Relationship Marketing Strategy and implementation

The supplier and alliance market domain 217

Pricing Strategies

• 'Formula' based on LME prices in the future


• 'Fixed' based on a current or future LME price


• 'Ceiling' with a maximum price to Transvaal
  Nickel Mines (may be expensive)


• 'Ceiling/Floor' with maximum and minimum
  prices to Transvaal Nickel Mines (cost
  effective, but risky if market prices fall
  below minimum)

Metal Trading

Uncertainty feeds the

volatility in the metal market

Metal Trading

Even producers and brokers

with massive research

budgets cannot accurately

forecast short-term trends in

metal prices

Metal Trading

Does your organization want

to commit the resources in

order to make metal

trading/buying one of your

core competences?

Figure 3.3.2 (continued)