Nickel prices have been more restrained. They are only 37% of the way back to their previous high. However, since the price did fall so low in the recession, they are +160.4% above their trough level recorded in December 2008, the same month as the low point for copper prices.
Aluminum demand comes from the aerospace industry, motor vehicles, construction and beverage packaging. Some of these are on the upswing in North America, but it is more likely that demand growth is livelier overseas. In any event, aluminum prices are +75.7% higher than in February 2009 and they have made their way nearly 60% back from their trough position.
The number one headline commodity, oil, is now priced more than double (+116.9%) its level of a year ago. It is at about the halfway mark on its return path from trough (February 2009) to previous peak (July 2008). Coal has made almost one-third (29%) of the journey from trough (March 2009) to previous peak and is up 58.6% versus its bottomed-out position.
Even some livestock agricultural prices have been on the move. Cattle are +19.4% versus December 2009 and hogs – earlier devastated by bad publicity from swine flu and new country-of-origin labeling in the U.S. – are now +56.2% compared with August 2009. Hogs prices have received support from government programs that encouraged culling herd sizes.
While the timeframes are different for almost all of these commodities, it is still informative to consider that the average percentage change for the 10 product categories set out in this analysis, trough to current levels, is +79%. Commodity prices are on the march again. This has obvious implications for overall prices, since commodities are the building blocks of almost everything. Also, it is good news for Canada’s Western provinces, which are somewhat more resource rich, or at least more resource dependent, than the central and eastern parts of the nation.
Five other commodities warrant some commentary. Gold and silver prices remain at or near record highs, wheat and uranium prices are restrained and natural gas is deeply depressed.
