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. == Background == 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.
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. == Background == 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.
Source: Wikipedia "Pinch point (economics)" · CC BY-SA 4.0
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