GLOBAL RESOURCES ANALYSIS


EFFECTS | HIGHER MATERIAL PRICES


But not only the energy prices will rise, all other resources will be higher priced due to more demand and declining supply and higher exploration costs due to more difficult situations of new exploration. Exploration also takes a lot of energy, so the price rise of other resources maybe will be double (or even more) percentage of the price rise of energy. This not only effect elements, but the prices of all material, independent or they oil based, elements based or agricultural based. So a combination of the fact that they are also energy demanding in manufacturing, plus the fact that they face the same facets what made energy expensive (increasing demand, less supply, higher exploration costs) also make elements expensive. Copper, iron, wood, packing material, anything that use resources will become much more expensive. The inflation figures of the US dollar against all commodities are very high. Nickel and copper prices have gone trough the roof. Iron becomes more and more expensive by increasing market demand and price doubling of the cooking coal needed for its production. Also here the commodity market report of the IMF on http://www.imf.org/external/np/res/commod/table3.pdf says it in cold figures.


Author: Gijs Graafland


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