You can speculate and come up with all kinds of scenarios but your statement regarding the reason for the plant expansion holds more water. Why would they expend that kind of money without a reasonable expectation that it would be beneficial to their income ? Considering the fact that companies in China are doing much better than the majority of companies in the U.S. I think I would give them credit for their ability to make a profit.
been selling on the spot market and (contract) market for many years. The contract/spot issue is really not an issue. Product is moved in a spot market according to rates(price) I can have many "contracts/spot markets" That would read FAIR MARKET VALUE" I provide product to customers based on fair market value. IE whatever the the market is in that locale at that time.