Aluminium and wool prices drive gains as Middle East conflict cuts Persian Gulf production by 35%.
The ANZ World Commodity Price Index rose 0.7% month-on-month in May to 410.0, marking a 1.3% year-on-year increase. All commodity groups contributed to the rise, with aluminium and wool leading the gains.
Aluminium prices surged 1.8% month-on-month and 49.1% year-on-year after a major Persian Gulf smelter was damaged in late March. Regional production has dropped 35% from pre-conflict levels, while raw material imports remain blocked. Wool prices jumped 14.0% month-on-month and 75.3% year-on-year, reaching their highest level since October 2011.
Despite global price increases, the NZD Commodity Price Index fell 0.3% month-on-month to 357.1 due to a stronger New Zealand dollar. Forestry log prices rose 11.9% since the conflict began, but higher shipping costs offset these gains, leaving wharfgate prices unchanged.