Commodity prices have been rising rapidly in recent weeks. Especially those that are not related to energy production, but to those that serve as input material in industrial production. It’s the industry’s recovery after the first coronavirus wave of the pandemic.
By the end of last November, global industrial activity had reached pre-coronavirus pandemic levels and subsequent anti-epidemic measures. The result is a growing demand for basic commodities, and this goes hand in hand with their increase in price. Almost all industrial and agricultural raw materials have already s been sway above last year’s levels.
According to a recent World Bank survey, last December, a total of 53 of the 63 types of commodities (over 84 percent) were more expensive than in December 2019. In addition to coal and natural gas, it was mainly tea, coconut and palm oil, fish, rice, citrus, sugar, but also copper, lead, nickel, tin, or zinc. The exception is oil, the price of which has not yet returned to pre-crisis levels.
Non-energy commodities then increased by 16 percent year-on-year on average. This represents the largest year-on-year price increase since mid-2011. At the same time, these types of commodities have been the most expensive since mid-2014.