The relentless rise in commodities worries the Far East factories

Depending on oil prices, there are serious increases in oil-based futures commodities, especially plastics, in China. Plastic raw materials such as ethylene, PTA, and PVC, which have changed hands on the Zhengzhou Commodity Exchange, are climbing in parallel with oil. The rising gas prices in Europe are accompanied by the price of Australian coal in Asia. Spot prices in Newcastle port rose $140 per ton in one day, while thermal coal rose to $460 a tonne. Prices were below $150 before the Ukraine crisis. The rise in coal prices is also a particular threat to the Chinese economy, as the world's second largest economy has recently met at least 65 percent of its electricity consumption from coal. Chinese authorities are making great efforts to rein in coal prices, which often rise sharply in the domestic market. Russia is on the agenda of automotive companies in South Korea and Japan. Toyota not only stopped its factory in Russia but also announced that it has indefinitely suspended the export of cars and spare parts to this country. Nissan and Honda also announced similar measures. The group's St. Petersburg facility, with a capacity of 80,000 vehicles, employed 2000 people. The Tokyo administration, which has territorial problems with Moscow due to the Kuril Islands, draws attention with its harsh attitude towards Russia due to the occupation of Ukraine. The Seoul administration, which acts more slowly than Tokyo, may have the automotive and electronics sectors in mind because the Hyundai group controls 23% of the Russian automotive market. Together with the spare parts sales of the group, the Russian market revenues are around 4 billion dollars. Samsung also earns significant sales revenue from Russia, although its share is low. Hyundai's shares have lost more than 5 percent since the start of the war. Since the beginning of the war, the Australian stock market has not seen the face of decline. Mining and metal stocks are the main drivers of the indices. At a time when the world is facing a kind of commodity supply shock, the Chinese administration may be preparing for an extremely important step. The Chinese administration, which has followed a 'Zero Tolerance Policy' since the pandemic, is preparing to relax. According to the WSJ, authorities are considering leaving the measures cautiously. The stringent series of measures, from the restriction of inter-city travel to the closure of entire cities, has a restraining effect on domestic consumption. Asia 's key economy, South Korea, grew 4.2% year-on-year in the fourth quarter, compared to 1.2% in the previous quarter. On the other hand, the South Korean administration warned that the effects of the war on exporters and importers would become more evident. Speaking in Seoul this morning, Deputy Finance Minister Lee also drew attention to the disruptions in grain supply.