Commodity price increases lack conviction – IHS
Commodity analysts IHS Markit on Thursday reported that the Materials Price Index (MPI) had risen by 0.5% in the last week, but that the index’s ten subcomponents were evenly split between those showing increases and those showing declines, highlighting the uncertainty in markets.
The MPI measures a weighted average of weekly spot prices for a key collection of globally traded manufacturing inputs, such as crude oil, chemicals, nonferrous metals, ferrous metals, paper pulp, lumber and rubber, besides others.
“The ferrous price index rose 2.1% week-on-week despite a softening of US scrap prices, underscoring the strength of the recent iron-ore rally,” the organisation noted.
Rising steel prices in China are running counter to copper and other base metals pricing. IHS believes the higher steel prices reflect forced consolidation in the Chinese industry and the expected effects of stimulus in China on shipments later this year.
Oil prices have been declining since late May. “Last week, oil prices fell 1.1% with West Texas Intermediate (WTI) reaching $66.5/bbl, down from $74/bbl a month before.” This was as a result of US crude inventory data falling by less than expected.
“US dollar strength has been a headwind for commodity markets since the start of the second quarter, with last week’s intensifying financial crisis in Turkey providing a fresh challenge,” IHS commented.
The organisation said the collapse in the Turkish lira will probably create disruption in the region’s commodity market dynamics, especially in steel.
IHS concluded that two more US interest rates hikes this year will push long bond rates higher, provide support to the dollar and keep commodity markets volatile.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...
VISIT SHOWROOMDeveloped to exceed the latest EN 15964 standards for police breathalysers proving that it will remain accurate and reliable for many years to come.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
