Archives for May, 2018
Until 2008 most iron ore was priced by negotiation between the seller and buyer. Contracts were typically for 12 months. As Chinese demand outstripped contracted supply, it began buying ore from India on a spot basis. Chinese companies then discovered that many contracts were for significantly higher prices than they…
There is a widespread consensus that we are just about to embark upon a long-lasting commodities boom. The most common rationale for that thought is that the ratio between equity prices and commodity prices is very low. The most common measure is the GSCI (Goldman Sachs Commodity Index) versus a…