Last year, due to the impact of COVID-19, some raw materials went up, while we expect prices to fall, this year, more industries and more products continue to rise in price.
Starting from the second half of last year, the prices of copper, iron ore, crude oil, paper and other bulk raw materials rose sharply. After 2021, the price increase of bulk raw materials is more obvious, with a year-on-year growth of more than 20 percent. Rising prices of bulk raw materials will eventually lead to higher prices of terminal goods such as home appliances, which will have a wide impact on people’s lives.
The reasons for the global price rise of raw materials can be attributed to the following points:
1. The QUANTITATIVE easing policy of the United States has led to excessive money issuance, which has led to global inflation. The DOLLAR is still the global currency. Other countries responded to the dollar shock by printing money, fueling inflation.
2. The global industrial chain and supply chain have been disrupted by the impact of the epidemic, affecting the production and transportation of raw materials. The continuous outbreak of the epidemic has made it difficult for most countries to resume work and production and transportation to recover to the pre-epidemic level.
3, the global economic recovery is inconsistent, the economic recovery of raw material output is slower than that of raw material import and processing, resulting in greater demand than demand; After the outbreak, the global energy economy and industrial production almost stopped, and raw material prices fell. In the post-epidemic era, major raw material importers led by China quickly resumed production, while some raw material suppliers in Southeast Asia failed to control the epidemic, resulting in limited production recovery and low raw material output.
4, the capital market speculation futures, commodity raw material market appeared imported inflation, resulting in a large amount of capital to the raw material market. Capital flows to the natural property of the depression, through short-term speculation, bid up the price, to obtain high interests.
Focused on the supplement market,some products are keeping rising such as herb extracts,vitamins,amonio acids,till the end of the year,the situation will be not getting well.We can expect to see if any changes the next spring.