The commodity price index of the Bank of Nova Scotia recorded its fifth straight gain in December. The small monthly gain from November was helped by stronger metals and agricultural prices.
For 1994, the all-items index advanced 7.1%; it was led by metals and minerals (which jumped 15.5%) and forest products (which gained 7.2%). The metals and minerals index surged in December — it was up 3.1% from November — and advanced further in January, says bank economist Patricia Mohr. Nickel was helped by a sharp pickup in U.S. and Japanese stainless steel output. Prices for copper and aluminum were also healthy, although some weakness appeared late in December.
Zinc, which was steady at US54 cents per lb. in early January, was being helped by galvanizing demand in the auto sector in both the U.S. and Europe. Damage to a major lead and zinc refinery in Japan from a recent earthquake is expected to tighten high-grade supplies in the coming months. Despite the optimism, the zinc price dropped to US51 cents in late January. The all-commodity index tracks export prices of a variety of Canadian commodities, which are weighted according to their 1984 export values (except crude oil, for which the value of net exports is used).
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