Imagine a buyer purchasing hundreds of thousands of tonnes of steel, several years ahead, for building an energy transmission pipeline or a wind turbine. Changes to the supply and demand balance mean the price could sink or surge by the time the steel is delivered. Or steelmaking raw material costs could balloon, meaning the mill can no longer honour delivery at agreed prices. The ramifications of non-performance can obviously be huge, not just for the steel buyer, but the whole supply chain and viability of projects.
This exclusive Argus insight paper explores why increasing number of companies are linking prices to a market reference — such as an assessment, index or futures price.
To learn more about these exciting market developments, submit your details and download the full insight paper now.
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About Argus Media
As a leading authority on energy and commodity markets across the globe, Argus is uniquely positioned to provide in-depth analysis and expert thought leadership. Our white papers are carefully written by Argus specialists from across our company. Each white paper focuses on a topical theme, exploring areas such supply and demand dynamics, price trends, trading activity and changing regulations. We always aim to provide a balanced view, underpinned by data and insight gathered first hand from the market.