2000s commodities boom

Rise in commodity prices in the early 2000s April 2026 December 2021 thumb|400px|right|Commodity prices #35DB3F solid 3px soybean #DBC67D solid 3px wheat yellow solid 3px corn #E8A02C solid 3px copper The 2000s commodities boom, commodities super cycleNg 2013 or China boom was the rise of many physical commodity prices (such as those of food, oil, metals, chemicals and fuels) during the early 21st century (2000–2014),Nelson D. Schwartz and Julie Creswell A Global Chill in Commodity Demand Hits America's Heartland in China and other emerging markets, growth is waning and demand for the raw materials that drive the global economy has dried up. https://www.nytimes.com/2015/10/25/business/energy-environment/americas-heartland-feels-a-chill-from-collapsing-commodity-prices.html 24 October 2015 The New York Times 23 October 2015 following the Great Commodities Depression of the 1980s and 1990s. The boom was largely due to the rising demand from emerging markets, particularly China, from 1992 to 2013,Jay Krish 2025-07-06 "super-cycle," often called the mining boom https://www.astonprecision.com/post/super-cycle-often-called-the-mining-boom 2025-07-06 ASTON PRECISION METAL FABRICATION en as well as the result of concerns over long-term supply availability.November 2010 There was a sharp downturn in prices during 2008 and early 2009 due to the 2008 financial crisis and European debt crisis, but prices began to rise as demand recovered from late 2009 to mid-2010.November 2010 Oil prices began to slip downwards after mid-2010, but rebounded as the Arab Spring disrupted supply lines;Libya: US warships enter Suez Canal on way to Libyan waters. Telegraph (2 March 2011). Retrieved 28 March 2011. thus, the price of oil kept rising into the 2010s. The commodities supercycle peaked in 2011,Mark Pervan, global head of commodity strategy at Australia & New Zealand Banking Group, said commodity prices peaked in the current cycle in early 2011." "International prices of five energy and metal commodities peaked between February and May of 2011. Since their respective peaks, the Brent crude oil benchmark has fallen 15 per cent, coal 42 per cent, copper 33 per cent, aluminium 37 per cent and iron ore 36 per cent."Ng 2013 "driven by a combination of strong demand from emerging nations and low supply growth".Ng 2013Eugen Weinberg, head of commodity research at Commerzbank in Germany claimed the commodities super-cycle which began c. 2002, is not coming to an end but just 'taking a break.'Ng 2013 Prior to 2002, only 5 to 10 per cent of trading in the commodities market was attributable to investors.Ng 2013 Since 2002 "30 per cent of trading is attributable to investors in the commodities market" which "has caused higher price volatility".Ng 2013This article covers physical product (food, metals, energy) markets but not the ways that services, including those of governments, nor investment, nor debt, can be seen as a commodity. Articles on reinsurance markets, stock markets, bond markets, and currency markets cover those concerns separately and in more depth. The 2000s commodities boom is comparable to the commodity supercycles which accompanied post–World War II economic expansion and the Second Industrial Revolution in the second half of the 19th century and early 20th century. Background of depressed prices thumb|350px|right|PPI commodities #89A54E solid 3px M2 money supply % change year over year #4572A7 solid 3px Producer price index for commodities #AA4643 solid 3px United States Consumer Price Index The prices of raw materials were depressed and declining from, roughly, 1982 until 1998. From the mid-1980s to September 2003, the inflation-adjusted priceAdjusted to what year? March 2011 of a barrel of crude oil on NYMEX was generally under $25/barrel. Since 1968 the price of gold has ranged widely, from a high of $850/oz ($27,300/kg) on 21 January 1980, to a low of $252.90/oz ($8,131/kg) on 21 June 1999 (London Gold Fixing).http://kitco.com/LFgif/au75-pres.gif Gold – London PM Fix 1975 – present GIF Kitco.com 22 July 2006 14 July 2018 https://web.archive.org/web/20180714081628/http://www.kitco.com/LFgif/au75-pres.gif dead The analysis of this period is based on the work of Robert Solow and is rooted in macroeconomic theories of trade including the Mundell–Fleming model. Chimni B.S. International Commodity Agreements A Legal Study 1987 Routledge 978-0-7099-5420-0 registration https://archive.org/details/internationalcom00chim One opinion stated that "The volatility and interest rates found its way into commodity inputs and all sectors of the world economy."Commodity Trading Manual, By Patrick J. Catania, Chicago Board of Trade, Peter Alonzi, Chicago Board of Trade Market & Product Hence, in the case of an economic crisis commodities prices follow the trends in exchange rate (coupled) and its prices decrease in case there are downward trends of diminishing money supply. Foreign exchange impacts commodities prices and so does money supply: the advent of a crisis will pull commodities prices down. Boom thumb|right|A Neodymium magnet on a bracket from a hard drive. A commodity price bubble, known as the 2000s commodities boom, was created following the collapse of the mid-2000s housing bubble. Commodities, supported by China’s rapid urbanisation drive and rising affluence,Jin Keyu The New China Playbook: Beyond Socialism and Capitalism 2023 Viking 978-1-9848-7828-1 New York Keyu Jin were viewed as a relatively secure investment after housing markets in several Western nations bubble economy surrounding housing prices had gone from boom to bust in several western nations, including the USA, UK, Ireland, Greece and Spain.November 2010 Some advisers claimed that commodity prices could be predicted better than stocks, since they are traded for actual usage and the price is based on supply and demand, while stocks are bought for speculation and news immediately influence prices. The renewed interest in coal by China's and Taiwan's energy companies and the rise of alternative power sources like wind farms helped modify coal prices over the 2000s. November 2010 Chlorine price steadily increased throughout 2007 and early 2008 as demand for PVC and some metals like copper, neodymium and tantalum rose due to the increased growth of the BRIC countries' demand for electrical goods. Russia increased production, but the US offset this with production cuts in the late 1990s and mid-2000s.November 2010 Phosphorus, rhodium, molybdenum, manganese, vanadium and palladium are used in high grade steels, oil based lubricants, automotive catalytic converters, chemical plants' catalysts, electronics, TV screens and in radio isotopes.ClimaxMoly: How Is Molybdenum Used? https://web.archive.org/web/20100412183833/http://www.climaxmolybdenum.com/products/whatismolybdenum/HowIsMolybdenumUsed.htm 12 April 2010 . Climaxmolybdenum.com. Retrieved 28 March 2011. Demand for these metals appeared to be increasing as computers and mobile phones became more popular in the mid to late 2000s. Thulium is used in x-ray tubes and neodymium is used in high strength/high grade magnets.November 2010 Molybdenum, rhodium, neodymium and palladium are relatively scarce metals, while manganese and vanadium are, like phosphorus and sulfur, fairly abundant for minor minerals. The major metals such as iron, lead and tin are commonplace.November 2010 Recycling of the aluminum, ferrous metals, copper fractions, gold, palladium and platinum in mobile phones and computers had got under way by the mid-2000s.http://www.envocare.co.uk/mobile_phones.htm Mobile Phone Recycling Brenda Shaw Envocare.co.uk 13 March 2011 28 March 2011https://www.reuters.com/article/idUST13528020080427 Reuters Urban miners look for precious metals in cell phones 27 April 2008 9 July 2010 http://www.globalissues.org/article/442/guns-money-and-cell-phones Guns, Money and Cell Phones Essick, Kristi The Industry Standard Magazine June 11, 2001 Global Issues 28 March 2011http://www.nokia.com/corporate-responsibility/environment/case-studies/mobile-phones-yield-valuable-raw-materials Mobile phones yield valuable raw materials – Case studies – Environment – Corporate responsibility https://web.archive.org/web/20091107135432/http://www.nokia.com/corporate-responsibility/environment/case-studies/mobile-phones-yield-valuable-raw-materials 7 November 2009 Nokia 28 March 2011http://www.globalwitness.org/media_library_detail.php/718/en/metals_in_mobile_phones_help_finance_congo_atrocities Metals in mobile phones help