FIBER: Industrial Commodity Prices Strengthen in Latest Four Weeks
by:Tom Moeller
|in:Economy in Brief
Summary
- Crude oil prices increase sharply.
- Lumber & rubber costs rise.
- Metals prices are mixed.
Recent strength in factory sector production generated life in pricing power. The Industrial Materials Price Index from the Foundation for International Business and Economic Research (FIBER) rose 1.0% (2.1% y/y) during the four weeks ended January 17, 2025, reversing a 1.0% decline in the prior four weeks. The level of the index was its highest since the second week of November.
Leading the rise, Crude Oil & Benzene group prices strengthened 4.0% (-2.3% y/y) in the latest four weeks. The cost of West Texas Intermediate crude oil jumped 11.2% in four weeks to $78.33 per barrel and stood 7.4% higher y/y. It was increased from a $68.58 low in the first week of December. The cost of the petro-chemical benzene, used for making plastics & synthetic fibers, eased 0.4% (-22.8% y/y) in the last four weeks. Excluding crude oil, the industrial commodity price index edged 0.4% higher (1.7% y/y) in the latest four-week period.
Also moving higher, prices in the Miscellaneous group improved 1.9% during the last four weeks and rose 5.1% y/y. Plywood prices strengthened 8.5% over the last four-week period (7.6% y/y) while the cost of natural rubber improved 1.4% in four weeks, but jumped 32.6% y/y.
To the downside, prices in the Metals group slipped 0.6% (+5.0% y/y) over the most recent four weeks. Zinc prices fell 6.4% (+14.0 y/y) in four weeks and steel scrap prices were off 1.2% (-17.9% y/y). The cost of lead fell 1.9% in four weeks (-6.2% y/y). Offsetting these declines, aluminum prices increased 2.5% during the last four weeks (19.7% y/y). Tin costs rose 1.7% (19.3 y/y) while copper scrap prices improved 1.5% (9.5% y/y) over four weeks.
Textile prices eased 0.2% (-1.9% y/y) over the last four-week period. Cotton prices fell 1.3% (-18.8% y/y) and the cost of burlap held steady (+14.2% y/y) during the last 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.
More Economy in Brief
Asia
