Commodity Super Cycle 

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• Globally, the prices of commodities are rising or expected to rise. This is seen as a sign of a likely commodities supercycle. 

• Commodity supercycles are decade-long periods in which commodities trade above their long-term price trend.

• A commodity supercycle is a sustained period of abnormally strong demand growth that producers struggle to match, sparking an increase in prices that can last years or in some cases a decade or more. 

Cause: 

• Recovery in global demand (led by a recovery in China and the US). 

• Supply-side constraints. 

• Loose monetary policy of global central banks. 

• Investment in Asset Creation