No, the big discounts (30%+) are a Chinese phenomenon, caused by policy.
Directing your cargoes to other countries with more rational discounts of 10% - 15% would increase the cashflow your shipments are producing.
In theory, the market should adjust and arbitrage away the big discounts.
eg. Companies producing High grade that is currently being shipped to markets with smaller premiums (Korea, Japan, India etc), will prefer to ship to china to take advantage of the premium being paid, and in the process open the market for companies producing lower grade to send cargos to other markets with smaller discounts.
Of course these things take time to adjust though, but it does lead me to think that the discount received will reduce.
it would be like switching to week end shifts and getting penalty rates and over time bonus.
No, the big discounts (30%+) are a Chinese phenomenon, caused by...
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