15 November 2012

2012- n° 281

In October 2012, dip in imported raw materials prices Prices of oil and raw material imports - October 2012

In October, the price of crude oil, in U.S. dollar terms, declined (–1.4% after +0.9% in September). It stood at $111.8 per barrel of Brent. The prices in foreign currencies of commodities except energy imported into France decreased too (–1.2% after +2.6 in September).

In October, the price of crude oil (North Sea Brent) in U.S. dollar terms per barrel fell for the first time in three months (-1.4%). It is however still more than 15$ higher than the low reached in June. In Euro terms, the decline in oil prices was slightly more marked (-2.1% after +2.8 %), due to the appreciation of the European currency against the U.S. dollar (+0.8%).

In October, the prices in foreign currencies of industrial raw materials rose significantly less sharply than in September (+0.9% after +4.5%). Indeed, the prices of mineral raw materials leveled off (+0.4% after +6.9%). The prices of non–ferrous metals generally dropped (-2.1%), especially that of aluminum (-3.8%), zinc (-5.1%) and titanium (-3.4%). Copper prices (+0.0% after +7.7%) and nickel prices (+0.2% after +10.0%) stagnated. Likewise, the prices of precious metals receded (-0.4% after +11.3%), notably that of silver (-1.3%) and palladium (–3.9%).

The prices of agricultural raw materials on the opposite recovered (+2.1% after –2.1%), including that of wood pulp (+1.6 after –3.1). Natural rubber prices accelerated (+7.0% after +3.7), still sustained by export restrictions from the main South East Asian producing countries. Natural textile fibers prices deteriorated further (-1.6%), e.g. cotton prices (-2.6%).

In October, the fall of raw food materials prices, in foreign currency terms, intensified (–4.3% after –0.1% in September). In particular, oilseeds prices tumbled (-6.8%). Due to good crop prospects in South America, the prices of soybean meal (-7.8%) and soybeans (-8.1%) slumped further. In addition, the prices of palm oil registered another strong plunge (-12.7% after -5.4%), due to the accumulation of stocks in Malaysia. The world’s second largest palm oil producer also reduced tax to boost exports. Tropical foodstuff prices slipped too (-4.6%), especially cocoa prices (-7.0%), as fears about Ivory Coast production wore off, and arabica prices (-4.1%), due to abundant harvest prospects in Brazil and Colombia. Finally, cereals prices continued to head lower (-1.2% after –1.1%), that of corn in particular (-1.7%). Only sugar prices picked up (+4.7%).