The Later Trend Of Bulk Commodities And Its Impact On Downstream Industries

In 2021, it is clear that prices will soar in all walks of life. For textile people, a wave of raw material prices in the beginning of the new year has caused panic among downstream enterprises. The U.S. government has made great efforts to increase welfare, stimulate the economy, and drive global inflation. In addition, extreme cold weather, local friction and canal blockage have all brought a chain reaction to raw materials. Textile people, including the majority of groups, are very concerned about the trend of commodity prices in the second half of the year.
Commodity prices in the second half of the year may face great uncertainty. The reasons are as follows:
First, some international epidemics have entered a window period, and the global economy has accelerated its recovery. This has led to the accelerated recovery of manufacturing capacity, and the factor of capacity shortage supporting the price rise will gradually disappear with the vaccination.
2. 2021 is still a big year for domestic production capacity. A number of industries have laid out their industrial chains one after another. Some of them have opened up upstream and downstream and some have expanded their production lines. It is expected that some of the plants will be put into production in the second half of the year. In the second half of the year, the production enterprises of basic raw materials have production plans, which is good for supply, but it may be bad for the price.
Third, pay attention to the adjustment of monetary policy. Although there is no global interest rate increase yet, with the return of the strong US dollar and the rise of US bond yields, emerging market countries are facing greater pressure of capital spillover. Coupled with the imported inflation pressure brought about by the rise of commodity prices, the possibility of large-scale interest rate increase can not be ruled out. If interest rate increase becomes a global trend, it will inevitably disturb the rise of commodities, This is not a small impact.
In the face of the above situation, textile workers should take precautions, pay attention to the global market in time, adjust production and sales in time, and avoid large-scale economic damage caused by price fluctuations.
As we all know, price increase is good for upstream raw material production enterprises, which will benefit such enterprises in the process of price rise. But from another point of view, price increases will inevitably lead to a decrease in people's willingness to buy, resulting in a decline in sales, which is also a matter of concern to terminal manufacturing enterprises.
The rise of commodity price is inevitable under the superposition of many factors. Although it is not possible to rise for a long time, it will also cause great cost pressure for business operators. Therefore, we need to strengthen the research and judgment of the trend of bulk commodities, and combine with the existing financial instruments to do a good job of hedging, stabilize the profits of production and operation, so as to obtain the long-term development of enterprises.