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What will lead to an increase in materials?
1, supply chain problem supply chain is the whole process of goods from production to sales, involving raw materials, production, warehousing, logistics and other links. In the whole supply chain, problems in any link may lead to price increases. For example, when a new epidemic broke out last year, factories and logistics centers around the world were affected to varying degrees, resulting in shortages of raw materials, spare parts and other materials. These shortages, in turn, hinder the production of many manufacturers, thus affecting the supply of goods. As the supply decreases, the price will rise.

2. Rising costs In addition to supply chain problems, rising costs are also one of the reasons for rising prices. Rising costs include labor costs, logistics costs and raw material costs. With the change of the supply and demand situation in the labor market, the wages and benefits of workers are constantly improving, which further leads to rising costs. Logistics costs are also rising, partly because of rising fuel costs. In terms of raw materials, the rising prices of metals such as copper and aluminum have also directly affected the manufacturing industries such as electrical appliances and automobiles.

3. Market demand Changes in market demand will also affect the price trend. If demand increases and supply is insufficient, prices will rise. As demand declines, prices will also fall. During the epidemic, with the change of people's lifestyle, the demand for different types of goods has changed. For example, because people stay at home, the demand for online shopping has increased greatly, and the logistics pressure of e-commerce platforms has also increased, resulting in an increase in logistics costs. In catering, tourism and other industries, due to the decline in demand, prices have also dropped accordingly.

4. Macroeconomic environment The macroeconomic environment is also one of the important factors that affect prices. During the epidemic, the global economy was hit to varying degrees, and the economies of many countries stagnated or declined, which also led to a decrease in the supply of some commodities, which in turn pushed up prices. In addition, the monetary easing policies implemented by some countries will also lead to commodity inflation, thus pushing up prices.

5. During the outbreak of supply chain breakage, due to export restrictions and traffic control systems in some countries, the supply chain of many enterprises was affected, resulting in a decrease in the supply of raw materials and parts, thus affecting the production and supply of some commodities. This is also one of the important reasons for the price increase of some commodities.