China Welded Commodity Price Increase

What is Commodity?

Gold, silver, copper, precious metals such as iron, energy sources such as oil, natural gas, and in the general name of goods such as cotton, corn, sugar, barley, wheat Commodity It is named. This Commodity The market in which their goods are bought and sold is called the "Emtia Market". And Union of Chambers and Commodity Exchanges of Turkey (TOBB) There are 133 Commodity Exchanges in total.

Factors that Determine Commodity Prices:

Commodity Prices vary depending on both the current state of the world and some of the country's conditions. Here are the basic and special factors that affect commodity prices:

• Natural disasters
• War or crisis situations
• Current economic activities of countries
• Seasons changes
• Political relations between countries
• Production market activities
• Current currency movements

The four main categories that make up emtia are:

CommoditySince it is the generic name of all goods that are involved in trade, it is divided into 4 different categories for the purpose of convenience. Here are the 4 main categories that make up Emtia

• Agricultural Resources: consists of foods such as wheat, barley, rice, cotton, sugar, corn.
• Livestock Sources: consists of animal sources such as small head animals (such as chickens, ducks, geese), cattle, sheep.
• Energy Resources: resources that release energy that can be used when a number of operations are seen, such as oil, natural gas, gasoline.
• Mineral Resources: It consists of precious mineral resources that have been accepted on Earth, such as gold, silver, iron, copper.

China Welded Commodity Price Increases

 Due to the Covid-19 pandemic that showed itself in late 2019 China Intangible There had been a serious decline. However, the commodity market for China is reinvigorating in 2021. Due to the spread of Covid-19 throughout the world, many countries, including China, had closed their borders, ending their entry and exit. When the general consequences of pandemy began to decline, the countries also re-opened their borders as a result of this decision. China-derived commodities The rise occurred.

China In terms of commodity reports, the percentage of imports of the most important commodity products in the world is over 30%. China, in particular, receives 20% of the coal and oil exported because it is the largest importer of copper, iron and soybeans in the world. The main reason for this was that during the period of crisis created by the Covid-19 Pandemy, it increased the rate of prices falling due to the products it purchased in order to stock.

However, the economic and political tension between America and China, which began six months ago, also continues to carry risks for the Commodity Market, with the Covid-19 pandemic still in progress.

What Are the Causes of the China Sourced Commodity Price Rise?

China Commodity Prices His investments among the reasons for the increase can be cited as an example. Some of China's investments that have caused an increase in commodity price rates include:

• 5G Communication Network System
• Artificial Intelligence
• Cloud Technologies.

Every day, there is a significant increase in supply-demand, especially against sources such as iron, as a result of the growing population around the world. Estimated reports even show that there is expected to be a 28% increase in metal demand in 5 years. In addition to iron in particular, the need for lighter and improved metal is increasing. According to the forecast report cited among these metals;

• Copper
• Aluminum
• Zinc
• Steel mining metals are involved. In the consumption of these metals, also UHV power cables, high-speed train, base stations offering 5G network connectivity are among the resources that will be the main demand. In fact, according to the Chinese Institute of Metallurgy Industrial Planning and Research, it is estimated that the metals used, as well as new metals that have gone through various stages, will be used.

What Has the Increase in Commodity Prices Earned?

• Since New Year's Eve, Brent has been the most profitable investment product, offering a 9% earning share of oil. Nickel with 5.9% of Brent oil, natural gas with 5.1%, soybeans with 5%.
• Since New Year's Eve, coffee has lost the most to investors. With 4.1%, it has caused a huge loss. The coffee, which lost the most of the year, was followed by silver with 3.8%, gold with 3.3% palladium and 2.7%.
• Copper's libret increased to $3,7021 on January 8, 2021, causing it to see its highest level since 2013.
• In addition to the above-mentioned gains and losses, Covid-19's concerns have been increasing day by day, despite the possibility that restrictions on economies may increase due to the outbreak, while the United States' 10-year bond interest has seen the highest level since 2020 with 1.11 percent, negatively affecting gold and silver prices in general.

China's Stock Making Payoff Surge on the Market

 Looking at the last 3 months, the serious rise in oil prices can be seen with ease. The main reason for this rise in oil is actually when viewed China Originated It appears to be. China began storing oil shortly after the start of the Covid-19 pandemic. According to ClipperData data, China suggests that it makes the oil it stockpiles from Brazil, Saudi Arabia, Iraq, and Nigeria. According to a report by S&P Global Platts, China's oil imports rose 19% despite the Covid-19 pandemic. And when that rate is calculated, it comes to a conclusion of 11.3 million barrels per day. In addition to this stockpiling, which China has also implemented, it is worth noting that there is also a concern that the Covid-19 pandemic will continue – which according to the data released – negatively affect global demand and consumption of oil.

ChinaAnd the increasing cost of labor each day also caused the bells of danger to ring in the denim, where it was the largest producer on Earth. It is also said that there is a fairly short time before this danger bell loses its leadership throne on denim fabric. This type of fabric, which has been produced in China for many years, has allowed brands like H&M, Zara, to become a world giant. However, this system, which has reigned for many years, can easily be seen to collapse very soon, rather than collapse when looking at the data.

China Welded Commodity Price Increase If Needed to Collect

Finally, if one looks at the cotton, which is the raw material of almost all clothing, it cannot be said that the work there is very positive. Because the floods in Australia and Pakistan, the Indian government's ban on cotton exports, and a number of economic-political tensions in the Middle East have led to a serious decline in cotton prices. China, which for a long time did not comment on this denim fabric, was able to get back on the agenda with the comment made by the President of the Local Denim Association. According to Zhan Xueju, President of the Local Denim Association, many firms that manufacture denim cloth in China have chained their doors and said only those strong enough to continue will survive. In this case, the Chinese government has many Commodity He made it clear that he experienced declines in many areas, even before his degree, but above all he began to lose the title of once the country with the most powerful economy.

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