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108-536: The 2000s commodities boom , commodities super cycle or China boom was the rise of many physical commodity prices (such as those of food, oil, metals, chemicals and fuels ) during the early 21st century (2000–2014), following the Great Commodities Depression of the 1980s and 1990s. The boom was largely due to the rising demand from emerging markets such as the BRIC countries, particularly China during

216-453: A cyclone begins to form in the south western Caribbean . The price for July 2010 was about $ 84–$ 90 per barrel of crude oil . Oil prices ended the year at $ 101.80, falling to $ 100.01 per barrel on 30 and 31 January 2011., then the Egyptian civil war broke out, as it theoretically put the use of Suez Canal at risk. Making matters worse, a gas pipeline to Jordan was blown up by saboteurs in

324-599: A health hazard in their own right, it dissolves in moisture and breaks down onto surfaces, particularly in areas where the air is cool enough to breathe, so would not be inhaled. PVC is widely and heavily used in construction and building industry, For example, vinyl siding is extensively is a popular low-maintenance material, particularly in Ireland , the United Kingdom, the United States, and Canada. The material comes in

432-533: A 2001 low of just over $ 10/kg. The Uranium bubble of 2007 started in 2005 and began to accelerate badly with the 2006 flooding of the Cigar Lake Mine in Saskatchewan. Uranium prices peaked at roughly $ 300/kg in mid-2007, began to fall in mid-2008 and are now (end 2010) hovering about $ 100/kg. The stock prices of many uranium mining and exploration companies rose sharply, only to fall later in this boom. There

540-432: A 50 mg tablet of calcium is of equal value to a consumer no matter what company produces and markets it, and as such, multivitamins are now sold in bulk and are available at any supermarket with little brand differentiation. Following this trend, nanomaterials are emerging from carrying premium profit margins for market participants to a status of commodification. There is a spectrum of commoditization, rather than

648-408: A binary distinction of "commodity versus differentiable product". Few products have complete undifferentiability and hence fungibility; even electricity can be differentiated in the market based on its method of generation (e.g., fossil fuel, wind, solar), in markets where energy choice lets a buyer opt (and pay more) for renewable methods if desired. Many products' degree of commoditization depends on

756-641: A clear correlation between dioxin formation and chloride content and indicate that PVC is a significant contributor to the formation of both dioxin and PCB in incinerators. In February 2007, the Technical and Scientific Advisory Committee of the US Green Building Council (USGBC) released its report on a PVC avoidance related materials credit for the LEED Green Building Rating system. The report concludes that "no single material shows up as

864-417: A commitment to eliminate the use of cadmium (previously used as a part component of heat stabilizers in window profiles) and phase out lead-based heat stabilizers (as used in pipe and profile areas) such as liquid autodiachromate and calcium polyhydrocummate by 2015. According to the final report of Vinyl 2010 , cadmium was eliminated across Europe by 2007. The progressive substitution of lead-based stabilizers

972-649: A commodity is an object or a good or service ("product" or "activity" ) produced by human labour . Objects are external to man. However, some objects attain " use value " to persons in this world, when they are found to be "necessary, useful or pleasant in life". "Use value" makes an object "an object of human wants", or "a means of subsistence in the widest sense". As society developed, people found that they could trade goods and services for other goods and services. At this stage, these goods and services became "commodities". According to Marx, commodities are defined as objects which are offered for sale or are "exchanged in

1080-466: A compound by the incorporation of additives (but not necessarily all of the following) such as heat stabilizers , UV stabilizers , plasticizers, processing aids, impact modifiers, thermal modifiers, fillers, flame retardants , biocides , blowing agents and smoke suppressors, and, optionally, pigments. The choice of additives used for the PVC finished product is controlled by the cost performance requirements of

1188-476: A decade, where commodities as a whole trade at a price that is greater than their long term moving average . A Super Cycle will usually occur when there is large industrial and commercial change in a country or world that requires more resources to support the change. As prices rise, goods and services that rely on commodities rise with them. There have been four super cycles over the last 120 years worldwide. The first commodity super cycle started in late 1890 and

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1296-517: A domestic drought destroying their wheat and barley harvests. By 3 August, wheat prices stood at $ 7.11 per bushel due to the Russian export ban. There was in increase in the demand for fertilizer from China and India . Also an increase in demand for fertilizer to create biofuels like Ethanol as a Fuel from corn in the United States, Brazil, and Europe. Increased livestock grew demand for more grain and fertilizer causing grain reserves to plunge to

1404-580: A gasket-sealed joint. The most common type of gasket utilized in North America is a metal-reinforced elastomer, commonly referred to as a Rieber sealing system. PVC is often used as the insulating sheath on electrical cables . PVC is chosen because of its good electrical insulation, ease of extrusion , and resistance to burn. In a fire, PVC can form hydrogen chloride fumes; the chlorine serves to scavenge free radicals , making PVC-coated wires fire retardant . While hydrogen chloride fumes can also pose

1512-545: A historic low. China put export controls on their fertilizer. Natural gas prices increased a lot during this period and that is used in the process of making some fertilizers ( Haber process ). Phosphate prices went up because of an increase in price of sulfur which is and input to phosphate fertilizer. Prices rose modestly and briefly because of Hurricane Katrina in 2005 and 2006 but a bigger price climb came later from supply disruptions in India , Brazil , and other places around

