Weekly Pricing Pulse: MPI Increases for Third Consecutive Week

• The Material Price Index (MPI) by S&P Global Market Intelligence increased by 0.5% last week, the third consecutive weekly rise.
• The rise was mixed, with six of the ten subcomponents increasing. 
• Energy markets were the key upward driver last week, with the sub-index increasing by 1.5%. Brent crude oil, the international benchmark, rose by 2.2% to a weekly average of $71.60 per barrel. 
• Markets remained focused on US trade policy as August 1 marked the deadline for countries to reach trade deals to avoid higher reciprocal tariffs. .

Last week, markets remained focused on US trade policy as August 1 marked the deadline for countries to reach trade deals to avoid higher reciprocal tariffs. While agreements were announced with the EU, UK, South Korea, Japan, and some ASEAN countries, certain countries that did not reach agreements will face higher tariff rates effective August 7.

The market also concentrated on the Federal Open Market Committee (FOMC)’s decision to keep the federal funds rate target unchanged at 4.25% to 4.50%. Despite the rates remaining unchanged, last week’s US employment data sent mixed signals, revealing softer-than-expected payroll gains and substantial downward revisions of a combined 258,000 jobs for May and June, with the unemployment rate ticking up to 4.2% in July, raising broader concerns about a softening labor market this year.

This week, key data releases, including trade data from the US and mainland China, which will provide insight into how trade policy developments are impacting the economy in both regions.

The Material Price Index (MPI) by S&P Global Market Intelligence increased by 0.5% last week, the third consecutive weekly rise. The rise was mixed, with six of the ten subcomponents increasing. The MPI remains approximately 5.0% lower than it was the same week a year ago, indicating a general easing in commodity prices over the past 12 months.

Energy markets were the key upward driver last week, with the sub-index increasing by 1.5%. Brent crude oil, the international benchmark, rose by 2.2% to a weekly average of $71.60 per barrel. This increase was driven by concerns over potential oil supply disruptions following President Trump's July 29 announcement of a revised deadline for Russia to agree to a ‘deal’ with Ukraine, moving it up to August 8 from the originally stated 50-day timeline set to expire on September 2. If progress is not made, this could lead to new secondary sanctions, including 100% tariffs on countries that continue to import Russian oil, heightening market sentiment concerns.

In contrast, non-ferrous metals experienced a decline, with the sub-index falling by 1.8%, the largest weekly drop since April 2025. Copper prices on the London Metal Exchange (LME) decreased by 1.5% and fell to $9,535.25 per metric ton last week. This decrease was attributed to the Trump administration's announcement that refined copper would be exempt from the 50% tariffs on copper imports to the US, with tariffs instead applying to imported semi-finished copper products. The narrower than expected copper tariffs narrowed the price spread between the LME and the US benchmark.

Following the announcement, excess US inventory that has been stockpiled may be re-exported to other regions, further exerting downward pressure on LME copper prices as more copper enters LME warehouses.

—By Yan Hoong

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.