In response to the soaring domestic chemical raw material prices this year, the spokesperson of the Ministry of Industry and Information Technology Huang Libin recently emphasized: “The relevant price increases are mainly short-term and sudden. We believe that there is no basis for long-term increases in commodity prices. ” Overall, this round of commodity price increases have had an impact on the manufacturing industry, but this impact is usually manageable. In the next step, the Ministry of Industry and Information Technology will actively take measures together with relevant departments to promote the stability of raw material prices.
Regarding the prices of major products in the steel, non-ferrous, petrochemical and other industries continued the rising trend from the end of last year, the prices of raw materials have risen sharply. The relevant person in charge of the Ministry of Industry and Information Technology said that there are probably three reasons:
First, the rising cost of raw materials has pushed up the price of bulk commodities.
Second, the recovery of production in downstream industries has formed a tight supply and demand situation.
Third, the financial attributes of non-ferrous metals and some chemical products are prominent. The loose monetary policy and the better global economy have boosted the activity of global futures trading.
"Price hikes" continue to be crazy.
Many chemical companies claim to increase the price, involving various products such as emulsions, coatings, and pigments, and the increase was relatively large. Chemicals kicked off the upward trend, and the prices of nearly a hundred raw materials doubled. In addition, the epoxy resin industry chain, polyester resin industry chain, etc. have also seen a general rise in the industry chain.
In 2020, the world has experienced a century-old epidemic crisis, and major economies have done all they can to save their own economies. The epidemic has led to a decline in the production capacity of various industries. In order to stimulate economic growth, the Federal Reserve announced unlimited QE (quantitative easing), and central banks of various countries have also begun unprecedented large-scale releases.
Excessive currency issuance will lead to currency depreciation and lower purchasing power. To put it simply, there is "more" money circulating in the market, but the total amount of major commodities has not changed. More money and less stock will cause the prices of major commodities to show a continuous, universal and irreversible rise. In addition, global economic expectations have boosted the activity of global futures trading, and short-term speculation in the financial market also has a significant amplification effect on price increases.