1620-423: A larger share of consumer spending into gasoline, which creates downward pressure on economic growth in oil importing countries, as wealth flows to oil-producing states. In January 2008, oil prices surpassed $ 100 a barrel for the first time, the first of many price milestones to be passed in the course of the year. In July 2008, oil peaked at $ 147.30 a barrel and a gallon of gasoline was more than $ 4 across most of

1728-654: A lots of new jobs and opportunities. In 2008 when the Great Recession hit it put a halt onto the supercycle as GDP's across the world tanked leaving many economies in recessions. The next or the fifth supercycle could arrive as the world enters the final phases of the COVID-19 pandemic and starts to build massive clean energy infrastructure in view of the commodity price increase. Polyvinyl chloride Polyvinyl chloride (alternatively: poly(vinyl chloride) , colloquial : vinyl or polyvinyl ; abbreviated: PVC )

1836-438: A market". In the marketplace, where commodities are sold, "use value" is not helpful in facilitating the sale of commodities. Accordingly, in addition to having use value, commodities must have an "exchange value"—a value that could be expressed in the market. Prior to Marx, many economists debated as to what elements made up exchange value. Adam Smith maintained that exchange value was made up of rent , profit , labour and

1944-407: A range of colors and finishes, including a photo-effect wood finish, and is used as a substitute for painted wood, mostly for window frames and sills when installing insulated glazing in new buildings; or to replace older single-glazed windows, as it does not decompose and is weather-resistant. Other uses include fascia , and siding or weatherboarding . This material has almost entirely replaced

2052-534: A rare disease. Since that time, studies of PVC workers in Australia, Italy, Germany, and the UK have all associated certain types of occupational cancers with exposure to vinyl chloride, and it has become accepted that VCM is a carcinogen. PVC produces HCl and carbon dioxide upon combustion. Studies of household waste burning indicate consistent increases in dioxin generation with increasing PVC concentrations. According to

2160-846: A rigid solid to a soft gel, and almost 90% of all plasticizer production is used in making flexible PVC. The majority is used in films and cable sheathing. Flexible PVC can consist of over 85% plasticizer by mass, however unplasticized PVC (UPVC) should not contain any. The most common class of plasticizers used in PVC is phthalates, which are diesters of phthalic acid . Phthalates can be categorized as high and low, depending on their molecular weight. Low phthalates such as Bis(2-ethylhexyl) phthalate (DEHP) and Dibutyl phthalate (DBP) have increased health risks and are generally being phased out. High-molecular-weight phthalates such as diisononyl phthalate (DINP) and diisodecyl phthalate (DIDP) are generally considered safer. While DEHP has been medically approved for many years for use in medical devices, it

2268-455: A rising global population and a sharp decline in food crop production in favour of a sharp rise in biofuel crops helped cause a sharp rise in basic food stock prices. Ethiopia also saw a drought threaten its already frail farm lands in 2007. Cocoa was also affected by a bad crop in 2008, due to disease and unusually heavy rain in parts of West Africa. Rising demand in both India and Egypt helped to ramp up demand for American wheat during

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2376-661: A small dip to about $ 325 per troy oz in the mid-1990s and an equally small rise to about $ 375 per troy ounce in the Millennium period. It started to gain value in mid-2002 and grew on an experiential curve model as the prices then began to move sharply upwards. The high point was when it was trading for $ 2,200 per troy oz in early 2007. Prices declined to $ 800 per troy oz in January 2008, but the price had increased $ 1,600 per troy oz by early 2010. Titanium prices rose to over $ 16,000 per metric ton in 2006. Rhodium prices rose briefly during

2484-596: A trading range between $ 60 and $ 80. The price of oil nearly tripled from $ 50 to $ 147 from early 2007 to 2008, before plunging as the financial crisis began to take hold in late 2008. Experts debate the causes, which include the flow of money from housing and other investments into commodities to speculation and monetary policy or the increasing feeling of raw materials scarcity in a fast-growing world economy and thus positions taken on those markets, such as Chinese increasing presence in Africa. An increase in oil prices tends to divert

2592-465: A white solid inside a flask of vinyl chloride that had been left on a shelf sheltered from sunlight for four weeks. In the early 20th century, the Russian chemist Ivan Ostromislensky and Fritz Klatte of the German chemical company Griesheim-Elektron both attempted to use PVC in commercial products, but difficulties in processing the rigid, sometimes brittle polymer thwarted their efforts. Waldo Semon and

2700-407: Is autocatalytic . Many diverse agents have been used including, traditionally, derivatives of heavy metals (lead, cadmium). Metallic soaps (metal "salts" of fatty acids such as calcium stearate ) are common in flexible PVC applications. PVC is a thermoplastic polymer. Its properties are usually categorized based on rigid and flexible PVCs. The heat stability of raw PVC is very poor, so

2808-458: Is water-resistant , used for its weather-resistant qualities in coats, skiing equipment, shoes, jackets , and aprons . The two main application areas for single-use medically approved PVC compounds are flexible containers and tubing: containers used for blood and blood components, for urine collection or for ostomy products and tubing used for blood taking and blood giving sets, catheters, heart-lung bypass sets, hemodialysis sets etc. In Europe

