Economist Patricia Mohr writes that during the first quarter, manufacturers and wholesalers in the United States reduced their inventories of many raw materials, including metals, lumber and natural gas, partly in anticipation of slower economic growth.
“Less speculative demand for metals and the U.S. inventory correction largely account for the decline in over-all commodity prices since January,” Mohr reports.
The metals and minerals index dropped 3.1% in April from the previous month. Declining prices for nickel, zinc, copper and gold offset firmer prices for aluminum and coal.
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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