news

                          

                          Friend Links

          news

          news

          Your Current Location : Home news

          Uproar over Formula Silicon Contracts

          Source: Time:2013-07-23 09:24:27 views:

          The use of formula contracts in the silicon market is bound to trigger a heated argument. Some suppliers, led by Globe Specialty Metals, have made known their distaste for the contracts. _They say a few secondary aluminum producers have pushed down the price using small monthly spot fixed-price purchases. Those purchases, according to the suppliers, distort the market, especially considering the formula contacts often contain a discount off the low. “If the low end of the range of an index is $1.15 per lb, the real price to consumers is between $1.10 and $1.14, depending on the seller and the contract,” one analyst pointed out.
           
          Sellers want to switch to fixed-priced agreements in 2014, but this might be wishful thinking. No consumer is willing to buy at a fixed price for a year, and even quarterly fixed pricing poses problems. While the silicon market isn’t dynamic, no buyer wants to be caught paying more than his competitors.
           
          Monthly and quarterly fixed-priced businesses have drawbacks. The major advantage of a formula contract is that it binds the buyer and the seller together for a prolonged period. If the sales were done solely on a monthly or quarterly basis, there would be no loyalty and the consumers would opt for the lowest price. “In an oversupplied market, like we have today in the US, there would be lots of suppliers competing,” one seller pointed out.
           
          A consumer added: “We have no problem getting suppliers. I don’t see why the sellers are now complaining. When prices were shooting up, the suppliers had no problem with formula contracts, but now they do when they are disadvantaged by the contracts.”
           
          The issue will be decided when the two sides negotiate their 2014 supply contracts. If competition is the deciding factor, the formula contracts with discounts, possibly smaller than in 2013, will prevail.
          Home   |  About us   |  news   |  Products   |  Honor   |  Factory   |  Market   |  Feedback   |  Contact   | 

          Cored Wire

          all right reserved © 2013 Anyang Tiefa Metallurgy Co., Ltd
          Add:Longquan Development area , Long'an District, Anyang, Henan, China
          Tel Phone:86-372-5055522      Fax:86-372-5055500


          National ministry of industry and information website Record
          Numbers   Henan ICP Record  ...... No
          Technical support:Star source network
          亚洲无码人妻在线视频网,亚洲日韩欧美自拍另类,亚洲成人网站观看在线播放,亚洲国产精品线播放