HWWI Commodity Price Index increases in April
- Index for Energy Raw Materials increases by 3.5% (US Dollar basis)
- Index for Industrial Raw Materials declines by 1.0%
- Index for Food and Beverages increases by 2.3%
(Hamburg, May 5, 2023) The HWWI Commodity Price Index increased slightly in April,
after falling sharply in the first quarter of 2023. It rose by 2.9% and was thus
35.6% below the value for the same month last year. The individual indices developed
mixed in April. The Index for Energy Raw Materials rose by 3.5% and the Index for Food and
Beverages rose by 2.3 %. In contrast, the Index for Industrial Raw Materials fell by 1.0 %
Index for Energy Raw Materials: Increase in sub-indices for crude oil (+6.3%) and coal
(+5.3%), gas prices continue to fall (-3.3%)
The Sub-Index for Natural Gas fell again in April, by 3.3%. At 58.3%, it was significantly below
the April 2022 value. The price development reflects the fact that trough savings, the
establishment of new supply relationships and mild weather the winter went better than
expected. For the gas supply in winter 23/24 however, the safety signal cannot yet be given,
as the geopolitical situation remains very unclear.
The Sub-Index for Coal rose by 5.3% in April and was 41.5% below the value of the month of
the previous year.
Crude oil prices also increased again in April, after having fallen significantly in the previous
months. It remains to be seen whether this is a trend reversal. The Sub-Index for Crude Oil
rose by 6.3% and was thus 21.2% below the April 2022 value.
Overall, the Index for Energy Raw Materials increased by 3.5% (euro basis: 1.1%) to 215.7
points (euro basis: 225.3 points).
Predominantly falling prices in Index for Industrial Raw Materials
The Index for Industrial Raw Materials fell by 1.0% in April and was thus 29.5% below the
previous year’s level.
The Sub-Index for Non-Ferrous Metals rose by 0.9% in April, 25.3 % below the April 2022
level. Among the non-ferrous metals, the volatile price development of tin continues to be remarkable. The tin price rose by 7.6% in April. The reasons for this are its importance for
modern technologies and the energy transition as well as the comparatively low market
volume. Prices are also likely to have been driven up by various reports of a mining stop in
the important tin-producing country of Myanmar.
The Sub-Index for Agricultural Raw Materials fell by 2.7% in April and was 37.1% lower than
the value of the same month of the previous year. As in the previous month, the price of
sawn timber fell the most within the sub-index (-8.0%). This means that the prices for sawn
timber are still significantly below the previous year’s level (-69.3%) and reflect the difficult
situation in the construction industry. It can be observed that the continuing decline in prices
for sawn timber is now also exerting pressure on the prices of other types of wood.
The Sub-Index for Iron Ore and Steel Scrap rose slightly by 4.0% in March and was 31.2%
below the previous year’s value.
The Index for Industrial Raw Materials reached a value of 120.3 points (euro basis 125.5). The
Index declines by 1.0% (euro basis -3.4%) on average for the month and was thus 29.5% lower
than a year earlier.
Index for Food and Beverages continues increases slightly
The Index for Food and Beverages increases by 2.3% in April compared to the previous
month. It was thus 14.2% below the value of the same month last year.
The sugar price has risen most significantly. In April, it rose by 17.5% compared to the month
before and was thus 25.2% above the level of the previous year. Experts see a poor sugar
beet harvest last year as well as current crop declines as reasons. In addition, price
increases for energy and fertiliser are also being passed on the sugar price.
The development of sunflower oil is remarkable. Sunflower oil was one of the products with
large price increases after the start of the Russian war of aggression in Ukraine. In the
meantime, the price is clearly below the previous year’s level (-52.5%). Despite the war,
Ukraine, as the world’s largest exporter of sunflower oil, was able to export more than it has
been initially feared. The fact that various food producers were able to partially replace the
raw material with vegetable oil also had a price-reducing effect.
Overall, the Index for Food and Beverages increased by an average of 2.3% for the month (euro
basis: -0.1%) and stood at 156.0 points (euro basis: 162.6 points).
Source: www.hwwi.org