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We can also see that "scrap" and "net official sales" have made a great contribution to raising the supply. Producers supply scrap to meet the demand for "other fabrication" such as coins and tooth fillings.
From Figure 6.6 the demand for "other fabrication" has increased recently, for this, producers might provide more because it is found that they can make a profit from it. This can be proved from 1997 to 1998 in Figure 6.5.This situation was as the same as that of Net official sales for supply and bar hoarding for demand. Therefore, the trend is that supply has increased .This can seen in the diagram below: Supply curve shifts to the right, at price AE, quantity rises from B to C...
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