Export and import price indices - May 2004
May: high prices of mineral fuels
Publication Date: 16. 07. 2004
Product Code: r-7201-04
Month-on-month comparison:
- Both import and export prices decreased in May by 0.1%. This decline was recorded after five months of growth. The amount of prices was influenced again by the development of the Czech koruna exchange rate in relation to the main foreign currencies, EUR and USD, in particular.
Imports : The highest price decrease was recorded for ‘chemicals and related products’ (-1.6%, for inorganic chemicals in particular). However, the most significant influence on the decrease of the total import price index was due to the decrease of prices of ‘machinery and transport equipment’ (-1.1%, power-generating machinery and equipment in particular) - the prices were decreasing already for the second month. On the contrary, already for the third month import prices of ‘mineral fuels, lubricant and related materials’ increased most (+5.8% petroleum, petroleum products in particular). This growth was fully in accord with the price development on the world commodity exchange. Prices of ‘crude materials, inedible, except fuels’ were increasing already for the fifth month (3.4%, especially metalliferous ores - still caused by high prices of metal scrap).
Exports : The highest price decrease was recorded for ‘machinery and transport equipment’ (-1.3% metalworking machinery in particular). The same as in import, the prices of this section were decreasing already for the second month. This decrease affected the decrease of the total export price index most significantly, too. The highest export price growth, the same as in import, was recorded by the CZSO for ‘mineral fuels, lubricant and related materials’ (by +6.7%, coal and petroleum products in particular). The prices were rising already for the fifth month.
- Terms of trade reached the value of 100.0% in May and thus were not positive after nine months. This was caused by unfavourable terms of trade in the most significant items in terms of weight in ‘machinery and transport equipment,’ in which they reached the value of 99.8% and especially unfavourable value was in ‘crude materials, inedible, except fuels’ 95.6%. Favourable value was for ‘manufactured goods classified chiefly by material’ and ‘chemicals and related products’ in particular (101.7% and 101.3%, respectively).
Year-on-year comparison:
- Import prices increased by 2.7% in May. Thus, they rose already for the third month and in comparison with the previous month their growth increased by 1.1 percentage point. The highest growth of import prices was recorded (since December 2003 already) for ‘crude materials, inedible, except fuels’ - in May by 13.4%, since the beginning of the year 2004 for metalliferous ores in particular. Price increase of ‘mineral fuels, lubricant and related materials’ (+12.5%, petroleum and petroleum products in particular) and ‘manufactured goods classified chiefly by material’ (+4.3% non-ferrous metals and iron and steel in particular) had the biggest impact on the growth of the total index of import prices. The increase of prices of these metals is also in accord with their long-term price increase on the world commodity exchange. The decrease was only for prices of ‘machinery and transport equipment’ (-0.2% mainly telecommunications and sound-recording and reproducing apparatus and equipment in particular) and ‘miscellaneous manufactured articles’ by -0.7%. Y-o-y import prices of ‘machinery and transport equipment’ were continuously decreasing since November 2000.
- Export prices increased by 4.6% (the highest price growth since February 2001) and continued to grow already since April 2003. In May they increased by 0.9 percentage point more than in April and their growth accelerated already for the fifth month. The most significant price growth continues already since November 2003 for ‘mineral fuels, lubricant and related materials’ (this time even by +24.4%, especially in coal and petroleum products). The rise in prices of ‘manufactured goods classified chiefly by material’ (+9.0%, iron and steel in particular) together with ‘machinery and transport equipment’ (+2.2%, mainly metalworking machinery) had a dominant impact on the increase of the total index of export prices. Only beverages and tobacco prices decreased (-8.6%).
- Terms of trade reached the value of 101.9%, which was by 0.2 percentage point less than in April. Although the terms of trade are favourable already since April 2001 its value is decreasing since March 2004. This value is the highest in ‘mineral fuels, lubricants and related materials’ already since October 2003. In May 2004, this value reached 110.6%, i.e. the same as in the previous month. Favourable figures were also recorded for ‘machinery and transport equipment’ (102.4%), but this value is decreasing already for the second month. Positive values were reached also for ‘manufactured goods classified chiefly by material’ and ‘miscellaneous manufactured articles’ (104.5% and 102.1%, respectively). Unfavourable terms of trade were especially in ‘crude materials, inedible, except fuels’ -89.8%.
CZSO world price index of raw materials and food 1)
June 2004
June 2004
Month-on-month comparison:
- The world prices covered by the index decreased in total by 1.9% in June after growing for eight months. The main cause was m-o-m decrease of the most significant commodity measured -petroleum Brent - by 4.3%. This was the highest price drop of this commodity since September 2003, but the price still remains high and in the beginning of the month it even overcame its 20-year maximum. However, during June the price of oil was decreasing due to the decision of OPEC to increase production and takeover of power of provisional government in Iraq. Prices of textile raw materials, wood and prices of food in total decreased as well. The decrease of the total world price index was reduced by the price growth of natural gas by 1.5% and growth of the total index of metals by 3.0%.
Year-on-year comparison:
The world prices in June were 13.9% up in total, which was by 5.4 percentage points less than in May. It was caused again by the price development of the two most significant commodities measured - petroleum Brent and natural gas. In June their prices increased y-o-y by +14.2%, i.e. by 6.2 percentage points less than in May. Prices of metals increased y-o-y in total by 31.7% and thus maintained their high growth together with prices of rubber and wood. Only prices of textile raw materials decreased.
1) The world prices follow actual prices in terms of original currencies read at commodity exchanges and indicate in advance the nature of the future development of Czech import and export prices of industrial raw materials and food.
Note
Contact: Jiří Choun, tel. (+420) 27405 2196, e-mail: choun@gw.czso.cz
Data source: CZSO survey
End of data collection: Last calendar day of the month
End of data processing: Import and export price indices: 40th calendar day following the end of reference month
CZSO world price indices: 10th calendar day following the end of reference month
Related publications: 7201-04 Import and Export Price Indices in the Czech Republic
Detailed on (Internet: http://www.czso.cz/eng/edicniplan.nsf/p/7201-04 )
7202-04 CZSO World Price Indices of Industrial Raw Materials and Food
The released data are definitive.