As an analogy,
If you were a courier (very dependent on petrol) and you were offered guaranteed supply from someone at say $1.60/l for 10 years or you can by on the spot price for ten years some would take the certainty. With all the issues in the middle east it may just make a good hedge.
Some see the Chinese being just a bit too unreliable.
I'm not suggesting I know anymore than whats printed here but paying a premium is not always a bad idea
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