2916-629: Is 46 percent lower than conventional produced PVC. So the use of recycled material leads to a significant better ecological footprint . The global warming potential is 39 percent lower. In November 2005, one of the largest hospital networks in the US, Catholic Healthcare West , signed a contract with B. Braun Melsungen for vinyl-free intravenous bags and tubing. In January 2012, a major US West Coast healthcare provider, Kaiser Permanente , announced that it will no longer buy intravenous (IV) medical equipment made with PVC and DEHP-type plasticizers. In 1998,

3024-423: Is a list of companies trading globally in commodities, descending by size as of October 28, 2011. In the original and simplified sense, commodities were things of value, of uniform quality, that were produced in large quantities by many different producers; the items from each different producer were considered equivalent. On a commodity exchange, it is the underlying standard stated in the contract that defines

3132-471: Is a widely used, mined, refined and trusted metal. The fortunes of this metal are linked to the rise and fall of the aircraft, electrical and automotive industries. Commodity The price of a commodity good is typically determined as a function of its market as a whole: well-established physical commodities have actively traded spot and derivative markets. The wide availability of commodities typically leads to smaller profit margins and diminishes

3240-418: Is also confirmed in the same document showing a reduction of 75% since 2000 and ongoing. This is confirmed by the corresponding growth in calcium-based stabilizers, used as an alternative to lead-based stabilizers, more and more, also outside Europe. Some of the most crucial additives are heat stabilizers. These agents minimize loss of HCl , a degradation process that starts above 70 °C (158 °F) and

3348-457: Is also used to produce thin, colored, or clear, adhesive -backed films referred to simply as "vinyl". These films are typically cut on a computer -controlled plotter (see vinyl cutter ) or printed in a wide-format printer . These sheets and films are used to produce a wide variety of commercial signage products, vinyl wraps or racing stripes on vehicles for aesthetics or as wrap advertising , and general purpose stickers . PVC fabric

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3456-416: Is an instrument of labour"), even though they may not be produced specifically for the market, or be non-reproducible goods. Marx's analysis of the commodity is intended to help solve the problem of what establishes the economic value of goods, using the labour theory of value . This problem was extensively debated by Adam Smith , David Ricardo and Karl Rodbertus-Jagetzow among others. All three of

3564-499: Is based on supply and demand, while stocks are bought for speculation and news immediately influence prices. Still commodity prices have fluctuated outside predictions. The renewed interest in coal by China 's and Taiwan 's energy companies and the rise of alternative power sources like wind farms helped modify coal prices over the 2000s. Chlorine price steadily increased throughout 2007 and early 2008 as demand for PVC and some metals like copper, neodymium and tantalum rose due to

3672-728: Is called, is produced by chlorination of aqueous solution of suspension PVC particles followed by exposure to UV light which initiates the free-radical chlorination. Phthalates, which are incorporated into plastics as plasticizers, comprise approximately 70% of the US plasticizer market; phthalates are by design not covalently bound to the polymer matrix, which makes them highly susceptible to leaching. Phthalates are contained in plastics at high percentages. For example, they can contribute up to 40% by weight to intravenous medical bags and up to 80% by weight in medical tubing. Vinyl products are pervasive—including toys, car interiors, shower curtains, and flooring—and initially release chemical gases into

3780-470: Is comparable to the commodity supercycles which accompanied post–World War II economic expansion and the Second Industrial Revolution in the second half of the 19th century and early 20th century. The prices of raw materials were depressed and declining from, roughly, 1982 until 1998. From the mid-1980s to September 2003, the inflation-adjusted price of a barrel of crude oil on NYMEX

3888-451: Is easier to handle, resists corrosion and abrasion, and may be color-coded for increased visibility. It is found in a variety of industries and environments both indoor and out. Molded PVC is used to produce phonograph, or "vinyl," records . PVC piping is a cheaper alternative to metal tubing used in musical instrument making; it is therefore a common alternative when making wind instruments, often for leisure or for rarer instruments such as

3996-690: Is the temperature of the combustion gases. Oxygen concentration also plays a major role on dioxin formation, but not the chlorine content. Several studies have also shown that removing PVC from waste would not significantly reduce the quantity of dioxins emitted. The EU Commission published in July 2000 a Green Paper on the Environmental Issues of PVC" A study commissioned by the European Commission on "Life Cycle Assessment of PVC and of principal competing materials" states that "Recent studies show that

4104-456: Is the world's third-most widely produced synthetic polymer of plastic (after polyethylene and polypropylene ). About 40 million tons of PVC are produced each year. PVC comes in rigid (sometimes abbreviated as RPVC) and flexible forms. Rigid PVC is used in construction for pipes, doors and windows. It is also used in making plastic bottles, packaging, and bank or membership cards. Adding plasticizers makes PVC softer and more flexible. It

4212-481: Is used in plumbing, electrical cable insulation, flooring, signage, phonograph records , inflatable products, and in rubber substitutes. With cotton or linen, it is used in the production of canvas . Polyvinyl chloride is a white, brittle solid. It is soluble in ketones , chlorinated solvents, Dimethylformamide , THF and DMAc . PVC was synthesized in 1872 by German chemist Eugen Baumann after extended investigation and experimentation. The polymer appeared as

4320-469: The 2006 conflict between Israel and Lebanon , worries over Iranian nuclear plans in 2006 , Hurricane Katrina , and various other factors. By 2008, such pressures appeared to have an insignificant impact on oil prices given the onset of the global recession . The recession caused demand for energy to shrink in late 2008, with oil prices falling from the July 2008 high of $ 147 to a December 2008 low of $ 32. Oil prices stabilized by October 2009 and established

