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Breaking News : The spot premium rate in the commodity market hit a 15-year high!
Mar 08 , 2022
Breaking News : The spot premium rate in the commodity market hit a 15-year high!

Commodities refers to the material commodities that can enter the circulation field, but are not retail links, have commodity attributes and are used for industrial and agricultural production and consumption. In the financial investment market, bulk commodities refer to homogeneous, tradable commodities that are widely used as basic industrial raw materials, such as crude oil, non-ferrous metals, steel, agricultural products, iron ore, coal, etc. Including 3 categories, namely energy commodities, basic raw materials and agricultural and sideline products.

In commodity markets, longer-dated futures contracts typically command higher prices because they reflect the cost of holding inventories for a long time and expectations of future demand, a structure known as contango. But when the market fears that a certain type of commodity is scarce and in urgent demand, it turns back into backwardation.

At present, the world's major economies have begun to gradually recover their economies, while releasing a large amount of raw material demand. Incidents such as the reduction of raw material inventories and the natural gas pipeline have all contributed to the rise in commodity prices.

To make matters worse, Europe has endured an unprecedented energy crisis this winter, and now tensions between Russia and Ukraine have clouded the outlook for both countries' oil, gas and wheat supplies.

Market analysts pointed out that "the last commodity super cycle occurred because of the surge in demand in emerging markets at that time, which led to a shortage of supply." The current supply of commodities is very tight, and the demand for many metals, crops and energy will increase this year. The half year continued to be strong. He believes that the rising cycle of commodities may continue into the summer.


We, as a High-tech enterprise, specialized in producing Miniature, Small and Middle ball bearings, are also very concerned about this. The increase in raw material costs has also brought a lot of pressure to bearing companies. Hopefully all costs will return to a reasonable level soon.


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