Middle East Conflict Influences Commodity Price Fluctuations, Citic Securities Reports

Citic Securities has released a report indicating that since March 2026, conflicts in the Middle East have led to rotational movements in commodity prices. According to Jin10, there is a strong expectation for an increase in energy and chemical product prices, while some basic metals have experienced price adjustments due to concerns over global economic growth slowdown affecting demand. Looking ahead to the second quarter, the duration of the Middle East conflict may become a significant factor influencing commodity price volatility. If the conflict persists, the price logic observed since March is likely to strengthen further. Conversely, if the conflict ends, demand-side factors may dominate price changes across different commodities. Overall, Citic Securities remains optimistic about the performance of energy and chemical product prices in the second quarter. Additionally, attention is drawn to lithium carbonate and electrolytic aluminum, which are supported by supply disruptions and strong demand.