A shock like no other: coronavirus rattles commodity markets

Abstract

The novel coronavirus (2019-nCoV) originated in China has now covered around 213 countries globally. It has posed health calamities which have threatened the world with the emergence. Owing to the number of confirmed cases still rising every day, it has now become a phase of an international health emergency. Sudden outbreak of coronavirus disease 2019 (COVID-19) has brought global declines in the commodity process. This has majorly affected the demand as well as supply of the commodities. The oil market has been severely affected due to the outrageous collapse in the demand majorly due to travel restrictions which has also caused the steepest decline in oil prices. The prices of both precious and industrial metals have also fallen, although the price drop is less than that of oil prices. The agriculture industry is one of the least affected so far by this pandemic due to its indirect relation with economic activities. However, the ultimate impact of COVID-19 pandemic will greatly depend on the severity and duration of its outspread, but it is expected to have long-lasting implications.

Default Risk of Listed Companies in the Context of the Threat to Commodity Markets in the Times of COVID-19 Pandemic

“…The default scenario referred to a company's share price (company's value), which was adopted to be a 50-interval moving average. Data about the companies' total debt as well as number of shares traded as of 30 June 2019 and 30 June 2020 were included in the study, when the coronavirus disease (COVID-19) was declared by the WHO as a global emergency (February 2020) and later as a pandemic (March, 2020;Rajput et al, 2020;WHO, 2020).…”

“…The main price-shaping factors on the commodity market are macroeconomic determinants, factors associated with the chain of supplies and geopolitical conditions (Schofield, 2007). The economic consequences of the coronavirus pandemic are revealed through direct and indirect manifestations in global raw materials markets (Ahmad et al, 2020;Nicola et al, 2020;Baker et al, 2020;Rajput et al, 2020). The condition of a commodity market is correlated with the condition of economy.…”

Transformation of Distribution Logistics Management in the Digitalization of the Economy

“…However, we cannot ignore the fact that the reaction of consumers was also reflected in the postponement of the purchase of goods. Domestic markets in many countries have therefore acquired the potential for deferred demand [11]. Thirdly, the forced isolation of businesses and households during the pandemic has unexpectedly given a new light to the prospects for both e-commerce and the digitalization of this industry.…”

Recovery agenda for sustainable development post COVID-19 at the country level: developing a fuzzy action priority surface

“…During the COVID-19 crisis, most attention has been paid to the medical aspects of the pandemic, while the economic, social, and environmental consequences of the pandemic deserve to be investigated more in-depth (Gautam & Hens, 2020 ). However, the considerable implications of this pandemic have been increasingly studied by many scholars for a variety of different areas and disciplines such as transportation (Mogaji, 2020 ), renewable and sustainable energy (Hosseini, 2020 ), air pollution (Bherwani et al, 2020 ; Gautam, 2020 ; Gupta et al, 2020 ), health risk assessment (Ambade et al, 2021 ; Changotra et al, 2020 ; Gautam & Trivedi, 2020 ), tourism (Sigala, 2020 ), commodity markets (Rajput et al, 2020 ), and economic anxiety (Mann et al, 2020 ).…”