"The bull market for commodities will last for decades to come,"

[4dsc]

Source: Des Moines Register

When considering the effect of wholesale prices, steel has gone up more than 100 percent in the last year. The chairman of steelmaker Nucor, Dan DiMicco, recently told a steel conference, "The bull market for commodities will last for decades to come, and our customers need to get used to it."

Sukup said: "Steel has adopted Big Oil's pricing philosophy. The cost is up 50 percent in the last seven months."

As if that weren't enough to worry about, Sukup said that unless natural gas goes down from a three-year high of $13.50 per thousand cubic feet, his company plant will face big heating cost increases next winter.



Read more: http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=/20080708/BUSINESS/807080352

---

Although this article is about fuel surcharges, I thought that comment I posted was worth posting here.. Obviously, consumers haven't gotten the message yet that high prices will be here for a long, long time..

[TheFarseer]

1. you can bet your last dollar

the grain market bull market won't last. People just can't stand it when it looks like farmers are making a buck.

[happygoluckytoyou]

2. so glad we are just having a jiggle in the market...would hate to thing we have INFLATION

when commidities are plentiful... there is democracy.... the bins are full, and capitalism is at its best
WE FOOL OURSELVES INTO THINKING THAT IT IS BECAUSE WE ARE "ABOVE" OTHER PEOPLE

as shortages appear, cheap labor from other countries, markets crashing, oil shortages.....
AFTER THOUSANDS OF YEARS WE ARE STILL ONLY ONE GENERATION OUT OF THE JUNGLE

[dweller]

3. ""Steel has adopted Big Oil's pricing philosophy."

the 'We'll charge whatever we want...what are you going to do, buy it elsewhere?" policy.

dp

[fasttense]

4. I'm afraid Dan DiMicco is wrong.

Fist we get hyper inflation then we will get depression.

[spotbird]

5. It's time to get out of commodities if

the MSM is predicting a long run, it's looking like dotcom and housing.

The question is what comes after tech, housing and commodities? Invest in mass protests?

[bemildred]

6. Yah. Too many bubbles popping or ready to pop. nt

[TheFarseer]

9. two theorys:

Either China/India or water and another one I just thought of - alternative energy. I hope it's that last one.

[spotbird]

10. Water?

Please expand.

[TheFarseer]

11. There are water shortages in many parts of the globe

The developing world of course, but also in Europe, California and it was a big deal in Georgia earlier this year. Even Nebraska, which is sitting on a huge underground aquifer is fighting it's neighbors for water. Imagine privately owned desalinization plants supplying the water for California. It was posted on DU a while back that the Bush Family Evil Empire was buying up land in Paraguay because it was sitting on the largest untapped underwater aquifer in the world. Population growth and possibly global warming will only make water shortages worse. It's been said on places other than DU that water will be the next oil.

[xchrom]

7. okay -- Sukup?!? -- there's some irony. nt

[Javaman]

8. Commodities will be a bull market as long as china's economy can

support their growth. but since they are having massive diesel and natural gas shortages, I don't really believe that commodities will be a bull market much longer than say 5 years after which peak oil will hit every nation like a ton of bricks.

[izquierdista]

12. With a blaring healine like that

I would say the commodity bubble is right about ready to pop.