Before I approach the Mill with that, I need to confirm with you one more time that this is the absolute maximuim price that you can accept.
In this situation when the Mill is booked 3 months in advance, I need to be able to tell the Mill – “it is either this price or no deal, even 1USD higher cannot be accepted by Charoenchai; if the Mill does not accept this maximum price from Charoenchai, then Charoenchai will buy from other producers, which are plenty”. In this situation I do not see any other way to push the Mill, when demand and prices for GO steel are rising worldwide.
It is not a good idea to give the Mill one price and then if they do not accept – give them a higher price for the same order. Then in the future they will never accept your initial price and will always ask for higher price because of the precedent. We should not do that. We should give them the max. price right from the start.
I would also think that it is logical to consider the fact, that for the contract for 400MT NV30S-120 at USD1520 (shipped out) and for 400MT NV27S-110 (will be shipped in October – November) at USD1650, the contracts were signed for CFR terms, but then based on your request we have changed to CIF terms and bared the cost. To my opinion, it is reasonable to consider that around 6000USD should be compensated through next contract.
I would appriciate your soon reply.
Thank you and best regards
Sergey Kornev