Raw materials skyrocket 2021 prices compared 2020: coal, natural gas or aluminum rise to levels expected by 2035 - In August, the World Bank provided data on world merchandise price indices showing that commodities such as coal, natural gas, aluminum and copper have doubled or even tripled their prices, surpassing estimates made for 2035.
"Almost all commodity prices now exceed their prepandemic levels, and those of some commodities such as metals are well above them: copper, for example, was 50% higher in March 2021 than at the end of 2019," the report says.
Crude oil that gives life to many vehicles, for example, was priced at $ 73.3 (Euro62.5) per barrel in July 2021, while copper or aluminum used in construction was priced at $ 9,451 and $ 2,498 per metric ton.
The rise in prices after the worst phases of the pandemic in much of the world have broken with the forecasts to 15 years, and lead governments and companies to rethink their positions to deal with the rise.
Raw materials skyrocket 2021 prices compared 2020
Many Spaniards who have launched the reform of their houses in recent months have faced the same problem, the initial budget they handled has skyrocketed more than expected.
The explanation for this phenomenon runs through the works as at the time ran the mantra of the financial crisis to justify exactly the opposite, that you could not pay so much for the service.
In this case, however, the data definitely justify the reasoning. The cost of raw materials has skyrocketed and construction companies can't catch their fingers offering a budget that leaves them exposed to losses.
The Association of Construction Companies and Infrastructure Concessionaires, SEOPAN, warns that the rise in prices in most basic construction raw materials is seriously affected to the ongoing production of all companies in the sector.
Raw materials skyrocket 2021 prices compared 2020
Also in any house in Spain has been noticed the increase in the price of electricity. Clicking switches costs 25% more expensive in a 2021 that has left the month of July was the most expensive in history for light.
According to the OCU, the price of electricity on the wholesale market in August has exceeded 100 euros/MWh, 73% of the days, leading to the requirement of solutions from multiple sectors of society that have led the Government to meditate changes in the bill, and the creation of a public power company.
The image of the boat crossed in the middle of the Suez Canal, the borders closed due to the coronavirus, and even the recovery of the economy after the worst ravages of the pandemic are some of the factors that make up the cocktail explosive massive increase in prices of goods.
From the specialized transport medium Puente de Mando, for example, they say that the butterfly effect of all these triggers has broken the global logistics chain. The Financial Times, on the other hand, states that importers and exporters are struggling to recover losses after an unprecedented increase in shipping costs.
Raw materials skyrocket 2021 prices compared 2020
The question, however, is not only how much prices have risen as a result of this drift, but how long this upward trend can last, which has already broken forecasts made for 15 years.
The World Bank acknowledges in its April merchandise report that average energy price indices in 2021 are set to be around 35% higher than in 2020, a considerable revision from its October report, which raised them by only 9.3%.
Commodity prices such as metals, meanwhile, are predicted to rise by 19% in 2021, but this trend is expected to decline in this sector in 2022.
Until then, everything suggests that Spaniards, like many other citizens of the world, will have to advocate to endure the downpour of prices and try to weather the storm in the best possible way.