Early birds book ‘07 magnesium at lower prices
Dec 11, 2006 | 11:58 AM
| Meghann McDonnel
The gap in 2007 contract prices between the early birds and the last-minute shoppers for magnesium has grown to historic levels as indications of future supply tightness grow, according to market sources.
Consumers who signed annual contracts early, either before or immediately after Norsk Hydro ASA announced it would exit the magnesium market, are reaping the benefits of their foresight, the sources said.
"There is an interesting phenomenon out there. We booked our contracts three to four months ago for 2007, and we thought it was expensive, but in hindsight it was genius," one magnesium consumer said. "People that came in early have done very well, and for the first time in years there is going to be a wide discrepancy in contract pricing."....
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