• Prices continue to increase across sectors.

• Crude oil prices are strengthening.

• Metals rise while lumber prices soar.

Improved activity in the factory sector continues to bolster industrial materials prices. A 7.2% jump in June industrial output helped lift the Industrial Materials Price Index from the Foundation for International Business and Economic Research (FIBER) by 4.2% during the last four weeks. The price index remained at the highest level since the second week of March. Nevertheless, prices remained 6.2% lower than twelve months ago.

Prices in the crude oil & benzene group were strong, up 5.0% in the last four weeks. WTI crude oil prices improved to $40.43 per barrel, up from $25.28 in the middle of May. Prices remained down, however, from a high of $61.92 in the first week of January. Prices of the petro-chemical benzene rose 10.8% in the last four weeks but remained down by roughly one-half y/y. Excluding crude oil, industrial commodity prices rose 4.0% during the last four weeks but fell 4.5% during the last year.

Prices in the metals group increased 5.2% during the last four weeks as the cost of copper scrap rose 12.3%. The price of zinc increased 9.3% in four weeks but fell 11.0% y/y, while lead prices rose 4.7% (-7.2% y/y). Aluminum prices strengthened 4.8% but steel scrap prices fell 1.1%. Prices in the textile group posted a 1.0% increase as cotton prices strengthened 6.5%. This gain was accompanied by steady burlap costs (6.8% y/y), used for sacks, bags and gardening.

Also rising were prices in the miscellaneous group by 5.6% in the last month as framing lumber prices surged 43.3%, up 29.7% during the last six months. Plywood prices held steady (-5.7% y/y) and have been unchanged since December. Hide prices rose 3.3% (-25.9% y/y) during the last month. Natural rubber prices eased 0.9% over the last month and 6.2% over the last year.

Commodity price data can be found in Haver's DAILY, WEEKLY, USECON and CMDTY databases.