2020s commodities boom

The 2020s commodities boom refers to the rise of many commodity prices in the early 2020s following the COVID-19 pandemic. The COVID-19 recession initially made commodity prices drop, but lockdowns, supply chain bottlenecks, and dovish monetary policy limited supply and created excess demand causing a commodity super cycle rise.

The Russian invasion of Ukraine beginning in February 2022 worsened the bottlenecks, creating the 2022–2023 Russia–European Union gas dispute and the 2021 United Kingdom natural gas supplier crisis, contributing to the Global energy crisis (2021–2023). As Russia and Belarus are major fertilizer exporters and natural gas is a primary component in many fertilizers, fertilizer prices rose accordingly, exacerbating the 2022–2023 global food crises.

The previous commodity super cycle was the 2000s commodities boom, which was attributed to emerging markets, especially that of China, providing a high demand for raw materials.

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