Price Policies of the Cement and Allied Industries

BASIC mineral commodities may be divided into two general classifications in their market or price characteristics. In one class are commodities sold on a world-wide basis, as gold, silver, nickel, asbestos and petroleum, and in the second are those produced and sold locally. Of course, no precise line of demarcation exists between the two; coal, for instance, belongs more or less in both. If there are enough producers of any commodity to prevent control of production by any one person or group, a free market then exists and the price in a buyer's market is determined by the most favored producer-meaning the producer, with the lowest production cost or the lowest cost of transportation, or both, to the particular market, or place of use. With minerals in the first classification, their high intrinsic value far outweighs the transportation cost and a uniform market price is accepted as an essential element in the economy of distribution. But with common minerals of small. intrinsic value and relatively high transportation costs, economists are reluctant to admit that a uniform price may also be an essential element in distribution.