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Saturday, October 03, 2020 12:10
PM / NBS/ Header Image Credit: NBS
Highlights
Between April and June 2020 (Jan 2018=100):
Terms
of Trade
The terms of trade (TOT) represent the ratio between a
country's export prices and its import prices. The ratio is calculated by
dividing the price of the exports by the price of the imports, usually in
percentage terms. An increase in the terms of trade between two periods (or
when TOT is greater than 100%) means that the value of exports is increasing
relative to the value of imports, and the country can afford more imports for
the same value of exports. For example, an increase in the price of oil between
two periods (with oil production remaining the same) is likely to increase or
improve the terms of trade for Nigeria and vice versa. The TOT is recorded as
an index, and can be used as an indicator of an economy's health.
Commodity Price Index April To June, 2020.
1. All commodity group import index (Table 1).
The All commodity group import index rose by 0.16% between April and June 2020. The index was driven by an increase in the prices of Footwear, headgear, umbrellas, sunshades, whips (5.52%), Raw hides and skins, leather, furskins, etc.; saddlery (5.28%), Pearls, precious and semi-precious stones, precious metals (3.71%). It was, however, negatively affected by Prepared foodstuffs; beverages, spirits, and vinegar; tobacco (-4.60%), Live animals; animal products (-1.94%) and Articles of stone, plaster, cement, asbestos, mica, ceramic (-1.36%).
Between April and May 2020, the All commodity group import index rose by 0.84%. During this period, the index was driven by higher prices of Footwear, headgear, umbrellas, sunshades, whips etc (2.76%), Raw hides and skins, leather, furskins etc.; saddler(2.67%), Pearls, precious and semi-precious stones, precious metals (1.87%) and Miscellaneous manufactured articles (1.62%). However, the rise was offset by decreases in the prices of Articles of stone, plaster, cement, asbestos, mica, ceramic (-0.68%), Live animals; animal products (-0.50%), as well as Vehicles, aircraft and parts thereof; vessels etc (-0.34%) amongst others.
Between May and June, 2020, the All commodity group
import index fell by -0.68%, driven by decline in prices of Prepared
foodstuffs; beverages, spirits and vinegar (-5.06%), Live animals; animal
products (-1.44%), Mineral products (-1.09%) and Vegetable products (-0.37%).
This was offset by increases in the prices of Footwear, headgear, umbrellas,
sunshades, whips etc (2.76%), Raw hides and skins, leather, furskins etc.;
saddlery (2.60%), Pearls, precious and semi-precious stones, precious metals
(1.84%) and Miscellaneous manufactured articles (1.59%).
2.
All commodity group export index (Table 2)
Between April and June 2020, the All commodity group export price index decreased by -0.63 % due to decreases in the prices of Boilers, machinery and appliances (-10.64%), Base metals and articles of base metals (-1.84%) and Miscellaneous manufactured articles (-1.30%). The prices of wood and articles of wood, wood charcoal and articles (2.59%), prepared foodstuffs; beverages, spirits and vinegar; tobacco (2.23%) and vegetable products (1.86%) moved in the opposite direction during the period.
Between April and May 2020, the All commodity group export index rose by 0.27%. This was due to increases in the prices of Prepared foodstuffs; beverages, spirits and vinegar; tobacco (3.88%), Textiles and textile articles (0.85%) and Vegetable products (0.37%). However, the increase was tempered by declines in the prices of Base metals and articles of base metals (-1.78%), Wood and articles of wood, wood charcoal and articles (-1.68%) and Boilers, machinery and appliances; parts thereof (-0.87%).
The monthly change between May and June for the All commodity export index was -0.90%. This decrease can be attributed to a significant decrease in the price of Boilers, machinery and appliances; parts thereof (-9.77%), Prepared foodstuffs; beverages, spirits and vinegar; tobacco (-1.65%) and products of the chemical and Allied industries (-1.26%). This was offset by increases in the wood and articles of wood, wood charcoal and articles (4.27%), Live animals; animal products (1.73%) and Vegetable products (1.49%).
3.
Terms of Trade by commodity (2018 Jan=100) (Table 3)
The All commodity group terms of trade declined all through the quarter, from 101.21 in April, declining to 100.64 in May before dropping to 100.42 in June.
This represents a decrease of -0.57% in May compared to April and -0.22% in June against the preceding month. On average, the terms of trade decreased by -0.79% between April and June. This decrease is explained by large declines across most of the commodity groups, including a significant decrease in Boilers, machinery, and chemical appliances; parts thereof (-11.60%), Footwear, headgear, umbrellas, sunshades, whips (-5.18%) and Raw hides and skins, leather, furskins (-5.13%). Commodity groups that saw increased indices, however, include Prepared foodstuffs; beverages, spirits, and vinegar; tobacco (7.00%) and Live animals; animal products (3.58%).
4. All Region Group export index (Table 4)
Between April and June, the All region group export index recorded an overall decrease of -0.63% due to decreases in the prices of exports to most regions: Europe (-1.61%), America (-0.23%), Asia (-0.09%) and Oceania (-0.01%). Between April and May, the index recorded a marginal increase of 0.27% but this was followed by a decrease of -0.90% between May and June.
