SMM, November 25: With the year-end approaching, what are the plans of various traders in South China regarding long-term contracts for next year? The followings are SMM's survey results.
According to SMM, companies with a trade volume of 10,000-100,000 mt have signed long-term contracts accounting for approximately 10%-50% of their total volume this year, with a few companies reaching 70%-80%. For companies with a trade volume of 100,000-200,000 mt, long-term contracts account for about half of their trade volume. Downstream consumption by companies this year has decreased compared to last year. Meanwhile, many traders indicate that they plan to sign some non-delivery brands for long-term contracts next year. Most companies state that they will either maintain the current proportion of long-term contracts or slightly reduce it. However, this is just the preliminary plan of the companies. Most companies currently indicate that the specific signing plans will still depend on the year-end prices. Additionally, it is understood that many companies have chosen to reduce long-term contract signing in recent years, stating that the profitability of long-term contracts in the current market is not significant. SMM will continue to monitor the long-term contract plans of companies for next year.
