MDM-Podcasts-launch
Need Help? (888) 742-5060

In The News:

Canada Industrial Product Price Index Up 0.2% in September

The Industrial Product Price Index (IPPI) increased 0.2 percent in September compared with August, led mainly by primary metal products, according to Statistics Canada. The Raw Materials Price Index declined 0.4 percent in September, largely because of significantly lower prices for mineral fuels.

The IPPI rose 0.2 percent in September, following a 0.4 percent increase in August. The index continued an upward trend that began in November 2009, although during this period, the IPPI increased a moderate 0.9 percent.

In September, the IPPI gain was mainly led by primary metal products (+2.0 percent) and, to a lesser extent, by petroleum and coal products (+0.5 percent). The increase in prices of primary metal products was mainly attributable to strong demand for precious metals. In addition, over the past several months, non-precious metals have faced reduced production as well as lower inventories.

The 0.5 percent decrease in prices for motor vehicles and other transportation equipment moderated the IPPI advance. This decline was largely due to a 0.8 percent increase in the value of the Canadian dollar relative to the U.S. dollar.

Some Canadian producers who export their products to the United States are generally paid on the basis of prices set in US dollars. Consequently, the strength of the Canadian dollar in relation to the US dollar had the effect of reducing the corresponding prices in Canadian dollars.

Excluding petroleum and coal prices, the IPPI would have increased for a third consecutive month, advancing 0.1 percent in September following gains of 0.4 percent in August and 0.1 percent in July.

IPPI 12-Month Change
The IPPI was up 1.4 percent in September compared with the same month a year earlier, following a 0.6 percent increase in August. The gain in September was the second largest since January 2010.

In the previous 12 months, the IPPI advance was mainly a result of higher prices for primary metal products (+9 percent) and, to a lesser extent, petroleum and coal products (+4.2 percent), chemical products (+3.5 percent), pulp and paper products (+3.1 percent) as well as rubber, leather and plastic fabricated products (+3.1 percent).

The 4.7 percent appreciation of the Canadian dollar relative to the US dollar dampened the IPPI year-over-year gain in September.

Prices for motor vehicles and other transportation equipment, which are particularly sensitive to the exchange rate, fell 2.4 percent in September, continuing their downward movement that started in October 2009.

Year-over-year, the IPPI excluding petroleum and coal increased 1.2 percent in September, following a 0.7 percent advance in August. It was the fifth consecutive year-over-year increase.

Raw Materials Price Index
The Raw Materials Price Index (RMPI) declined 0.4 percent in September, led by lower prices for mineral fuels (-3.3 percent), particularly for crude oil (-3.7 percent).

In September, higher prices for non-ferrous metals (+4.0 percent) and vegetable products (+5.5 percent) moderated the impact that the decline in mineral fuels had on the RMPI.

Excluding mineral fuels, the RMPI increased 2.2 percent in September following a 2.9 percent advance in August. The movement of the index indicates a reinforcement of the upward trend, and the index has returned to the same level as in September 2008.

Compared with the same month a year earlier, the RMPI rose 5.8 percent in September, following a 5.0 percent advance in August. Year-over-year, the RMPI has been on an upward trend since November 2009. Prices of non-ferrous metals (+14.1 percent), animal and animal products (+9.1 percent), vegetable products (+16.5 percent) and ferrous materials (+21.3 percent) were the main contributors to the RMPI year-over-year increase in September.

Excluding mineral fuels, the RMPI was up 10.6 percent compared with September 2009. This was the strongest advance of the past 12 year-over-year movements.

© 2019 Gale Media, Inc.

Please do not reprint MDM's content on your website without MDM's express permission as it is copyrighted material. To gain permission, email us, or call 1-888-742-5060. For information on PDF or print reprints, visit www.mdm.com/reprints. MDM welcomes inbound links from your site. Please cite Modern Distribution Management.

2018-top-distributors-listThe 2018 Top Distributors List

This free PDF includes lists of top distribution companies across 14 sectors.

You will also receive MDM Update, our daily distribution e-newsletter & other distribution-focused content.

Download the Free PDF now >>


MDM-UpdateMDM Update: Daily Newsletter 

Sign up to read the best source for news & trends in wholesale distribution, MDM Update. Delivered daily to your inbox. 

Sign-up for MDM Update >>

Partner Center