HWWI commodity price index rises further in August
- HWWI overall index rose by 10.8 % (US dollar basis)
- Natural gas prices increased by 40.9
- Crude oil prices fell by 7
(Hamburg, September 16, 2022) The HWWI commodity price index continued to rise in August compared with the previous month. On average, commodity prices rose by 10.8%. However, the individual sub-indices (energy commodities, industrial commodities, food and beverages) developed unevenly. The index for food, beverages and tobacco fell by 0.6%, and the index for industrial raw materials rose only moderately by 1.5%. The rise in prices for energy raw materials was more pronounced. They rose by 12.2% in August. As energy commodities are heavily weighted in the overall index, it also rose again in August and is now 76.8% higher than in August 2021. The tense geopolitical situation continues to have a price-driving effect on the commodity markets, particularly in the gas segment. However, the gloomy outlook for the economy is already causing demand for crude oil and industrial raw materials to fall, which is having a dampening effect on prices.
Index for energy raw materials: Coal and oil cheaper than in previous month
As in the previous month, the price of crude oil also fell in August, by 7%. Compared to August 2021, the price increased by 37.9%. The price of coal fell slightly by 1.9% in August, 140% higher than in August 2021. Due to the continued uncertainty of the supply situation, the price of gas continued to rise and made a significant jump in August. It rose 40.9% from July and was 182.5% higher than the August 2021 figure.
Overall, the energy commodities subindex rose by 12.2% (euro basis: 12.9%) in August to 408.6 points (euro basis: 463 points).
Index for industrial raw materials: Only slight increase in price level
The sub-index for industrial raw materials, which is subdivided into the index for agricultural raw materials, the index for non-ferrous metals and the index for iron ore and steel scrap, rose slightly by 1.5% in August compared with the previous month, after falling significantly in each of the previous months. Flooding in Pakistan causes cotton prices to rise. Among nonferrous metals, zinc prices stand out: Higher energy prices are causing some production to be shut down, leading to an additional supply deficit and causing prices to rise further. Overall, the situation for industrial raw material prices remains comparatively relaxed. The index for industrial raw materials is now 11.4% lower than a year earlier.
Overall, the index for industrial raw materials rose by an average of 1.5% (euro basis: 2.0%) to 128.0 points in August (euro basis: 144.6 points).
Index for food, beverages and tobacco continues to decline slightly
The subindex for food, beverages and tobacco continued to decline in August. It fell by 0.6%, having already weakened in June and July. The value was thus 14.7% higher than the corresponding year-earlier figure. Prices for cereals fell by 3.3%. The resumption of grain exports from Ukraine had a dampening effect on prices. Prices for oilseeds and oils fell by 0.5%. Prices for luxury foodstuffs rose by 3.5% after falling by 4.6% in the previous month. A drought in Brazil in particular caused coffee prices to rise.
Overall, the index for food, beverages and tobacco fell by an average of 0.6% for the month (euro basis: -0.1%) and stood at 158.7 points (euro basis: 179.1 points).