UNCTAD: World Commodity Exports Increased Fivefold to $6 Trillion from 1995 to 2011

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Despite a slight decrease compared to their level in 2011, non-oil commodity indices remained at historic highs in 2012, at 2.4 times their average between 1960 and 2012. The group of minerals, ore and metals recorded the largest difference between its historic price index level and its average price index in 2012 (about threefold). Crude petroleum and gold prices continue to break records in 2012, with average prices of $105 a barrel and $1,668 an ounce, respectively.

These facts and statistics are contained in a background brief issued by United Nations Conference for Trade and Development (UNCTAD) preceding the Global Commodities Forum, which is being held on March 18 and 19. This year's forum is titled, "Recommitting to Commodity Sector Development as an Engine of Economic Growth and Poverty Reduction."

World commodity exports increased fivefold from 1995 to 2011, when they reached $6.06 trillion. World commodity trade as a share of total merchandise trade reached 33% in 2011, as compared to 24% in 1955.

World commodity export value increased, mainly due to the general increase in commodity prices since 2002. From 1995 to 2002, the value of world commodity exports increased 3% per year. From 2003 to 2011, the value of world commodity exports increased 19% per year, according to the brief.

Between 2000 and 2011, the value of world and developing countries' merchandise exports increased about 2.5 times more rapidly than export volumes.

The share of developing countries in total commodity trade has grown. In 1995, developing countries accounted for 40% of world commodity exports, which increased to 51% in 2011.

The increase in commodity export value has been mainly due to the rise in fuel exports. In 1995, fuels accounted for 31% of all commodity exports; in 2011, the figure increased to 52%. The share of minerals, ores and metals in total commodity trade remained largely unchanged, while the share of agricultural commodity exports decreased from 50% in 1995 to 28% in 2011.

In 2009-2010, the pattern continued whereby commodities represented a large share of developing countries' export revenues, standing at 81% for Africa, 56% for developing America (Latin America and the Caribbean), and 28% for developing Asia. Dependency was particularly high in Western and Central Africa, where commodities accounted for some 95% of exports.

Dependence on commodities has dramatically increased in all developing regions since 2000, increasing 20% between 1999-2001 and 2009-11, UNCTAD reports.

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