OTCPK:IVWFF - Post by User
Post by
99921on Jul 17, 2004 1:28pm
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Post# 7719004
Tie up
Tie upA “tie up” presupposes long term commitments on both sides of the contract. From IVW’s
point of view such an arrangement would be most attractive in a buyer’s market where it
would guarantee sales volumes over an extended period, probably in return for price
concessions. The danger is that the contract prices influence the market and drag all
prices down. If IVW has been offered long term commitments the sales agent’s advice will
be particularly valuable - the agent should be relatively objective and have a broad view of
all of the markets available to IVW and the potential competition that might be coming on
stream in the future. Given the information JJ posts about the trends in world lead
inventories and demand it appears that IVW has little incentive to enter any long term
preferential contracts.