Worldwide falling commodity prices: Euro area non profits – n-tv.de NEWS

Worldwide falling commodity prices: Euro area non profits – n-tv.de NEWS

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 Sunday 08 February 2015

 
 
 

 
 Not only crude oil is much more affordable in recent months, but also almost all other commodities. Not notice the industry and consumers in Germany but not much.
 

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Raw materials of all kinds are getting cheaper world – with the exception of the euro area. The commodity price index of the Hamburg Institute of International Economics (HWWI) fell in January compared to December in dollar terms by 17 per cent, said the HWWI with. This leave is largely explained by the crude oil prices, which have been listed in dollar terms by 21.6 percent lower last. But all other commodities were in dollars cheaper: non-ferrous metals by 6.9, agricultural commodities by 3.1 and tobacco by 2.0 percent

The HWWI carries these declines partly on economic grounds and partly on. good harvests and high stock returns. “When we look at the euro area, however, shows a different picture,” HWWI director Christian Growitsch curtailed. Because of the price decline of the euro against the dollar, commodity prices had either little lower in the euro area or even increased.

So would have expected in EUR agricultural commodities increased in price by 3.0 percent and tobacco as much as 4.1 percent. The disadvantages looks Growitsch less in the industry, but rather among consumers. “For industrial companies that sell in the dollar zone, higher raw material costs and sales revenues from the same,” he said. Many industrial companies produced anyway in the markets they serve. Furthermore, most internationally active companies have hedged against exchange rate fluctuations.

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The situation is different for consumers in the euro area. Example green coffee: The high-quality Arabica, which is sold mainly in Germany, was cheaper in dollar terms over the previous month by 2.2 percent. In Euro however, it has become more expensive by 3.9 percent. “This is probably not enough to put the coffee prices for users on the move”, estimated Growitsch. “But it is at least of the raw material side does not cheaper.”

  Source: n-tv.de
 

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