finance Congo atrocities https://web.archive.org/web/20100902230722/http://www.globalwitness.org/media_library_detail.php/718/en/metals_in_mobile_phones_help_finance_congo_atrocities 2 September 2010 Global Witness February 16, 2009 Battery recycling has helped bring down both the nickel and cadmium prices. Sulfuric acid (an important chemical commodity used in processes such as steel processing, copper production and bioethanol production) increased in price 3.5-fold in less than 1 year while producers of sodium hydroxide have declared force majeure due to flooding, precipitating similarly steep price increases.http://www.purchasing.com/article/CA6554638.html Sulfuric acid prices explode 9 July 2010 dead https://web.archive.org/web/20090601235718/http://www.purchasing.com/article/CA6554638.html 1 June 2009 http://www.dow.com/causticsoda/news/2008/20080606a.htm Dow Declares Force Majeure for Caustic Soda https://web.archive.org/web/20090417224407/http://www.dow.com/causticsoda/news/2008/20080606a.htm 17 April 2009 dead Food Corn, wheat, rice, cocoa and Soya beans thumb|330px|right| #00A2FF solid 4px Food Price Index #FF2600 solid 3px Oils #F8BA00 solid 3px Cereals #929292 solid 3px Dairy #61D836 solid 3px Meat #D41876 solid 3px sugar thumb|The growth in food production has been greater than population growth. Both a rising global population and a sharp decline in food crop production in favour of a sharp rise in biofuel crops helped cause a sharp rise in basic food stock prices."Biofuels major cause of global food riots", Kazinform (Kazakhstan National Information Agency), 11 April 2008 https://web.archive.org/web/20090126180447/http://www.inform.kz/showarticle.php?lang=eng&id=162989 26 January 2009 Ethiopia also saw a drought threaten its already frail farm lands in 2007.http://www.france24.com/en/20080603-45-million-drought-stricken-ethiopians-need-food-aid-govt 4.5 million drought-stricken Ethiopians need food aid France24.com Boris Heger 3 June 2008 3 October 2008 https://web.archive.org/web/20080609224205/http://www.france24.com/en/20080603-45-million-drought-stricken-ethiopians-need-food-aid-govt 9 June 2008 Cocoa was also affected by a bad crop in 2008, due to disease and unusually heavy rain in parts of West Africa.November 2010 Rising demand in both India and Egypt helped to ramp up demand for American wheat during the bull market during August 2007.http://www.fwi.co.uk/Articles/2007/08/30/106408/Bull-run-on-wheat-prices-shows-no-sign-of-slowing.htm Bull run on wheat prices shows no sign of slowing 30 August 2007 Farmers Weekly 28 March 2011 Discounted wheat sold at about £11–£15/t. August 2007, with non-discounted wheat at slightly higher price. The November 2007 wheat futures market was trading at nearly £165/t, with November 2008 contracts at £128.50. The market became rather bearish as non-futures prices froze and stagnated in December 2007.http://www.fwi.co.uk/Articles/2007/12/23/108809/Wheat-prices-to-slow-down-in-2008.htm Wheat prices to slow down in 2008? 23 December 2007 Farmers Weekly 28 March 2011 The price of wheat reached record highs after Kazakhstan began to limit supplies being sold overseas in early 2008, but had slowed down by late 2008. Food riots hit Egypt on 12 April 2008, as national bread prices rose rapidly in March and April 2008.https://www.theguardian.com/world/2008/apr/12/egypt.food London The Guardian Struggling country where bread means life Ian Black 12 April 2008 25 July 2010 In late April 2008 rice prices hit 24 cents (U.S.) per U.S. pound, more than doubling the price in just seven months. The price of wheat had risen from an already high £88 per tonne to £91 from January to March 2010, due to the bullish market and currency concerns.http://www.fwi.co.uk/Articles/2010/03/24/120506/Market-report-Wheat-prices-edge-upwards.htm Market report: Wheat prices edge upwards 24 March 2010 Farmers Weekly 28 March 2011 This led to food riots in places such as Haiti, Indonesia, Côte d'Ivoire, Uzbekistan, Egypt"Egyptian boy dies from wounds sustained in Mahalla food riots", International Herald Tribune. 8 April 2008Steavenson Wendell It's the baladi, stupid The Australian Financial Review Perspectives Review supplement (pp. 3–5) 9 January 2009 The difference between the subsidised and market price of bread [in Egypt] is exploited at every stage of production and sale, by importers, millers, warehousers, traders, bakers and consumers alike. and Ethiopia. On 31 July, leading economists predicted that food prices, especially wheat would rise in Chad as Russia ended exports due to a domestic drought destroying their wheat and barley harvests.http://www.fews.net/.../MONTHLY%20PRICE%20WATCH%20July%202010.PDF July 2011 By 3 August, wheat prices stood at $7.11 per bushelhttp://www.managementtoday.co.uk/news/1020125/bushel-peck-wheat-prices-rise-half/ A bushel and a peck: wheat prices rise by half Management Today magazine 3 August 2010 28 March 2011 due to the Russian export ban. Fertilizer thumb|right|Fertilizer prices #00A2FF solid 3px DAP #61D836 solid 3px Potassium chloride #929292 solid 3px Phosphorite #F8BA00 solid 3px Triple Superphosphate #FF2600 solid 3px Urea There was in increase in the demand for fertilizer from China and India. Also an increase in demand for fertilizer to create biofuels like Ethanol as a Fuel from corn in the United States, Brazil, and Europe. Increased livestock grew demand for more grain and fertilizer causing grain reserves to plunge to a historic low. China put export controls on their fertilizer. Natural gas prices increased a lot during this period and that is used in the process of making some fertilizers (Haber process). Phosphate prices went up because of an increase in price of sulfur which is an input to phosphate fertilizer.https://www.ers.usda.gov/amber-waves/2009/march/recent-volatility-in-us-fertilizer-prices/ https://web.archive.org/web/20170506004727/https://www.ers.usda.gov/amber-waves/2009/march/recent-volatility-in-us-fertilizer-prices/ dead 6 May 2017 USDA ERS - Recent Volatility in U.S. Fertilizer Prices https://www.eurekalert.org/news-releases/879968 World fertilizer prices drop dramatically after soaring to all-time highs 16 December 2008 EurekAlert thumb|right|300px|Production and price (US market) of elemental sulfur thumb|center|350px|Corn vs Ethanol production in the United States #FFD932 Total corn production (bushels) (left) B51700 Corn used for Ethanol fuel (bushels) (left) #313131 solid 3px Percent of corn used for Ethanol (right) Sugar thumb|300px|Sugar Prices 1962-2022 Prices rose modestly and briefly because of Hurricane Katrina in 2005 and 2006 but a bigger price climb came later from supply disruptions in India, Brazil, and other places around the world. https://www.foodbusinessnews.net/articles/10403-refined-sugar-prices-rise-on-2010-supply-concerns Refined sugar prices rise on 2010 supply concerns | Food Business News | January 07, 2010 09:01 Paper Recycled paper The price of recycled paper has varied greatly over the last 30 or so years.http://www.treemaxx.com/blog/?p=5 Freefalling Recycled Paper Prices January 16, 2009 Trees in the Forest (Treemaxx.com) https://web.archive.org/web/20090412200615/http://www.treemaxx.com/blog/?p=5 12 April 2009 28 March 2011 Recycling and Composting Online. Recycle.cc (10 March 2011). Retrieved 28 March 2011.https://www.independent.co.uk/news/business/news/recycled-paper-up-in-price-593502.html https://ghostarchive.org/archive/20220501/https://www.independent.co.uk/news/business/news/recycled-paper-up-in-price-593502.html 1 May 2022 subscription London The Independent Heather Tomlinson Recycled paper up in price 6 April 2003 9 July 2010 August 2021 medicmedic Paper Recycling Crisis ? https://web.archive.org/web/20110716111729/http://www.wildaboutbritain.co.uk/forums/waste-recycling-and-pollution/46521-paper-recycling-crisis.html 16 July 2011 . Wild About Britain. Retrieved 28 March 2011.Loose Waste Paper Exchange Listings. Recycle.net. Retrieved 28 March 2011.A Paper Recycling Business – Startup Guide. Howtoadvice.com. Retrieved 28 March 2011. The German price of €100/£49 per tonne was typical for the year 2003 and it steadily rose over the years. By September 2008 saw American price of $235 per ton had fallen to just $120 per ton, The slump was probably due to the economic down turn in East Asia causing the market for waste paper drying up in China. 