Industry prices changed by 1.32% in March, a higher figure than that of the comparison between February and January (0.81%). In the same comparison, 21 of the 24 activities showed positive price changes, against 20 in the previous month. The cumulative index in the year reached 2.50%, against 1.16% in February.

The Producer Price Index (IPP) for Mining and Quarrying Industries measures the evolution of product prices “at the factory gate”, excluding taxes and freight, and covers information by major economic categories, that is, capital goods, intermediate goods and consumer goods (durable and semi-durable and non-durable). The full IPP publication can be accessed here.

Between February and March 2020, the prices of the mining and quarrying and manufacturing industries – overall industry – changed 1.32%, a figure above that reported in the comparison between January and February (0.81%). The four biggest changes  in March were seen in the products of the following activities: mining and quarrying industries (-17.12%), petroleum refining and ethanol products (-9.79%), footwear and leather articles (7.76%) and tobacco (7.47%).

The highest influences in the same comparison were: food products (1.43 pp),  petroleum refining and ethanol products (-0.97 pp.), mining and quarrying industries (-0.85 pp), and other chemical products (0.42 pp).

The cumulative index in the year (March 2020 against December 2019) was 2.50%, against -1.16% in February. Among the activities that registered the highest percentage changes in this indicator, the highlights were: petroleum refining and ethanol products (-14.96%), basic metals (11.99%), footwear and leather articles (11.75%) and other transportation equipment (11.63%). The sectors of higher influence were: petroleum refining and ethanol production (-1.59 pp), food (-1.47 pp), basic metals (0.70 pp) and other chemicals (0.51 pp).

The cumulative index in 12 months (March 2020 against March 2019) was 6.45%, against 6.73% in February. Among the activities that registered the highest percentage changes in this indicator, the highlights were: other transportation equipment (18.75%), food products (18.17%, basic metals (11.99%) and pharmaceutical products (10,96%). The most influential sectors were: food products (3.99 pp),  petroleum refining and ethanol production  (-0.93 pp), basic metals (0.72 pp) and motor vehicles (0.45 pp).

Among the Major Economic Categories, against February, there was a price change of 1.32% as it follows: 2.71% in capital goods; 0.69% in intermediate goods; and 1.93% in consumer goods, of which 0.41% was the change seen in durable consumer goods and 2.25% in semi- and non-durable consumer goods.

From the result of the overall industry, 1.32%, the influence of the Major Economic Categories was the following: 0.21 pp of capital goods, 0.38 pp of intermediate goods and 0.74 pp of consumer goods. In the case of consumer goods, 0,71 pp was due to price changes observed in semi-  non-durable consumer goods and 0,03 pp in durable consumer goods.

The following sectors stood out:

Mining and quarrying industries: in March 2020, prices changed -17.12 in relation to February. This is the biggest negative change seen in the series that began in January 2014 ( the second one started in January 2016, -14.43%). Considering this figure, the cumulative rate in the year of 11.34%, in February, went to -7.72%. In the comparison with March 2019, it was the first negative result (-6.30%) since October 2016 (-7.10%). The highlight of the sector was the fact it was the biggest change (in module) among all the industry activities, in the comparison between March and February, and because it was the third biggest influence (in module again) in the same comparison (-0.85 pp in 1.32%).

The two main products of the sector (whose initial weigh together, in December 2018, was of 78.22%), "Crude petroleum oil" and "iron ore and its concentrated derivatives, raw or processed, except those pelleted or sintered" had a negative impact in the result.

Food products: in March, the prices of the sector changed 6.16% over February, the highest result of the series in this comparison. As a consequence, the cumulative rate in the year changed from 0.10% to 6.26%. In relation to March 2019, the change was of 18.17%.  Among the products that stood out, three are both the highest change and the sharpest influence: "fresh or cooled beef", soybean residue from extraction" and "sterilized milk / UHT / Long Life". The influence of the three products added to that of "granulated sugar", the four product standing out, is of 4.03 pp, in 6.16%.

Petroleum refining and ethanol products: price change of the sector, in the comparison with March 2020 with February 2020 was of -9.79%, the sharpest negative rate of the series. As a result, the cumulative index changed from -5.73% to -14.96%, also the sharpest negative rate. Finally, in the comparison between March 2020/ March 2019, 2020 prices were 9.02% lower than those of 2019.

In the calculated indicators, all changes and influences were negative, except for a few cases, for instance: "ethyl alcohol (anhydrous or hydrated)", which has a negative impact on the cumulative indicator and in the comparison with the same month a year ago. All in all, the behavior of the petroleum international market and the uncertainties generated by the pandemic on the economy - including the smaller traffic of vehicles - set the tone of the described behavior.

Other chemicals: the chemical industry in the month of March registered an average change of prices in relation to February of 5.49%, the highest positive change of prices since the beginning of the survey in December 2009. This way the sector accumulated a positive change of 6.60% in 2020 and 4.84% in the last 12 months. The result of the cumulative in the year is very different from what occurred in March 2019, when it had been negative at -4.98%.

The results seen of the month are linked to the international prices, with price increase of the raw materials are to a great extent due to the depreciation of the real over the dollar of 12.5% and the demand reduction.

Basic metals: comparing average prices of March against February, there was a 5.75% change, the highest price change of this activity since the beginning of the series (January 2010). With this change, the cumulative index in the year and in 12 months were coincidentally at the same value of 11.99%.

The result of the month was mostly due to four products, two of them from the group ferrous materials and two from non-ferrous. They are: "carbon steel ingots, blocks, billets or plates", "gold for non-monetary use", "Aluminum oxide (calcined alumina)" and "ferroniobium", all with a positive influence on the M/M_-1 indicator. Those four products represented 3.72 pp in the monthly change, i. e., 2.03 pp attributable to the influence of the other 20 products.

Motor vehicles: in March, the change seen in the sector was of 1.05%, when compared to the previous month, following he trend of increase seen in the six previous months. The cumulative change in the year and in the last 12 months reached, respectively, 2.52% and 5.51%.

Besides being one of the sectors of biggest weight in the calculation of the general index with a contribution of 8.40% , the activity of motor vehicles stood out among all surveyed sectors, presenting the fourth highest influence in the cumulative change in 12 months (0.45 pp in 6.45%).