Why Chinese Commodity Prices Are Exploding

Environmental storm swept China.
As reported, the rubber and plastics manufacturing, machinery manufacturing, coating and spraying, plywood, packaging and printing factories around the country came to be shut down.
Which caused the material out of supply, and price raised.
China launched a new round of central environmental inspections covering eight provincial-level areas. A total of eight inspection teams have started month-long on-site investigations into local government work.
In the largest national-level inspection on record, more than two dozen cities in north China will face a strict one-year inspection over air pollution prevention, China's Ministry of Environmental Protection (MEP) announced Wednesday.
Under this influence, The product production will be affected all the following winter.
About 10,000 polluting companies were ordered to suspend production or shut down by the end of June.
With the government putting pressure on inspectors to shut down polluting factories, mines, and processing facilities by September.
Such extended closures would make the current rally in Chinese commodity prices more than temporary. And an extended run in Chinese prices will almost certainly put upward pressure on world rates -- as demand rises for imports to fill the gap from declining domestic output.