2010 prices averaged $120.32 at the start of the year, but saw a rapid rise in global prices in May 2010, reaching $217.11 per ton in the US in June 2010 as China's paper market began to reopen. Fuel thumb|300px|right|Natural gas prices Henry Hub Coal thumb|290px|right|Coal prices Coal prices rose to A$73 per tonne in SeptemberCoal prices to surge in 2010 despite ample supply | 20 October 2009. www.commodityonline.com (20 October 2009). Retrieved 28 March 2011. and then up to A$84 per tonne in the October 2009 due to renewed interest by China's and Taiwan's energy companies. Oil thumb|400px|right| #000000 solid 3px Brent Crude #B6595E solid 3px West Texas Intermediate During 2003, the price rose above $30, reached $60 by 11 August 2005, and peaked at $147.30 in July 2008.http://tfc-charts.com/chart/QM/W Light Crude Oil EmiNY (QM, NYMEX): Weekly Price Chart Tfc-charts.com 14 May 2011 Commentators attributed the heavy price increases to many factors, including reports from the United States Department of Energy and others showing a decline in petroleum reserves,http://www.ameinfo.com/90848.html Record oil price sets the scene for $200 next year AMEinfo.com 6 July 2006 29 November 2007 https://web.archive.org/web/20071214134806/http://www.ameinfo.com/90848.html 14 December 2007 live worries over peak oil,http://www.energybulletin.net/ EnergyBulletin.net Peak Oil News Clearinghouse 9 July 2010 https://web.archive.org/web/20100808123136/http://www.energybulletin.net/ 8 August 2010 live Middle East tension, and oil price speculation.http://www.spiegel.de/international/business/0,1518,556519,00.html The Hike in Oil Prices: Speculation – But Not Manipulation 9 July 2010 For a time, geo-political events and natural disasters indirectly related to the global oil market had strong short-term effects on oil prices, such as North Korean missile tests,http://edition.cnn.com/2006/BUSINESS/07/05/oil.price/index.html Missile tension sends oil surging CNN 21 April 2010 the 2006 conflict between Israel and Lebanon,http://news.bbc.co.uk/2/hi/business/7083015.stm Oil hits $100 barrel BBC News 2 January 2008 31 December 2009 https://web.archive.org/web/20091213053546/http://news.bbc.co.uk/2/hi/business/7083015.stm 13 December 2009 live worries over Iranian nuclear plans in 2006,http://news.bbc.co.uk/2/hi/business/4684844.stm Iran nuclear fears fuel oil price BBC News 6 February 2006 31 December 2009 https://web.archive.org/web/20100109062558/http://news.bbc.co.uk/2/hi/business/4684844.stm 9 January 2010 live Hurricane Katrina,https://fpc.state.gov/documents/organization/53572.pdf The Macroeconomic Effects of Hurricane Katrina, CRS Report for Congress 14 May 2011 https://web.archive.org/web/20110512120137/http://fpc.state.gov/documents/organization/53572.pdf 12 May 2011 livehttp://business.timesonline.co.uk/tol/business/economics/article560389.ece Hurricane Katrina whips oil price to a record high The Times Carl Mortished 30 August 2005 https://web.archive.org/web/20110612085524/http://business.timesonline.co.uk/tol/business/economics/article560389.ece 12 June 2011 and various other factors.http://www.slate.com/id/2181282/ Gas Bubble: Oil is at $100 per barrel. Get used to it. Daniel Gross Slate 5 January 2008 9 July 2010 By 2008, such pressures appeared to have an insignificant impact on oil prices given the onset of the global recession.5 May 2009 2 September 2008 http://news.sky.com/skynews/Home/Business/Oil-Prices-Fall-To-Four-month-Lows-Despite-Production-In-Gulf-of-Mexico-Shut-Due-To-Hurricane-Gustav/Article/200809115091229?lpos=Business_3&lid=ARTICLE_15091229_Oil%2BPrices%2BFall%2BTo%2BFour-month%2BLows%2BDespite%2BProduction%2BIn%2BGulf%2Bof%2BMexico%2BShut%2BDue%2BTo%2BHurricane%2BGustav Oil Prices Fall As Gustav Hits Sky News https://web.archive.org/web/20090622042842/http://news.sky.com/skynews/Home/Business/Oil-Prices-Fall-To-Four-month-Lows-Despite-Production-In-Gulf-of-Mexico-Shut-Due-To-Hurricane-Gustav/Article/200809115091229?lpos=Business_3&lid=ARTICLE_15091229_Oil%2BPrices%2BFall%2BTo%2BFour-month%2BLows%2BDespite%2BProduction%2BIn%2BGulf%2Bof%2BMexico%2BShut%2BDue%2BTo%2BHurricane%2BGustav 22 June 2009 dead The recession caused demand for energy to shrink in late 2008, with oil prices falling from the July 2008 high of $147 to a December 2008 low of $32.https://www.bloomberg.com/apps/news?pid=20601072&sid=aqjfU59OuXbA Oil Ministers See Demand Rising, Price May Exceed $85 Bloomberg 10 May 2010 Robert Tuttle Ola Galal 9 July 2010 Oil prices stabilized by October 2009 and established a trading range between $60 and $80. The price of oil nearly tripled from $50 to $147 from early 2007 to 2008, before plunging during the 2008 financial crisis.http://futures.tradingcharts.com/chart/CO/M Light Crude Oil Chart Futures.tradingcharts.com 1 May 2010 Experts debate the causes, which include the flow of money from housing and other investments into commodities to speculation and monetary policyConway Edmund https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/2790539/George-Soros-rocketing-oil-price-is-a-bubble.html Soros – Rocketing Oil Price is a Bubble The Daily Telegraph London 26 May 2008 1 May 2010 https://web.archive.org/web/20100330022407/http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/2790539/George-Soros-rocketing-oil-price-is-a-bubble.html 30 March 2010 live or the increasing feeling of raw materials scarcity in a fast-growing world economy and thus positions taken on those markets, such as Chinese increasing presence in Africa. An increase in oil prices tends to divert a larger share of consumer spending into gasoline, which creates downward pressure on economic growth in oil importing countries, as wealth flows to oil-producing states.https://mises.org/story/2999 Mises Institute-The Oil Price Bubble Mises.org 2 June 2008 1 May 2010 In January 2008, oil prices surpassed $100 a barrel for the first time, the first of many price milestones to be passed in the course of the year.https://news.yahoo.com/s/afp/20080227/ts_afp/commoditiesenergyoilprice Crude oil prices set record high 102.08 dollars per barrel 9 July 2010 May 2011 In July 2008, oil peaked at $147.30http://tfc-charts.com/chart/QM/M Light Crude Oil EmiNY (QM, NYMEX): Monthly Price Chart Tfc-charts.com 4 January 2009 a barrel and a gallon of gasoline was more than $4 across most of the US. The high of 2008 may have been part of broader pattern of spiking instability in the price of oil over the preceding decade.http://www.energybulletin.net/node/50923 Gail the Actuary – Was Volatility in the Price of Oil a Cause of the 2008 Financial Crisis? Energybulletin.net 8 December 2009 14 May 2011 https://web.archive.org/web/20110430000052/http://www.energybulletin.net/node/50923 30 April 2011 live This pattern of instability in oil price may be a product of peak oil. There is concern that if the economy was to improve, oil prices might return to pre-recession levels.Low oil prices won't last, IEA warns https://www.thestar.com/business/2008/11/12/low_oil_prices_wont_last_iea_warns.html Toronto Star November 12, 2008 Ottawa In testimony before the Senate Committee on Commerce, Science, and Transportation on 3 June 2008, former director of the CFTC Division of Trading & Markets (responsible for enforcement) Michael Greenberger specifically named the Atlanta-based IntercontinentalExchange, founded by Goldman Sachs, Morgan Stanley and BP as playing a key role in the speculative run-up of oil futures prices traded off the regulated futures exchanges in London and New York.http://digitalcommons.law.umaryland.edu/cong_test/27/ Energy Market Manipulation and Federal Enforcement Regimes Congressional Testimony Digitalcommons.law.umaryland.edu 1 May 2010 January 2008 Greenberger Michael The price of oil rose to $77 per barrel on 24 June 2010 as a cyclone begins to form in the south western Caribbean.https://af.reuters.com/article/energyOilNews/idAFSGE65O02G20100625 https://web.archive.org/web/20120601055732/http://af.reuters.com/article/energyOilNews/idAFSGE65O02G20100625 dead 1 June 2012 Reuters Oil rises towards $77 as Caribbean storm brews 25 June 2010 9 July 2010 The price for July 2010 was about $84–$90 per barrel of crude oil. Oil prices ended the year at $101.80, falling to $100.01 per barrel on 30 and 31 January 2011.May 2011, then the Egyptian civil war broke out, as it theoretically put the use of Suez Canal at risk.BBC News – Egypt unrest pushes Brent crude oil to $100 a barrel. BBC News (31 January 2011). Retrieved 28 March 2011. Making matters worse, a gas pipeline to Jordan was blown up by saboteurs in the Sinai Peninsula. Prices remained steady until a dramatic drop began the 2010s oil glut. Jet