Hot Products: Iron ore rises 10%, copper record | Business and Economic News
Iron ore futures rose more than 10% and copper extended its record among bets that it will be one of the biggest winners in product growth that raises concerns about inflation around the world.
While analysts tried to determine the driving force behind the gains in iron ore on Monday, they cited several trends, including optimism that central banks will maintain solidarity policies as the global economy recovers. China has raised expectations that environmental regulations will tighten on the copper bull – considered key to the green energy transition – and has encouraged speculation that steelmakers could pre-load iron ore purchases before starting new bullfights.
Cars keep getting pricier, and the commodity boom makes it worse
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Vehicles for sale at a Ford Motor Co. dealership in Colma, Calif.
Cars are back in vogue courtesy of the pandemic. They re also getting more expensive, thanks in part to surging commodity prices.
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
Iron ore futures surged more than 10% and copper extended its record run amid increasing bets they’ll be among the biggest winners from a commodities boom that’s stoking concerns about inflation around the world.
While analysts struggled to pinpoint a trigger for Monday’s gains in iron ore, they cited several trends including optimism that central banks will retain supportive policies even as the global economy recovers. Expectations China will tighten environmental rules have added to the bull case for copper – seen as vital to the green energy transition – and fueled speculation that steelmakers may front-load iron ore purchases before new curbs kick in.
The content below was translated by Tencent automatically for reference.
Tesla Model3 s announcement of the price increase quickly went viral on domestic social media this weekend. The price of the domestic Model 3 standard battery life upgrade will rise by 1000 yuan, reflecting the actual situation of cost fluctuations, Tesla announced on May 8. In the Chinese market, this is the first time that Tesla has raised the price of the Model 3 model this year, and it is also the second time that the price of the domestic Tesla model has increased this year.
Tesla s announcement of the price increase in China comes a day after Tesla in the United States also announced a price increase, and the prices of the standard life upgrade version of Model 3, the long-range flight version and the long-term flight version of Model Y will all be increased by US $500 (about RMB 3215). According to statistics, this is the fourth time in the past two months that Tesla has raised the price of the standard
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Cars are back in vogue courtesy of the pandemic. They’re also getting more expensive, thanks in part to surging commodity prices.
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 per cent 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 per cent in the year through March. Those pieces typically make up about 10 per cent of the cost of building a vehicle, meaning the price tag for a $40,000 car would have to increase 8.3 per cent to offset the rally, analysts for the bank wrote.