The IHS Markit Materials Price Index (MPI) saw an unexpected rise in the material price index and ended the year just above 3.0.
This will have either positive or negative connotations depending on whether you are a purchaser or a supplier, but ultimately what we are seeing and going to see over the next few quarters is a normalisation of price increases. The recent upward moves have been driven by the energy submarkets as oil prices rose across the board, hitting figures not seen since this time last year. Chemical submarkets also increased, which has seen knock-on effects from the Texas cold snap, with approximately 34% of U.S. capacity for ethylene production off-line as of last week. Nickel is starting to fall, with an almost 20% drop since recent highs of £14,328.
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