Time to think premiums instead of discounts


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marvin ives
Guest
marvin ives

Pat, I understand that is how these discounts started, however, in today’s market you do not address how the domestic producers are utilizing QP’s to reflect higher quoted prices while at the same time discounting severely from that price. This gives a false illusion that prices in the States on some alloys are higher then they really are. In addition, QP’s in general in this market are like “the tail waging the dog” when someone can buy a small parcel of ferromolybdenum or ferrovanadium in a market with almost no spot buying from a desperate seller altering the QP which… Read more »

alanpatrickryan
Guest

Always nice to hear from you. The “real” market price is ephemeral. The market price is whatever one buyer and seller agree to. I think you are confusing the actual transaction price with whatever published price is out there. It is true that often a small sale by a desperate seller can move the published price down, and that should actually harm domestic producer using QPs because they have to discount off of an even lower published price.