www.google.com
www.statista.com
For commodities, steel etc, its simply everyone that didnt carry stock, is now trying to carry stock - so its now a lottery as to what your normal supplier carried, v how much you are willing to pay. Same really for the chip production, we had enough production, then some months were missed because of covid, and now it takes time to get back to full rate production. So the price goes up.I would look at such graphs with a grain of salt. Arbitrary comparing prices leaves out too much context.
If you look at the price of lemons in the US in isolation you get a different picture.
U.S. retail price of lemons 2023 | Statista
In the United States, the retail price of a pound of lemons stood at just above two U.S.
A better indicator is available income and its shares on expenses.
I didn't figure out the real reason for the shortages, though it seems here in Europe we are quite ok regarding consumer goods (for the moment I add, but we still produce a lot of foodstuffs and other daily use goods this helps now). The EU is largely self sufficient in this regard. At least one system with a complete supply chain.
For industrial base products there seems to be long lead times and difficult procurement.
The main reasons I get are:
1. Corona disruptions by countries like China which made themselves the workbench of the world (and we even actively supported it) but are now producing regular bottlenecks by panic Corona measures and Xis shenanigans. Also other countries fall under "Panic Corona measures" e.g. Malaysia.
=> unreliable suppliers
2. China itself and Xis way of the Mao. I suspect huge hamster buys orchestrated by the state to prepare for whatever CCP is "planning".
3. Resource rich countries not producing enough due to restrictions
4. Hamster buying in general by companies able to afford it.
5. Global chaos in transportation
So putting all eggs in one basket was not so smart after all.
Regarding the return of industries to the West will only happen to such an extent that an emergency upscalable base is kept where production is not economical in the West. But the unreliabilty of CCP driven China may change that substantially
And the energy change and automation will localise a lot which is now shippped around the world.
It would be highly advised to diversify the supply chains as much as possible. This would better reflect a global market than the current concentration on one region.
The industry should also distance themselves from autocrats as in the end they always prioritize the support of their oppression apparatus over economic stability.
Or blockade.China urges its populace to stock up on food before the winter.
China urges families to keep stocks of daily necessities ahead of winter
The Chinese government has told families to keep daily necessities in stock in case of emergencies, after COVID-19 outbreaks and unusually heavy rains that caused a surge in vegetable prices raised concerns about supply shortages.www.reuters.com
What is going on there….?
Local media has also recently published lists of recommended goods to store at home including biscuits and instant noodles, vitamins, radios and Flashlights.
The public response forced state media on Tuesday to try to soothe fears and clarify the ministry's statement.
The Economic Daily, a Communist Party-backed newspaper, told netizens not to have "too much of an overactive imagination" and that the directive's purpose was to make sure citizens were not caught off guard if there was a lockdown in their area.
China has had a disastrous year agricultural wise due to heavy rain storms and massive flooding, food is going to be in a very short supply for the next year or so.China urges its populace to stock up on food before the winter.
China urges families to keep stocks of daily necessities ahead of winter
The Chinese government has told families to keep daily necessities in stock in case of emergencies, after COVID-19 outbreaks and unusually heavy rains that caused a surge in vegetable prices raised concerns about supply shortages.
What is going on there….?
Local media has also recently published lists of recommended goods to store at home including biscuits and instant noodles, vitamins, radios and Flashlights.
The public response forced state media on Tuesday to try to soothe fears and clarify the ministry's statement.
The Economic Daily, a Communist Party-backed newspaper, told netizens not to have "too much of an overactive imagination" and that the directive's purpose was to make sure citizens were not caught off guard if there was a lockdown in their area.
So no more prawn toast????
