The all-commodity price index of Scotiabank dropped slightly in May, continuing a largely flat trend. Gains in the metals and minerals sub-index offset declines in the three other sub-indices. The all-items index is down by 7.6% from one year ago. The metals and minerals sub- index rose in May — it was up 0.6% from April — for the third consecutive month. Economist Patricia Mohr reports gains in copper and zinc offset weaker gold and nickel prices.
While in the U.S. demand for galvanized steel products has dropped, the global supply of zinc metal remains tight. Unsuccessful labor contract negotiations, specifically at Cominco (TSE) and Brunswick and Mining and Smelting (TSE) operations, could tighten market conditions further.
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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