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Thread: Understanding the commodity boom

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    Site Caretaker Dave A's Avatar
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    Understanding the commodity boom

    I'm sure most of us have noticed that all sorts of things cost more than they used to. We call it inflation, but what is behind it all?

    Here is a really great article on the commodity boom by Lynley Donnelly. Amongst other things, it covers the main driver.
    What is generically termed "the commodities boom" describes the rapid rise in prices of commodities like minerals, metals, agricultural goods and energy commodities like oil and gas.

    The bottom of the commodity cycle came around late-2001 and early 2002. From then on, a steady rise in the price of commodities began, largely on the back of huge demand from developing economies like China and India.

    China is in fact pivotal to the commodities boom. The rapid urbanisation of the more than billion-strong nation and its increased openness to international trade has ensured that the world's supply of raw materials become the roads, buildings and fuel for a country that in turn manufactures a huge portion of the globe's consumable products.
    Reading that, I couldn't help thinking that the problem with COSATU's protest campaign is that it is happening in the wrong country. Somehow I don't see the urbanisation process of India and China changing their ways because of strikes and marches here.

    Having an interest in an electrical contracting company, this part also caught my eye:
    According to the PwC report, the top commodity performer is copper. It accounted for a total of 28% of all revenue generated by the top 40 companies.

    One analyst has observed that the average copper price in 2002 sat at $1 559 a ton. In 2007 that price soared to an average of $7 121 a ton, a fourfold increase. Copper is chiefly used in plumbing and electrical applications. But with countries like China laying the equivalent infrastructure of two Eksoms a year, it is no wonder that copper is an increasingly precious resource.

    The country also reportedly intends to erect some 40 000 or so skyscrapers between now and 2025. Imagine the electrical wiring and copper plumbing that will be utilised at that level of construction.
    Copper is outshining gold

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    Gold Member Chrisjan B's Avatar
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    Quote Originally Posted by Dave A View Post
    I'm sure most of us have noticed that all sorts of things cost more than they used to. We call it inflation, but what is behind it all?

    Here is a really great article on the commodity boom by Lynley Donnelly. Amongst other things, it covers the main driver.

    Reading that, I couldn't help thinking that the problem with COSATU's protest campaign is that it is happening in the wrong country. Somehow I don't see the urbanisation process of India and China changing their ways because of strikes and marches here.

    Having an interest in an electrical contracting company, this part also caught my eye:

    Copper is outshining gold
    Dave
    Maybe you should expand to China and into plumbing?

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    Site Caretaker Dave A's Avatar
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    Now that would be a different brain drain destination! I'm not sure they need more people, though.

    There was a stage when they were importing top skills (I've got a cousin who rode that wave), but I think it's increasingly home grown nowadays. Obviously there are huge opportunities for international brands. For me, I'm still trying to figure out how to crack a second major metro (if I've even cracked my first yet), let alone another country.

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    Diamond Member wynn's Avatar
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    Why worry about a new Metro, branch into another allied business.
    A local electrician has branched out into hiring scissor lifts as part of his business, I am sure he uses them himself as well?

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by wynn View Post
    Why worry about a new Metro, branch into another allied business.
    I agree. It's easier to add a new line than add a new geographical location in some industries.

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    ever thought of doing the flowers and plants in all the buildings that you do...weird idea, but rentokil did in Cape town...not sure if it worked well...just an idea.

    by the way:

    <meta name="keywords" content="Alcocks, Durban, Upper, Highway, Dolphin, Coast, electrical, contracting, contractor, contractors, services, service, group, maintenance, repair, alterations, certificate, certificates, compliance, coc, construction, test">

    why no pest control? otherwise nice site, easy to use

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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by Pap_sak View Post
    ever thought of doing the flowers and plants in all the buildings that you do...weird idea, but rentokil did in Cape town...not sure if it worked well...just an idea.
    We use contractors for that where we do the facilities management.
    Quote Originally Posted by Pap_sak View Post
    by the way:

    <meta name="keywords" content="Alcocks, Durban, Upper, Highway, Dolphin, Coast, electrical, contracting, contractor, contractors, services, service, group, maintenance, repair, alterations, certificate, certificates, compliance, coc, construction, test">

    why no pest control?
    Fortunately not a meta taken seriously by the search engine that counts.

    Which reminds me - I've really got to do some work updating the company site. Quite a lot has happened since that was set up. I've been tinkering with Joomla on a test site, but I'm starting to wonder if clean html might not be the way to go (or is that stay?)

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    from what I've seen - and i am no expert - if it's going to be a static site, with either small or no changes in the next year - straight html and css works fine and loads quicker.

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