CRU Indexed “Contract” Spot Purchases – Have the Domestic Mills Hurt the Spot Market?

The whole reason behind the various indices is to provide transparency to domestic mill spot transactions. This, in turn, gives buyers and sellers a basis to work from when negotiating both existing (spot) and future (contract) deals.

The issue everyone has – as a buyer your job is to be at the cutting edge – below the spot transaction price level. As a mill supplier your goal is to tie up tonnage in order to keep the various pieces of equipment running at peak performance which (hopefully) will then translate into profits for the mill.