How relevant is Glencore’s benchmark price?

Glencore’s benchmark may not be a benchmark after all. More sellers are using the price as a gambit to begin negotiations. “We say, okay Glencore is now at $1.42 for the second-quarter pre discounts, let’s talk about what our price should be,” one seller said. “I don’t think Glencore’s benchmark should be the discounted index either.”

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sigourney
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sigourney

what are you talking about – nobody is negotiating anything,
the customers are locked into long term contracts and are being forced to accept a 20% increase on their prices – on the other hand they are pushing that increase to their customers with chrome surcharges
so all are happy except for steel customers

let the games continue