The price that will have paid on KG (kilogram) of cup lump takes into account the Abrabor price reference to internalized rubber. It's a calculation methodology that produces the price of GEB benefited in Brazil, which based on the international prices of the product, the Brazilian exchange rate and the importation taxes of the product. The price reference indicates the GEB-10 prices in the Brazilian market. The information is shared every day on the Apabor website, making it possible tracking the GEB-10 price daily.
The months taken into consideration to the GEB-10 price are the following:
Dec-Jan, Feb-Mar, Apr-May, Jun-Jul, Aug-Sept, Oct-Nov.
At NB Noroeste Borracha we use the price reference of GEB-10 to calculate and negotiate the price that will be paid to the suppliers. The price always considers the yield percentage of sold cup lump in each supplier deliver we take samples to calculate the cup lump yield.
The price is calculated to each supplier and we set the Negotiated Price by Kg to a minimum yield (DRC). With the minimum yield and the negotiated price information, we can calculate the price which will be paid to the suppliers on each delivery of cup lump using the following formula.