2.6.4 Financialization and critical raw materials

Course subject(s) Module 2. Challenges

Now you have learned what derivative exchanges are. But: critical raw materials are often not listed on these exchange markets, so prices cannot be hedged. Why is this the case, and what will the future possibly bring?

Financialization and critical raw materials

If you want to learn more about this topic, you can have a look at the following literature:

Pindyck, R.S. (2004), Volatility and commodity pricedynamics, Journal of Futures Markets, 24(11): 1029–1047.
Jégourel Y. (2015), Changes in The Commodities Market – Part 3: what implications for producers and end users?, Policy Center for The New South, 15/10,

Raw Materials: Managing Resources for a Sustainable Future by TU Delft OpenCourseWare is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
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