SUPPLY AND DEMAND

FOR
RARE EARTH METALS
 OVERVIEW
• Over the last decade, demand for rare earth
metals has risen from 40,000 tonnes to over
120,000 tonnes.
• Traditional models and theories of supply and
demand do not apply; metals are not
consumed like other commodities.
• Excesses and deficits cannot affect the market
price.
 COPPER SUPPLY...
• Oldest precious metal on Earth – discovered in
Middle East.
• Over 34 times increase in production
• Still increasing massively
• Main producers: Chile, Peru, USA
• Large percentage of this however comes from
recycling.
 ... & COPPER DEMAND
• Among the most important industrial metals
• Electrical Appliances, Buildings, Transport, Coins,
Sculptures
• World Class Copper mines being exhausted
annually
• Increasing price after bust suggests higher
demand
• Price of Companies also reflecting this
 STEEL SUPPLY...
• Crude steel production in November 2010 was 111.7
million tonnes.
• Earliest known production of steel: 4000 year old
piece of ironware.
• Biggest producers: China, Japan and Russia

* Lakshmi Mital, the Indian steel tycoon, topped

the Sunday Times Rich List 2010
 ... & STEEL DEMAND
• In June 2009, it was forecast that demand
for steel would drop by 15% - the steel
industry was very affected by the crisis
• In the last decade, demand has fluctuated
but remained 125 million tonnes per year on
average.
• The forecast for the steel market shows that
it may be 2 years until we see a 100 million
tonne steel market again.
 GOLD SUPPLY...
• Main producer:
South Africa
• By the end of
2009 it was
estimated that
165,000 tonnes
of gold had
been mined.
 ... & GOLD DEMAND
• This is because gold is virtually indestructible
and therefore all gold that has been mine still
exists above the ground.
• This may be due to the strong demand to invest
in gold.
• This is due to the effort of the People’s Bank of
China and five other organisations will try to
develop the domestic gold market to grow the
gold ownership in china.
TRIVIAL QUESTION...
What was the price change of gold
between 9am and 11am on
November the 10th 2010 (yesterday)?
...
...
...
$6