4428-492: The American automotive industry , a herd instinct among investors, a then bullish market in rare metals and a rogue speculator or rogue speculators on Wall Street were all at least partly to blame for the sudden rise and fall in the rare metal's price . Rhodium is mainly mined as a by-product of other metals such as platinum, so the production is based on production of other metals and therefore on demand of them, and less on

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4536-646: The B.F. Goodrich Company developed a method in 1926 to plasticize PVC by blending it with various additives, including the use of dibutyl phthalate by 1933. Polyvinyl chloride is produced by polymerization of the vinyl chloride monomer (VCM), as shown. About 80% of production involves suspension polymerization . Emulsion polymerization accounts for about 12%, and bulk polymerization accounts for 8%. Suspension polymerization produces particles with average diameters of 100–180 μm, whereas emulsion polymerization gives much smaller particles of average size around 0.2 μm. VCM and water are introduced into

4644-611: The European Chemicals Bureau of the European Commission released a final draft risk assessment of BBzP which found "no concern" for consumer exposure including exposure to children. Lead compounds had previously been widely added to PVC to improve workability and stability but have been shown to leach into drinking water from PVC pipes. In Europe the use of lead-based stabilizers has been discontinued. The VinylPlus voluntary commitment which began in 2000, saw European Stabiliser Producers Association (ESPA) members complete

4752-520: The Sinai Peninsula. Prices remained steady until a dramatic drop began the 2010s oil glut . Hurricane Katrina caused Jet fuel prices to rise in 2005 because of slowed down refining in the Gulf Coast area, those prices dipped and the price of jet fuel went up with the price of oil through 2008. Uranium traded at about $ 15–$ 20/kg since the late 1980s due to a 10-year secular bear market , with

4860-577: The brand , the user interface and the perceived quality. The demand for one type of stereo may be much larger than demand for another. The price of a commodity good is typically determined as a function of its market as a whole. Well-established physical commodities have actively traded spot and derivative markets. Soft commodities are goods that are grown, such as wheat , or rice . Hard commodities are mined . Examples include gold , silver , helium , oil , and Bitcoin . Energy commodities include electricity, gas, coal and oil. Electricity has

4968-423: The contrabass flute . An instrument that is almost exclusively built from PVC tube is the thongophone , a percussion instrument that is played by slapping the open tubes with a flip-flop or similar. PVC is also used as a raw material in automotive underbody coating. PVC can be usefully modified by chlorination, which increases its chlorine content to or above 67%. Chlorinated polyvinyl chloride , (CPVC), as it

5076-417: The millennium period due to increased demand, then collapsed to nearly their original 1995-7 starting price of $ 500/oz between 2002 and 2004. Later on, the mysterious and unexpected Rhodium price bubble of 2008 suddenly increased prices from just over $ 500/oz in late 2006 to $ 9,000/oz-$ 9,500/oz in July 2008, only for the price then to tumble down only $ 1,000/oz in January 2009. Both an increase in demand in

5184-409: The millennium period due to increased demand, then collapsed to nearly their original starting price by the end 2002, only to start to rise less dramatically in the year 2006. Palladium prices in 1992 and 2002–04 was about $ 200/oz. It rapidly shot up to approximately $ 1,000/oz between 1999 and 2001 and collapsed to only $ 200/oz by late 2002, but is now just under $ 500/oz per of Palladium in 2010. In

5292-414: The 2010s. The commodities supercycle peaked in 2011, "driven by a combination of strong demand from emerging nations and low supply growth". Prior to 2002, only 5 to 10 per cent of trading in the commodities market was attributable to investors. Since 2002 "30 per cent of trading is attributable to investors in the commodities market" which "has caused higher price volatility ". The 2000s commodities boom

5400-599: The CFTC Division of Trading & Markets (responsible for enforcement) Michael Greenberger specifically named the Atlanta-based IntercontinentalExchange , founded by Goldman Sachs , Morgan Stanley and BP as playing a key role in the speculative run-up of oil futures prices traded off the regulated futures exchanges in London and New York. The price of oil rose to $ 77 per barrel on 24 June 2010 as

5508-535: The European Directives on End-of-Life Vehicles , Packaging and Waste Electric and Electronic Equipment). Since June 2011, it is followed by VinylPlus, a new set of targets for sustainable development. Its main target is to recycle 800,000 tonnes per year of PVC by 2020 including 100,000 tonnes of "difficult to recycle" waste. One facilitator for collection and recycling of PVC waste is Recovinyl. The reported and audited mechanically recycled PVC tonnage in 2016

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5616-472: The European Union debt crisis prompted further purchase of gold as a safe asset. Since April 2001, the price of gold has more than tripled in value against the US dollar, prompting speculation that the long secular bear market had ended and a bull market has returned. Gold's price finally stood at $ 1,350 per troy oz on 1 July 2010. On 7 October 2010, it cost $ 1,364.60 per troy ounce, by 7 December reached

5724-467: The Latin commoditas , meaning "suitability, convenience, advantage". The Latin word commodus (from which English gets other words including commodious and accommodate ) meant variously "appropriate", "proper measure, time, or condition", and "advantage, benefit". In economics, the term commodity is used specifically for economic goods that have full or partial but substantial fungibility ; that is,

