Ch. 3— Minerals Supply, Demand, and Future Trends • 83 



middle 1980s, unforeseen changes in the world 

 economy significandy altered consumption; these 

 changes were partially caused by economic pres- 

 sures resulting from substantial increases in energy 

 prices, coupled with technological advancements 

 (including substitution), changes in consumer atti- 

 tude, imports of finished products rather than raw 

 materials, and growth in the service sector of the 

 U.S. economy. 



These shifts in minerals demand are reflected in 

 both the intensity of use and in consumption.^ Of 



'"Intensity of use," as used in this report, is the quantity of metal 

 consumed per constant dollar output. 



the major industrial metals derived from minerals 

 known to occur in the U.S. EEZ, only two — plati- 

 num and titanium — show growth in domestic con- 

 sumption between 1972 and 1982. Whether the 

 long-term trends in use intensity and consumption 

 wUl continue, stabilize, or recover depends on many 

 complex factors and unpredictable events that con- 

 found even the most sophisticated analyses. How- 

 ever, there are indications that trends in reduced 

 intensity of use and consumption for some metals, 

 e.g., nickel, have stabilized since 1982. 



COMMODITY PRICES 



For most minerals, the normal forces of supply 

 and demand resulting from macroeconomic trends 

 determine the market price.* Mineral prices and 



*Broadus, "Seabed Materials," p. 857. 



demand are notably volatile (figure 3-2). While all 

 minerals are subject to some oscillations in market 

 prices due to normal economic events, some that 

 are produced by only a few sources (where there 

 is a relatively low level of trade, e.g., cobalt) and 



Photo credit: Jenifer Robison 



Considerable onshore mining capacity remains idle as a result of depressed mineral prices, foreign competition, and 



reduced demand. Idle capacity will likely be brougfit back into production to satisfy increased future consumption before 



new mining operations are begun either onshore or offshore. 



