The metals and minerals sub- index was off slightly from September; it is down almost 8% from a year ago. Base metal and precious metal prices have been moving in opposite directions of late, the former in a downward trend.
“Softer base metal demand reflects reduced U.S. auto production, weak office and apartment building in the U.S. and a decline in U.S. durable goods orders over the past four months,” economist Patricia Mohr writes.
“Manufacturers in Europe and the U.S. have been scaling back their use of austenitic (nickel- containing) stainless steel, given high nickel price surcharges. Reduced stainless steel output has increased the availability of nickel- containing scrap, putting further downward pressure on primary nickel demand and prices.”
Zinc consumption and prices are feeling the effects of weaker U.S. auto output and commercial construction, Mohr says. The metal could experience further weakness. On the precious metal side, gold recently rallied above $400(US) per oz.
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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