fuel thumb|300px|Jet fuel kerosene price thumb|300px| #4572A7 solid 3px Jet fuel prices per gallon (left) #AA4643 solid 3px WTI crude oil price per barrel (right) Hurricane Katrina caused Jet fuel prices to rise in 2005 because of slowed down refining in the Gulf Coast area, those prices dipped and the price of jet fuel went up with the price of oil through 2008. https://www.aviationpros.com/home/news/10432407/fuel-costs-in-katrinas-aftermath-will-affect-airlines StackPath 30 August 2005 Uranium thumb|325px|Uranium prices Uranium bubble of 2007 Uranium traded at about $15–$20/kg since the late 1980s due to a 10-year secular bear market, with a 2001 low of just over $10/kg. The Uranium bubble of 2007 started in 2005Uranium Bubble & Spec Market Outlook. News.goldseek.com. Retrieved 28 March 2011. and began to accelerate badly with the 2006 flooding of the Cigar Lake Mine in Saskatchewan.Uranium Has Bottomed: Two Uranium Bulls to Jump on Now. UraniumSeek.com (22 August 2008). Retrieved 28 March 2011.TradeTech – In the Market https://web.archive.org/web/20071212170510/http://www.uranium.info/prices/monthly.html 12 December 2007 . Uranium.info. Retrieved 28 March 2011.Nuclear Engineering International https://web.archive.org/web/20110613104251/http://www.neimagazine.com/story.asp?sectionCode=132&storyCode=2050703 13 June 2011 . Neimagazine.com (22 August 2008). Retrieved 28 March 2011. Uranium prices peaked at roughly $300/kg in mid-2007,Random Roger: Uranium A Bubble?. Randomroger.blogspot.com (20 February 2007). Retrieved 28 March 2011. began to fall in mid-2008 and are now (end 2010) hovering about $100/kg.Dynamic Charting Tool | InvestmentMine. Infomine.com. Retrieved 28 March 2011. The stock prices of many uranium mining and exploration companies rose sharply, only to fall later in this boom. There was also a resurgence of interest in nuclear power by the UK government between 2006 and 2008 due to the apparently insecure nature of Middle Eastern and Russian oil and after the closure of several old and economically/environmentally unviable coal fired power stations at the time. This helped the uranium price to rally at this date. Precious metals Gold thumb|Gold price per troy ounce in USD since 1960, in nominal US$ and inflation adjusted in 2012 US$. There was a sharp shift in the prices of gold and, to a lesser extent, both silver and platinum. Prices were at or near an all-time high in late 2010 due to people using the precious metals as a safe haven for their money as both the de facto value of cash and the stock market prices became more erratic in the late 2000s. The period from 1999 to 2001 marked the "Brown Bottom" after a 20-year secular bear market at $252.90 per troy ounce.http://www.timesonline.co.uk/tol/news/politics/article1655001.ece Goldfinger Brown's £2 billion blunder in the bullion market The Times Holly Watt Robert Winnett 15 April 2007 https://web.archive.org/web/20080511163250/http://www.timesonline.co.uk/tol/news/politics/article1655001.ece 11 May 2008 dead Prices increased rapidly from 2001, but the 1980 high was not exceeded until 3 January 2008 when a new maximum of $865.35 per troy ounce was set (a.m. London Gold Fixing).http://www.lbma.org.uk/2008dailygold.htm LBMA statistics Lbma.org.uk 31 December 2008 5 April 2009 dead https://web.archive.org/web/20090210035134/http://lbma.org.uk/2008dailygold.htm 10 February 2009 Another record price was set on 17 March 2008 at $1,023.50/oz ($32,900/kg) (am. London Gold Fixing). In the fall of 2009, gold markets experience renewed momentum upwards due to increased demand and a weakening US dollar. On 2 December 2009, gold passed the important barrier of US$1,200 per ounce to close at $1,215.http://news.bbc.co.uk/2/hi/business/8390779.stm Gold hits yet another record high BBC News 2 December 2009 6 December 2009 https://web.archive.org/web/20091205132556/http://news.bbc.co.uk/2/hi/business/8390779.stm 5 December 2009 live Gold further rallied hitting new highs in May 2010 after the European Union debt crisis prompted further purchase of gold as a safe asset.http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx Kitco price charts Kitco.com 14 May 2011 https://web.archive.org/web/20110522040223/http://www.kitco.com/scripts/hist_charts/yearly_graphs.plx 22 May 2011 livePRECIOUS METALS: Comex Gold Hits All-Time High https://www.wsj.com/article/BT-CO-20100511-717954.html?mod=WSJ_latestheadlines 30 June 2010 dead https://web.archive.org/web/20100514142122/http://online.wsj.com/article/BT-CO-20100511-717954.html?mod=WSJ_latestheadlines 14 May 2010 Gold hits closing record; zips past $1,233/ounce Metals Stocks. MarketWatch. Retrieved 28 March 2011. Since April 2001, the price of gold has more than tripled in value against the US dollar,http://kitco.com/LFgif/au3650nyb.gif Kitco.com 10 Year gold chart 14 May 2011 https://web.archive.org/web/20110521193658/http://www.kitco.com/LFgif/au3650nyb.gif 21 May 2011 dead prompting speculation that the long secular bear market had ended and a bull market has returned.http://www.ameinfo.com/75511.html Gold starts 2006 well, but this is not a 25-year high! | Financial Planning Ameinfo.com 5 April 2009 https://web.archive.org/web/20090321064338/http://www.ameinfo.com/75511.html 21 March 2009 dead Gold's price finally stood at $1,350 per troy oz on 1 July 2010.Gold Bubble on the Verge of Bursting? – Precious Metals. Resource Investor. Retrieved 28 March 2011. On 7 October 2010, it cost $1,364.60 per troy ounce,https://www.reuters.com/article/idUSTRE67F05920101007?loomia_ow=t0:s0:a49:g43:r3:c0.060606:b38097372:z0 Reuters Gold hits record, set for best week in six months 7 October 2010 7 October 2010 by 7 December reached the all time nominal historic high of $1,429.05 per troy ounce. Silver thumb|325px|right|Price of silver Silver cost $4 per troy ounce in 1992, started to rise rapidly in early 2004, reached $18 per troy oz by late 2007, slipped badly to $10 per troy oz during the Credit Crunch of 2008, but was selling in late 2009 and again in early 2010 at just under $18 per troy oz of metal. A year later, the Feb 2011 average was over $30 per oz of silver.Historical Silver Data and Charts – London Fix. Kitco.com (20 May 1999). Retrieved 28 March 2011. https://web.archive.org/web/20190106233734/https://www.kitco.com/charts/historicalsilver.html%20 6 January 2019 On 29 April 2011, silver price reached $47.94 but fell by 12% on 2 May 2011. Prices range around $20–$25 in 2013-2014. Platinum thumb|330px|right|Platinum price 1970-2022 Platinum first sold at about $350 per troy oz in 1992 and stayed rather flat save for a small dip to about $325 per troy oz in the mid-1990s and an equally small rise to about $375 per troy ounce in the Millennium period. It started to gain value in mid-2002 and grew on an experiential curve model as the prices then began to move sharply upwards. The high point was when it was trading for $2,200 per troy oz in early 2007. Prices declined to $800 per troy oz in January 2008, but the price had increased $1,600 per troy oz by early 2010. Titanium Titanium prices rose to over $16,000 per metric ton in 2006.https://www.austgen.com.au/is-titanium-metal-expensive/ Is Titanium Metal Expensive? | Australian General Engineering July 2022 thumb|300px|center|Titanium price 1997-2018 Rhodium thumb|330px|right|Rhodium daily Price 1992-2022 Rhodium prices rose briefly during the millennium period due to increased demand, then collapsed to nearly their original 1995-7 starting price of $500/oz between 2002 and 2004. Later on, the mysterious and unexpected Rhodium price bubble of 2008 suddenly increased prices from just over $500/oz in late 2006 to $9,000/oz-$9,500/oz in July 2008, only for the price then to tumble down only $1,000/oz in January 2009.http://www.kitco.com/charts/historicalrhodium.html Historical Rhodium Charts Kitco 19 February 2010 https://web.archive.org/web/20100208152203/http://www.kitco.com/charts/historicalrhodium.html 8 February 2010 live Both an increase in demand in the American automotive industry, a herd instinct among investors, a then bullish market in rare metals and a rogue speculator or rogue speculators on Wall Street were all at least partly to blame for the sudden rise and fall in the rare metal's price.Can One Man's Actions Take $6 Billion In Value Out Of A Minor Metal Market In A Month? – Undesignated. Resource Investor. Retrieved 28 March 2011. Rhodium is mainly mined as a by-product of other metals such as platinum, so the production is based on production of other metals and