IHS Markit’s Materials Price Index (MPI) rose 2.3% last week, reversing the latest trend of declines.
- Price movements posted mixed results with six of the ten subcategories up last week. The latest trend means commodity prices stand 50% higher than this time last year.
- The rising energy prices firmly stopped the downward trend of commodity prices last week. Coal and natural prices have been increasing rapidly in recent weeks and now have been joined by rising oil prices. The energy subcategory index soared 8.6%.
- Rising gas prices have led to an increased buyer interest for oil, pushing Brent crude to $80 for the first time in three years.
- Meanwhile, iron ore prices have dropped to the floor, further reducing the recent downward pressure on the MPI. The price of iron ore dropped to $120 per tonne from a record-high of $220 a tonne in July.
The increase in the MPI matches with fresh concerns over slowing economic growth and higher inflation. September figures from IHS Markit’s indexes show the global recovery losing some steam with recent softness in Mainland China.
DXY down -0.04%, EUR USD up +0.05%Source: IHS Markit