Pinch point (economics)

A pinch-point is the level of inventories of a commodity or product below which consumers of that commodity or product become concerned about security of supply. When inventories are below the pinch-point, small changes in the balance of supply and demand can cause large changes in the price of the commodity or product.^[1][2]

The term was suggested in 1988 by Walter Curlook (Executive Vice-President of Inco Ltd) and was first published by Raymond Goldie with Rob Maiman in 1990. In 2000 Raymond Goldie trademarked the term.

References

1. ^ Raymond Goldie and Rob Maiman (1990). Pacific Rim 90 Congress of the Australasian Institute of Mining and Metallurgy.
2. ^ Raymond Goldie (2005). Inco Comes to Labrador. St. John's, Newfoundland, Canada: Flanker Press. p 61-62. ISBN 1-894463-75-7.