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Gold/Mining/Energy : Breakwater Resources (T.BWR) -- Ignore unavailable to you. Want to Upgrade?

To: Giraffe who wrote (474)	7/19/1998 10:43:00 PM
From: jack marshall	Read Replies (2) \| Respond to of 962

Prior to 1991 producers set the price. If I'm not mistaken it was something called the EPP (European Producer Price??). Excess inventories were held at the smelters not the LME. However, this led at times to vast inventories with no monetary return when the price was higher than consumers were willing to pay so the industry conceded that the LME was the better way to go. A drop below five weeks supply is still the golden number for price rises (in an expanding economy). It doesn't matter whose holding the supply.