10-07-2015, 10:42 PM
'jft310' pid='63467' datel Wrote:........ Papua Project gets built and others will suffer lower margins . Not our problem .
With a fixed demand and an increased supply the price continues to drop until supply and demand come into equilibrium. IE, some suppliers have to go out of business and production actually stop.
The prices would have to drop so far until the marginal producers loose less money when not producing compared to the loss they make when producing ... it has nothing to do with break even point. Sunk cost does not come into it.
I hope it does not become our problem, but it is still too early to be this optimistic right now as no one has a sufficient handle of the global market as it stands.