Ever since Russia’s invasion of Ukraine, and supply chain disruptions triggered by the pandemic, the world economy has experienced a “boom” in raw materials prices. Uncertainty around supply has led to international price hikes, including in the values of oil, gas, fertilizers and food. Analysts argue that the current worldwide lull in energy and agricultural products supply is an opportunity for Latin America, a region that is traditionally a supplier of such goods. In fact, the increased prices could even benefit some segments of the Latin American export sector.
According to data recently published by ECLAC, coal, soil fertilizer and potassium are the main products to have seen significant price increases this year, in terms of products that the region specializes in. Of the 49 main commodities exported by Latin America that were analyzed, coal has tripled its price since 2018, while organic fertilizers hit nearly four times their 2018 value in April of this year. The other star commodities to see significant rises were sunflower oil, natural gas and palm oil.
