According to relevant data, in March 2021, the national factory prices of industrial producers increased by 4.4% year-on-year and 1.6% month-on-month. Dong Lijuan, a senior statistician at the City Department of the National Bureau of Statistics of China, said that from a month-on-month perspective, the PPI (Ex-factory Price Index of Industrial Producers) rose by 1.6%, an increase of 0.8% from the previous month, due to factors such as rising international commodity prices. International crude oil prices continue to rise, and domestic oil also follows the trend; affected by rising prices of imported iron ore, rising domestic industrial production and investment demand, the prices of ferrous metal smelting and rolling processing industries have risen, and the prices of non-ferrous metals such as copper and aluminum in the international market Also rose more.

One is the capital speculation factor, and the routines continue. Under the influence of the global loose currency, coupled with the impact of the epidemic, global demand has not yet fully recovered. The US stock market has repeatedly hit record highs. A large amount of funds have also begun to flood into the commodity futures market. The Wall Street financial consortium in the United States has manipulated the international commodity market. Prices have been repeatedly manipulated, using the hegemony of the U.S. dollar to control manufacturing countries, especially countries and their manufacturing companies based on the real economy such as China. Under capital speculation, the prices of raw materials continue to rise, corporate profits continue to be under pressure, and the real economy is also suffering Blow.
The second is due to the financialization of major upstream products and demand factors such as China’s strong exports and active investment. As a result, industries and companies have raised prices, and in addition to the gradual clearance of excess upstream capacity in many areas in China, under the current market environment, the bargaining power of upstream companies will increase, and they will continue to tentatively increase prices, and even the prices of raw materials will be increased a day. As a result, manufacturing companies in the downstream sector also began to reject orders to avoid losses.