Many of the essential ingredients for automakers, such as copper, steel and aluminum, are hitting or approaching record highs this year as the lagging supply can’t keep up with stimulus-driven demand. The Bloomberg Commodity Spot Index jumped to its highest since 2011, with metals up 21% so far this year.
Should the current rally morph into a supercycle, rising car prices could forebode inflation across the board. Analysts at JPMorgan Chase & Co. estimate the price of an auto’s raw materials have climbed 83% in the year through March. Those pieces typically make up about 10% of the cost of building a vehicle, meaning the price tag for a $40,000 car would have to increase 8.3% to offset the rally, analysts for the bank wrote.
Iron ore prices go ballistic as metals boom
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Premarket stocks: Iron ore prices go ballistic as metals boom
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Rand breaks through R14/$ as commodity prices rally
News24
10 May 2021, 20:12 GMT+10
The rand has rallied to its best level since 2019 on Monday, reaching R13.98/$ as commodity prices stormed ahead.
Dollar/rand. Source: XE
Iron ore futures rocketed 10% earlier in Asia, with the copper price climbing another 3% to a record $10,747/ton in London amid fears that copper producers won t be able to meet increased demand for sustainable energy projects.
Copper, an efficient electrical conduit, is often used in solar and wind power structures.
Platinum, palladium and aluminium prices all saw gains, as the Bloomberg Commodity Spot Index climbed to its highest level in almost a decade. The gold price was also stronger, trading at $1,836/oz, close to its highest level since February.