However, the data seems to indicate that railroad pricing may be softening.
The next chart shows the PPI for Petroleum lubricating oil and greases. No surprise that oil prices are going up.
The rise in oil prices is having an effect on petrochemical prices as well, but since the cost of inputs is rising by as much it doesn’t indicate pricing power so much as the ability to pass along the price increases that are going into the process. It’s still better than having to absorb them, though.
Iron and steel mill prices are accelerating rapidly.
As are aluminum.
And industrial valves.
But farm equipment manufacturers are losing pricing power.
As are construction equipment makers (housing slowdown?)
Computer makers seem to be competing more fiercely than the PPI data indicates. Is the disconnect investable?
Semiconductor makers are losing pricing pressure, and we think it will get much worse.