Most 2013 lead contracts use ‘LME-plus’ model

Jan 04, 2013 | 04:13 PM | Daniel Fitzgerald

Tags  lead contracts, primary lead, secondary lead, lead contract pricing model, cost plus, LME plus, Daniel Fitzgerald

NEW YORK — Lead market participants say that the majority of signed 2013 contracts have used the traditional “LME-plus” model rather than the “cost-plus” model favored by producers, although at least one producer was reported to have signed several deals using the cost-plus model.
One broker said that most London Metal Exchange-based contracts utilized a premium of about 14 cents per pound, adding that one large domestic producer managed to “impose their will” and obtain business using the cost-plus model, which incorporates their production and scrap acquisition costs.....

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