Global prices of raw materials soar high

Global prices of raw materials soar high

WASHINGTON: Global prices for raw materials are soaring thanks to a boom in demand due to the recovery from the COVID-19 downturn, coupled with logistical bottlenecks. Tin, used in electronic circuits, automotive components and batteries, also hit its highest level since 2011, as the price doubled in the past year. The reasons for these increases are varied. For sugar, a shortage of shipping containers and bottlenecks at ports are pushing prices up, while corn, soybeans and wheat are also experiencing delivery problems. For oil, global demand is accelerating with the reopening of economies following the pandemic shutdowns. The price of gasoline at the pump in the US has risen to $2. 89 a gallon from $1. 77 a year ago, according to the AAA, an automobile association. Bart Melek of TD Securities said the price of Brent crude "appears unstoppable" as the market is expecting demand to increase massively and stocks to be further reduced in the second half of the year. "US consumers are a major reason markets remain bullish," Bjornar Tonhaugen of Rystad Energy said in an analysis. The Chinese and US "locomotives" far outweigh the impact of the slowdown in India, which has been overwhelmed by a