The headline number is typically much higher than spot prices but the actual realised prices paid on long-term contracts bear no resemblance to it due to discounts negotiated between producers and consumers for individual deals.
Metal Bulletin has assessed the high carbon ferro-chrome price, delivered in Europe, at $1.10-1.20 per lb while the third-quarter benchmark stands at $1.10 per lb.
The usual disparity between benchmark and spot prices is an endless source of complaint in the market amid longstanding calls for the benchmark to be scrapped in favour of a more representative reference.
Although discounts to the benchmark average 8-12% today, according to market sources, they had grown as wide as 35% in recent years, leaving marketing departments having to explain the absurd difference to confused company executives and investors.
In the absence of the usual flashpoint, complaints this quarter have shifted...