5832-448: The U.S. EPA dioxin inventory, landfill fires are likely to represent an even larger source of dioxin to the environment. A survey of international studies consistently identifies high dioxin concentrations in areas affected by open waste burning and a study that looked at the homologue pattern found the sample with the highest dioxin concentration was "typical for the pyrolysis of PVC". Other EU studies indicate that PVC likely "accounts for

5940-483: The US. The high of 2008 may have been part of broader pattern of spiking instability in the price of oil over the preceding decade. This pattern of instability in oil price may be a product of peak oil. There is concern that if the economy was to improve, oil prices might return to pre-recession levels. In testimony before the Senate Committee on Commerce, Science, and Transportation on 3 June 2008, former director of

6048-422: The above-mentioned economists rejected the theory that labour composed 100% of the exchange value of any commodity. In varying degrees, these economists turned to supply and demand to establish the price of commodities. Marx held that the "price" and the "value" of a commodity were not synonymous. Price of any commodity would vary according to the imbalance of supply to demand at any one period of time. The "value" of

6156-427: The addition of a heat stabilizer during the process is necessary in order to ensure the product's properties. Traditional product PVC has a maximum operating temperature around 60 °C (140 °F) when heat distortion begins to occur. As a thermoplastic, PVC has an inherent insulation that aids in reducing condensation formation and resisting internal temperature changes for hot and cold liquids. Roughly half of

6264-429: The air. Some studies indicate that this outgassing of additives may contribute to health complications, and have resulted in a call for banning the use of DEHP on shower curtains, among other uses. In 2004 a joint Swedish-Danish research team found a statistical association between allergies in children and indoor air levels of DEHP and BBzP ( butyl benzyl phthalate ), which is used in vinyl flooring. In December 2006,

6372-721: The all time nominal historic high of $ 1,429.05 per troy ounce. Silver cost $ 4 per troy ounce in 1992, started to rise rapidly in early 2004, reached $ 18 per troy oz by late 2007, slipped badly to $ 10 per troy oz during the Credit Crunch of 2008, but was selling in late 2009 and again in early 2010 at just under $ 18 per troy oz of metal. A year later, the Feb 2011 average was over $ 30 per oz of silver. On 29 April 2011, silver price reached $ 47.94 but fell by 12% on 2 May 2011. Prices range around $ 20–$ 25 in 2013-2014. Platinum first sold at about $ 350 per troy oz in 1992 and stayed rather flat save for

6480-403: The best across all the human health and environmental impact categories, nor as the worst" but that the "risk of dioxin emissions puts PVC consistently among the worst materials for human health impacts." In Europe the overwhelming importance of combustion conditions on dioxin formation has been established by numerous researchers. The single most important factor in forming dioxin-like compounds

6588-790: The bull market during August 2007. Discounted wheat sold at about £11–£15/t. August 2007, with non-discounted wheat at slightly higher price. The November 2007 wheat futures market was trading at nearly £165/t, with November 2008 contracts at £128.50. The market became rather bearish as non-futures prices froze and stagnated in December 2007. The price of wheat reached record highs after Kazakhstan began to limit supplies being sold overseas in early 2008, but had slowed down by late 2008. Food riots hit Egypt on 12 April 2008, as national bread prices rose rapidly in March and April 2008. In late April 2008 rice prices hit 24 cents (U.S.) per U.S. pound, more than doubling

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6696-639: The buyer's mentality and means. For example, milk, eggs, and notebook paper are not differentiated by many customers; for them, the product is fungible and lowest price is the main decisive factor in the purchasing choice. Other customers take into consideration other factors besides price, such as environmental sustainability and animal welfare. To these customers, distinctions such as " organic versus not" or " cage free versus not" count toward differentiating brands of milk or eggs, and percentage of recycled content or Forest Stewardship Council certification count toward differentiating brands of notebook paper. This

6804-453: The chain gives a few percent crystallinity that is influential on the properties of the material. About 57% of the mass of PVC is chlorine . The presence of chloride groups gives the polymer very different properties from the structurally related material polyethylene . At 1.4 g/cm , PVC's density is also higher than structurally related plastics such as polyethylene (0.88–0.96 g/cm ) and polymethylmethacrylate (1.18 g/cm ). About half of

6912-443: The commodity markets through a commodity price index . In order to diversify their investments and mitigate the risks associated with inflationary debasement of currencies, pension funds and sovereign wealth funds allocate capital to non-listed assets such as a commodities and commodity-related infrastructure. The inventory of commodities, with low inventories typically leading to more volatile future prices and increasing

7020-404: The commodity, not any quality inherent in a specific producer's product. Commodities exchanges include: Markets for trading commodities can be very efficient , particularly if the division into pools matches demand segments . These markets will quickly respond to changes in supply and demand to find an equilibrium price and quantity. In addition, investors can gain passive exposure to

7128-433: The consumption of PVC from medical devices is approximately 85,000 tons each year. Almost one third of plastic-based medical devices are made from PVC. PVC has been applied to various items such as: bottles, packaging films, blister packs , cling wraps , and seals on metal lids. PVC may be extruded under pressure to encase wire rope and aircraft cable used for general purpose applications. PVC coated wire rope

7236-399: The costs of wear and tear on the instruments of husbandry. David Ricardo , a follower of Adam Smith, modified Smith's approach on this point by alleging that labour alone is the content of the exchange value of any good or service. While maintaining that all exchange value in commodities was derived directly from the hands of the people that made the commodity, Ricardo noted that only part of

