In a previous article, we discussed how the real prices of commodities tend to fall in the long term (i.e. once adjusted for inflation).
While there are a number of factors contributing to this, perhaps the most important is that of technological advance.
A recent article in The Economist highlights this argument with regard to the steel industry. The article discusses the growing application of two different steelmaking techniques – Castrip and Belt Casting.
Continue reading Innovation in steelmaking
In the previous article we took a look at a handful of commodities and compared their current prices to those seen back in 1995.
In this article, we take a longer-term look at a wider range of commodities to see just how prices now compare in real terms to those in the (very) long term.
Continue reading Commodity prices in the very long run
Last year was once again rather disastrous for commodity prices. Average prices of the base metals traded on the LME all dropped massively, while average prices of oil, iron ore and steel also fell sharply. The general downward trend that has been in place since 2011 continued.
Continue reading 2016 commodities outlook: From super cycle to super correction