Commodity price index rises sharply

Industrial metals - Commodity price index rises sharply

Raw material prices are continuing to rise significantly according to the Association of Bavarian Industry (vbw). "After a temporary easing in the middle of 2023, the development is showing a steep upward trend again," said Association Chairman Bertram Brossardt in Munich. The raw material price index of the vbw rose by 4.0 percent from April to May and now stands at 153.9 points. This is almost 40 percent above the level of the pre-Corona year 2019.

Indium, which is mainly refined in China and used as a transparent conductor for flat-screen televisions and touchscreens, increased in price by 38 percent within just one month. "Indium is a classic example of China's great significance as a supplier of raw materials for future technologies," said Brossardt. "The uncertainty over the development of raw material prices on the global markets is a lasting burden for companies." In order to ensure a secure supply at affordable prices and to prevent one-sided dependencies on individual supplier countries, companies must always discover new sources. "The example of Indium illustrates this particularly clearly."

The vbw raw material price index includes the world market prices of 42 raw material types in US dollars.

1. The escalating commodity price trend is causing concern in Germany's industry, with Bertram Brossardt of the vbw calling for reassurance.
2. The sharp rise in metal prices, including a 38% increase in indium from China, is a challenge for the touch screen industry, especially in Bavaria.
3. The coronavirus pandemic has exacerbated the situation, leading to raw material price increases of almost 40% compared to 2019's pre-Corona levels.
4. German companies are seeking alternatives to ensure a secure supply of raw materials like indium, which is crucial for future technologies, and to avoid relying too heavily on a single supplier country like China.
5. Debates about raw material pricing are prevalent in industry events, such as the vbw's annual conference held in Munich, the capital of Bavaria.

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