The world lacks virtually anything. Concerns about inflation are growing

What is missing from the market

Packaging

There is already a shortage of packaging for goods on the world market. Plastic packaging, cardboard boxes and aluminum cans are missing. “It simply came to our notice then. There are no raw materials, there are no plastics, “describes the situation on the market Vlado Volek, a packaging expert from the Syba Packaging Institute.

The lack of aluminum cans has already been felt by the Californian beverage manufacturer Monster Beverage. And it is also visible in Europe. “Increased interest in cans is currently known throughout Europe, which is reflected in a change in the supply of empty packaging,” says Pavel Šemík, Technical Director of Plzeňský Prazdroj, adding: “While in the past supply, we are now bottling the same amount in several smaller batches in several cycles, which increases our beer production costs. ”

According to Volek, the increased costs of packaging will also be reflected in the price of products. According to him, the packaging itself represents one tenth of the total price of the goods. / gal /

Copper

The price of copper, like other metals, is driven up mainly by renewed industrial production, which is not enough for mining. Government stimulus programs and their efforts to reduce greenhouse gas emissions, as well as opening up economies following a coronavirus pandemic, also contribute.

At the beginning of May, the price of copper reached its new record, when the ton sold for almost $ 10,400, exceeding the previous maximum from 2011. The metal is used not only in construction, but also in the production of electric cars and washing machines. “They are among the so-called green or environmentally friendly metals, which are expected to grow significantly in the coming years as the pace of environmental transformation and decarbonisation increases,” said Ole Hansen, Saxo Bank’s chief commodity strategist.

In recent days, however, copper prices have fallen below ten thousand dollars per tonne due to the Chinese government’s efforts to cool commodity price growth. / gal /

With

Honey lovers from Czech beekeepers must also prepare for the shortage and increase in price. This is evidenced by the signs behind the windows of houses where honey was offered. Now there is a sign with the words “Sold out”.

The reason is the current cold and windy weather. “Bees don’t have a chance to fly out, the wind is blowing. We have the end of May and the supply of honey is zero, “points out Petr Malý, a beekeeper from Dolní Břežany near Prague. According to him, beekeepers must feed the bee colonies. “Honey is enough for the bees for their needs.” According to Malý, at least two weeks of nice weather are needed for honey production, the ideal temperature is between 20 and 25 degrees Celsius.

Compared to last year, beekeepers expect honey production to fall by half. The result will be an impact on its price. “I sold a kilo of honey for about 200 crowns, depending on the type. This year, I am considering raising the price by up to twenty crowns, “adds Malý. / gal, das /

Chips

Car manufacturers and TV and smartphone manufacturers are feeling the lack of chips, including the popular Playstation 5 console from the Japanese colossus Sony. Hundreds of dollars and more than a thousand dollars are missing chips. Problems are also caused by semiconductors worth one dollar, whose only task is to give instructions for illuminating the display of a telephone, monitor or navigation system in a car. “I haven’t seen anything like the current situation in the last twenty years since the company was founded,” said Jordan Wu, co-founder and head of Himax Technologies, a leading supplier of display control chips.

There are a number of events behind the industry’s difficulties. The unusually harsh winter in Texas disrupted the activities of local producers, a fire in a Japanese factory stopped production for a month, and the drought in Taiwan made it difficult to produce semiconductors that are demanding on water supplies. According to Intel boss Pat Gelsinger, the problem with the lack of chips will not be solved for several years. / gal /

Coffee

The drought in Brazil will have an adverse effect on the coffee harvest, which is already reflected on world stock exchanges. The price of arabica coffee in commodity markets has already reached a four-year high, when the pound (0.45 kilograms) sold for more than $ 1.5. In addition, trade is also complicated by transport from Asia, where the world’s largest coffee producers are located – Vietnam and Indonesia. The rise in the price of coffee has other causes. “The main one is the post-pandemic opening and recovery of economies in North America and Europe. People in these parts of the world are also returning to cafes and are willing not to save on coffee, as they feel that they have not indulged in much in the last year, ”emphasizes Lukáš Kovanda, Chief Economist at Trinity Bank. / gal /

Wood

Wood prices have skyrocketed since the beginning of the year. The commodity rose in the spot market by sixty percent to almost $ 1,400 per 2.36 cubic meters. During this year, the price even reached up to $ 1,700.

The sharp rise has slowed down only in recent days. The price is driven up by demand in the US, where wood is used to build houses.

The price of basic material is already being felt by Czech carpenters. “For example, last year I bought a cubic meter of dried oak planks for 35 thousand crowns, currently it is over 42 thousand crowns,” says carpenter and floorer Igor Slavík, adding that varnishes, sealants and other materials are also becoming more expensive. “I can practically not increase the price of my work, but I warn clients in advance that due to rising input costs, contract prices will be ten percent higher than before the pandemic,” adds Slavík. / gal, nos /

Ship transportation

In mid-May, the price of shipping, according to the Baltic Exchange Dry Index, reached its highest level since 2010. The index, which measures shipping costs, rose to 3,266 points in early May. “Traffic volumes are above pre-coronavirus levels,” Burak Cetinok, head of analysis at Arrow Shipping Group, told Bloomberg. According to him, in the past twelve months, demand has been driven mainly by China, but now the rest of the world is joining it. High interest in the transport of goods will further increase the demand for shipping in the short term. “The market is now so strong that owners prefer to continue to operate older ships, which would normally end up being scrapped,” says Peter Sand, chief shipping analyst at Bimco. / gal /

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