The commodity supercycle has lost speed after many commodities slipped from their highs this week. However, experts believe that one of the biggest commodity booms in decades is far from over.

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The view is that inflation concerns, speculation that the US Fed will ease stimulus and more warnings from China have cooled the prices from spiking up but they also have put this boom on hold.

This supercycle was fuelled by reopening economies across the world -- China imports, aggressive infrastructure spending and faster transition to electric vehicles. These favourable conditions had some commodity prices even doubled in the past 12 months.

However, one pillar of this year's blistering commodities rally - Chinese participation - may be teetering. With global commodities rising to record highs, Chinese government officials are trying to temper prices and reduce some of the speculative froth that has driven markets. The Chinese government has also said it will show "zero tolerance" to monopoly behaviour and hoarding.

So, could this tapering hurt commodity prices further? Or will the supercycle resume soon after fear and speculation is eased? Hongmei Li, Head of English Editorial at MySteel and Ole Hansen, Head of Commodity Strategy at Saxo discussed this and more.

For the entire show, watch the accompanying video

(Edited by : Bivekananda Biswas)

First Published:May 25, 2021 5:05 PM IST