22-05-2021 | 17:42 PM
Commodity Super Cycle
• 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
