Yet the logic of switching has changed in recent years. Fees or loyalty incentives used to prevent customers from easily switching data providers. That is no longer true even in the telecom space, for example, where customers are contractually bound to a greater degree than in other sectors. Customers might switch based on a single poor experience, and they will almost certainly switch if their current provider is clearly worse than the alternatives. If consumers are informed and empowered when it comes to cell phone carriers, why should you have no options when it comes to the hot-rolled coil price you use? The status quo shouldn’t be preserved when it hurts your bottom line.
When it comes to US HRC, your decisions and operations shouldn’t remain mired in an outdated pricing process – one that might be costing you, big time.
How do you know when the positives outweigh the risks?
Below are just two examples of how using a weekly indicator, instead of a daily indicator, could have adversely affected your bottom line this year. As time goes on and these examples continue to stack up, you risk leaving more and more money on the table. The HRC-busheling squeeze: April 30 to May 11
Taking HRC to the bank daily: August-September 2020
The market has reached a tipping point where the risk of not switching indices outweighs the risk of doing things the way you’ve always done them. In an era of volatility and tight profit margins, you need to be able to analyze the market in real time. Fastmarkets can help you do that, so let’s talk.
Schedule a one-to-one discussion with our steel team here to ask how to reduce risk and improve your bottom line.