[Special Stock] Korea McNulty Surges on Outlook for Further Coffee Price Increase

[Asia Economy Reporter Ji Yeon-jin] Hankook McNulty is showing a sharp rise during trading on the 15th as raw material inflation is expected to intensify due to the global supply shortage.

As of 9:30 AM on the day, Hankook McNulty is trading at 6,900 KRW on the KOSDAQ market, up 16.55% (980 KRW) compared to the previous day. In the early session, it even surged over 20% to reach 7,200 KRW.

This appears to be due to inflation issues in various raw materials, including coffee, heating up the financial markets recently.

The Financial Times (FT) reported on the 13th (local time) that major exchanges such as the London Metal Exchange in the UK are experiencing frequent occurrences of backwardation, a phenomenon where futures prices are lower than spot prices, due to shortages in raw material inventories.

Backwardation mainly occurs when buyers pay a premium to immediately secure the desired goods in the spot market. This indicates a shortage of supply in the market.

FT specifically reported that the inventory of Arabica coffee beans has reached its lowest level in 22 years.

Coffee, along with petroleum and iron ore, is a globally significant raw material in terms of cargo volume. The price of these beans traded on the ICE Futures Exchange has risen 13% this year to $2.59 per 0.45 kg, reaching the highest level in 10 years due to operational disruptions in Central America.

Fernando Maximiliano, an analyst at StoneX, a financial firm in S?o Paulo, Brazil, said that the decrease in inventory confirmed by the exchange could be another factor driving coffee prices higher.

This content was produced with the assistance of AI translation services.