excess supply


Also found in: Dictionary, Wikipedia.

Excess Supply

Supply of a good or service well over demand. Excess supply leads to low prices for the good or service.

excess supply

see EQUILIBRIUM MARKET PRICE.
Excess supplyclick for a larger image
Fig. 65 Excess supply.

excess supply

a situation in which the quantity supplied (see SUPPLY) of a product (OQ2 in Fig. 65) exceeds the quantity demanded (see DEMAND) of the product (OQ1) at the existing market price (OP). In a competitive market there will be a downward pressure on price as suppliers compete to dispose of surpluses, but where there is government intervention the situation could persist. See EQUILIBRIUM MARKET PRICE, EXCESS DEMAND, PRICE CONTROLS, PRICE SUPPORT, COMMON AGRICULTURAL POLICY.
References in periodicals archive ?
In 2017, QNB expects the remaining moderate excess supply in the market to be completely eliminated despite higher supply from virtually all the major global producers.
The excess supply in the market is likely to ease over the coming quarters,' Opec said in the report, resulting in 'a more balanced oil market toward the end of the year.
Crude inventories in the United States, at a record high in April, are expected to decline in weekly supply reports due later on Tuesday and on Wednesday, which would support the view that excess supply is easing.
The overall reduction in excess supply should result in oil prices averaging $41/b in 2016.
If this scenario manifests, the excess supply in the market is likely to be reduced to 0.
The excess supply condition for key commodities is expected to linger at least in the first half of 2016.
Vacancy rate in the office space market is on the rise as supply hits its peak of 870,000 square meters by next year, but this is no cause for worry of possible property bubble as excess supply can be met in 2017-2018, a property management consultancy services firm said.
Developing an LNG export option for South Pars, as well as the possible boost to Egyptian shipments from Eni's new field, will add to the excess supply from rising production from the United States, East Africa and the East Mediterranean, the analysts wrote.
There is an additional pressure from excess supply in the market and along with market is also anticipating more supplies from Iran," said Pradeep Unni, senior relationship manager, Richcomm Global.
We want to live" -- was perhaps a little ambitious in its aims, despite the massive drop in the price of oil, and the excess supply of many products.
Lakkotrypis said the multibillion euro (dollar) facility that would convert the gas into liquid for easier transport remains the best option for Cyprus to export excess supply, but its construction depends on additional gas quantities being found.
By adding LA Ash's assets to its operations, Headwaters will instantly reinforce its presence along the Gulf Coast, president Bill Gehrmann said, pointing out that Headwaters has excess supply of CFB ash while LA Ash's existing client base is demanding more product than the firm can supply.