Demand, policy, monetary and other factors gradually gathered, commodity market conditions continue to accumulate energy
 
This year, the commodity prices Xianyanghouyi the lower shock. If the debt crisis continues to worsen, even euro zone disintegration extreme cases, already bleak market conditions and perhaps suffered the final blow, trigger a new edge lower. At the same time, the advantage of this opportunity to make the situation clear, the market price will also be real bottom, full recovery is not far off distance.
 
The price fall was mainly due to lack of demand
 
This year, especially in the commodity into the second quarter so there was a substantial drop, the first is the deterioration of the debt crisis in Europe, triggering the export demand sharp contraction. The total value of exports in July year-on-year increase of only 1%, the lowest growth rate in six months. The major export markets in July to China's exports to Europe fell 16% year-on-year, exports to Japan fell by 1%. U.S. export growth from 10.6% in June, a dramatic drop to 0.6%, just one step away from the negative growth. Exports suffered "frozen", a direct drag on the industrial added value, its year-on-year increase of just 9.2% in July, marking the lowest since May 2009. This makes the domestic commodities (raw materials) to weak demand.
 
Secondly, some time ago macroeconomic regulation underestimated the negative impact of the worsening debt crisis, austerity intensity is too large. For example, repeatedly raise RRR "reached an unprecedented height. Affected, the largest end-consumer - the decline in sales of commercial property, new construction there was a substantial decline in the construction area. Beijing from January to July residential new construction area fell 30.6%, fell more than 20 percent for six consecutive months. Decline in residential sales and development investment, dragging down sales of household appliances and decoration materials, thus reducing the overall demand.
 
Finally, a weak euro pushed up the dollar, this international markets denominated commodities corresponding lower.
 
The idea that the lower volatility of commodity prices this year, because of excessive supply. It is not comprehensive, because the statistics do not support. Indeed oversupply in the commodity markets this year, but the contradictions of the main aspects of demand weakness, domestic production and imports were at historically low levels of growth. Estimates based on statistical data, the first half of the domestic production of the country's seven major commodities increased by 5.3 percent, dropped 8.2 percent increase over last year.
 
Only 1.8% of the increase in crude steel production fell 7.8 percent increase over last year. Although the rebound in crude steel production in July, but the cumulative increase in the first seven months, only 2.1%.



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