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Raw material price trend

2021/10/27 9:50:20

1026

1、 Analysis on the reasons for the sharp rise of raw materials

Affected by the epidemic, serious economic and financial crises have occurred in western countries. In order to alleviate the crisis, the central banks of western countries are crazy to print money and export inflation to the world, so as to pass on the crisis. As a result, all kinds of industrial raw and auxiliary materials are on the rise, and the prices of many kinds of materials have reached new highs. The surge in the global money supply is the reason for the surge in raw material prices.

2、 Rising characteristics of raw materials

From the practice of China's production price index (PPI), the price of industrial products has strong global resonance. The fluctuation of China's PPI is more consistent with that of import price index and global energy and metal index. It is necessary to look at the price of industrial raw materials from a global perspective.

From the supply side, COVID-19 has greatly impacted and changed the global industrial chain structure, and downstream production has shifted more to China. However, the reconstruction of the overall industrial chain will bring friction costs, while the global supply pattern of industrial raw materials is more centralized. Once the impact of COVID-19 on individual areas is affected, the capacity of industrial raw materials will be greatly affected by the marginal price of industrial raw materials.

From the demand side, COVID-19 did "create" new demand, and benefited from the large-scale monetary and fiscal stimulus policies of various economies. The cash flow of residents is not bad, and the demand is able to be realized.

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