Minerals In The World Economy

Virtually every available measure of total world mineral industry activity demonstrated that 1982 was little, if any, better for the industry than 1981 had been. Levels of production, trade, and consumption for virtually every major commodity declined; unit prices for most commodities fell, particularly in terms of constant dollars, and as a result of cutbacks in output and lower prices, capital available for investment within the industry was reduced. These conditions, coupled with the existence of considerable idle capacity, tended to retard investment, although there was an upturn in U.S. oil industry investment overseas. Despite the overall depressed situation of the world's mineral industry, there were indications of possible improvements in market economy countries near yearend, as output of some materials increased marginally and as prices for some mineral commodities reversed their downward trends. The downturns in total world mineral industry activity were not universal from the viewpoint of individual countries. Indeed, output of a number of commodities increased in centrally planned economy countries, and these gains were insufficient to offset declines in market economy countries, thereby sharply altering the proportion of total world output accounted for by each of these two groups of countries. There was a similar shift in consumption on a percentage basis.