If you want more on the 2020 metals market, you can listen to John Anton and John Mothersole discuss whats coming o… https://t.co/SgImJnarum
Weekly Pricing Pulse: Commodity price basket reaches lowest level of 2019
Commodity prices continued to soften last week with our Materials Price Index (MPI) falling 0.7%. Seven of the index's ten components declined, bringing the MPI to its lowest level of the year.
Declines in freight, chemicals, DRAMS, and ferrous metals pushed the MPI lower. Freight prices slid 2.8%, their fifth consecutive decline. Chemicals prices fell 2.6% last week, driven by the continued decline in benzene prices. Styrene production outages, benzene's largest derivative, reduced demand for benzene and undermined spot prices. Nonferrous metals bucked the downward trend, rising 1.6% last week. Unrest in Chile has traders considering the risk of mining disruptions, providing upward pressure for copper and zinc. Lumber prices were another outlier, as the index jumped 4.8% week-over-week. Canadian mill closures and disruptions to Canadian exports have tightened the US lumber market, driving prices higher.
Since Spring, markets have taken on a bearish view of the near future, reflecting uncertainty over US-China trade negotiations and Brexit. A stronger US dollar and lowered expectations for global consumption growth, the manifestations of policy uncertainty, will act as headwinds to commodity prices over the near-term. Our one caution in this picture of markets is that some commodities have seen a slow fundamental tightening during the past year that is at odds with low prices, potentially exposing buyers to a quick shift if, for instance, a US-China trade agreement is reached or some clarity emerges on Brexit.
- Al-Shabaab attacks Kenya
- Capital Markets Weekly: Highly-active primary markets continue, reflecting seasonal factors
- Eurozone consumer staving off recession but watch the oil price
- Brazil's fiscal reforms
- Metals price outlook 2020
- Twenty-six states will raise their minimum wage in 2020
- Swedish Riksbank defies global monetary policy loosening
- Capital Markets Weekly: Markets shrug off Iranian risks
What will the market look like in 2020 for metals? Read more from John Anton and John Mothersole https://t.co/8SdKu3PfhY
We have a podcast! You can now hear our analysts at anytime from anywhere! To listen to the podcast, visit our we… https://t.co/NzhfxV2iBo