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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