Between April and May 2020, the All region group export index rose 0.27% due to increases in export prices to Europe and Africa. However, this reversed between May and June when the monthly change in the All-Region export index fell -0.90% due to decreases in export prices to Europe (-2.09%), America (-0.20%), and Asia (-0.11%).
5.
All Region Group import index (Table 5)
Between April and June, the All region group
import index recorded an increase of 0.16%, driven by increases in Africa
(2.58%) and Asia (0.82%). The rise in the import index was, however, offset by
the declines in prices of imports from Europe (-0.36%), America (-0.30%), and
Oceania (-0.08%). Between April and May, the index recorded an increase of
0.84% but declined -0.68% in June.
The May monthly change stood at 0.84%, reflecting the increased prices of imports from Africa (1.30%), America (0.87%), Asia (0.85%) and Europe(0.81%) with a marginal decrease for Oceania (-0.04%). In June, the All region group import index declined by -0.68%, as a result of price falls across all regions except Africa (1.28%).
6.
Terms of Trade by Country Regions [2018 Jan=100] (Table 6)
The All Region group terms of trade stood at 101.21 in April, 100.64 in May and 100.42 in June.
The data shows that the terms of trade decreased by -0.57% in May and -0.22% in June. Overall, the All region terms of trade decreased by -0.79 % during the period due to decreases in export prices to Europe (-1.25%), Africa (-0.96%), and Asia (-0.90%). America and Oceania moved in the opposite direction with 0.09% and 0.07% increases respectively.
Merchandise Trade By Top Five Partners And By Major Commodities (N’million) Q2 2020
A. SPAIN
The value of total export to Spain amounted to N310.75 billion, while the value of imports stood at N49.89 billion during the quarter. The main export commodities during this period were Petroleum oils and oils obtained from bituminous minerals, crude, valued at N133.98 billion, followed by Other Light vessels, fire-floats, floating cranes, etc, nes worth N129.00 billion and Natural gas, liquefied valued at N45.12 billion. Major imports from Spain were Mixed alkylbenzenes & mixed alkylanaphthalenes, valued at N12.77 billion, Motor Spirit ordinary and Gypsum; anhydrite whether or not coloured, with/without small quantities of accelerators, respectively worth N5.11 billion and N3.79 billion.
B. THE NETHERLANDS
In Q2 2020, exports to the Netherlands was valued at N243.68 billion, while the value of import during the period stood at N202.86 billion. The major export commodities were Petroleum oils and oils obtained from bituminous minerals, crude valued at N221.68 billion, followed by Superior quality raw cocoa beans, and Natural gas, liquefied, each valued at N9.31 billion and N5.10 billion respectively. Conversely, the main commodities imported were Motor Spirits ordinary, which amounted to N42.19billion, Used Vehicles, with diesel or semi-diesel engine, of cylinder capacity >2500cc (N28.45 billion) and Supported catalysts with precious metal or its compounds as the active substance (N17.15 billion).
C. CHINA
Total exports to China during the period
under review was valued at N220.35 billion. The largest export commodity to
China was Petroleum oils and oils obtained from bituminous minerals, crude valued
at N189.9billion. This was followed by Natural gas, liquefied (N15.7billion) and Other
petroleum gases etc in gaseous state (N10.17 billion). On the other hand,
imports from China were valued at N1,263.62 billion or 31.41% of total import.
Import trade in the period under review was dominated by Other Herbicides,
anti-sprouting products (N58.79billion), followed by Machines for the
reception, conversion & transmission or regeneration of voice, images or... (N49.50billion) and Railway/tramway passenger coaches, not self-propelled;
luggage vans, post office coaches (N28.29billion).
D.INDIA
India was among Nigeria's leading trade partners in
the second quarter of 2020, with exports to India valued at N195.55billion or
8.81% of total exports. Export trade was largely dominated by Petroleum oils
and oils obtained from bituminous minerals, Crude (N147.67 billion),
followed by Natural gas, liquefied, (N36.92 billion) and Cashew nuts,
in shell (N2.99 billion). The value of imports stood at N322.30 billion
representing 8.01% of total imports. The top three import commodities from
India were motorcycles and cycles, imported CKD by established manufacturers
>50cc , Other Food preparations not elsewhere specified and Other
antibiotics valued at N66.6billion, N21.9billion and N17 billion
respectively.
E. FRANCE
In Q2 2020, exports to France was
valued at N120.2 billion. The major commodities exported during the period were
Natural gas, liquefied, worth N64billion or 53.2% of total exports, as
well as Petroleum oils and oils obtained from bituminous minerals, crude,
valued at N52.4billion or 43.6% of total exports. On the other hand, total
commodity imports from France amounted to N62.4 billion, representing 1.6% of
total imports. The main commodities imported were Malt, not roasted,
valued at N8.3billion or 13.3% of total imports from France, Motor
Spirit, ordinary, valued at N4.0billion or 6.5% and Machinery for
filling, closing, capsuling, labelling, valued at N3.6 billion or 5.7% of
total imports from France.
Click Here to Download Q2 2020 Terms of Trade and Commodity Price Index Data PDF Report
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