Most commodity prices reached their floor in the 3rd quarter of 2023, although they have begun ticking upward again.

Prices only grew in four of the last ten weeks of the year. This is expected to push the Materials Price Index (MPI) by S&P Global Market Intelligence to an almost 6% increase in the final quarter of 2023 before continuing its decline this year. Industrial materials, meanwhile, remain somewhat rudderless: prices cannot go much lower because suppliers are at below production cost, yet demand is too soft to drive significant increases. Most have managed to find their bottom and are expected to see a modest rebound in 2024. There is an upward trend in the forecast into early 2024 if producers cut production to minimize losses. The uptrend is not large and is not for all commodities. The increases are not a sign of demand strength.