Market Discussions

When CCP arrange that pos should use fuel to make it more easier to maintain, that was a good decision. But now, there we'll be nothing to maintain because of the cost. Average 1000 block in market is about 21 mil, that only last for 1 DAY ! If you have a large pos. Accurding to the market in eve, 40blocks per hour for large pos.
It's to expansive, WAY to expansive.


whats pisses me the most is that CCP SAID THIS IN THE DEV BLOG:

Towers will use 1 block/hour for small, 2 blocks/hour for medium and 4 blocks/hour for large. The CPU and Power load will no longer have any impact on your fuel needs - all towers now need the same amount of fuel, regardless of configuration.


Link is below to their dev blog.
http://www.eveonline.com/devblog.asp?a=blog&nbid=3029

So why do you think there's a problem here? Either get out of the business or be one of the survivors. Works either way. And if there's product listed below production cost, then consider buying it out and relisting. I figure there's still some market opportunities out there.

Block prices will tank to close to material prices once we know when these start being used. Right now volume is very thin and price is artificially inflated as there are no mass producers of blocks for the market yet (they are building stockpiles for their own use and/or waiting for the time when demand actually spikes)

Long-term, I expect blocks to sell at a 4-8% premium over their raw materials cost. They can be broken back down into their original components, which will somewhat fix any over-supply of a particular type. They also require a very large ISK investment per day to keep a factory line running.

(1) batch of 40 takes 3 minutes to produce in a POS component/ammo array. Which means you can make about 480 batches per day at an input cost of around 275M ISK/day. A 5% profit margin on that would be about 13-14M/day per manufacturing line.

Generally, once you get above 10M ISK/day for a manufacturing line like that, people start to flock to making it, which drives down everyone's prices. Except that like making BC/BS hulls, it requires a substantial investment of ISK/day, so it will be mostly the larger producers making this. If they can't turn at least 10M/day in profit for that manuf line, they'll probably make something else.

And I agree with Jarnis - right now, supply is very thin on the market. Most POS owners are still converting their old stockpiles (but not all of it yet) and what you see on the market is a bit of "well, why not get 30-40% above cost right now for a batch" pricing. Once folks get their 2-6 month stockpiles sorted out, you'll see more blocks on the market at closer to normal profit levels.

When the time comes, I think manufacturers will step-up and spew fuel blocks onto the market. There currently isn't a lot of demand as everyone is still using the old PI fuel, and people are slowly converting some of their current PI fuel stocks.

For those that don't follow S&I, I did some P.E. research on a fuel block BPO and I was rather surprised I got a 3 minute production time at P.E. 50 (I was expecting 4m 1s). The unresearched time is 5 minutes.

Using unresearched BPO, I was able to manufacture 60 days worth in about 14h 24m using 5 BPO. With a researched BPO, that would drop to about 8h 38m.