It's called supply and demand, y
100% correct, but you've drawn the wrong conclusions. Demand has risen enormously because it is led by governments and their militaries. And ... Anyone who believes the global security situation will improve anytime soon is living in fantasy land, so this demand won't reduce, likely the reverse.
Basic Economics 101 says in a free market, excess demand raises prices in the marketplace and in turn existing suppliers increase capacity and new suppliers enter the market creating an equilibrium, or even oversupply situation, and prices drop. BUT, explosives manufacture is anything but a free market as it is surrounded by a thicket of impenetrable barriers to entry, and even expansion (or the continued existence of grandfathered facilities) is hedged around with restrictions and risk. You do know that NO US manufacturer makes a single extruded rifle grade? Why, because your EPA has loaded it with so many health & safety rules that it might as well have banned the process outright. You in the US have ONE plant making rifle powders for the canister/handloader market and that makes ball-type powders only (because the process is inherently safer).
Until the 1960s / 70s, western governments had state explosive plants which were treated as strategic assets. they have ALL, each and every one been privatised and explosives/propellants manufacture left to the private sector, which is rightly risk-averse and doesn't invest in ruinously expensive extra capacity that
might be needed maybe one day in the far future. As western governments also refuse to shell out any retainer payments for possible wartime contingencies, there is no spare capacity. These are the same governments that said 'We now live in a peaceful world post USSR and will never see war again, and we'll make massive peace dividend savings ........ and b*gg*r the removal of capacity and safety nets.'
To return to the US, here are the countries you get your extruded powders from:
Australia
Canada
Czech Republic
Finland
Switzerland
If Americans want to bellyache about paying world prices in an overstretched market, the answer is simple ....... Start making components yourselves. (...... and whatever you do, don't follow my country, the UK's, example as we make nothing here, and have governments that know the price of everything, but value of nothing!)
A U.K. official recently allegedly commented "the U.K. would run out of ammo within a matter of days if engaged in a war with Russia".
Oh my searcher, I only wish it were said in jest. 100% true. Just to really rub things in, we have joined you (the US forces) in providing merchant vessel security in the Red Sea, and Hey! Ho! we've recently spent £6Bbn in building two new large aircraft carriers which we were told were essential for power projection in faraway places where our trade could be threatened. Are they in the Red Sea or Mediterranean with a US carrier group? Hell No! One hasn't got any aircraft, and the one that has can't go anywhere because the Royal Navy is so strapped for manpower that we can't crew the essential auxiliary support ship.
https://www.telegraph.co.uk/news/20...rs-not-ready-red-sea-navy-recruitment-crisis/
Anyway, we have these two large allegedly state of the art ships, but they were built without catapults to save money and so are restricted to VSTOL type aircraft. There are now mutterings about having to rebuild them with bolt on catapults to actually have any planes to fly off them.