Completely agree..... It doesn't make a lot of sense.... or we're not thinking it out properly....
- 500 Steel mills in China. A few large, many small
- The large ones should already get a good price i guess
- The small ones probably do not, and a middle man takes the cut.
- Is this central body going to eliminate the middle man?
- Will the central body negotiate VERY long term contracts at lower prices?
- I think they will try to stabilize the price by moving from monthly to longer term pricing.
- In the end its still supply and demand, see who's will to take the safe lower option vs playing hardball for spot pricing
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