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| Contract does not need to be priced but a mechanism for pricing must be set.
Generally depends on buyer relative to how pricing gets worked out. Mexican buyers for example like to set basis and spot the board later. Less risk for Seller.
Very risky selling fixed price export very far into future. County risk is different for one country vs another. Some importers may have futures to exchange.
100TMT just isn't a big deal. Bid offer spread on a couple of cargos is 2-5 cents depending on the market. Execution logistics of trains and ships combined with quality is where the real risk is.
Risk in those markets can be managed as well.
Also 24 hours for single sale of 100TMT or more. Otherwise weekly report required.
Edited by Rod@night 2/20/2017 18:47
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Always curious, never understood