therefore on demand of them, and less on the demand of rhodium. Rhodium rose in price extremely sharply in January 2021 and by mid February 2021 it had reached an all time high of $21,400 per Troy ounce making it the most valuable metal ever sold. Palladium thumb|right|Palladium prices – US Dollars per troy ounce Most palladium is used for catalytic converters in the automobile industry.Palladium – A review of exposure and effects to human health International Journal of Hygiene and Environmental Health 205 6 2002 10.1078/1438-4639-00180 J. Kielhorn C. Melber D. Keller I. Mangelsdorf 12455264 417–32 2002IJHEH.205..417K It is also used for some medical, high grade steel, industrial, dental and electronic purposes. Palladium prices rose sharply during the millennium period due to increased demand, then collapsed to nearly their original starting price by the end 2002, only to start to rise less dramatically in the year 2006. Palladium prices in 1992 and 2002–04 was about $200/oz. It rapidly shot up to approximately $1,000/oz between 1999 and 2001 and collapsed to only $200/oz by late 2002, but is now just under $500/oz per of Palladium in 2010. In the run up to 2000, Russian supply of palladium to the global market was repeatedly delayed and disruptedThe London Bullion Market Association The LBMA Precious Metals Conference 2003 Russian PGM Stocks Alan Williamson http://www.lbma.org.uk/conf2003/5d.williamson%20LBMAConf2003.pdf 9 July 2010 dead https://web.archive.org/web/20110716135639/http://www.lbma.org.uk/conf2003/5d.williamson%20LBMAConf2003.pdf 16 July 2011 because the export quota was not granted on time, for political reasons. The ensuing market panic drove the palladium price to an all-time high of $1,100 per troy ounce in January 2001.http://www.kitco.com/charts/historicalpalladium.html Historical Palladium Charts and Data Kitco 9 August 2007 Around this time, the Ford Motor Company, fearing auto vehicle production disruption due to a possible palladium shortage, stockpiled large amounts of the metal purchased near the price high. When prices fell in early 2001, Ford lost nearly US$1 billion.16 January 2002 Ford fears first loss in a decade BBC News http://news.bbc.co.uk/1/hi/business/1763406.stm 19 September 2008 World demand for palladium increased from 100 tons in 1990 to nearly 300 tons in 2000. The global production of palladium from mines was 222 tonnes in 2006 according to the USGS. Rhenium Because of the low availability relative to demand, rhenium is among the most expensive industrial metals, with an average price exceeding US$6,000 per kilogram, as of mid-2009. It first traded in 1928 at US$10,000 per kilogram of metal, but traded at US$250 per Troy ounce in mid-2010. https://web.archive.org/web/20100527201403/http://www.periodic.lanl.gov/elements/75.html 27 May 2010 It traded in July 2010, at about US$4,000–4,500/kg.Rhenium Prices https://web.archive.org/web/20101116005141/http://metalsplace.com/prices/rhenium/ 16 November 2010 . Metals Place (8 July 2007). Retrieved 28 March 2011. Other industrial metals Aluminium thumb|Price of aluminum Aluminium is a widely used, mined, refined and trusted metal.WebElements Periodic Table of the Elements | Aluminium | Essential information. Webelements.com. Retrieved 28 March 2011.International Aluminium Institute. World-aluminium.org. Retrieved 28 March 2011. The fortunes of this metal are linked to the rise and fall of the aircraft, electrical and automotive industries.Aluminium International Today. Aluminiumtoday.com. Retrieved 28 March 2011.Old, Shelley. (2 July 2010) https://archive.today/20120718173557/http://www.abc.net.au/news/stories/2010/07/02/2942839.htm?section=business China's aluminium demand will rise: Rio Tinto – ABC News (Australian Broadcasting Corporation). Abc.net.au. Retrieved 28 March 2011. The price of aluminium was 80 US cents per lb in 1995 and 45 cents per lb in 1998 and hovered around this until the January 2003, when it started to rise to $1.50 per pound and in 2006 and $1.40 per lb in the December 2007.Dynamic Charting Tool | InvestmentMine. Infomine.com. Retrieved 28 March 2011.Dynamic Charting Tool | InvestmentMine. Infomine.com. Retrieved 28 March 2011. It collapsed down to a mere 60 cents per lb in the November 2008, but is now hovering at about $1.00 per lb, with a new April peak of $1.10 per pound of aluminium. Nickel thumb|Price of Nickel The price of nickel boomed in the late 1990s, then imploded from around $51,000 /£36,700 per tonne in May 2007 to about $11,550/£8,300 per tonne in January 2009. Prices were only just starting to recover as of January 2010, but most of Australia's nickel mines had gone bankrupt by then.http://news.bbc.co.uk/1/hi/business/7841417.stm Business | Miner BHP to lay off 6,000 staff BBC News 21 January 2009 1 May 2010 As the price for high grade nickel sulphate ore recovered in 2010, so did the Australian mining industry.http://www.proactiveinvestors.com.au/companies/news/5032/mincors-result-reflects-a-return-to-better-days-for-sulphide-nickel-5032.html (AU) – Mincor's result reflects a return to better days for sulphide nickel Proactive Investors 18 February 2010 1 May 2010 https://web.archive.org/web/20110706111508/http://www.proactiveinvestors.com.au/companies/news/5032/mincors-result-reflects-a-return-to-better-days-for-sulphide-nickel-5032.html 6 July 2011 dead Battery recycling has helped bring down both the nickel and cadmium prices. Copper thumb|325px|right|Price of Copper 1959-2022 State Reserves Bureau copper scandal In the years prior to the rise of copper prices in late 2003 as part of the boom, various copper mining companies exibited cartel-like behaviour. This consisted of announcements made in late 2001 for production cuts for 2002 which were carried out, and a repetition of similar announcements for 2003 in late 2002.Montero Juan-Pablo Guzmán Juan Ignacio 2005 Competencia dinámica y colusión en mercados de minerales Minería y desarrollo Lagos Gustavo Gustavo Lagos es Santiago, Chile Ediciones Universidad Católica de Chile 105 956-14-0844-9 It was also noticed that a copper price bubble was occurring at the same time as the oil bubble. Copper traded at about $2,500 per tonne from 1990 until 1999, when it fell to about $1,600.Copper prices London http://www.metalprices.com/FreeSite/metals/cu/cu.asp 3 July 2010 The price slump lasted until 2004 which saw a price surge that had copper reaching $9,000 per tonne in the May 2006, but it eventually fell down to $7,040 per tonne in early 2008.http://dow-futures.net/historical-copper-prices-history/ Historical Copper Prices, Copper Prices History Dow-futures.net 22 January 2007 1 May 2010 dead https://web.archive.org/web/20100512134725/http://dow-futures.net/historical-copper-prices-history 12 May 2010 When the slump came, it hit some copper mining countries like the Democratic Republic of the Congo (D.R.C.) very hard. Mining authorities announced on 10 December 2009, that the Dikulushi mine, which is situated in the D.R.C.'s Katanga Province, would close due to poor copper prices.afrol News – Another DRC copper mine closed. Afrol.com. Retrieved 28 March 2011. It reopened in July 2010. The price rose again to over $10,000 in early 2011 but soon fell to below $8,000, around where it was fairly stable during 2012.http://www.infomine.com/investment/metal-prices/copper/5-year/ 5 Year Copper Prices and Copper Price Charts - InvestmentMine InfoMine 2 May 2015 The high prices have caused a heavy increase in theft of copper cables, causing interruptions in electrical supply.https://www.fbi.gov/news/stories/2008/december/copper-theft-intel-report-unclass Federal Bureau of Investigation 15 September 2005 24 January 2014 Copper Theft Threatens U.S. Critical Infrastructure dead https://web.archive.org/web/20121014141458/http://www.fbi.gov/news/stories/2008/december/copper-theft-intel-report-unclass 14 October 2012 http://www.metaltheftscotland.org.uk/ 4 House Fires and Hundreds of Homes Without Power after Substation Targeted metaltheftscotland.org.uk 29 November 2013 24 January 2014 https://web.archive.org/web/20130707061345/https://www.metaltheftscotland.org.uk/ 7 July 2013 dead From 2013 to 2014 there was a slow decline to below $7,000. High copper prices during the boom led to a temporary renewed interest in aluminium as substitute for copper.Análisis de Minerales Críticos y/o Estratégicos https://www.cochilco.cl/web/analisis-de-minerales-criticos-y-o-estrategicos/ 2026-03-25 2024 Chilean Copper Commission es Analysis of Critical and/or Strategic