Capacity Growth and Capacity Utilization in Non-Ferrous Metal Mineral Industries: Some Conceptual Issues

The economic developments and industrial behavior patterns that led to a lasting excess capacity in the world non-ferrous metals industries from the aid-1970s are explored. Detailed attention is devoted to analyzing and defining crucial concepts like "capacity", "excess capacity", "capacity maintenance" and "investments". Empirical evidence of capacity utilization and capacity growth in the industries under study is provided. The coincidence of excess capacity and low prices on the one hand, and investments in capacity maintenance and capacity expansion, on the other, is seen as a consequence of substantial declines in the metal industries' investment and production costs during the period studied.