FIBER: Industrial Commodity Prices Increase in Latest Four Weeks
by:Tom Moeller
|in:Economy in Brief
Summary
- Modest Increase adds to recovery since early-September.
- Metals and lumber prices lead rise.
- Crude oil prices decline.
The Industrial Materials Price Index from the Foundation for International Business and Economic Research (FIBER) rose 0.6% during the last four weeks, after easing 0.1% in the prior four week period. Prices declined 2.1% during the last twelve months. Lending support to prices, factory sector production increased 0.3% in August and improved 1.0% y/y.
Metals group prices led the latest price increase and strengthened 2.2% (-1.2% y/y) over four weeks. Zinc prices increased 5.1% (-2.9% y/y) in four weeks, while copper scrap prices strengthened 4.7% (4.8% y/y). Aluminum prices increased 2.3% (1.8% y/y). Tin prices rose 1.1% (5.7% y/y) in four weeks while lead prices improved 0.5% (-5.6% y/y). Working lower, steel scrap costs eased 0.5% (-10.3% y/y) over the last four weeks.
Prices in the Textile group moved 0.2% higher (0.7% y/y) during the last four weeks. Burlap costs, used for home gardening, strengthened 2.0% (19.9% y/y), but cotton prices eased 0.1% (-7.4% y/y).
Miscellaneous group prices edged up 0.1% in the latest four week period, but were down 1.7% y/y. Framing lumber prices strengthened 12.9% (14.5% y/y) during the last four weeks, but tallow costs (used in the soap industry) declined 10.6% (+15.3% y/y). Also falling, the cost of natural rubber fell 3.5% in four weeks, and plummeted 29.3% y/y.
Crude Oil & Benzene group costs weakened 1.0% (-9.1% y/y) in the latest four week period. The price of West Texas Intermediate crude oil declined 2.3% to $62.76 per barrel, 10.3% lower y/y. It stood just above the above the $62.55 low four weeks ago, and higher than $58.50 per barrel in the second week of May. The cost of the petrol-chemical benzene, used for making plastics & synthetic fibers, eased 0.6% in four weeks (-24.4% y/y). Excluding crude oil, the industrial commodity price index rose 0.7% over four weeks, but declined 1.6% 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
