In recent months, commodity prices have exhibited a consistent upward trend. Ian Roper, a commodity strategist at Astris Advisory Japan, has shed light on the factors contributing to this rise. According to Roper, the resurgence of industrial activity in Europe and North America has played a pivotal role in driving up commodity prices.
The uptick in industrial production has resulted in an increased demand for raw materials, which in turn has put upward pressure on prices. Roper emphasizes that this rise is not solely driven by speculative activity, but rather by a genuine increase in demand from end-users. The pick-up in economic activity in these regions is expected to continue in the coming months, further supporting the rise in commodity prices. It is important to note that geopolitical tensions, supply chain disruptions, and weather events can also impact commodity prices. However, the current rise is primarily attributed to the increased industrial activity in Europe and North America.
