Globally, commodities are basically all kinds of raw materials, which are necessary for industrial production and social life. For international commodities, as long as the demand comes up and the expectation of rising is formed, their prices will climb higher and higher.

In addition, if the world's central banks implement quantitative easing policies, it will also lead to a large influx of funds into commodities and push their prices up.

Although the rise of bulk commodities makes resource exporting countries and hot speculation funds earn a lot of money, for resource importing countries, it is another scene: the price of bulk commodities rises, factories need to spend more money on raw materials, which leads to the price of finished products rising, and finally the price of importing countries rises rapidly.

Unfortunately, we happen to be one of the major buyers of global commodities, and the rising commodity prices make our inflationary pressure very high. Fortunately, we are also an exporter of industrial products in the world, and a large number of exports are an important means for us to alleviate inflationary pressure.

Therefore, to cope with the rise in commodity prices, we can deal with it from both internal and external aspects:

First, internally eliminate backward production capacity and reduce the import quantity of raw materials.

In the process of becoming a world factory, in order to pursue scale, a large number of production lines with backward technology have been built. These production lines not only consume more raw materials, but also pollute the environment on the premise of producing the same goods. These production lines are the backward production capacity that has been emphasized in recent years. If they are upgraded, the import volume of raw materials will drop sharply.

When demand drops, without the expectation of commodity rising, its price will inevitably fall. Because, once the commodity is expected to rise, huge amounts of money will flood into the futures market to push up the price, while the demand will drop, which will lead to the end of the expected rise, the outflow of funds and the return of the price to rationality.

Second, accelerate industrial concentration and gain the ability to intervene in commodity prices.

In addition, while eliminating backward production capacity, we should also accelerate industrial integration and form a large number of powerful giants to influence the prices of bulk commodities. Although we are one of the major importers of raw materials in the world, we have no influence on the pricing power of commodities!

There are many reasons for this phenomenon, one of which is that our industrial concentration is not enough, and we are fighting each other to raise the price of raw materials. If the concentration is increased in related industries, only a few enterprises will participate in the quotation, and it will certainly be difficult to increase the price of bulk commodities in the case of huge market demand.

Third, raise commodity prices and conduct pressure.

The rise of commodity prices will inevitably lead to the increase of factory costs, and in order to alleviate the pressure, it is necessary to change the previous logic of commodity export. In the past, many factories chose to sell goods at low prices. As a result, as a commodity producing place, we can only make meager profits.

In the face of rising commodity prices, if we continue to operate according to the previous model, the meager profits of the factory will be eaten up. Therefore, it is necessary to increase the price of export commodities to alleviate the pressure brought by rising commodity prices.

Finally, upgrade technology and move towards high-end manufacturing.

Compared with low-end manufacturing, high-end manufacturing, especially high-end manufacturing, is generally insensitive to rising raw material prices. Its high-tech nature determines that the proportion of raw materials in the production of high-end manufacturing products is very limited.

Therefore, industrial upgrading is the only way, otherwise it will be difficult to get rid of the impact of commodity prices on factory profits.

To sum up, it is my personal thinking about our countermeasures when commodities rise, hoping to help you.