US producer price gains slow but up on the month

Spanish Market: Chemicals, Coal, Crude oil, LPG, Metals, Natural gas, Oil products
12/10/22

US producer price gains slowed in September from a year earlier, but posted a greater-than-expected monthly gain on higher service costs.

The producer price index (PPI), which tracks the prices producers receive for goods, services and construction, rose by 8.5pc in September, slowing from an 8.7pc annual gain in the 12 months through August, the Bureau of Labor Statistics reported. It peaked at 11.7pc in March.

The PPI rose by a seasonally adjusted 0.4pc in September from the prior month, after monthly declines of 0.2pc in August and 0.4pc in July. The PPI peaked at a monthly 1.7pc gain in March.

Two-thirds of the latest monthly gain was due to gains in service costs, much of them gains in traveler accommodation services.

The PPI energy index rose by 0.7pc on the month after falling by 5.6pc in August. The energy index was up 24.2pc on the year. The food index was up 1.2pc on the month, surging from a 0.1pc decline the prior month.

The Federal Reserve is engaged in its steepest course of rate hikes since the 1980's as it tries to bring down inflation from four-decade highs brought on by the war in Ukraine, snarled supply chains and surging demand after Covid-19 shutdowns. Still, the latest move by Opec+ countries to cut crude output quotas by 2mn b/d means higher energy inflation pressures are in the pipeline. US gasoline prices have been rising at the pump for three weeks.

The index for final demand less food, energy and trade services — considered core PPI — advanced by 5.6pc on the year for a second month, slowing from prior months after peaking at 7.1pc in March. Still, on a monthly basis, it rose by 0.4pc in September following a 0.2pc gain the prior month and the largest monthly gain since 0.5pc in May.

The PPI report comes out a day before tomorrow's consumer price index (CPI) report — a measurement of what consumers pay for a basket of different goods and finished products — which is forecast to come in at about 8pc after a 8.3pc gain in August. PPI inflation often shows up in CPI numbers, as businesses generally pass on their costs to consumers.

By Robert Willis

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12/12/24

NordBit to exit Dunkirk bitumen terminal at year-end

London, 12 December (Argus) — Hamburg-based bitumen supply and trading firm NordBit will end its operations at the Dunkirk bitumen terminal in northeast France at the end of this year, a source familiar with the firm's operations said. NordBit — a bitumen joint venture between German firms Mabanol and H&R — has been operating the 11,000-12,000t capacity terminal since 2019 . The bitumen facility is part of a wider oil products and chemicals complex at Dunkirk. According to vessel tracking data, the bitumen terminal at Dunkirk has received 25,900t this year, although no cargoes have been discharged since August. Market participants said the terminal is in need of upgrading and will probably need the work done ahead of renting. The imminent halt to NordBit's operations at Dunkirk comes as French building conglomerate Vinci's Eurovia subsidiary nears completion of its own new and separate 16,000t capacity bitumen terminal in Dunkirk which is scheduled to start operating from March or April next year. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Rio Tinto to invest $2.5bn in Argentina lithium mine

12/12/24

Rio Tinto to invest $2.5bn in Argentina lithium mine

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Opec+ decision reduces potential supply surplus: IEA

12/12/24

Opec+ decision reduces potential supply surplus: IEA

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Syrah declares Mozambique graphite plant force majeure

12/12/24

Syrah declares Mozambique graphite plant force majeure

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US road fuel stocks highest since September

11/12/24

US road fuel stocks highest since September

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