Commodity prices sank deeper in November as grim economic news continued to plague North America and other regions. PURCHASING's index of transaction prices for industrial supplies slipped to 107.4 (1992=100), which is the lowest level since December 1999, when commodity markets were still feeling the effects of the Asian fiscal crisis of 1998-99. Ample supplies and lethargic demand were the key price depressants in November. Of the seven materials price indexes tracked monthly by PURCHASING Magazine, all except wood pulp posted declines in November. And the pulp price index increased a mere 0.3%. Energy prices took the biggest one-month hit, sliding almost 5%, which reflects a significant drop in the crude oil prices. Transaction tags fell also for energy-intensive chemicals and resins. PURCHASING's marketbasket of resins prices fell 3%. Price for metals continued a seemingly relentless decline in November. So too did prices for forest products (paper and packaging materials).

Looking ahead, buyers surveyed by PURCHASING suggest that these downward price trajectories will continue through at least February. They expect, however, to see the economy perking up with the warmer weather next spring and summer. That means they're at least starting to contemplate the possibility of higher sales tags for key manufacturing materials in May and beyond.