Thursday, May 17, 2012

My guesses are: cement, fertilizer, salt, drinking water, vitamins, what do you think?

As an exchange dedicated to alternative raw materials, particularly nanomaterials, I would have to suggest the commodities of tomorrow will include many that are currently OTC but most certainly will include nanomaterials.

Bearing in mind the relative "newness" of these materials, it is not suprising the Commodity industry does not yet find itself familiar with the paradigm shift these materials will introduce as they progress. Now a formal exchange is created to trade NMs and other commodities such as Commodity Polymers (150 grades), Industrial Chemicals and Base Energy, areas where NMs are highly relevant in the near term this proces can act as a focal point for anyone interested and responsible about the emerging field.

The fact the ability for brokers to organise around the self-regulatory and compliant EHS structure including SHE Accrediation, formal inspection and tracing of NMs creating by this exchange in collaboration with many of the stewardship agencies in NMs opens up a new opportunity for the commodity industry to get involved. While a commercial user as opposed to investment exchange, it is often forgotten that most commodity exchanges we have today all started as commercial as opposed to investment exchanges.

An interesting feature we have noticed which encouraged us to list a number of more traditional materials was the fact we have been innundated with interest expressed in many traditional commodity sectors since formal launch in December 2010 after 4 years of input.

We see areas such as Chemicals, fertilizers, Polymers where OTC markets or in-the-trade pricing methodologies have broken down, and more importantly where several investment exchanges have struggled to develop "markets" given the sheer multitude of supply offerings.

Take a simple inorganic such as TiO2 where there are almost 200 grades, some forty are now listed on INSCX and real trade is happening not in tons for 100s of tons. The same is true of commodity polymers where supply direct from producers is coming on tap at a rate of several 100,000 MT a month. These are of course traditional materials.

When we consider nanomaterials these hold a current relevance in Polymers (Several nano-enabled grades are listed on INSCX now with more planned), Fertilizers (An organic nano-Iron Chelate Fertilizer is listed in 100 Ton size on the exchange which increases a crop yield by over 20%), several metal powders, CNTs (Used to make for example that USB stick we now use), Graphene Platelets etc., the list is already upwards of 100 NMs and growing.

The exchange was created by experts in nanoscience combining with traders and brokers more familiar with exchange traded materials. Anyone interested in exploring the area can contact us at: info@inscx.com or visit the websites www.inscx.com or www.nanocapitalmarkets.com

As for information on nanomaterials try attending the event supported and endorsed by the exchange; www.nanomaterials2011.com

For me water, both drinking and irrigation. In my opinion much of the world's agriculture industry still benefits from 'low cost water' due to historical drawing rights or export driven economies. When the full cost of water is finally passed through to consumers prices will rise again. How to commoditise this activity is another question though.

In the developed world, water consumption is managed responsibly. Even outside of the developed world (BRIC nations), exponential water consumption is not viable or valid as an argument in support of Water Commodity Futures/Derivatives. Your analysis fails to take into account the rising wealth of nations, whose inhabitants, at present, do not have access to drinking water, but will. Consider the urbanization of China, do you *not* think water purification, and distribution channels come with development? The same can be said for India, and Africa. I would argue that rising incomes leads to lower birth rate, and increased quality of life. Also, no one seems to have made any reference to the fact that the EU/USA/Canada already have water purification technology (sea water in, clean water out.) Take the municipal sewage waste water purification systems in the developed world. What does it do? It makes re-use of water sustainable, and provide cleansed water back to the ecosystem.

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