Managing Price Risk
A Workshop For Those Actively Involved in the Steel Business
Understanding Hot Rolled Futures, Options & OTC Swaps
July 25, 2012
CME Group - Chicago, IL
Overall, it was a great presentation of how and why companies would use steel futures contracts to manage risk and take advantage of opportunities. Andre pulled the pieces together in a way the participants could understand to make an educated decision about whether and how these products are beneficial for them. - Ben Abrams, Consolidated Scrap
Steel Market Update and Andre Marshall, CEO of Crunch Risk LLC along with the CME Group, are conducting a workshop for those who are actively involved in the buying or selling of steel. Our workshop is tailored for those looking to understand how to manage price risk, protect margins, protect inventories, or offer long-term pricing to their customers. The CME has recently added Options on Hot Rolled Coil Futures to their product list, which will be discussed in detail at our workshop. This workshop provides a comprehensive workbook during the program for follow-up use at home.
- What is "Hedging," and how is steel different from other metals?
- What are the benefits to using financial instruments vs. taking a long inventory position?
- What are the options for Hot Rolled Coil Futures?
- How does “Liquidity” affect the market?
- What are the costs involved, and how do I minimize costs and maximize returns?
- What is the Forward Curve?
- When does the market not work for you?
- What is the difference between “Futures” and “Swaps”?
- How does the CME Hot Rolled Contract Work?
- How do I protect my inventory pricing and profits?
- How do I handle price risk when I am taking physical delivery of steel?
- Can I offer my steel customers long-term fixed pricing?
- Can Cold Rolled, Galvanized or other flat rolled steels be hedged?
- How does the steel hedge work with my physical purchase?
- CME Trading Floor Tour!
“Andre did a great job explaining the material and interacting with the audience. The tour of the CME floor was great!” - Tom Hartman, Steel Dynamics
| Event Details | |
|---|---|
| Venue | CME Group/Chicago Board of Trade |
| Dates | July 25, 2012 8:00 AM - 4:00 PM |
| Price | $995 US (Click Here for available discounts) |
Instructor
Andr Marshall, CEO
Crunch Risk, LLC
President and founder of Crunch Risk, LLC, a Risk Management and Brokerage firm specializing in Steel Futures. Mr Marshal has over 20 years of commodity trading and financial risk management experience. Mr Marshall has worked as a physical metal/mineral trader for various European firms including Sogem running their New York trading operations. Recently, Mr Marshall has originated derivatives for Koch Supply & Trading and subsequently started his own firm in 2005.
Also participating in the discussion is John Packard, Publisher of Steel Market Update with experience in flat rolled steel sales and management for over 30 years. After representing many steel companies and owning his own steel agency, Mr. Packard in 2008 incorporated Steel Market Update, Inc., a newsletter and website service dedicated to providing quality information and analysis on the North American flat rolled steel market.
CME Group each session is held in conjunction with the CME Group which is where trades on HR Futures are made through their ClearPort system. A representative of the CME Group will be available to assist in the discussion and your understanding of their products.
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