Tuesday, April 1, 2014
Mineral prices are up about 5%, while ship prices have continued to fall. This is bad news for my margins. I've put a hold on both buying minerals and selling ships until they stabilize, because there are two possible explanations.
One: The increase in mineral prices is due to increased demand because of B-R. In this case, it will take prices long enough to subside that ship prices will rise to meet mineral prices in the meantime. In this case I should keep buying minerals, but put a hold on sales until prices rise.
Two: The increase in mineral prices is speculation in advance of the refining changes. In this case mineral prices will subside before hull prices can rise to meet them, and I should keep selling hulls but put a hold on buying minerals.