Commodities Task Force: Fourth Meeting

Published in 
CEPS - Centre for European Policy Studies 1 Place du Congrès / Congresplein 1000 Brussels

The ECMI and CEPS Task Force on commodities price formation discussed, on December 9th, recent developments in global markets for raw materials and base metals commodities. Two key elements emerged from this discussion. First, base metals and raw materials extraction and refining is extremely costly and requires high investments in infrastructure. A volatile market, as caused by the emergence of key global players such as China in the iron ore market, may be highly damaging for such industry, which need price stability. Second, the business model of the market infrastructure, as run by the London Metal Exchange, relies on short-term future contracts and a global system of warehousing, which allow cheap delivery of products. However, not all commodities can be dealt with such pricing mechanism and so transport costs may become an important part of the final price.

Please follow the link below to learn more about this task force and download the prospectus. For any questions do not hesitate to contact Research Fellow Diego Valiante at diego.valiante@ceps.eu or phone 0032 2 229 39 14.

Topics of this meeting: Raw materials and base metal commodities

  • Wrap-up of the main points from the last meeting
  • Introductory presentations by regulators
  • In-depth presentations by members
  • Conclusions of the meeting