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I call shenanigans on the 5x price increase. Marginal increases in commodity price can greatly increase supply as previously uneconomic deposits/production met
by Scoundreller 3y ago
I call shenanigans on the 5x price increase.
Marginal increases in commodity price can greatly increase supply as previously uneconomic deposits/production methods suddenly become very viable.
And while some processes critically depend on concrete, others will get pushed to other non-concrete methods if price goes up.
- maxglute 3y agoI think this might be case where cheap deposits are obviously geographically constrained. River sand near shores/blue water access for bulk transport to global markets. Once you expand to exploring/exploiting increasingly inland, the logistics of bulk cargo starts stacking up.
- Scoundreller 3y agoSure, but when you double the acceptable transportation budget/distance, you square the coverage territory. (Assuming an infinite number of routes and no change in cost per distance)
- maxglute 3y agoI think, unqualified speculation, transportation cost scales linearly because most economical exploitation past shores is along river/waterway sand, hence exploitation will be not be squared. Squaring coverage territory, as in getting sand from land introduces land shipping, which is even less efficient because cost per distance is subject to geography. Unless, engineered sand comes from coastal infra that takes regional inputs and pipes it strait onto barges, which also makes sense. But wild speculation on my part.