Falling metal and mineral prices contributed to a decline in the commodity price index of Scotiabank in September of 0.7% from August. The all-items index is at its lowest level since May, 1987.
Both precious and base metal prices dropped in September, with the exception of copper which moved the other way. Bank economist Patricia Mohr said western world consumption of copper exceeded production during the first half of 1991.
“Recent mine disruptions in Zaire and Chile, a pickup in U.S. demand in the auto and housing industries and increased orders from China have kept supply conditions relatively tight,” Mohr said.
“Japanese and German wire and brass mills continue to operate at high levels, but incoming orders are slowing, pointing to some easing of prices later in the year.”
The metals and minerals sub-index was off by more than 1% in September and is down by 22% from one year ago. Also contributing to the September decline were plunging forestry product prices.
The all-commodity index tracks export prices of a variety of Canadian commodities, which are weighted according to their 1984 export values, except crude oil where the value of net exports is used.
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