These price decreases come at a bad time. As key inputs to energy transitions, military technologies and consumer electronics, demand for various critical minerals is expected to range from doubling to quadruple by 2040, and forecasts indicate a potential supply deficit as soon as 2028. Given the long lead times to develop new supply sources, investments in mining these minerals must begin now. Yet, in the face of low prices, the mining industry is delaying projects, scaling back work and suspending operations. For these minerals, emerging futures and options markets ' collectively known as derivatives ' present a promising avenue to increase pricing transparency and stability by increasing liquidity. Contracts in metals markets traditionally can go three to five years forward. These contracts, therefore, provide visibility on sellers' profits and buyers' costs, enabling them to plan for the future. Although not without some detractors, research has suggested that deep derivatives...
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