The Price Of Raw Materials Has Risen Again! Reasons For Soaring Raw Material Prices.
May 05, 2021
The increase in raw material prices is mainly due to the following reasons:
1、The rising cost of raw materials has pushed up the price of bulk commodities.
2、The recovery of production in downstream industries has formed a tight supply and demand situation.
3、Global central banks release water, unprecedented quantitative easing.
The four major banks in the world, the Federal Reserve, the Bank of England, the Bank of Japan, and the European Central Bank, have invested US$5.6 trillion (about 36 trillion yuan) in quantitative easing in 2020.
4、Hot money at home and abroad flows into the commodity market.
The increase in commodity prices this year includes multiple factors such as ample liquidity and investment speculation.
5、The fierce environmental protection restriction of production fuels the price hike.
6、Affected by capacity reduction, the production capacity of some raw materials is insufficient, the gap between supply and demand has increased, and the supply shock has caused prices to rise, mainly due to the price increase of raw materials for metal products such as steel.
