What is meant by "modest easing of prices" and "comes on stream" in this sentence?

Question

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Market fundamentals point to a *modest easing of prices* as new capacity *comes on stream* and demand growth slows.

Answer 1

"modest easing of prices" = either prices, in general will drop slightly or at least grow at a slower rate.

New capacity "comes on stream" is a metaphor for the economy. It describes the time it takes new products to have their full impact on the economy.

For example, a new HD television factory starts production. The first month or so, they are BUYing raw material, hiring workers, and getting ready. The second month they train the workers. The third month they start making TVs. It takes a couple of months to work out production schedules and get amximum production going. Meanwhile, sales people are trying to sell the product to retailers. Wlamart places an order, but it is 6 months before TVs are ready to ship(see above).

You see how waiting for the new capacity is similar to waiting for a boat to float downstream to your position?

This is a hypothetical, but you can get an idea. The new TVs may lower prices overall due to increased competition, but the effect is not instant.

Answer 2

Deflation. Higher inventories less demand.

Answer 3

small drop of prices
comes onto the market