The price of commodities like aluminum, copper, crude oil and iron ore, were crashing like hell in the last one year, and most of them had reached multi year low level in the last six months.
But the Chinese government has been spending billions of dollars in shoring up their stock pile of all these industrial commodities in the last two months, which has resulted in sharp recovery in the price of all these commodities.
These have moved anything between 20% to 40% in the last two months, and experts say that these prices are likely to move up further in the next few months, because of replenishment need from all major consuming countries.
In the long run, the recovery in prices purely depend on global economic revival, which looks uncertain as of now. In the recent past, major US banks have indicated that they have started making profits, which is likely to induce them to work on stimulating the US economy. And the US FED is also inclined to stimulate the economy at all costs.
If there are signs of US economic revival anytime, then we can expect the commodities to shoot up beyond their all time high figures, because there could be panic buying in the first few months of the recovery.