Price movements

It is difficult to indicate a representative price for acetylene because it is generally produced either for captive use or on contract. The price seems to be dictated mainly by the price movement of ethylene, often a coproduct as well as an alternative feedstock competing with acetylene. That is, in 1981 when ethylene was 0.55 per kg, acetylene was 1.12 per kg and when in 1987 the price of ethylene dropped to 0.31 per kg, acetylene dropped to 0.68 per kg. 

The price risk can be defined and understood in alternative ways. One can view the risk as the probable fluctuation of the price around its expected level (i.c., the mean). The larger the deviation around the mean the larger is the perceived price risk. The volatility around the mean can be measured by standard deviation and be used as a quantitative measure for price risk. At the same time, in the industry it is common to define risk referring only to a price movement that would have an adverse effect on the profitability. Thus, one would talk about an upward potential and downside risk. ... 

Chinese demand has been the main driver of the world petrochemicals recovery since 2002, and while scenarios exist under which China s demand falters, the consensus view is that it will continue, and that petrochemical prices will be sustained at high levels until new capacity comes online. The products elevated price levels and margins are likely to attract new investments in the next few years. At this point the products seem likely to resume the cycle of overinvestment leading to a price bust later in the decade, followed by a period of underinvestment leading to a new price spike several years later. While the drivers of the price movements contrast with those of crude and natural gas and are more inherently shortterm, they ensure similar and continued price volatility. 

Many factors interact and ultimately determine the market prices of commodity chemicals - and hence returns to the various players. Some of these factors are reasonably hard , for example, cost stmctures and historic demand. Others are quite soff, for example, beliefs about future demand, beliefs about what and when new capacity may be added, and expectations about future price movements. 

The law of value dominates price movements with reductions or itKieases in required labour time making prices of production fall or rise. It is in this sense that Ricardo (who doubtlessly realized that his prices production deviated from the value of commodities) says that "the inquiry to which I wish to draw the readeKs attention relates to the effect of the variations in the relative value commodities, and not in their absolute value". ... 

Switzerland. Statistics on banking and finance, share price movements, employment and unemployment, foreign trade, wholesale price movements, cost of living indexes, agricultural prices, and balance of payments are published in (84)-Official returns of imports and exports are published annually (83) and monthly (85). 

The increased economic uncertainty has altered the way financial markets function. Companies have discovered that their value is subject to various financial price risks in addition to the risk inherent in their core business. New risk management instruments and hybrid securities have proliferated in the market, enabling companies to manage financial risk actively rather than try to predict price movements. 

In this vein, posted price selling is a long-term version of real-time pricing. If we consider sales trends as bids made by market participants, there is little quahtative difference between posted-price selling and auctions in terms of price movements, or how market clearing prices are attained. Nevertheless, fundamental differences exist in terms of the number of market participants, the speed at which prices are determined, or in the transactional aspects of a trade, such as menu costs. 

However, while both AA and ZIP agents are able to re-equilibrate a/itermarket shocks, neither algorithm is specifically designed to anticipate price movements... 

Fitch has carried out an analysis of property price movements by region in the United Kingdom and has used the results to assess the amounts by which property prices might be expected to fall in a time of stress. These assessments become progressively more pessimistic for higher ratings categories, as illustrated in Exhibit 11.6. Fitch has similar tables for other countries. 

Reverse mortgages differ from standard RMBS transactions by their increased dependence on house-price movements and sensitivity to borrowers life expectancy and health. 

For longer-dated debt instruments investors have the a choice of the very long-term notional 30-year, 6% coupon Euro-Buxl contract which covers cash market bonds with a matnrity of between 20 and 30.5 years, or the notional 10-year, 6% coupon Enro-Bnnd contract which covers the 8.5-10.5 years maturity section of the yield curve. The nominal size for each contract is 100,000 both have a minimum allowable price movement (tick) of 1 basis point, which is valued at 10, and a contract cycle of March, Jnne, September, and December, of which the three nearest-to-delivery, snccessive contracts will be available for trading. 

As an alternative to Eurex s 10-year Euro-Bund future, Euronext LIFFE offers a similar contract again based on a nominal 100,000 contract size, tick value of 10, and the same expiry cycle. The Euro-Schatz counterpart, however, offers a contract size of 200,000. The smallest allowable price movement is one half of a basis point and hence the value of a tick remains at 10. 

Minimum price movement (tick size and value) Trading hours Last trading day... 

In order to illustrate the application of Monte Carlo simulation, we present two methods in detail below. The first considers price movements, and the second, which also handles pull-to-par, is a short-term interest rate model. 

Modified duration is a measure of the approximate change in bond price for a 1 percent change in yield. The relationship between modified duration and bond prices can therefore be expressed as (2.14). A negative is used in this equation because the price movement is inverse to the interest rate movement, so a rise in yields produces a fall in price, and vice versa. 

In this section, the findings of the study regarding the electrochemical industry as a whole are presented. These aggregate figures were built up from the individual product and activity data according to the methodology outlined in section I. The individual product and activity figures are presented in section III. In this section, our concern is with the absolute and relative size of the industry and with the recent price movements within this industry. 

There is no published price index for the electrochemical industry, as such. There do exist, however, wholesale price indices for the major components of the electrochemical industry, viz. nonferrous metals, industrial chemicals and electric machinery and equipment. The coverage of these indices is broader than the coverage of the electrochemical industry within each component. An approximation of the recent price movements within the electrochemical industry, however, may be obtained from a weighted average of the price indices for these components. 

Price Movements of The Electrochemical Industry and of oil Non Form Commodities... 

These price movements have reduced demand as major buyers of these products have had to look for alternatives to replace them as they are unable to cope with the massively increased prices from U.S. 10 to U.S. 100 for grapefruit and from U.S. 12.5 to U.S. 70 per kilo for peppermint oil. It can be seen, therefore, that stable pricing can lead to increased demand. Unstable pricing can lead to the death of essential oils. This is an important reason for holding inventory so that producers can enter into long-term associations with essential oil buyers to ensure good relationships. 

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