Hedging Price Volatility & Understanding Hot Rolled Futures Workshop Dec. 8, 2010
Aug / 28 / 2010 - Hedging Price Volatility & Understanding Hot Rolled Futures Workshop Dec. 8, 2010
SMU & Birmingham Futures team up to present price hedging and HR Futures Workship Dec. 8, 2010
SMU & Jonathan Putman of Birmingham Futures to conduct Hedging Risk, Price Volatility & HR Futures Workshop on December 8, 2010
Both service centers and end users are looking for ways to protect themselves from the price volatility we have seen in the steel industry since 2004. The opportunity to hedge price risk now exists thanks to the introduction of the CME/ NYMEX hot rolled steel futures contract in 2008.
Understanding and working with financial hedging instruments within the steel community takes time and study. We have partnered with Jonathan Putman, CEO of Birmingham Futures, to conduct one of his well known hot rolled futures training seminars in Birmingham, Alabama on December 8th, 2010.
Workshop Agenda
A. Steel Prices - What Happened and Why - A Witness to History
B. Steel Cost - What Can I Do About It - Planning for Uncertainty
C. Futures - What is Happening and Where - A $25 Trillion Market
D. The Five C's of Hedging
1. Control - Planning your bottom line in advance
2. Concepts - Futures, Swaps, Options, Collars, etc.
3. Correlation - Basis Risk: the hidden land mine
4. Credit - Credit limits, Margin calls, Mark to market
5. Command - From the Board to the trader to the documentation
E. What Next - The 3 Requirements for Every Company
John Packard, Publisher of Steel Market Update and a 31-year veteran of the flat rolled steel industry in sales and management positions – will speak about the various steel price indexes (including our own) as well as practical applications/questions for buyers and sellers of steel to discuss as they consider during the planning process.
Location, Cost and Details
Cost: $895 per person
When: December 8, 2010
Where: The Wynfrey Hotel, Birmingham, Alabama
Time: 8:30 AM – 4:30 PM Central Time Zone
Register for the workshop now! Space is limited.
About Jonathan Putman
After 25 years at Hanna Steel Corporation, the first 18 as CFO and the last 7 as Executive Vice President Steel Purchasing, Putman launched Birmingham Futures in 2003. Birmingham Futures seeks to match counterparties who desire to eliminate market risk in domestic steel & scrap prices through the use of Steel Futures and over the counter (OTC) price swaps.
Disclaimer: The risk of loss in trading commodities can be substantial, and past performance is not necessarily indicative of future results. Therefore you should carefully consider whether such trading is suitable for you or your organization in light of your financial condition. This presentation should not be construed as an offer to buy or sell any futures or options on futures contracts. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to its accuracy.
