Misc
Visualizing the Rise in Commodity Prices
The Stuff that Makes Everything
If you ever wonder why commodities are important, just think of an object around you and ask yourself—what’s that made of?
From the wires in our electronic devices to the tables in our offices, these raw materials are everywhere. Of late, commodity prices have been surging as the global economy recovers, with rising demand from various industries including infrastructure, construction, and livestock.
The above infographic tracks the futures prices of 10 commodities that have seen significant price increases since January 2020.
Commodity Prices, from Bust to Boom
From lumber for home construction to metals for electronics, commodities across the three categories—agriculture, metals, and energy—have been rallying since hitting pandemic lows around March 2020.
Commodity | Closing Price (Jan 1, 2020) | Closing Price (May 7, 2020) | % Increase |
---|---|---|---|
Lumber | $406.7 per 1,000 board ft | $1,645 per 1,000 board ft | 304% |
Iron Ore | $92.6 per tonne | $197.7 per tonne | 114% |
Soybean Oil | $0.35 per lb | $0.65 per lb | 85% |
Corn | $3.9 per bushel | $7.3 per bushel | 85% |
Tin | $17,170 per tonne | $30,950 per tonne | 80% |
Soybeans | $9.6 per bushel | $15.9 per bushel | 66% |
Copper | $2.8 per lb | $4.6 per lb | 65% |
Lean Hogs | $0.71 per lb | $1.1 per lb | 56% |
Palladium | $1,928 per oz | $2,961.5 per oz | 54% |
Silver | $18 per oz | $27.6 per oz | 53% |
Percentage increases may differ slightly due to rounding.
Among agricultural commodities, the price of lumber futures increased 304% between January 2020 and May 2021, reaching record highs. Food prices have also seen a sharp increase since the halfway point of last year. As of May 7th, the price of corn futures was at $7.3 per bushel, nearing its all-time highs of $8.3 per bushel in 2012. Furthermore, soybean oil prices were also at their highest level in the last decade.
Among metals, iron ore futures climbed 114%, reaching a record high. Tin and copper were also both moving towards all-time high prices as of May 7th, followed by palladium and silver, both of which saw more than a 50% rise in prices since January 2020.
Several commodities are either nearing or have broken past their all-time highs. Why are commodity prices increasing?
Lumber
Lumber—the form of wood that builders use to build and renovate homes—has been the talk of the town due to the massive increase in its price.
This is in stark contrast to 2019 when lumber prices were so low that some sawmill owners were better off ceasing operations. In addition to sawmill shutdowns, outbreaks of a bark-eating species of beetle have destroyed 15 years worth of log supplies in British Columbia, Canada, limiting the supply of lumber.
Meanwhile, home buyers are taking advantage of the low costs of borrowing due to record-low mortgage rates in the U.S. This is driving up the demand for lumber from the housing market, while supply is in a bottleneck.
Corn and Soybeans
Corn and soybeans are common feed grains for livestock, including swine, beef, and poultry.
China—the largest producer and consumer of pork—has been battling outbreaks of African swine fever (ASF) since 2018, losing over 100 million pigs. As the country’s hog-herd recovers from this disease, Chinese demand for corn and soybeans is increasing and supporting higher prices. In fact, China’s corn imports from the U.S. increased 2,072% between 2019 and 2020.
Iron Ore and Tin
The global economic recovery, led by China, is fueling the demand for steel, and in turn, for iron ore. On the supply side, the industry is facing a shortage, with a decline in output from top producer Vale following a disaster at its tailings dam in Brazil.
Tin prices are soaring due to rising demand from consumer electronics amid tightening supply. According to Roskill, pandemic-induced supply disruptions led to a 10% decline in refined tin output in 2020. Additionally, shipping disruptions and low stocks at the London Metal Exchange (LME) are intensifying tin’s supply squeeze.
Copper
Copper’s story is similar to that of iron ore, wherein rebounding economies are boosting demand for the red metal. However, investors are particularly bullish on copper due to its critical role in green technologies, with looming concerns over its long-term supply.
Palladium
Many countries are imposing stricter auto emission standards—and while this may surprise you, it’s driving the demand for palladium. The precious metal is a key ingredient in catalytic converters that turn toxic emissions from gas-powered vehicles into less harmful gases.
Unlike the rollercoaster rides that are commodity prices, palladium prices have been rising for five years straight. What’s more, the palladium market has seen an annual deficit since 2012. And this trend is likely to continue with flooding at palladium mines in Russia expected to cut global supply by 5% in 2021.
The Start of a Commodity Supercycle?
