Short-run demand and supply elasticities in the West European market for secondary aluminium

Blomberg, Jerry; Hellmer, Stefan

doi:10.1016/s0301-4207(00)00015-5

Cited by 24 publications

(24 citation statements)

References 4 publications

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“…Although the 1971 study is more than 40 years old, the elasticity from the study is still widely used and quoted in the industry as the best available because no other study has been done on the same scale to estimate such elasticity. The Charles River Associates (1971) estimate was found to be the most reasonable for the purposes of the present work after it was compared with other sources, including the following: Pei and Tilton's (1999) study on the income elasticity of metal demand, Stuermer's (2013) study on "Industrialization and the Demand for Mineral Commodities," Blomberg and Hellmer's (2000) work on the "Short-Run Demand and Supply Elasticities in the West European Market for Secondary Aluminium," and works by Ford (1999), Mikesell (2013), and Stuckey (1983). The lowelasticity estimate of -0.19 is a weighted average of elasticities across sectors in the same study, and the high-elasticity estimate of -0.50 is the top range of copper (a close substitute of aluminum).…”

Section: Immediate Effects Of a Supply Shockmentioning

confidence: 86%

“…The elasticity of aluminum prices was computed based on estimated elasticities found in Blomberg and Hellmer (2000), Ford (1999), Mikesell (2013), Pei and Tilton (1999), Stuckey (1983), and Stuermer (2013). The price elasticity for refined nickel was established on the basis of the range of elasticities found in reports that estimated elasticities for various metals (Evans and Lewis, 2002;Gallaher and Depro, 2002;Wagenhals, 1983).…”

Section: Datamentioning

confidence: 99%

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Estimates of immediate effects on world markets of a hypothetical disruption to Russia’s supply of six mineral commodities

Safirova¹,

Barry²,

Hastorun³

et al. 2017

Open-File Report

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For more information on the USGS-the Federal source for science about the Earth, its natural and living resources, natural hazards, and the environment-visit https://www.usgs.gov or call 1-888-ASK-USGS.For an overview of USGS information products, including maps, imagery, and publications, visit https://store.usgs.gov/.Any use of trade, firm, or product names is for descriptive purposes only and does not imply endorsement by the U.S. Government.Although this information product, for the most part, is in the public domain, it also may contain copyrighted materials as noted in the text. Permission to reproduce copyrighted items must be secured from the copyright owner.Suggested citation: Safirova, Elena, Barry, J.J., Hastorun, Sinan, Matos, G.R., and Perez, A.A., with contributions from Bedinger, G.M., Bray, E.L., Jasinski, S.M., Kuck, P.H., and Loferski, P.J., 2017, Estimates of immediate effects on world markets of a hypothetical disruption to Russia's supply of six mineral commodities: U.S. Geological Survey Open-File Report 2017-1023, 22 p., https://doi.org/10.3133/ofr20171023. AbstractThe potential immediate effects of a hypothetical shock to Russia's supply of selected mineral commodities on the world market and on individual countries were determined and monetized (in 2014 U.S. dollars). The mineral commodities considered were aluminum (refined primary), nickel (refined primary), palladium (refined) and platinum (refined), potash, and titanium (mill products), and the regions and countries of primary interest were the United States, the European Union (EU-28), and China. The shock is assumed to have infinite duration, but only the immediate effects, those limited by a 1-year period, are considered.A methodology for computing and monetizing the potential impacts was developed. Then the data pertaining to all six mineral commodities were collected and the most likely effects were computed. Because of the uncertainties associated with some of the data, sensitivity analyses were conducted to confirm the validity of the results.Results indicate that the impact on the United States arising from a shock to Russia's supply, in terms of the value of net exports, would range from a gain of $336 million for titanium mill products to a loss of $237 million for potash; thus, the overall effect of a supply shock is likely to be quite modest. The study also demonstrates that, taken alone, Russia's share in the world production of a particular commodity is not necessarily indicative of the size of potential impacts resulting from a supply shock; other factors, such as prices, domestic production, and the structure of international commodity flows were found to be important as well.

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Section: Immediate Effects Of a Supply Shockmentioning

confidence: 86%

Section: Datamentioning

confidence: 99%

Estimates of immediate effects on world markets of a hypothetical disruption to Russia’s supply of six mineral commodities

Safirova¹,

Barry²,

Hastorun³

et al. 2017

Open-File Report

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show abstract

“…Still, the same studies also show that the own-price short-run supply elasticity for scrap metal often is fairly low (e.g. Blomberg and Hellmer 2000), not the least due to the rising marginal cost of processing old scrap and the availability constraints facing new scrap supply.…”

Section: The Economic Fundamentals Of Scrap Marketsmentioning

confidence: 95%

“…the change in scrap consumption following a price increase for scrap material is fairly modest (e.g. Blomberg and Hellmer 2000). This is, in part, because: (a) few substitutes to the metal may exist; and (b) the processing of scrap metals can be rather capital intensive and substitution to other inputs is therefore costly and takes a considerable amount of time.…”

Section: The Economic Fundamentals Of Scrap Marketsmentioning

confidence: 99%

Steel Scrap Markets in Europe and the USA

Söderholm

Ejdemo

2008

Minerals & Energy - Raw Materials Report

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“…Using (A.11) we can say that g λ 3 This means that Hotelling's rule is satisfied for both inputs considered here (for a discussion of this issue with regard to renewable resources, see [24, p. 178]). …”

Section: Propositionmentioning

confidence: 99%

Renewable resources and waste recycling

Vita

2005

Environ Model Assess

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In this paper we consider an endogenous growth model involving, among other inputs, a renewable resource and secondary materials. Using this analytical framework we explain the effects of waste recycling on the growth rate of the economy, that we take into account. The effects of secondary materials production on the utility and dynamics of renewable resources are also studied. Furthermore, we consider how taxes and subsidies, levied on natural resources and granted for secondary materials, influence the dynamics of the economy during the transitional phase and the stationary growth path. Finally, the validity of Hotelling's rule and the effects of waste recycling on labor productivity are the conclusive topics of our research.

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Short-run demand and supply elasticities in the West European market for secondary aluminium

Cited by 24 publications

References 4 publications

Estimates of immediate effects on world markets of a hypothetical disruption to Russia’s supply of six mineral commodities

Estimates of immediate effects on world markets of a hypothetical disruption to Russia’s supply of six mineral commodities

Steel Scrap Markets in Europe and the USA

Renewable resources and waste recycling

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