16.09.2022

Press release

HWWI Consult GmbH

HWWI Commodity Price Index rises further in August

Strong price increase for natural gas

  • HWWI overall index up to 10.8% (US dollar basis)
  • Natural gas prices up to 40.9%
  • Crude oil prices down to 7%

(Hamburg, September 16, 2022) In August, the HWWI Commodity Price Index continued to rise compared with the previous month. On average, commodity prices rose by 10,8 %. The three sub-indices of the HWWI Commodity Price Index, the index for energy commodities, the index for industrial commodities and the index for food and beverages, showed mixed trends. The index for food and beverages fell by 0.6%, and the index for industrial commodities increased only moderately by 1.5%. The increase in prices for energy raw materials was more substantial. They rose by 12.2% in August. As energy raw materials are heavily weighted in the overall index, the index rose again in August, and is now 76.8% higher than in August 2021. The difficult geopolitical situation continues to drive up prices on the commodity markets, especially in the gas segment. However, the poor outlook for the economy is already reducing demand for crude oil and industrial raw materials which is having a negative impact on prices.

 

Index for energy commodities: coal and oil cheaper than in previous month

As in the previous month, the price of crude oil fell again in August by 7%. Compared to August 2021, the price increased by 37.9%. The price of coal fell slightly in August by 1.9% and was 140% higher than in August 2021. Due to the continuing uncertainty of the supply situation, the price of gas continued to rise, making a significant jump in August. It increased by 40.9% compared to July and was 182.5% above the year-earlier level of August 2021.

Overall, the energy commodities sub-index rose 12.2% (euro basis: 12.9%) in August to 408.6 points (euro basis: 463 points).

 

Index for industrial commodities: Only slight increase in the price level

The sub-index for industrial commodities, which is subdivided into the index for agricultural raw materials, the index for nonferrous metals and the index for iron ore and steel scrap, increased slightly by 1.5% in August compared with the previous month, after having fallen significantly in each of the previous months. Flooding in Pakistan causes cotton prices to rise. In nonferrous metals, zinc prices stand out: As a result of higher energy prices production is being partly shut down, resulting in an additional supply deficit causing prices to rise further. Overall, the situation for industrial raw material prices remains comparatively relaxed. The index for industrial raw materials is now 11.4% lower than a year earlier.

Overall, the index for industrial commodities rose by an average of 1.5% (euro basis: 2.0%) to 128,0 points (euro basis: 144.6 points).

 

Index for food and beverages continues to decline slightly

The sub-index for food and beverages total continued to decline in August. It fell by 0.6%, having already fallen in June and July. The value was thus 14.7% higher than the corresponding year-earlier figure. Prices for cereals fell by 3.3%. Here the resumption of grain exports from Ukraine had a relaxing impact on prices. Prices for oilseeds and oils fell by 0.5%. Prices for luxury foodstuffs rose by 3.5% after falling by 4.6% in the previous month. A drought in Brazil in particular caused coffee prices to rise.

Overall, the food and beverages index fell by an average of 0.6% for the month (euro basis: – 0.1%) and stood at 158.7 points (euro basis: 179.1 points).

Public Relations

Elzbieta Hagemann

The HWWI Commodity Price Index is a comprehensive, weekly calculated indicator of price
developments in world commodity markets, which includes the major internationally traded commodities. Since 1960, the HWWI Commodity Price Index measures the price changes in the raw material import calculation of the industrialized countries and is thus an indicator for the cost development of imported raw materials and serves among other things central banks, research institutes and international institutions for their analyses.