Price Volatility & Hedging Steel Price Risk
A Workshop For Active Steel Buyers & Sellers
Understanding Futures & Swaps
February 9, 2012
Houston, Texas
“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
New financial products are beginning to have an impact on the way companies do business. End users are demanding a “smoothing out” of pricing volatility and service centers as well as manufacturing companies are looking at the HR Futures market and other financial derivatives as a new tool in order to hedge price risk.
Steel Market Update believes companies need to understand what products are being used within the industry in order to compete. At the same time each company needs to make its own decisions as to what is in their company’s best interest. The key, in our perspective, is to provide an independent educational forum whereby those active in the steel community can interact with those involved with these financial instruments. SMU does this by combining our own people who represent steel interests along with Andre Marshall of Crunch Risk, LLC and the CME Group who represent the trading and clearing communities in an educational program for those actively involved in the steel business.
Our workshop is tailored for those looking to hedge price risk, protect margins, protect inventories, or offer long-term pricing to their customers. A few questions we will cover are below:
- What are the benefits to using financial instruments vs. taking a long inventory position?
- What is “Hedging,” and how is steel different from other metals?
- What is the difference between “Futures” and “Swaps?
- How does the steel hedge work with my physical purchase?
- What are the costs involved, and how do I minimize costs and maximize returns?
- 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?
- What is the Forward Curve?
- How does “Liquidity” affect the market?
- Can Cold Rolled, Galvanized or other flat rolled steels be hedged?
- How does the CME Hot Rolled Contract Work?
- When does the market not work for you?
“This workshop finally put in perspective the opportunities, risks, rewards, and relative small size and lack of liquidity of the HR hedging market” - David H. Schwind, C.P.M., V.P Purchasing, Custom Steel Processing
| Event Details | |
|---|---|
| Venue | 20 E. Greenway Plaza Houston, TX 77046 |
| Dates | February 9, 2012 9:00 AM - 4:00 PM |
| Price | $995 US (Click Here for available discounts) |
Instructor
André 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.
Sponsors
