FIBER: Industrial Commodity Prices Fall in Latest Four Weeks
by:Tom Moeller
|in:Economy in Brief
Summary
- Rubber & textile prices decline.
- Energy price increase paced by crude oil.
- Metals prices mostly improve.
The Industrial Materials Price Index from the Foundation for International Business and Economic Research (FIBER) declined 1.0% (+2.5% y/y) during the four weeks ended July 19, 2024, after falling 0.9% during the earlier four weeks.
Prices in the Miscellaneous group weakened 3.7% during the last four weeks and were off 3.1% y/y. The cost of natural rubber fell 10.6% in four weeks but rose by 27.4% y/y. Plywood prices fell 3.9% in four weeks (-15.6%).
Textile group prices eased 0.4% (-2.5% y/y) in the latest four weeks. Cotton prices weakened 2.9% (-20.9% y/y) in four weeks, remaining near the lowest level since November 2020. Alternatively, the cost of burlap posted a 0.6% rise (11.6% y/y) during the last four-weeks.
Offsetting these declines, prices in the Crude Oil & Benzene group increased 0.6% (10.0% y/y) in the last four weeks. The cost of West Texas Intermediate crude oil rose 1.7% in four weeks to $82.08 per barrel and was 8.9% higher y/y. Prices hit a low of $70.42 in the third week of December 2023. The cost of the petro-chemical benzene, used for making plastics & synthetic fibers, eased 0.1% (+38.5% y/y) in the last four weeks. Excluding crude oil, the industrial commodity price index declined 1.1% (+2.1% y/y) in the latest four-week period.
Also rising were prices in the Metals group which increased 0.8% (10.3% y/y) over the most recent four weeks. Lead prices gained 1.0% (2.9% y/y) in four weeks and zinc prices rose 2.5% (19.6% y/y). Tin prices improved 2.9% in four weeks, strengthening 14.7% y/y, and the cost of steel scrap rose 1.6% (5.1% y/y). To the downside, copper scrap prices eased 0.1% in four weeks (+12.7% y/y) and aluminum prices fell 2.6%, although they rose 9.2% y/y.
The Foundation for International Business and Economic Research (FIBER) develops economic measurement techniques as applied to business cycles and inflation in the U.S. and other market economies. The commodity price data can be found in Haver's DAILY, WEEKLY, USECON and CMDTY databases.
Tom Moeller
AuthorMore in Author Profile »Prior to joining Haver Analytics in 2000, Mr. Moeller worked as the Economist at Chancellor Capital Management from 1985 to 1999. There, he developed comprehensive economic forecasts and interpreted economic data for equity and fixed income portfolio managers. Also at Chancellor, Mr. Moeller worked as an equity analyst and was responsible for researching and rating companies in the economically sensitive automobile and housing industries for investment in Chancellor’s equity portfolio. Prior to joining Chancellor, Mr. Moeller was an Economist at Citibank from 1979 to 1984. He also analyzed pricing behavior in the metals industry for the Council on Wage and Price Stability in Washington, D.C. In 1999, Mr. Moeller received the award for most accurate forecast from the Forecasters' Club of New York. From 1990 to 1992 he was President of the New York Association for Business Economists. Mr. Moeller earned an M.B.A. in Finance from Fordham University, where he graduated in 1987. He holds a Bachelor of Arts in Economics from George Washington University.
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