Supply-demand relationship

The pricing of carbon black feedstocks depends on their alternate market as residual fuel oil, especially that of high sulfur No. 6 fuel oil. The actual price is deterrnined by the supply/demand relationships for these two markets. Feedstock cost contributes about 60% of the total manufacturing cost. The market price of carbon black is strongly dependent on the feedstock cost as shown in Figure 8. 

By relating the supply forecast that has been presented earlier in this paper with the projections of future demand, we can arrive at the trend in the supply/demand relationship over the forecast period. The U.S. has been a small net-importer of sulfur values during most of the past decade. In 1978, the U.S. had a net deficit position of about 400,000 tons. With a short-term upturn in phosphate demand, both domestic and international, we anticipate that the deficit position will widen over the next year or so. Even though U.S. exports will likely increase due to rising prices for sulfur in the export market, U.S. imports will also rise. But, with the advent of large amounts of sulfur starting to come from the Overthrust Belt by the mid-1980 s, we believe that the deficit position will reverse itself and place the U.S. in a net export position. In the latter part of the 1980 s, we anticipate this surplus to widen considerably. 

The biggest single action that will help the entire supply-demand relationship in natural gas is to decontrol the wellhead price of all new gas. Until this is done, we can expect to see irrational actions by all involved. 

Figure 5. Control supply/demand relationship for achieving primary ambient air standards...

From the preceding summary of the total gypsum supply-demand relationship in the United States, it is apparent that in the past BPG has played a very small part. However, some interesting technical trends in BPG utilization have been occurring in the United States. 

Figure 2.5 (a) A supply-demand relationship. For the demand curve Q is total demand, (b) Reestablishment of equilibrium for a small change in supply. For the supply curve Q is total industry output. 

Brown RD (1998) Selenium Tellurium Supply-Demand Relationship. In Palmieri Y, ed. Proc. 6th International Symposium on the Uses of Selenium and Tellurium, pp. 13-17. May 10-12, 1998, Scottsdale, Arizona. 

The constmction of large new plants can even have a big effect on snpply-demand relationships for a product and hence the price of that prodnct. When prodnction capacity lags behind the demand for prodnct, prices will be high. But if a big new plant is opened then production capacity will be increased significantly so that supply now exceeds supply and product prices will fall. 

By far, the greatest surplus will exist in the mid-continent and Intermountain regions of the U.S., where the current area surplus will rise from about 2.8 million long tons per year of sulfur equivalent to about 7.2 million tons per year by 1990. These supply/ demand historical relationships and projections are summarized for each country and for North America in Table IV. 

An unavoidable result of this supply-and-demand relationship is that water for cooling systems and other industrial purposes is today seldom available in desired quantities and qualities, necessitating strict usage controls and usually some form of pretreatment. 

Typeof supplier-customer relationship Frequency of supply/ demand Standardization level... 

Any analysis of future domestic supply necessarily involves an estimate of the level of future reserve additions. A recent analysis of natural gas supply and demand relationships by the Federal Power Commission (FPC) staflF (4) reached several conclusions with respect to the future annual reserve additions depicted in Figure 5. First, an increase from the present level of annual reserve additions to the average national finding level of the past 10 years (17 Tcf annually) is consistent with estimates of the undiscovered potential gas remaining and recent regulatory actions which have increased the wellhead price of gas in several important supply areas. Second, it is unlikely that annual reserve addi-... 

The dynamics of the relationship between gas supply, demand, and production can result in changing inter-area relationships with the passage of time. For this reason production projections based on an area-by-area approach do not have much validity beyond 5 years. Beyond that time span, estimates of the production available from a given reserve base are probably best made on a national basis. 

Other parameters influencing tungsten s economy are shown schematically in Fig. 13.1. The different types of stock may evidently create a confusing picture of the situation at any given time. No direct relationship exists between mine production, supply, demand, and consumption. The supply may originate from mine production, from scrap, or from stocks. The demand must not be necessarily balanced with consumption, because economic reasons may dictate a build up or decrease of intermediate stocks. 

The relationship between supply, demand, and price of the PGMs is complicated by several factors, including the geographical concentration of ore bodies in South Africa and Russia, the control of production by a limited number of companies in these regions, the impact of politics, and the impact of the world economy on demand and price. Significant new demands for PGMs can lead to price increases in the short-term and potentially in the long-term if supply capacity does not increase. 

Online auctions for business are an extension of supply chain applications of the Internet, by which firms seek parts and supplies from a large pool of potential business partners. The real-time interaction in these auctions differs significantly from contract-based supply relationships, which may be stable but often inefficient in terms of costs. A more flexible and responsive supply chain relationship is required as the manufacturing process itself becomes more flexible to meet changing demands in real time. Especially for digital products, the business relationship between suppliers and producers may be defined by the requirement for immediate delivery of needed components. 

The following method describes a way of determining the relationship level and thereby the information level within the supplier and customer relationship. In this way one can determine different factors, such as customer/supplier relationship, supply/demand risk and uncertainty, dynamic product innovation and technology, global operations and network and business process complexity according to the different customer and supplier segments and their relationship level ... 

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