HSBC's Bloxom Chief Economist said that now the commodity market is like a supermarket shelf, and people are crowding their heads to snap up the purchase, resulting in a super squeeze! He also explained that the reason is not because of the hot demand, but because of the lack of demand. So, to solve this problem, we need to start from the best aspects, such as political stability, climate change, green energy, and so on.
Jiasheng is like you go to the supermarket to buy groceries, if it's unstable, you have to endure the chaos in the vegetable market! What's more, he cites issues such as political uncertainty, climate change, and a lack of investment in the green energy transition. In short, the current commodity market is like a "super squeeze" feast, we must hurry up to find a solution, otherwise the basket will be empty, the wallet will be deflated, everyone has to be careful!
Geopolitical risks and climate change have become a persistent problem in commodity markets, and it's a farce! First of all, we have the conflict between Israel and Hamas, the confrontation between Russia and Ukraine, which are like a bunch of naughty imps playing hide and seek and making a mess of the global **. Recently, the Houthi rebels in the Red Sea have been in turmoil, causing shipping disruptions, which is really a headache. I imagined the freighters going around in circles with GPS, the crew throwing their glasses and staring at the route on the map, ah, is this channel going to work? Then, climate change comes back to make trouble, and it's like a mischievous elf, twisting the screws of **chains and commodities** from time to time. Especially in the field of agriculture, the crops are driven crazy by the weather, there are droughts and floods, and farmers pray every day for a good harvest, otherwise there will be only air in the basket.
The Energy Transitions Commission (ETC) said in a report last July that the market could face shortages of multiple metals such as graphite, cobalt, copper, nickel and lithium in the next 10 years, which is like a big broom sweeping across the world, taking the metal away and making people sigh in the air. And iron ore is soaring, 135 per ton$48, which is equivalent to the price of a small car! Do you still want to buy a pot for cooking?
Analysts say that the first space for metal may be the largest, which is like a toy airplane flying in the sky, all the way high. However, restrictions can also lead to chain breaks, which is like choking on a straw for bubble tea, leaving you to breathe only carbon dioxide, which is simply uncomfortable.