Mining and Quarrying Prices Rise by 0.5% in May 2024, Manufacturing Remains Stable: STATIN

  • Output prices in the Mining and Quarrying industry rose by 0.5% in May 2024. In contrast, the manufacturing industry's prices stayed relatively stable according to new data from the Statistical Institute of Jamaica (STATIN).
  • The movement in the Mining & Quarrying industry was attributed to a similar 0.5% increase in the index for the major group ‘Bauxite Mining & Alumina Processing’.
  • For the Manufacturing industry, there was a decline of 0.8% in the index for the major group ‘Refined Petroleum Products’, while there was a 0.1% increase for the heaviest-weighted major group, ‘Food, Beverages & Tobacco’.
  • Against the backdrop of May’s outturn, the point-to-point index (May 2023 – May 2024) for the Mining & Quarrying industry declined by 2.4%. This reflected a 2.6% fall in the index for the major group ‘Bauxite Mining & Alumina Processing’. In contrast, driven by the major groups ‘Refined Petroleum Products’ (13.0%) and ‘Food, Beverages & Tobacco’ (1.2%), the point-to-point index for the Manufacturing industry increased by 3.0%.
  • Geopolitical tensions in Europe and the Middle East pose risks that could disrupt the oil prices and the supply chain, resulting in higher producer costs. However, as businesses transition to renewables globally, there could be lower oil demand. Additionally, the increase in global oil production, led by the US and other American countries, may lead to a fall in prices. Moreover, OPEC+ has signalled plans to gradually unwind voluntary cuts earlier than anticipated, thus sparking concerns about whether the market can absorb those additional barrels heading into 2025.
  •  Mining and Quarrying Prices have been trending down and could be further influenced by fluctuations in the exchange rate as well as greater demand for aluminium.
  • The Producer Price Index (PPI) is a significant economic indicator that tracks the average fluctuation in selling prices that domestic producers of goods and services experienced over time. Currently, the industries being tracked are Manufacturing Industry and Mining and Quarrying.

 (Source: STATIN, NCBCM Research)