Three Facts About World Metal Prices

Mei-Hsiu Chen, Kenneth Clements, Xing Gao, Jiawei Si

Research output: Working paperDiscussion paper

Abstract

We argue that the workings of world metal markets can be characterised by three facts:· Fact One: Global determinants of prices do not dominate market-specific ones. · Fact Two (in its simplest form): The relative price of a metal is inversely proportional to its relative volume of production. If, for example, global iron ore production expands 10 percent faster than the average for all metals, then its price falls by 10 percent. · Fact Three: Metal prices exhibit well-defined short-term cycles that tend to repeat themselves. These are not yet canonical facts, with proportional pricing arguably the most controversial. Regardless, this paper shows that the three facts are promising leads to understanding the evolution of world metal prices.
Original languageEnglish
PublisherUWA Business School
Publication statusPublished - 2017

Publication series

NameEconomics Discussion Papers
No.5
Volume17

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