In the first half this year, the commodity prices in China have indicated sharp rises, for instance, iron ore and coal prices created highest level in history, the central government issued policies to curb the quick rises, easing the pressure from rising raw materials.
According to Xu Gao, the chief economist of BOCI Securities Limited (BOCI Securities), the resumption of global economy brought the expansion of demand, while the supply was not able to follow up, resulting in continuous rises in commodity prices since the second half of last year. He forecasted that commodity prices may continue to edge up, while the rising pace will slow down in the second half this year. The negative impact from the Covid-19 may weaken, while the demand will expand, which will push up commodity prices.