China was the first victim of the economic recession and the first to overcome it, and thus contributed to widening the gap with the rest of the world, especially with Europe
Writer Armla Buhenost says in the report published by the newspaper: لوفيغارو (lefigaro) French that over the past few months, the prices of gold, copper, palladium, iron ore, timber, shipping, or even electronic chips have witnessed a clear rise.
“We are witnessing a resurgence in demand in the wake of a major economic crisis,” the writer quotes Philippe Chalmin, the author of the “CyclOpe report” on raw materials, which unveiled its 35th edition a few days ago.
The health crisis – which was considered the most severe economic crisis since World War II – led to severe setbacks, at a time when the price of radium jumped by 184% last year, and US crude contracts entered the negative territory a year ago in light of a global decline in oil prices.
The Corona virus crisis has reduced production capacities in the mining and agricultural sectors somewhat, and demand – which fell from 5 to 10% – depending on the product – was more affected.
This was reflected by a sharp drop in prices in most markets during the first half of 2020, followed by “a more significant recovery than expected, and it has continued to this day,” according to Chalmin, professor of economic history at Paris Dauphine University.
With its early and dynamic economic recovery and the importance of its future needs, the report’s authors said, “markets reflect China’s boundless appetite.”
They added that China has become responsible for many of the pressures imposed on prices in the sectors of ores and minerals, as is the case in cotton, rubber, grains and oilseeds.
In May 2021, the price of copper broke new records, while wheat and soybean prices rebounded and reached the high levels seen in 2013, and Beijing became the world’s first or second largest importer of an increasing number of raw materials such as grain.
This is reflected – according to the report – through the increasing needs for grains and soybeans, commodities that the Xi Jinping government committed at the end of 2019 to purchase in larger quantities from the United States, to meet the demands of former US President Donald Trump.
The writer quotes Philip Chalmien as saying that Beijing – which has turned into a prominent importer that leads in imports of minerals, meat, cotton and even wood and ranks second in imports of liquefied natural gas – has become “central” in almost all products or sectors.
In terms of iron ore used to make steel, Beijing is already the world’s largest producer, yet China imports 10 times that of Japan, the world’s second-largest importer.
In addition to Beijing’s growing needs, iron speculation has been fueled by the difficulties faced by China’s largest supplier, which is represented by rising tensions between Beijing and Australia, its main supplier.
In addition, Brazil, which is facing an out-of-control pandemic, is struggling to meet demand.
China – from which the epidemic originated, specifically from the Wuhan region – was the first country to emerge from the crisis and is “the economic and political beneficiary of this period”, as stated in the Siclobe report.
Since it was the first victim of the economic recession and the first to overcome it, “China has contributed to widening the gap with the rest of the world, especially with Europe,” according to the report.
Last April, China’s imports witnessed a jump of 43.1 percent over one year, to reach $221 billion, with growth forecasts ranging between 6 and 8 percent.
The country has turned the page on the epidemic and left the rest of the world in place, and it is clear that in 2021 it will remain the determining factor for the development of global markets that will remain very unstable, according to the French newspaper.