Global prices for raw materials are soaring thanks to a boom in demand due to the recovery from the Covid-19 downturn, coupled with logistical bottlenecks.Copper in the past week hit a 10-year high, while pork prices have fattened in part due to higher demand for bacon from Americans working and eating breakfast at home.
Bloomberg’s agriculture Commodity Price Index has climbed 22 percent so far this year to its highest level since 2016, while crude oil has risen 30 percent in the past year.
Tin, used in electronic circuits, automotive components and batteries, also hit its highest level since 2011, as the price doubled in the past year.
For sugar, a shortage of shipping containers and bottlenecks at ports are pushing prices up, while corn, soybeans and wheat are also experiencing delivery problems.
For oil, global demand is accelerating with the reopening of economies following the pandemic shutdowns.