August 2019

There have been a number of price reductions over the last week in what appears to be a race to the bottom. 

Whilst I understand that there is oversupply, there really is no justification for price reductions apart from an attempt by retailers to increase their profit margins. 

Supply and demand is being used by retailers as a model to dictate their margins – I find little evidence that it influences the producer price on the upside – with the current price a long way from being reflective of the consumer price.