FIBER: Industrial Commodity Prices Improve
by:Tom Moeller
|in:Economy in Brief
Summary
- Gains are registered in most categories.
- Crude oil prices keep rising.
- Metals prices still firm along with nondurable goods costs.
The Industrial Materials Price Index from the Foundation for International Business and Economic Research (FIBER) rose 1.7% (-18.7% y/y) during the four weeks ended April 21 to the highest level since mid-February. The index remained down 18.7% y/y as factory sector production fell 1.1% y/y through March. Most recently, factory output fell 0.5% last month following a 0.6% February gain.
Prices in the crude oil & benzene group strengthened 7.5% (-10.1% y/y) in the last four weeks. The cost of West Texas Intermediate crude oil rose 16.9% in four weeks to $80.13 per barrel but fell 23.7% y/y, while the price of the petro-chemical benzene improved 7.3% (-2.3% y/y). Excluding crude oil & benzene, the industrial commodity price index rose 0.9% (-18.3% y/y) over the last four weeks.
Metals group prices rose 2.5% (-26.3% y/y) in the last four weeks while aluminum prices increased 6.4% (-26.9% y/y). The cost of scrap copper improved 2.4% in the last four weeks (-12.9% y/y) and tin prices rose 15.8% (-38.4% y/y). Lead prices rose 2.0% (-11.4% y/y) in the last four weeks. Working lower, the cost of steel scrap weakened 5.9% (-32.5% y/y) in four weeks while zinc prices declined 2.9% (-37.2% y/y).
Prices in the textile group improved 1.6% during the last four weeks but fell 9.1% y/y. Cotton prices rose 6.4% but weakened 40.6% y/y. The cost of burlap improved 5.5% (-11.4% y/y) in the last four weeks.
The miscellaneous group price index eased 1.5% (-22.6% y/y) during the last four weeks. Framing lumber prices declined 6.0% (-57.1% y/y) but the cost of natural rubber rose 1.3% (-20.0% y/y) in four weeks.
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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