According to Statistics Canada, prices of products manufactured in Canada, as measured by the Industrial Product Price Index (IPPI), fell 1.0 percent month over month in May and were 6.3 percent lower than May 2022.
In May 2023, prices of raw materials purchased by manufacturers operating in Canada, as measured by the Raw Materials Price Index (RMPI), decreased 4.9 percent on a monthly basis and fell 18.4 percent year over year.
The IPPI declined 1.0 percent month over month in May, following a 0.6 percent decrease in April. Compared with May 2022, the index was down 6.3 percent. This is the largest year-over-year decline since October 2009 (-6.5 percent).
Prices for primary ferrous metal products (-1.3 percent) also fell in May, mainly on lower prices for basic and semi-finished iron or steel products (-1.2 percent). Steel prices fell in North America and globally in response to slowing economic activity. Benchmark prices for steel rebar in China hit their lowest in three years in May, as a result of declining investment in the property sector, as well as weak seasonal demand.
The RMPI fell 4.9 percent on a monthly basis in May, following a 1.8 percent increase in April. Compared with May 2022, the index posted a decline of 18.4 percent, the largest year-over-year decline since May 2020 (-19.2 percent).
Prices for metal ores, concentrates and scrap fell 2.1 percent month over month in May. Prices fell for zinc ores and concentrates (-10.4 percent) and iron ores and concentrates (-10.1 percent). Both of these raw materials are used in the production of steel, for which demand has been falling.