HSBC: Commodities Are in a "Super Squeeze", Continued Closure of the Strait of Hormuz Would Aggravate the Situation
- HSBC Holdings analysts stated that commodities are currently in a "super squeeze" status, and if the Strait of Hormuz continues to be effectively closed, this situation will deteriorate. The longer the strait remains closed, the faster inventories are depleted, making some commodity markets more likely to reach a "critical point," although the exact timing is difficult to predict.
- Raw material prices reached a historic high in mid-May, then fell back as the United States intensified its efforts to extend the ceasefire agreement with Iran.
- HSBC pointed out that other positive factors include the growth in consumption of basic metals such as copper and the possibility of El Niño weather affecting crop supply. The overall commodity cycle is still in a super bull phase, but it is driven by supply disruptions and therefore referred to as a "super squeeze" rather than a "super cycle."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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