Just what we wanted? A way to avoid 'the commodity trap'

Parties active in the global steel business frequently use index-based pricing to govern the quality, and price for steel being delivered in the future. Depending on the steel required, the parties would refer to one of the numerous steel indexes that are available.

The presence of such index-based pricing allows buyers and sellers to focus their conversations on the required steel quality – as the price is derived from the relevant index.

The latter must sound like nirvana to sales staff at ...