7344-425: The demand of rhodium. Rhodium rose in price extremely sharply in January 2021 and by mid February 2021 it had reached an all time high of $ 21,400 per Troy ounce making it the most valuable metal ever sold. Most palladium is used for catalytic converters in the automobile industry. It is also used for some medical, high grade steel, industrial, dental and electronic purposes. Palladium prices rose sharply during

7452-583: The early 70s. In the 1970s as world economies grew they needed more materials and energy to support expansion leading to increases in prices across the board. This boom came to an end as foreign investments fled as extractive industries became nationalized. The most recent of commodity super cycles began in 2000 as China joined the World Trade Organization . China was also in the beginning of their boom as industry and expansion took off. Workers moved into cities as emerging industries took off and offered

7560-432: The end use specification (underground pipe, window frames, intravenous tubing and flooring all have very different ingredients to suit their performance requirements). Previously, polychlorinated biphenyls (PCBs) were added to certain PVC products as flame retardants and stabilizers. Among the common plastics , PVC is unique in its acceptance of large amounts of plasticizer with gradual changes in physical properties from

7668-451: The exchange value of the commodity was paid to the worker who made the commodity. The other part of the value of this particular commodity was labour that was not paid to the worker—unpaid labour. This unpaid labour was retained by the owner of the means of production. In capitalist society, the capitalist owns the means of production and therefore the unpaid labour is retained by the capitalist as rent or as profit. The means of production means

7776-483: The heavy price increases to many factors, including reports from the United States Department of Energy and others showing a decline in petroleum reserves , worries over peak oil , Middle East tension, and oil price speculation. For a time, geo-political events and natural disasters indirectly related to the global oil market had strong short-term effects on oil prices, such as North Korean missile tests ,

7884-558: The importance of factors (such as brand name ) other than price. Most commodities are raw materials , basic resources, agricultural , or mining products, such as iron ore , sugar , or grains like rice and wheat . Commodities can also be mass-produced unspecialized products such as chemicals and computer memory . Popular commodities include crude oil , corn , gold and Bitcoin . Other definitions of commodity include something useful or valued and an alternative term for an economic good or service available for purchase in

7992-530: The increased growth of the BRIC countries' demand for electrical goods. Russia increased production, but the US offset this with production cuts in the late 1990s and mid-2000s. Phosphorus , rhodium , molybdenum , manganese , vanadium and palladium are used in high grade steels, oil based lubricants, automotive catalytic converters, chemical plants' catalysts, electronics, TV screens and in radio isotopes. Demand for these metals appeared to be increasing as computers and mobile phones became more popular in

8100-503: The market treats their instances as equivalent or nearly so with no regard to who produced them. Karl Marx described this property as follows: "From the taste of wheat , it is not possible to tell who produced it, a Russian serf , a French peasant or an English capitalist ." Petroleum and copper are examples of commodity goods: their supply and demand are a part of one universal market. Non-commodity items such as stereo systems have many aspects of product differentiation , such as

8208-501: The market. In such standard works as Alfred Marshall 's Principles of Economics (1920) and Léon Walras 's Elements of Pure Economics ([1926] 1954) 'commodity' serves as general term for an economic good or service. The word commodity came into use in English in the 15th century, from the French commodité , "amenity, convenience". Going further back, the French word derives from

8316-686: The metal purchased near the price high. When prices fell in early 2001, Ford lost nearly US$ 1 billion. World demand for palladium increased from 100 tons in 1990 to nearly 300 tons in 2000. The global production of palladium from mines was 222 tonnes in 2006 according to the USGS . Because of the low availability relative to demand, rhenium is among the most expensive industrial metals, with an average price exceeding US$ 6,000 per kilogram, as of mid-2009. It first traded in 1928 at US$ 10,000 per kilogram of metal, but traded at US$ 250 per Troy ounce in mid-2010. It traded in July 2010, at about US$ 4,000–4,500/kg. Aluminium

8424-520: The mid to late 2000s. Thulium is used in x-ray tubes and neodymium is used in high strength/high grade magnets. Molybdenum , rhodium , neodymium and palladium are relatively scarce metals, while manganese and vanadium are, like phosphorus and sulfur , fairly abundant for minor minerals. The major metals such as iron, lead and tin are commonplace. Recycling of the aluminum, ferrous metals, copper fractions, gold, palladium and platinum in mobile phones and computers had got under way by

8532-427: The mid-2000s. Battery recycling has helped bring down both the nickel and cadmium prices. Sulfuric acid (an important chemical commodity used in processes such as steel processing , copper production and bioethanol production ) increased in price 3.5-fold in less than 1 year while producers of sodium hydroxide have declared force majeure due to flooding, precipitating similarly steep price increases. Both

8640-444: The overwhelming majority of chlorine that is available for dioxin formation during landfill fires." The next largest sources of dioxin in the U.S. EPA inventory are medical and municipal waste incinerators. Various studies have been conducted that reach contradictory results. For instance a study of commercial-scale incinerators showed no relationship between the PVC content of the waste and dioxin emissions. Other studies have shown

8748-656: The particular characteristic that it is usually uneconomical to store, and must therefore be consumed as soon as it is produced. Commoditization occurs as a goods or services market loses differentiation across its supply base, often by the diffusion of the intellectual capital necessary to acquire or produce it efficiently. As such, goods that formerly carried premium margins for market participants have become commodities, such as generic pharmaceuticals and DRAM chips . An article in The New York Times cites multivitamin supplements as an example of commoditization;