Minerals 58–60 Chilean state-owned copper giant Codelco made large gains during the boom.Chile, copper and resource revenue: A holistic approach to assessing commodity dependence 2015 Resources Policy Ebert Laura 43 101–111 La Menza Tania 10.1016/j.resourpol.2014.10.007 2015RePol..43..101E Artisan miners known as pirquineros also made considerable profits albeit some found it difficult to reskill to gold mining after copper prices fell in 2008.Brilla el precio del oro: pirquineros del cobre se reconvierten El Mercurio 2009-06-22 https://www.mch.cl/negocios-industria/brilla-el-precio-del-oro-pirquineros-del-cobre-se-reconvierten/ Minería Chilena eses Minería popular y estrategias de supervivencia: Pirquineros y pallacos en el Norte Chico, Chile, 1780-1950 Cuadernos de Historia https://www.scielo.cl/scielo.php?script=sci_arttext&pid=S0719-12432016000200002 Godoy Orellana Milton 10.4067/S0719-12432016000200002 45 2016 29–62 Iron thumb|330px|Iron ore prices #EE220C solid 3px China import/inbound iron ore spot pricehttps://www.indexmundi.com/commodities/?commodity=iron-ore&months=360 Iron Ore - Monthly Price - Commodity Prices - Price Charts, Data, and News - IndexMundi #61D836 solid 3px Global iron ore pricehttps://fred.stlouisfed.org/graph/?g=StR6 Global price of Iron Ore The prices of iron ore rose sharply from around $10 per tonne in 2003 to around $170 in April 2009 (transported to China). After that (written September 2013) the price was between $100 and $150;http://www.indexmundi.com/commodities/?commodity=iron-ore&months=180 Iron Ore - Monthly Price - Commodity Prices - Price Charts, Data, and News - IndexMundi 2 May 2015 in September 2014 it started dropping precipitously, and was below $70 per ton in December 2014. The price of steel (at steel plants in Japan) has risen from around $300 per tonne in 2003 to $1,000 in late 2008, stabilizing at $800 in 2012.http://www.indexmundi.com/commodities/?commodity=hot-rolled-steel&months=120 Hot-rolled steel - Monthly Price - Commodity Prices - Price Charts, Data, and News - IndexMundi 2 May 2015 The rise in prices made abandoned mines to reopen and new ones to open. It took some years to open mines, so some got a scaled up production around the time the prices dropped (drop partly caused by such production). Furthermore, started construction projects had to be finished so demand only reacted slowly to the rising prices. The surge in the iron ore price resulted in boom-time conditions in Australia, and especially in Western Australia,the main source of China’s iron ore supply. Lead thumb|325px|right|Price of lead US Dollars per Metric Ton The price of lead rose sharply in early 2007, then collapsed to nearly their original starting price by the end of the next year. Lead prices began to rise in early 2007 due to increased worldwide demand. Prices were about $1,200 per tonne of lead in the July, then rose to $2,220 per tonne by September and collapsed back down to $1,200 per tonne in the October of that year. Despite the bullish market condition, the price had collapsed by the July 2009 and was only worth about $1,400 per tonne of lead.http://uk.reuters.com/article/idUKLD66926820090713 https://archive.today/20120716001340/http://uk.reuters.com/article/idUKLD66926820090713 dead 16 July 2012 Reuters Standard Chartered ups 2010 lead price forecast 13 July 2009 9 July 2010 The lead and zinc markets became rather bearish for several months afterwards. Prices were hovering at between $1,770 and $2,175 per tonneLead prices plunge as LME stocks rise relentlessly | 19 February 2010. www.commodityonline.com (19 February 2010). Retrieved 28 March 2011. as the markets became more bullish and increased prices after China's car scrapping scheme had caused a general upturn in lead, zinc, cadmium and aluminium production. By the June 2010, prices stood at only $870 per tonne, and were back to about $2,200 in the July 2010.European concerns lead to oil price drop | LiveWire Economics Blog. Livecharts.co.uk. Retrieved 28 March 2011.Lead prices from the London Metal Exchange (LME), news, charts, historical prices https://web.archive.org/web/20100612171105/http://www.metalprices.com/FreeSite/metals/pb/pb.asp 12 June 2010 . Metalprices.com. Retrieved 28 March 2011.Lead Prices News https://web.archive.org/web/20100626223952/http://www.metalmarkets.org.uk/metals/lead/ 26 June 2010 . Metalmarkets.org.uk. Retrieved 28 March 2011. Zinc thumb|325px|right|Price of Zinc The price of zinc rose sharply in early 2007 after a five-year secular bear market, then collapsed to nearly their original starting price by the end of the next year.Current Primary and Scrap Metal Prices – LME (London Metal Exchange) https://web.archive.org/web/20170830194920/https://www.metalprices.com/ 30 August 2017 . Metalprices.com. Retrieved 28 March 2011. Zinc also exhibited similar bullish trading patterns as most metals did since 2004, but with a different overall price.Ecclestone bullish on zinc and lead prices by end of 2010 – Proactiveinvestors (UK) https://web.archive.org/web/20100815052921/http://www.proactiveinvestors.co.uk/companies/news/17843/ecclestone-bullish-on-zinc-and-lead-prices-by-end-of-2010-17843.html 15 August 2010 . Proactiveinvestors (18 June 2010). Retrieved 28 March 2011. Zinc sale prices were 80 cents per pound in July 2008,Zinc prices London http://www.metalprices.com/FreeSite/metals/zn/zn.asp 3 July 2010 https://web.archive.org/web/20100620141020/http://www.metalprices.com/FreeSite/metals/zn/zn.asp 20 June 2010 live which was typical of its 2004–2008 pricing levels. By January 2009 it had bottomed out and was worth 45 cents per lb. A spectacular bull market and increased Chinese interest in galvanised construction steel caused prices to top off at $1.20 per pound of metal by January 2010. It then quickly fell back to a routine 80 cents by July 2010. Zinc is popular in manufacturing and building; its ability to create corrosion-resistant zinc plating of steel (hot-dip galvanizing) is the major application for zinc. Other applications are in batteries and alloys, such as brass. A variety of zinc compounds are commonly used, such as zinc carbonate and zinc gluconate (as dietary supplements), zinc chloride (in deodorants), zinc pyrithione (anti-dandruff shampoos), zinc sulfide (in luminescent paints), and zinc methyl or zinc diethyl in the organic laboratory. Neodymium Neodymium, a fairly rare metal which is used in high grade magnets,Periodic Table https://web.archive.org/web/20100611115724/http://www.baotou.com/pro/pro.htm#Neodymium 11 June 2010 . Baotou.com. Retrieved 28 March 2011.Neodymium | Compare Hand Tools prices – price comparison at. Bizrate.co.uk. Retrieved 28 March 2011.Nanotechnology at Work. PIDC. Retrieved 28 March 2011. saw its prices rise due to increased demand, as were typical of this general market trend. The average price was $16.10 per kg in November and December 2009,Rare earth pricing resurges | Industrial Minerals. Mineralnet.co.uk. Retrieved 28 March 2011. but it began trading in June 2010 at $20–$45 per kg.Rare earth prices climbing | Industrial Minerals. Mineralnet.co.uk. Retrieved 28 March 2011. Neodymium serves as a constituent of high strength neodymium magnets, which are widely used in loudspeakers, computer hard drives, high power-per-weight electric motors (e.g. for those in hybrid cars) and in high efficiency generators (such as aircraft and wind turbine generators).Gorman Steve https://www.reuters.com/article/newsOne/idUSTRE57U02B20090831 Steve Gorman, As hybrid cars gobble rare metals, shortage looms, Reuters, Mon Aug 31, 2009 Reuters 31 August 2009 14 May 2011 There was also a strong resurgence of interest in wind farms by the UK government between 2008 and 2010 due to the continuing fears of insecurity in Middle Eastern oil supplies to the industrialised nations and after the closure of several old and economically/environmentally unviable coal-fuelled power stations earlier that decade. This helped the price to rally in 2010.November 2016 Other metals The cadmium, tantalum, manganese, thulium, tin, chromium, indium, columbium/niobium, cobalt, molybdenum and vanadium prices rose sharply in early 2007, then collapsed to nearly their original starting price by the end of the next year ICA raises indium price to 640 per kg. Metal Bulletin (14 April 2010). Retrieved 28 March 2011. due to uncertainty about supplies matching the demand, especially those of the BRIC countries' electronics industries in iPods, computers, mobile phones, et al. Niobium is used in the steel of