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<p>[QUOTE=&quot;Endeavor, post: 2194546, member: 60292&quot;]It depends on the circumstances and the mining companies agenda. Lowering production doesn&#039;t necessarily mean demand has gone down. Demand could be stable (or even going up), but if mining companies speculate that they could achieve higher profit margins by by reducing supply then they will do so.</p><p><br /></p><p>On the flip side, sometimes companies increase production when demand is falling in order to keep revenue stable. We saw this with gasoline a year or two ago. Demand/price for oil was falling and OPEC ramped up output - which further drove prices downward. If they feel like the best way to continue making $X when price has dropped in half (for example) is to double output, then that&#039;s what they will do. Of course flooding the market usually drives price further downward, so there&#039;s only so long they can keep up that strategy.[/QUOTE]</p><p><br /></p>

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