it was reported last week, crude oil prices hit a new high in recent years, at the same time, silver, coal, iron ore and other raw materials prices are on g to high. But what is interesting is, and without a corresponding increase in demand in the market, in some regions, such as the China iron and steel products, automobile market, demand is shrinking. Experts say, soaring raw material prices will deal a severe blow is economic recovery.
Beijing said Xu Jingang, medium-term transactions Department of the company, Libya may solve political problems in the short term will most likely push international oil prices, thereby driving the rise in coal prices. Jing Ulrich, JPMorgan Managing Director also confirmed that Japan post-disaster reconstruction may increase demand for raw materials such as iron ore, aluminium, wood, and thus further high raw material prices.
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United States economic spring hope non-agricultural employment data provides confirmed signal dollars revive treasures borrowing rose Han consumer confidence index collapse dollars low rebound difficult breaking weak pattern eurozone "Economic Union" non-day of Gong Ireland crisis or forced European Central Bank then out help March non-agricultural data or Director dollars "play" [RMB premium][market Center]upstream price of high order consumer goods price continuous rise. European Central Bank's inflation expectations in the region this year has been increased from 1.8% to 2%. United Kingdom consumer price index hit the largest increase since October 2008.
but the finished product prices remained hard to catch up with the level of raw material prices, is the most direct data, CPI inflation lags far behind the PPI rose, and gap. Such a result would be a terminal decline in producer or seller of enthusiasm, deteriorating supply. For instance, in iron ore prices, domestic steel sales are poor. Screw-in fall occurred after the Spring Festival, main $ 5,230 contracts from the maximum of the domestic futures market dropped to 4,800 Yuan/ton/tons.
finished products price decline in prices is the main factor of demand. France Industrial Bank (601,166, unit) in United Kingdom analyst Klaus Baader said, the world economic recovery remains fragile, and rising oil prices would devour the company profit and consumption of the residents.
analysts to stabilize prices in the US and Europe may enter monetary tightening cycle in advance. Mr Trichet has warned as early as the first two weeks of the European Central Bank or raise interest rates next month. Vice President of China Society of market economy and Li Wei in China can maintain tightening monetary policy in a long time. But in the long run, more important or should demand for currency is to cultivate the real economy.