While it’s difficult to predict the sustainability of these high prices, the increase in commodity prices across the board has investors gearing up for a potential commodity supercycle.
Commodity supercycles are decade-long periods during which commodity prices trend above their long-term averages. The last supercycle lasted from 1996 to around 2016, driven by rapid industrialization in Brazil, India, Russia, and China (BRIC economies). Today, governments around the world are adopting mineral-intensive clean energy technologies, which will likely increase the demand for minerals for years to come.
Are we on the brink of a new commodity supercycle?
Misc
Why Copper Is Critical for Data Centers
Copper consumption for data centers in North America is estimated to jump from 197,000 tonnes in 2020 to 238,000 tonnes in 2030.

Why Copper Is Critical for Data Centers
Data centers are computer server hubs that collect, store, and process large amounts of data, requiring extensive network infrastructure and electric power supply.
As the North American data center market grows, copper will be a key building block in this infrastructure.
This infographic from the Copper Development Association illustrates the critical role of copper in data center development.
Copper in Technology
Much has been said about the growing demand for critical minerals like copper, nickel, and lithium for clean technologies such as batteries, EVs, solar, and wind power.
Copper, however, has a more extensive role in technology as it is used in wires that connect power grids and data centers around the planet.
As one of the best conductors of electricity, copper maximizes efficiency in the transmission and distribution of electricity. Its thermal conductivity also helps build efficient heat exchangers, which are vital for cooling in data centers.
The inherent ductility and malleability of copper make it ideal for shaping into compact system components, like electrical connectors. In addition, copper can be fully recycled without losing any beneficial properties, providing an excellent solution in a growing green economy.
Data centers use copper across various electrical applications, including:
- Power cables
- Busbars
- Electrical connectors
- Heat exchangers and sinks
- Power distribution strips
To put the demand into perspective, Microsoft’s $500 million data center in Chicago required 2,177 tonnes of copper for construction.
North America’s Growing Need for Copper
With the rise of cloud computing and the Internet of Things (IoT), the North American data center market is expanding.
North American data center infrastructure is expected to grow from a $33 billion business in 2020 to $70 billion in 2030 and $185 billion in 2040.
This, in turn, will amplify the demand for copper. Copper consumption for data centers is estimated to jump from 197,000 tonnes in 2020 to 238,000 tonnes in 2030 and 293,000 tonnes in 2040.
The Copper Development Association (CDA) brings the value of copper and its alloys to society to address the challenges of today and tomorrow. Visit www.copper.org to learn more about copper’s critical role in data centers.
Misc
From Lead to Copper: Replacing America’s Aging Water Infrastructure
Investing in the transition from lead to copper is crucial for providing safe water to millions of Americans.

From Lead to Copper: Replacing America’s Aging Water Infrastructure
Water service lines, crucial for connecting buildings to the public water supply, are often outdated and built from lead, presenting significant health risks to Americans.
As the government invests billions toward replacing lead service lines, copper pipelines offer a safe, reliable, resilient, and sustainable alternative.
This infographic from the Copper Development Association illustrates how investing in the transition from lead to copper is crucial for providing safe water to millions of Americans.
The Problem with Lead Service Lines
In the 20th century, lead was commonly used for water service lines and plumbing pipes.
However, lead pipes can degrade over time, leading to the release of lead particles into drinking water. Even at low-to-moderate levels, lead exposure can have severe negative health impacts, including:
- Hearing loss
- Anemia
- Kidney impairment
- Immune system dysfunction
Today, every state in America has lead service lines (LSLs) that the federal government is actively working to replace.
Besides LSLs, an additional 2.8 million galvanized water pipes also need replacing.
Delivering Safe Water
Copper tubing has become the primary material to replace old water service lines.
The red metal is an antimicrobial material that kills pathogens, and it is also highly corrosion-resistant, with a typical service life of over 50 years.
In addition, copper service lines are impermeable and prevent outside chemicals from leaking into water. Copper tubes can be fully recycled at the end of their useful lives without losing any beneficial properties.
Replacing Lead Service Lines with Copper
If America were to replace all 12 million of its lead and galvanized service lines, it would require more than 650 million feet of copper tubing, equivalent to 180,000 tonnes of metal. To compare, the U.S. produced 22 million tonnes of copper in 2022.
The U.S. has commissioned several large-scale copper recycling projects in recent years, creating opportunities to meet the demand with recycled and mined supply.
However, upgrading the nation’s water infrastructure will require over $56 billion, way more than the $15 billion currently provided by the Bipartisan Infrastructure Law.
Visit Copper Development Association to learn more about how copper is crucial for providing safe water to millions of Americans.
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