Such is his commitment to breaking the old system that BHP has recently been testing indexed prices by selling iron ore on spot markets at well below contract prices.
But as talks continued, spot prices, a determinant of contract prices, began to rise.
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Breaches of a debt contract are easy to spot and police, but a shareholder's claim can be eroded quite subtly.
Fortunately, shipping companies are now in a better position to push for higher rates since spot rates are no longer below contract rates.
Just as telling, the premium for spot copper over the nearest forward contract jumps up when buyers worry about being able to get their hands on the stuff.
If I was a competitor, I think all I'd care about would be knowing whether my dog was going to come up a winner and walk away with the dog chow "spokesdog" contract, the guest spot on the "Today" show and stud fees in perpetuity.
The spot month period is specific to each commodity contract, need not correspond to a month-long period, and may extend through the period when delivery obligations are incurred.
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As the open market sales would be at spot-rates, which are much higher than contract prices ExxonMobil would have entered into with its major customers, this would mean an increase in profits for the company in the short term.
The price they paid was either tied to the spot price at the time of delivery or agreed to at the time they formed the contract.
He gave big industrial customers the freedom to buy electricity under contract from the cheapest provider, or directly from the national grid at a spot price.
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