After the pandemic ravaged global economies and markets, it is no surprise that contract negotiations look different this year - delayed, drawn out or yet to begin.
The lockdowns enforced by national governments globally to combat the disease have meant that consumption of metal has gone down this year, leaving consumers exploring different terms in this year’s ‘mating season’.
Typically, most contracts have been signed by the end of November, but sellers are in no rush to pen deals and buyers are comfortable about waiting for purchasers’ decisions.
“We have concluded one deal and lost another. We hope by next week we will have some decisions [from our customers],” one producer said.
“We are waiting for more offers to come through; just for one more producer to come back [with a proposal] before tying up our annual supply. Volumes will be similar year-on-year,” a super alloy producer said.