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by agumonkey 1991 days ago
What would explain the supply shock and the stockpiling ?
2 comments

When car manufacturers open up after Covid shutdown, they started seeing massive demands. We couldn't keep up with their demands since July. They learned their lesson from Covid and not taking any chances this year.
oh yeah.. I didn't foresee covid effects (obv in retrospect)
For what it's worth, my somewhat educated guess from someone who covers Autos slightly:

2019 was expected to be a "peak" year in the automotive cycle, so everyone in the supply chain adjusted accordingly by modeling in lower demand following that peak. I'd wager with COVID-19 the trough came significantly faster (and deeper) than anticipated, and as we gear up for an equally fast (expected) recovery, inventory levels aren't adequate.

Just a hypothesis, but perhaps worth considering.