Quote:
Originally Posted by vid
Lots of people thought I was from Winnipeg for a while. I've been an honourary Winnipegger since 2007.  |
haha, well you seem to understand much about the urban fabric of this city. more so than many people who actually live here!
Quote:
Originally Posted by khabibulin
|
Hmmm. Interesting. From the link:
Quote:
|
....Of the key influencing variables, the first issue is the extent to which Brazil, India and China – which collectively were responsible for 40 per cent of total potash imports in 2011 – are prepared to endure uneconomic projects for the sake of securing supplies either domestically or by investing in overseas developments.
|
&
Quote:
"In the end, it is mainly geopolitical and long-term strategic security parameters that justify such investments," said Rabobank analyst Dirk Jan Kennes. "From a pure economics angle, many of these investments might render losses if prices come under pressure due to oversupply."
...
|
But will that happen? That's a pretty big assumption on this analysts part. I mean, to discredit the potential extent by which Brazil, India and China might be concerned about losses due to oversupply? Certainly, the guy/firm has not taken into account those respective country's individual measurements against such a possibility. Potash is important to them and their economies; they will make it work as much as needed.
Quote:
|
The second factor is the ability of producers to secure financing. This is not a problem for the mining giants but it could affect the prospects of projects by smaller companies, many of which will struggle to secure financing for capital expenditure of at least US$1,000 per tonne of capacity.
|
Hmm. I dunno. When the same argument was brought against Oil and Oil companies, the opposite occurred. Granted, small companies might still struggle against the giants, but that doesn't mean the industry
will wane; rather the larger players will become larger. Some smaller players will become big, some will be bought out by larger companies. Might some of the interested companies end up being Chinese, Brazilian or Indian takeovers?
Quote:
|
"Finally, the response of established players to new entrants could also affect the arrival of new entrants. More than 60 new projects have been announced, but the existing producers have low production costs and the ability to increase their own output, which could reduce prices to a level that makes new production uneconomic," co-author Rakhi Sehrawat added.
|
Key word here is "could". I don't, at the moment, agree with the sentiments that such a model is "impending" but I suppose it "could" happen
Prev
that video is still humerous
Linear Mode
