Industrial Commodity Prices Move Up
by:Tom Moeller
|in:Economy in Brief
Summary
- Gain follows three straight weeks of decline.
- Textile & metals prices rise.
- Oil prices ease.
The Industrial Materials Price Index from the Foundation for International Business and Economic Research (FIBER) rose 1.2% last week (-11.6% y/y). Nevertheless, during the last four weeks, the price index was off 1.5% and remained 21.2% below its peak in the second week of March.
Price declines were largest in the Miscellaneous group where they fell 2.7% (-11.2% y/y) during the last four weeks. Natural rubber prices declined 6.6% in four weeks and were off 9.5% during the last year. Framing lumber prices fell 8.3% in four weeks and were down by one-third y/y, mirroring weakness in home construction activity. Hide prices held steady over four weeks but fell 28.2% y/y.
Metals prices slid 1.6% in the last four weeks and were off 23.4% y/y. Steel scrap prices fell 6.3% in the last four weeks (-30.3% y/y) while tin prices fell 4.3% (-50.3% y/y). The price of zinc, used in the manufacture of batteries, dropped 4.1% in four weeks and fell 12.8% y/y. Lead prices fell 1.7% (-14.5% y/y). Offsetting these declines, copper scrap prices increased 4.8% (-19.0% y/y) in four weeks and aluminum prices improved 0.9% (-9.9% y/y).
Textile prices eased 0.3% (-5.2% y/y). Prices of burlap, used for sacks, bags and gardening, fell 2.5% in the last four weeks and weakened 8.6% y/y. Cotton prices weakened 0.5% in four weeks (-24.1% y/y).
Crude Oil & Benzene group prices fell 0.9% during the last four weeks but have risen 1.4% y/y. The cost of West Texas crude oil eased 0.6% to $88.31 per barrel, up 7.6% y/y. Prices for the petro-chemical benzene fell 3.3% in four weeks and were down 6.9% y/y. The FIBER price index excluding crude oil fell 1.6% during the last four weeks and was 12.6% lower 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.
More Economy in Brief
Global