AEV 0.00% 0.5¢ avenira limited

Hipopp,Going on your basis, if there is no shortage of...

  1. 176 Posts.
    Hipopp,

    Going on your basis, if there is no shortage of commodities such as fertilizers, lets take iron ore as an example. There is so much iron ore in the world especially in a great land like Australia yet BHP and RIO are just about to get around 80% more for it.Why, because it's called supply and demand constraints. In other words they can't dig it up faster enough. Same would go, I would think, for fertilizer. Supply is weak demand is strong. Is demand going to diminish, I personally don't think so. With growing world population, increase of biofuel crops, what the world needs is more crop yeilds, thus increasing fertiliser usage. Do you think the likes of YC buy fertiliser to bath in, don't think so. They need it to produce high yeilding crops to meet ever increasing demand.
 
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