Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.
June 25, 2015 - Weekly Pricing Pulse
The IHS Materials Price Index (MPI) fell for a second week in a row on softer oil, ferrous, nonferrous, and rubber data. The 10.3% jump in freight rates and a few other increases in chemicals, lumber, and pulp were not enough to prevent the overall index declining 0.7%. The MPI is now essentially flat compared with late January, having established what appears to be a floor after the rout late last year.
Amid the Greek-inspired financial market downswing seen last week, we also noted a hefty 2.42% decline in exchange-traded commodities; non-exchange prices, in contrast, rose 1.3%. We also continue to see lumber increasing--prices are up some 19% after hitting lows in early May. The boost in freight rates could be reflecting a recent drop in Chinese iron ore port stocks, although we would caution against over-interpreting this given the state of global steel.
The oil decline comes alongside market chatter of large hedging transactions to protect against price falls, with some reports pointing the finger at Mexico. However, this week's overall focus will be firmly on Greece as the country enters make-or-break negotiations with creditors. Failure to reach an agreement will mean default and possible exit from the euro.