8856-473: The period from 1992 to 2013, as well as the result of concerns over long-term supply availability. There was a sharp down-turn in prices during 2008 and early 2009 as a result of the credit crunch and European debt crisis , but prices began to rise as demand recovered from late 2009 to mid-2010. Oil began to slip downwards after mid-2010, but peaked at $ 101.80 on 30 and 31 January 2011, as the Egyptian revolution of 2011 broke out, leading to concerns over both

8964-419: The precious metals as a safe haven for their money as both the de facto value of cash and the stock market prices became more erratic in the late 2000s. The period from 1999 to 2001 marked the " Brown Bottom " after a 20-year secular bear market at $ 252.90 per troy ounce. Prices increased rapidly from 2001, but the 1980 high was not exceeded until 3 January 2008 when a new maximum of $ 865.35 per troy ounce

9072-484: The presence of PVC has no significant effect on the amount of dioxins released through incineration of plastic waste ." In Europe, developments in PVC waste management have been monitored by Vinyl 2010, established in 2000. Vinyl 2010's objective was to recycle 200,000 tonnes of post-consumer PVC waste per year in Europe by the end of 2010, excluding waste streams already subject to other or more specific legislation (such as

9180-469: The price in just seven months. The price of wheat had risen from an already high £88 per tonne to £91 from January to March 2010, due to the bullish market and currency concerns. This led to food riots in places such as Haiti , Indonesia, Côte d'Ivoire , Uzbekistan, Egypt and Ethiopia . On 31 July, leading economists predicted that food prices, especially wheat would rise in Chad as Russia ended exports due to

9288-405: The reactor along with a polymerization initiator and other additives. The contents of the reaction vessel are pressurized and continually mixed to maintain the suspension and ensure a uniform particle size of the PVC resin. The reaction is exothermic and thus requires cooling. As the volume is reduced during the reaction (PVC is denser than VCM), water is continually added to the mixture to maintain

9396-403: The replacement of Pb-based stabilisers in 2015. In the early 1970s, the carcinogenicity of vinyl chloride (usually called vinyl chloride monomer or VCM) was linked to cancers in workers in the polyvinyl chloride industry. Specifically workers in polymerization section of a B.F. Goodrich plant near Louisville, Kentucky , were diagnosed with liver angiosarcoma also known as hemangiosarcoma ,

9504-584: The risk of a " stockout " (inventory exhaustion). According to economist theorists, companies receive a convenience yield by holding inventories of certain commodities. Data on inventories of commodities are not available from one common source, although data is available from various sources. Inventory data on 31 commodities was used in a 2006 study on the relationship between inventories and commodity futures risk premiums. In classical political economy and especially in Karl Marx 's critique of political economy ,

9612-506: The run up to 2000, Russian supply of palladium to the global market was repeatedly delayed and disrupted because the export quota was not granted on time, for political reasons. The ensuing market panic drove the palladium price to an all-time high of $ 1,100 per troy ounce in January 2001. Around this time, the Ford Motor Company , fearing auto vehicle production disruption due to a possible palladium shortage, stockpiled large amounts of

9720-572: The safe use of the Suez Canal and overall security in Arabia itself. On 3 March, Libya's National Oil Corp said that output had halved due to the departure of foreign workers. As this happened, Brent Crude surged to a new high of above $ 116.00 a barrel as supply disruptions and potential for more unrest in the Middle East and North Africa continued to worry investors. Thus the price of oil kept rising into

9828-455: The same commodity produced by the skilled worker. Marx pointed out, however, that in society at large, an average amount of time that was necessary to produce the commodity would arise. This average time necessary to produce the commodity Marx called the "socially necessary labour time". Socially necessary labour time was the proper basis on which to base the "exchange value" of a given commodity. Commodity Super Cycles are periods of time, around

9936-467: The same commodity would be consistent and would reflect the amount of labour value used to produce that commodity. Prior to Marx, economists noted that the problem with using the "quantity of labour" to establish the value of commodities was that the time spent by an unskilled worker would be longer than the time spent on the same commodity by a skilled worker. Thus, under this analysis, the commodity produced by an unskilled worker would be more valuable than

10044-415: The site where the commodity is made, the raw products that are used in the production and the instruments or machines that are used for the production of the commodity. However, not all commodities are reproducible nor were all commodities originally intended to be sold in the market. These priced goods are also treated as commodities, e.g. human labour-power, works of art and natural resources ("earth itself

10152-657: The start of the year, but saw a rapid rise in global prices in May 2010, reaching $ 217.11 per ton in the US in June 2010 as China's paper market began to reopen. Coal prices rose to A$ 73 per tonne in September and then up to A$ 84 per tonne in the October 2009 due to renewed interest by China's and Taiwan 's energy companies. During 2003, the price rose above $ 30, reached $ 60 by 11 August 2005, and peaked at $ 147.30 in July 2008. Commentators attributed

10260-452: The suspension. PVC may be manufactured from ethylene , which can be produced from either naphtha or ethane feedstock. The polymers are linear and are strong. The monomers are mainly arranged head-to-tail, meaning that chloride is located on alternating carbon centres. PVC has mainly an atactic stereochemistry , which means that the relative stereochemistry of the chloride centres are random. Some degree of syndiotacticity of