gas pipe lines due to the alloy's high strength and low corrosion rate.Niobium or Columbium Facts – Periodic Table of the Elements https://web.archive.org/web/20110106100414/http://chemistry.about.com/od/elementfacts/a/niobium.htm 6 January 2011 . Chemistry.about.com (11 June 2010). Retrieved 28 March 2011. Battery recycling has helped bring down both the nickel and cadmium prices. About 86% of all cadmium production was used in batteries during 2009. The rapid growth of wind farms and heavy duty magnets has made neodymium prices rally again and both Brazil and China's renewed interest in high grade steel has improved the Vanadium price recently. The way these metal's prices rose and fell due to increased demand, were typical of this general market trend. Baltic Dry Index Baltic Dry Index thumb|325px|Baltic Dry Index 1985 - 2022 The Baltic Dry Index is a measure of the cost of shipping dry bulk goods around the world. It increased during the mid 2000s because of global demand for manufactured goods as well as rapidly growing Chinese demand for coal and iron ore. In 2008 the price of oil drove the index higher to an all time high of 11,440 points in May 2008. Because of the Great Recession the index dropped to 715 points in late 2008. Sengupta Rajdeep Tam Yu Man 6 March 2009 Recent Movements in the Baltic Dry Index https://files.stlouisfed.org/files/htdocs/publications/es/09/ES0912.pdf Economic SYNOPSES 12 research.stlouisfed.org Chemicals Sulphuric acid In 2002, 95% pure sulphuric acid cost £55 and 90% acid cost £40 per tonne.Costs of Chemicals https://web.archive.org/web/20100726042406/http://ed.icheme.org/costchem.html 26 July 2010 . Ed.icheme.org (26 February 2002). Retrieved 28 March 2011. Due to floods in Poland and increased demand in China, the acid's price soared to $329/tonne in May 2008, from just $90/tonne in October 2007. It has become steadily cheaper since the start of 2010. Most industrial chemicals exhibited similar price trends due to bad weather in the EU and USA along with increased demand by the BRIC nations. Non metals Chlorine Chlorine products such as P.V.C. plastics, caustic soda, industrial paper bleach and ordinary household and industrial bleachs saw their prices rise sharply in 2008 as a result of volatility on the world's chlorine market. As a result of fight of supply and high operating rates in May 1997, two chlorine producers took the bold initiative of calling for an average price rise of $25 per short ton. Other producers were considering bringing the total price increase for the 1997 product year to date of up to $80 per short and fob ton, from $45–$50 per short and fob ton in May 1996. This occurred as both rapidly ascending demand from the vinyl polymer chain market and the unusually strong seasonal demand and no new production capacity on the immediate horizon coincided. The price increase had its firm foundations in the incumbent bullish market dynamics of the mid-2000s. Occidental Chemical Corporation suggested a minor rise as other firms took a "wait-and-see approach" and Russia raised production slightly to ease the cost of domestic bleach and swimming pool chloro-tablet costs.March 2018 Chlorine prices rose in May 2005 as both growing energy costs, shrinking supply and high market tariffs in the EU, NAFTA and Latin America,Chlorine getting more costly; prices could rise even more. | Marketing & Advertising – Price Management from. AllBusiness.com (1 May 2005). Retrieved 28 March 2011. the increased use of chlorine-based chemicals for the aquatics industry. The price of chlorine caustic was $350 per dry short ton, up from $100 last March. Chlorine was priced at $330 per dry short ton, up $130 on 2008's price of $200. The gas's price steadily increased throughout 2007 and early 2008 as demand for P.V.C. and some metals like copper, Neodymium and Tantalum rose due to the increased growth of the BRIC countries demand for electrical goods. America's chlorine prices rose suddenly from about $125–$150 per ton fob between June and August 2009 months on a sharp rise in chlor-alkali production and capacity cuts after a year in which production quotes largely stay flat.Chlorine Prices Surge Amid Chlor-alkali Production Cuts :: Chemical Week. Chemweek.com (7 August 2009). Retrieved 28 March 2011. The spot price surged more than 300% to about $475–$525 ton fob in August 2009. Both Russia and the European Union were also increasing chlorine production to stabilise world prices. Non discounted American chlorine was priced at $390–410 short ton and discounted prices stood at $300 per short ton between November 2009 and February 2010.Chlorine Prices and Pricing Information https://web.archive.org/web/20100406035044/http://www.icis.com/v2/chemicals/9075194/chlorine/pricing.html 6 April 2010 . Icis.com. Retrieved 28 March 2011. As the European chlorine production spiked in November to a daily output of 26,971 tonnes, before falling to 23,667 short ton in December due to the Christmas and New Year holidays. Production was about European production was 25.8% higher than December 2008 levels. Cotton thumb|300px|Cotton prices 2009-2022 The price of cotton was rising in 2010 and peaked in early 2011. India the worlds second largest exporter restricted shipments to help its domestic textiles industry Farchy Jack Meyer Gregory 2011-02-11 Cotton prices surge to record high amid global shortages https://www.ft.com/content/3d876e64-35c9-11e0-b67c-00144feabdc0 www.ft.com Late-2000s economic fallout Many firms, individuals, and hedge funds went bankrupt or suffered heavy losses due to purchasing commodities at high prices only to see their values decline sharply in mid to late 2008. Many manufacturing companies were also crippled by the rising cost of oil and other commodities such as transition metals. The food and fuel crises were both discussed at the 34th G8 summit in July 2008.http://www.dw-world.de/dw/article/0,2144,3466618,00.html Africa's Plight Dominates First Day of G8 Summit 9 July 2010 The 2008 price glitch In the second half of 2008, the prices of most commodities fell dramatically on expectations of diminished demand in the world recession and credit crunch.http://ftalphaville.ft.com/blog/2008/10/10/16910/commodities-crash/ Commodities crash 9 July 2010 Prices began to rise again in late 2009 to mid-2010 (as supply could not meet demand), triggering another round of boom that lasted until the early 2010s, when fossil fuels and metals prices collapsed in a far more prolonged fashion that looks to far eclipse that of 2008.March 2018 Mine closures The heavy price volatility caused a sudden boom then bust in the mining industry across the world, e.g. in Democratic Republic of the Congo, Zambia, Zimbabwe, Canada, China, Sweden and Australia. The $900,000,000 Tenke Fungurume copper-cobalt mining project in the Democratic Republic of Congo was cleared in February 2008 for building to start in a years time and then Luanshya Copper Mine in Zambia closed on 6 March 2009. Zimbabwe and Australia also saw nickel and copper mines open close during this time. China opened several new coal mines in Qinghai province during the years 2007 and 2008.Kubota Hiroshi Gordon Ian January 1998 Collapse in metal values: Related mine closures Minerals & Energy - Raw Materials Report en 13 3 29–30 10.1080/14041049809409140 1998MERMR..13...29K 1404-1049http://www.estainlesssteel.com/nickelmineclosures.shtml Nickel Mine Closures 2008 Due to Demand Destruction and Low LME Price Estainlesssteel.com 14 May 2011Nickel in Australia https://web.archive.org/web/20100924222409/http://chemlink.com.au/nickel.htm 24 September 2010 . Chemlink.com.au (31 December 2003). Retrieved 28 March 2011.at https://web.archive.org/web/20110713121125/http://www.jotafrica.com/2008/12/katanga-drc-one-million-mining-jobs-at.html 13 July 2011 . Jotafrica.com. Retrieved 28 March 2011.DRC $900-million copper mine to come on stream in 2009. Miningweekly.com (6 January 2009). Retrieved 28 March 2011.AM – WA town fear impact of nickel mine closure. Abc.net.au (22 January 2009). Retrieved 28 March 2011.http://news.bbc.co.uk/1/hi/business/7920945.stm BBC News Zambian miners hit by copper slump 6 March 2009 Steve Schifferes 8 September 2010 Opinions on the commodities bubble Coincidentally, long-only commodity index funds started just before the bubbles, became popular at the same time – by one estimate investment increased from $90 billion in 2006 to $200 billion at the end of 2007, while commodity prices increased 71% – which raised concern as to whether these index funds caused the commodity bubble. The empirical research has been mixed.Irwin SH, Sanders DR. (2010). The Impact of Index and Swap Funds on Commodity Futures Markets. OECD Working Paper. 