Hi all
Welcome to the rice market.
wholesale rice price is 10 dollars,
Hanlong to SDL: i will give you 6.0 dollars for your rice.
SDL: NO 10 dollars
Hanlong: 6.5 dollars
SDL:NO, 10 dollars
Hanlong: 7.5 dollars
Hanlong noticed that comodity prices are going back up again(including rice)
Hanlong:8.5 dollars
SDL: 12 dollars
Hanlong:10 dollars
New buyer arrived: i give you 15 dollars
Hanlong: Crap, china get screwed.
I have experienced and witnessed similar situation in my life, and let me tell you, i sometime deal with people in the exact manner as hanlong to buy at the price that i am happy with. Sometime works, sometime doesn't.
The only exemption, i do that when i am confident that product is overpriced, and usually stick to my word when i make an offer.
I think Hanlong and their advisers know the IO price will rebound for the short term and therefore SDL may become a target to some big mining companies.
Also, they try to create a panic in SDL board, make them feel that their product is overpriced, therefore stops SDL from being too optimistic and refrain from asking a price increase.
cheers
bouhr
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