Analysis of the problems of transformation of long-term contract mechanisms based on formula pricing in the Russian metallurgy

Subject. This article analyzes pricing models in the metallurgy market and long-term contracts with price formulas. Objectives. The article aims to diagnose the current state of contracts with formula pricing, determine the reasons for the limitations in the development of these tools, and offer solutions for the transformation of the formula pricing tools. Methods. For the study, I used the results of surveys and interviews with market experts and analyzed statistical databases. Results. Based on the results of the diagnostics, the article records an overall reduction in the number of contracts with formula pricing and reveals the presence of restrictions for the previously existing formula pricing methodology based on quotations from international agencies and world market parities. The article offers certain recommendations for the development of formula pricing tools.