Russia and Ukraine are rich in agricultural and mineral resources, and under the dispute between the two countries, the trade in agricultural products may fluctuate sharply, and the supply of industrial raw materials will inevitably be impacted.
Supply panic intensified wheat prices rose
Agricultural products can hardly hide the shock
At present, the local winter wheat harvest season is approaching, and it is still unknown whether the harvesting activities can be carried out normally. After the soaring price of wheat, rice futures prices followed, and some traders bet on rice as a substitute for wheat.
Susan Wenger, associate professor of political science at Notte dan University, USA: For the production of bread, pasta, gusmi and other foods, wheat imported from Eurasia is very important.
Industrial raw material supplies have been hit
The aviation industry is even worse
Most of the world's neon gas comes from Ukraine. This gas is a by-product of the steelmaking process. Neon gas is an important part of the laser gas used in the manufacture of semiconductors. The world is already facing a severe chip shortage, and many car companies and technology companies have been affected. The shortage of neon gas will further exacerbate this situation.
Philip Stramble, Chief Market Strabble, Blue Line Futures: Don't drop your iPhone, put on a protective film.
Russia is an important producer of palladium, platinum, copper, cobalt and other metals. These are the raw materials needed to produce chips and cars. Russia also produces large quantities of titanium, a high-performance material commonly used to make aircraft landing gear and engine components. Boeing's titanium suppliers come from Russia, and the imposition of sanctions on Russia will mean that the above-mentioned metals and minerals are facing shortages.
In addition, multinational airlines are avoiding Russian airspace, and some flights have had to find other routes. Finnair says its route from Helsinki to Tokyo could take an extra four hours.
Analyst: High prices will continue
Analysts pointed out that the ongoing Russian-Ukrainian conflict will further push up inflation levels.
Philip Streeb, Chief Market Strabble, Blue Line Futures: Regarding the inflation of food and energy that everyone cares about, I think high prices will continue and there is nothing that can be done.
South Korea's prices rose more than 3% for five consecutive months
According to South Korea's YTN TV, the domestic consumer price index in South Korea has risen by more than 3% for five consecutive months due to energy price transmission.
Yoo Won-sik, a freight driver in Seoul, South Korea: The pressure has multiplied, except for gasoline, and then deducted some other points, there is nothing left, but even if you do this line, you can't do it.
Transferred from: CCTV Finance
Source: China Economic Network