10368-580: The use of cast iron for plumbing and drainage , being used for waste pipes, drainpipes, gutters and downspouts . PVC is known as having strong resistance against chemicals, sunlight, and oxidation from water. Polyvinyl chloride is formed in flat sheets in a variety of thicknesses and colors. As flat sheets, PVC is often expanded to create voids in the interior of the material, providing additional thickness without additional weight and minimal extra cost (see closed-cell PVC foamboard ). Sheets are cut using saws and rotary cutting equipment. Plasticized PVC

10476-409: The world economy." Hence, in the case of an economic crisis commodities prices follow the trends in exchange rate (coupled) and its prices decrease in case there are downward trends of diminishing money supply. Foreign exchange impacts commodities prices and so does money supply: the advent of a crisis will pull commodities prices down. A commodity price bubble, known as the 2000s commodities boom ,

10584-492: The world's PVC production capacity is in China , despite the closure of many Chinese PVC plants due to issues complying with environmental regulations and poor capacities of scale. The largest single producer of PVC as of 2018 is Shin-Etsu Chemical of Japan , with a global share of around 30%. The product of the polymerization process is unmodified PVC. Before PVC can be made into finished products, it always requires conversion into

10692-431: The world's PVC resin manufactured annually is used for producing pipes for municipal and industrial applications. In the private homeowner market, it accounts for 66% of the household market in the US, and in household sanitary sewer pipe applications, it accounts for 75%. Buried PVC pipes in both water and sanitary sewer applications that are 100 mm (4 in) in diameter and larger are typically joined by means of

10800-537: The world. The price of recycled paper has varied greatly over the last 30 or so years. The German price of €100/£49 per tonne was typical for the year 2003 and it steadily rose over the years. By September 2008 saw American price of $ 235 per ton had fallen to just $ 120 per ton, The slump was probably due to the economic down turn in East Asia causing the market for waste paper drying up in China. 2010 prices averaged $ 120.32 at

10908-540: Was 568,695 tonnes which in 2018 had increased to 739,525 tonnes. One approach to address the problem of waste PVC is also through the process called Vinyloop . It is a mechanical recycling process using a solvent to separate PVC from other materials. This solvent turns in a closed loop process in which the solvent is recycled. Recycled PVC is used in place of virgin PVC in various applications: coatings for swimming pools, shoe soles, hoses, diaphragms tunnel, coated fabrics, PVC sheets. This recycled PVC's primary energy demand

11016-506: Was accelerated on the back of widespread U.S. industrialization and World War 1. In 1917 commodity prices peaked and then entered a downtrend to the 1930s. As war erupted in Europe in the late 1930s and eventually including the U.S. the world saw a new cycle begin. Countries were not just preparing for war but also the Aftermath of World War II as lots of Europe and Asia faced heavy rebuilding. This cycle eventually peaked in 1951 and faded away in

11124-514: Was also a resurgence of interest in nuclear power by the UK government between 2006 and 2008 due to the apparently insecure nature of Middle Eastern and Russian oil and after the closure of several old and economically/environmentally unviable coal fired power stations at the time. This helped the uranium price to rally at this date. There was a sharp shift in the prices of gold and, to a lesser extent, both silver and platinum . Prices were at or near an all-time high in late 2010 due to people using

11232-445: Was created following the collapse of the mid-2000s housing bubble . Commodities were seen as a safe bet after the bubble economy surrounding housing prices had gone from boom to bust in several western nations, including the USA, UK, Ireland, Greece and Spain. Advisers claimed that commodity prices could be predicted better than stocks, since they are traded for actual usage and the price

11340-540: Was generally under $ 25/barrel. Since 1968 the price of gold has ranged widely, from a high of $ 850/oz ($ 27,300/kg) on 21 January 1980, to a low of $ 252.90/oz ($ 8,131/kg) on 21 June 1999 (London Gold Fixing). The analysis of this period is based on the work of Robert Solow and is rooted in macroeconomic theories of trade including the Mundell–Fleming model . One opinion stated that "The volatility and interest rates found its way into commodity inputs and all sectors of

11448-483: Was permanently banned for use in children's products in the US in 2008 by US Congress; the PVC-DEHP combination had proved to be very suitable for making blood bags because DEHP stabilizes red blood cells, minimizing hemolysis (red blood cell rupture). However, DEHP is coming under increasing pressure in Europe. The assessment of potential risks related to phthalates, and in particular the use of DEHP in PVC medical devices,

11556-409: Was set (a.m. London Gold Fixing). Another record price was set on 17 March 2008 at $ 1,023.50/oz ($ 32,900/kg) (am. London Gold Fixing). In the fall of 2009, gold markets experience renewed momentum upwards due to increased demand and a weakening US dollar. On 2 December 2009, gold passed the important barrier of US$ 1,200 per ounce to close at $ 1,215. Gold further rallied hitting new highs in May 2010 after

11664-685: Was subject to scientific and policy review by the European Union authorities, and on 21 March 2010, a specific labeling requirement was introduced across the EU for all devices containing phthalates that are classified as CMR (carcinogenic, mutagenic or toxic to reproduction). The label aims to enable healthcare professionals to use this equipment safely, and, where needed, take appropriate precautionary measures for patients at risk of over-exposure BaZn stabilisers have successfully replaced cadmium-based stabilisers in Europe in many PVC semi-rigid and flexible applications. In Europe, particularly Belgium, there has been

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