BLOG — Apr 30, 2025
Weekly Pricing Pulse: Commodity Prices Edge Down on Demand Concerns
By Michael Dall
Markets continue to focus on developments in trade policy, with the mood having slightly improved last week.
The news on tariffs was that administration officials seem confident that tariff rates on roughly two-thirds of imports from mainland China are likely to decrease from the current 145% rate. However, mainland China’s stipulation that the US must cancel “all unilateral tariff measures” before trade talks begin tempered market enthusiasm.
Also easing market concerns was an apparent shift in President Donald Trump’s stance on whether Jerome Powell should be allowed to continue as chair of the Federal Reserve. After calmer conditions in the last two weeks, attention has turned to this week’s U.S. reports on consumer spending, income, and confidence; employment; construction; vehicle sales; and employment.
The Material Price Index (MPI) by S&P Global Market Intelligence declined by 0.3% last week, following no change in the prior week. It was a mixed picture with four out of ten subcomponents experiencing a decline. The MPI is approximately 10% lower than it was the same week a year ago, indicating a general easing in commodity prices over the past 12 months.
Chemical prices were a notable downward mover last week, with the sub-index decreasing 0.5%. European propylene prices showed particular weakness, with average spot prices down 4% on demand concerns. The lack of buyer interest meant several plants took extended downtime over the Easter break. Buyers have paused purchases awaiting further clarity on tariff rates for imports from the U.S. U.S. prices are attractive at the moment but buyers fear a swift change in trading arrangements, which could inflate the current price.
Nonferrous metals continued their modest rally with the sub-index up 1.8% last week. Everything from aluminium to zinc increased, however, copper was the strongest performer, reaching $9,416 per metric ton. This was up from a low of $9,082.50 in the previous week. A weakening U.S. dollar is making metals traded on the London Metal Exchange — which are denominated in U.S. dollars — more attractive and was pushing prices higher across the board last week.
This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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