| Pub. Date | : October, 2021 |
|---|---|
| Product Name | : The IUP Journal of Accounting Research and Audit Practices |
| Product Type | : Article |
| Product Code | : IJARAP461021 |
| Author Name | : Sarika Rachuri* |
| Availability | : YES |
| Subject/Domain | : Finance |
| Download Format | : PDF Format |
| No. of Pages | : 6 |
The pandemic has led to massive
disruptions in supply chains,
disrupting production in economies
across the world. After a long lull, this year
witnessed a surge in commodity prices. The
entire spectrum of commodity complex,
energy, base metals and food commodities
has witnessed a stellar rise since the beginning
of the year. Such surge in commodity prices
is giving rise to a scenario that shows that the
world may soon witness another commodity
super cycle
Even before the pandemic, however, the
seeds of inflation, supply disruption and
climate change were sown. The era of deglobalization
had started with a trade-tech
cold war between the current superpowers,
U.S. and China. This inflicted higher tariffs
on supply. Since 2014, China had emerged
not only as the world's largest exporter, but
also the world's largest trading nation. During
the preceding years of globalization, the
world had become hugely reliant on China
for most of its goods. Its emergence fanned
the last commodity super cycle, as it soaked
up minerals and commodities for production
and export.
Commodity Super Cycle: An
Overview
The last commodity super cycle peaked in
2008 and was driven by energy. Brent crude
oil prices touched a dizzying height of $147
a barrel. It was mainly driven by energy,
followed by base metals and precious metals.