GREY:ADEXF - Post by User
Comment by
rpdelucaon Apr 03, 2012 10:26am
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Post# 19752455
RE: RE: RE: ghosts of the past
RE: RE: RE: ghosts of the past There are always projections out there about when supply will meet demand. If you go back 4 or 5 years ago, they were projecting supply to have outstripped demand by now. Well we all know what happened in 2008 and all commodities took a dive and many many projects were put on hold. Hence we still sit in a situation where demand is outpacing supply. The latest forecasts have supply meeting demand by 2015//2016. Of course this assumes that all projected projects come on-line as predicted. We all know that this never happens with perfection and many projects get delayed and pushed out. Look at LIM for example. They did not even come close to meeting their year 1 projections for shipping iron ore.
There is also the India factor which is starting to get press now. As they pull back on their exports, it will have a negative impact on the demand/supply side but obviousely a positive impact on the price side.