Carbon fiber getting cheaper?

[Compaq888]

once the car manufactures get on this it will cut the cost tremendously. It will cost the same as steel. Like i have been saying all along..

[GenKreton]

I hope it's cheaper in time for my next bicycle. Think of the food that will save!

[Duffman]

Originally Posted by Compaq888

It will cost the same as steel.

Don't hold your breath.

[Ryland]

How will a higher demand make it cheaper? according to an artical that I read about making passenger planes out of carbon fiber there are only two compenys that make the stuff and that the bicycle makers that use carbon fiber will be allowed to keep their contracts to buy the fabric but that it's going to be hard for any one else to start.

[NoCO2]

Increased demand means companies have to increase production if they want to increase sales. Especially if auto manufacturers get in the game, CF manufacturers are really going to be bidding for those contracts and they are going to have to dig deep to get it cheap enough that an auto manufacturer will be willing to pay the price.

[Ryland]

But the makers of carbon fiber appear to be selling their product as fast as they can make it, so why would they lower their price? they don't need new customers, I suspect that they could double their price and still sell at near peek production.

[tasdrouille]

New players sensing the opportunity will enter the market, global production capacity will go up and the prices will be driven down by the competition once capacity and demand start to balance out.

[adam728]

Lets just replace what was said about demand for carbon fiber causing prices to drop and put it in a different perspective. Oil.

By the logic used a few posts above oil prices should drop because we are all demanding more gas. It doesn't work that way!

I do agree that carbon fiber prices should come down as time goes on, and maybe it will match that of steel, but I think that will be about 100 years from now.

[Who]

It might be wise not to confuse basic supply and demand theory with product life cycles.

[roflwaffle]

Originally Posted by Ryland

But the makers of carbon fiber appear to be selling their product as fast as they can make it, so why would they lower their price? they don't need new customers, I suspect that they could double their price and still sell at near peek production.

If they can increase production more than they decrease profit per unit, then they'll make more money overall.