Comment by phil21
1 hour ago
What’s weird is the big market is pegged to the small market?
What is the point of signing a direct supply contract if you are just gonna be paying spot prices anyways? I suppose guaranteed supply priority?
1 hour ago
What’s weird is the big market is pegged to the small market?
What is the point of signing a direct supply contract if you are just gonna be paying spot prices anyways? I suppose guaranteed supply priority?
If there is (or you think there is) a generally fair and stable price that represents some base, then it’s natural to contract based on that.
It’s near universal for variable interest rate loans.