Margin trading

The spot prices shown in Figure 10.2 apply to marginal trading from day to day and usually represent 10%-20% of supply. Most trade is 3-10-year term contracts with producers selling direct to utilities, but with the price often related to the spot price. 

Some treatments are practiced so widely that untreated material is essentially unknown ia the jewelry trade. The heating of pale Fe-containing chalcedony to produce red-brown carnelian is one of these. Another example iavolves turquoise where the treated material is far superior ia color stabiUty. Such treatments have traditionally not been disclosed. Almost all blue sapphire on the market has been heat treated, but it is not possible to distinguish whether it was near-colorless comndum containing Fe and Ti before treatment, or whether it had already been blue and was only treated ia an attempt at marginal improvement. The irradiation of colorless topa2 to produce a blue color more iatense than any occurring naturally is, however, self-evident, and treatments used on diamond are always disclosed. 

Kinds of Catalysts To a certain extent it is known what lands of reactions are speeded up by certain classes of catalysts, but individual members of the same class may differ greatly in activity, selectivity, resistance to deactivation, and cost. Since solid catalysts are not particularly selective, there is considerable crossing of lines in the classification of catalysts and the kinds of reactions they favor. Although some trade secrets are undoubtedly employed to obtain marginal improvements, the principal catalytic effects are known in many cases. 

Measures or trade practices relating to prices, margins and discounts which were in regular use by a significant proportion of the pharmaceutical industry on 1 January 1993 are outside the scope of the Code (see Clause 1.2) and are excluded from the provisions of this clause. Other trade practices are subject to the Code. The terms prices, margins and discounts are primarily financial terms. 

The equivalent MVAS impact on refining and fuels, and iron and steel, is about 6% each and both have existing trade intensity around 7-8%. For the UK, no other sector in aggregate has marginal value-at-stake impacts above 2%, even for zero free allocation. 

Industry elasticity Import penetration Energy intensity Fixed and marginal costs Price Quantity Academic articles and competition inquiries Competition inquiries, analyst reports and national trade statistics The Carbon Trust and company environmental reports FAME database and competition inquiries Companies and competition inquiries Trade associations and competition inquiries... 

The one exception to this picture is aluminium smelting, which, if not tied to electricity production, is exposed to large increases in marginal cost, with consequential migration of production outside the EU trading area. In all the scenarios, EU production of aluminium ceases. 

The EU ETS is a cap-and-trade system based primarily on the free allocation of a fixed amount of emission allowances to a set of covered installations. Companies can either use these allowances to cover the emissions resulting from the production of these installations or sell them to other companies that need additional allowances (Reinaud, 2005). Hence, for a company using an emission allowance, this represents an opportunity cost, regardless of whether the allowances are allocated for free or purchased at an auction or market. Therefore, in principle and in line with economic theory, a company is expected to add the costs of C02 emission allowances to its other marginal (variable) costs when making (short-term) production or trading decisions, even if the allowances are granted for free (Burtraw et al., 2002, 2005 Reinaud, 2003). 

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