10.1787/5kmd40wl1t5f-en In February 2008, analyst Gary Dorsch wrote: Commodities have historically been regarded as wildly volatile and risky, but since 2006, crude oil, gold, copper, silver, platinum, cocoa, and grains have soared, hitting record highs, and have trounced returns in the mismanaged G-7 stock markets ... A remarkable run-up in prices of wheat, corn, oilseeds, rice, and dairy products, along with sharply higher energy prices, have been blamed on supply shortfalls, strong demand for bio-fuels, and an inflow of $150 billion from investment funds. From a year ago, Chicago wheat futures have soared +120%, corn +20%, and soybeans are +80% higher. Rough rice is up 55%, and platinum touched $2,000 /oz, up 80% from a year ago, while US cocoa futures hit a 24-year high ... Fund managers are pouring money into commodities across the board as a hedge against the explosive growth of the world's money supply, and competitive currency devaluations engineered by central banks.http://www.safehaven.com/article-9471.htm Central Bankers Fueling Global Commodity Inflation Gary Dorsch SafeHaven.com 14 February 2008 9 July 2010 dead https://web.archive.org/web/20080828150533/http://www.safehaven.com/article-9471.htm 28 August 2008 Economist James D. Hamilton has argued that the increase in oil prices in the period of 2007 to 2008 was a significant cause of the recession. He evaluated several different approaches to estimating the impact of oil price shocks on the economy, including some methods that had previously shown a decline in the relationship between oil price shocks and the overall economy. All of these methods "support a common conclusion; had there been no increase in oil prices between 2007:Q3 and 2008:Q2, the US economy would not have been in a recession over the period 2007:Q4 through 2008:Q3".Hamilton, James D. "Oil prices and the economic recession of 2007–08." Voxeu.org. 16 June 2009. Hamilton's own model, a time-series econometric forecast based on data up to 2003, showed that the decline in GDP could have been successfully predicted to almost its full extent given knowledge of the price of oil. The results imply that oil prices were entirely responsible for the recession; however, Hamilton himself acknowledged that this was probably not the case but maintained that it showed that oil price increases made a significant contribution to the downturn in economic growth.Did rising oil prices trigger the current recession? | vox – Research-based policy analysis and commentary from leading economists. Voxeu.org (13 January 2009). Retrieved 28 March 2011. Aftermath In the mid-2010s, China experienced a stock market crash and economic slowdown as it moved from manufacturing to a services industry.China's new economic reality 17 August 2015 https://www.theglobeandmail.com/report-on-business/international-business/asian-pacific-business/the-currency-of-chinas-new-economicreality/article25974515/ Vanderklippe, Nathan The Globe and Mail 7 January 2016 Leftist pink tide governments in Latin America who created unsustainable policies based on China's commodity trade in the 2000s began to experience economic difficulties and began to experience a political decline as income diminished due to the end of the commodities boom.Lopes Dawisson Belém de Faria Carlos Aurélio Pimenta Jan–Apr 2016 When Foreign Policy Meets Social Demands in Latin America Contexto Internacional Literature review Pontifícia Universidade Católica do Rio de Janeiro 38 1 11–53 The fate of Latin America's left turn has been closely associated with the commodities boom (or supercycle) of the 2000s, largely due to rising demand from emerging markets, notably China. 10.1590/S0102-8529.2016380100001 freeReid Michael 2015 Obama and Latin America: A Promising Day in the Neighborhood Foreign Affairs 94 5 45–53 As China industrialized in the first decade of the century, its demand for raw materials rose, pushing up the prices of South American minerals, fuels, and oilseeds. From 2000 to 2013, Chinese trade with Latin America rocketed from $12 billion to over $275 billion. ... Its loans have helped sustain leftist governments pursuing otherwise unsustainable policies in Argentina, Ecuador, and Venezuela, whose leaders welcomed Chinese aid as an alternative to the strict conditions imposed by the International Monetary Fund or the financial markets. ... The Chinese-fueled commodity boom, which ended only recently, lifted Latin America to new heights. The region -and especially South America- enjoyed faster economic growth, a steep fall in poverty, a decline in extreme income inequality, and a swelling of the middle class.https://www.nytimes.com/2016/05/23/opinion/the-left-on-the-run-in-latin-america.html?_r=0 The Left on the Run in Latin America 23 May 2016 The New York Times 5 September 2016 This downturn in commodities prices also had an important effect on non-left aligned countries in Latin America such as Mexico, Colombia, Peru or Chile, whose economies were largely dependent on mineral resource extraction by foreign companies, plummeting the economic growth in those years. However, these countries recovered economically when oil prices stabilized, unlike the Venezuelan economy. As oil prices declined, Russia also had its economy falter as a result of mismanagement.https://www.economist.com/news/finance-and-economics/21621875-tumbling-resource-prices-suggest-world-economy-slowing-oil-and-trouble Oil and trouble The Economist en 4 October 2014 15 March 2018 Synoptic chart on 1990–2010 prices May 2013 All prices are in either £, €, $/US$ or A$, depending on the nationality of sources available. Commodity Image 1990–2010 lowest price per unit 1990–2010 highest price per unit Wheat 55px £11-£15 for discounted and slightly higher for non-discounted wheat (2007) £91 for both (2010) Recycled paper 55px £10 (2009) $235 (2008) Crude oil 55px $30 (2005) $147.30 (2008) Copper 55px $1,600 (1999) $9,000 (2006) Gold 55px $252.90 (1999) Over $1900 (2011)http://money.cnn.com/2011/08/22/markets/gold_prices/ https://web.archive.org/web/20131110081518/http://money.cnn.com/2011/08/22/markets/gold_prices dead 10 November 2013 Gold tops $1,900, looking 'a bit bubbly' Hibah Yousuf CNNMoney Aluminum 55px $0.45 (1998)$1.50 (2006) Platinum 55px $325 (1994) $2,200 (2007) Silver 55px $4 (1992) $49.80 (April 2011)https://www.bullionvault.com/gold-news/silver-2011-042320145 Silver $50: Three Years After the "Shortage" www.bullionvault.com Coal 55px A$72.00 (2009) A$112.50 (2010) Nickel 55px £8,300 (2009) £36,700 (2007) Uranium 55px $10 (2001) $300 (2007) Rhodium 55px $500 (1995–1997, 2002–2004) $9,500 (2008) Palladium 55px $200 (1992, 2002–2004)$1,100 (2001) Zinc 55px $0.45 (2009) $1.20 (2010) Neodymium 55px $16.10 (2000s) $45 (2010) Lead 55px $870 (2010) $2,220 (2007) Rhenium 55px $4,000–$4,500 (2010) $6,000 (2009) Chlorine 55px$45–$50 for both classes (1996) $475–$525 (2009) Sulfuric acid 55px £55 for 95% pure and £40 for 90% pure (2002) $329 for both in (2008) See also Economics 25em 1970s commodities boom 2000s energy crisis 2007–2008 world food price crisis 2020s commodities boom Dot-com bubble Great Recession List of commodity booms Notes References 30em Further reading Chimni B. S. International Commodity Agreements A Legal Study 1987 Croom Helm London 978-0-7099-5420-0 registration https://archive.org/details/internationalcom00chim External links Lehman Brothers warns of resources collapse (20 May 2008) Askar Akayev's research group predicts the burst of the "Gold Bubble" in April – June 2011 Latin American Growth in the 21st Century: The 'Commodities Boom' That Wasn't https://web.archive.org/web/20140527220915/http://www.cepr.net/index.php/publications/reports/latin-american-growth-in-the-21st-century 27 May 2014 , from the Center for Economic and Policy Research, May 2014 Commodities super-cycle is 'taking a break': Runaway prices in commodities markets have ended, but long-term demand for commodities on the mainland is strong 10 July 2013 Eric Ng South China Morning Press (SCMP) https://www.scmp.com/business/commodities/article/1279041/super-cycle-taking-break 22 July 2013 Category:Commodity booms Category:Open economy macroeconomics Category:1980s in economic history Category:2000s in economic history Category:20th century in economic history Category:21st century in economic history