The global metal material price rises, our company's ex-factory price also needs to make some adjustments
Industrial metals prices are rising to their highest levels in years as the economy recovers from the outbreak, new demand for greener energy around the world and global capacity is not keeping up as a result of the outbreak.
Goldman Sachs, which has long been bullish on commodities, particularly metals, says metals prices will continue to climb, while JPMorgan says energy prices will also take off.
Bullish sentiment spurred prices of a number of major industrial metals to surge after the Lunar New Year holiday.
Iron ore hit a nine-year high of more than $175 a tonne.
Copper continues to soar, up nearly 15 per cent so far this year and 7.3 per cent in the past week alone, surpassing its previous nine-year high, and Goldman Sachs has raised its future price above $10,000.
Iron ore has become a hot commodity in the global economy, and Homag, the iron ore company, is paying dividends.
Rio paid its highest dividend in its 148-year history, paying out $9bn for the year, on the back of its best performance since 2011.
BHP Billiton and Glencore also announced they would return a combined $6.7bn in cash to shareholders.
The logic is simple: as economies recover from the epidemic and invest more in infrastructure, which relies on copper wires and cables, Citi estimates there will be a copper shortfall of 500,000 tonnes this year.
The rebound in copper prices has also boosted the valuations of related stocks, with BHP Billiton, the world's largest miner, up more than 20 per cent this year.
Not only copper, from some precious metals to a key component of household electronics, demand began to outpace supply in the wake of the COVID-19 crisis, leading to a surge in the prices of a number of non-ferrous metals.
On the one hand, non-ferrous metals benefited from the overall recovery of the overseas market. Biden launched the economic stimulus plan and the United States entered the real estate construction cycle.
On the other hand, the global liquidity flood, this year's hyperinflation is expected to be consistent, positive non-ferrous metal rise;
Finally, non-ferrous metals also benefit from the strong demand of the new energy industry chain, which has played a continuing role in pulling the demand for non-ferrous metals.
Therefore, under the joint promotion of three factors, non-ferrous metals into the industry boom rise cycle.