Ferroglobe’s CEO Pedro Larrea took aim at the ferroalloy pricing system. He complained the current pricing indexes need to report spot business (delivered within a quarter) and that the reported tonnages must be based on at least 200 mt of fixed-price business. This is to prevent manipulation from low -volume transactions moving the price. Larrea also wanted that all the data given to the indexes were screened.
As for the upcoming 2017 price talks, Larrea suggested a market basket approach of using more than one index provider but only if the index recognized fixed prices at least 200 mt and across all major grades. And discounts on the indexes are NOT an option. As for Ferroglobe, the company will favor fixed prices, possibly on a quarterly basis. Larrea spoke at the recent Ryan’s Notes meeting.