.A.L Line, three each by C.S.L, Ever Green Line, Golden Star Line, MFSL Line, P.I.L Line and R.C.L Line and two by Land and Sea Line – will enter Yangon Port this month.

Source: The Global New Light of Myanmar