Product
December 2, 2020
Upcoming SMU Conferences & Workshops
Written by John Packard
2020/2021 Workshops and Conferences Schedule
The next nine months will be busy for Steel Market Update as we conduct two conferences (one virtual and one live), and we have currently scheduled five workshops. We anticipate the number of workshops will grow as the year progresses. We have added new hedging workshops and the Tampa Steel Conference to our repertoire of events. Here are the dates, registration links and a brief description of each event.
Steel 101: Introduction to Steel Making & Market Fundamentals Workshop
Our first event is the Dec. 8-9 Steel 101: Introduction to Steel Making & Market Fundamentals Workshop. This will be a two-day virtual event. This course reviews the steelmaking process (EAF and fully integrated mills), casting and rolling process, how various qualities are produced, understanding ASTM’s, as well as how steel is bought and sold and some of the key factors that move steel prices. You can learn more by clicking here or sending an email to Events@SteelMarketUpdate.com
After December, our next Steel 101 workshop is scheduled for Feb. 8-9, 2021.
As we move into the New Year, we will be unveiling a new three-part series on steel hedging/managing price risk. Our instructor will be Spencer Johnson of StoneX (formerly FC Stone). Spencer is a well-known expert in the trading of flat rolled steel futures. We will also be working with the CME Group and CRU to ensure our attendees get the most in-depth information possible.
Steel Hedging 101: Introduction to Managing Price Risk – Jan. 26-27, 2021
This workshop will be two half-day classes meant for individuals who are unfamiliar with hedging or who wish to get a refresher course. Here is a brief outline of the course objectives. Here are a few of the items participants in this workshop will understand:
• What is “hedging,” and why do so many companies do it?
• What makes hedging in steel different than other commodities?
• The structure of the market and the mechanics of how trades are executed.
• The costs and risk involved.
Agenda – Day 1:
8:00 AM – Introduction to Course, Instructors and Attendees (Live)
8:30 AM – Introductory Hedge Concepts
Why Hedge?
Hedge Practices
Facilities
Futures/OTC Markets
Understanding Risk
9:00 AM – Structure of Trading
Margin
Clearing
Settlements
9:45 AM – Questions and Answers
10:15 AM – Break
10:30 AM – Terminology (Language/Definitions of Futures Trading Concepts)
Forward Curves and Current Markets
Backwardation vs. Contango Markets
11:00 AM – Questions and Answers
11:15 AM – CRU to Speak on HRC Index
How is it developed
How does it work
Relationship with CME
Integrity of the Index (audit)
11:45 AM – Question and Answers
12:00 PM – Adjourn Day 1
Day 2:
8:00 AM – CME – What are futures and how does the exchange work (video presentation)?
8:30 AM – Futures / Swap Hedge Strategies
Life of the Hedge from conception to completion
Step One – Financing the trade
Step Two – executing the trade
Step Three – clearing the trade
Step Four – settling the trade
Ongoing Step – adjusting for basis risk
9:30 AM – Questions and Answers
9:45 AM – Break
10:00 AM – Practical Hedge Examples
Vanilla Inventory Hedge
Arranging a Fixed Price Sale
Hedging a Forward Purchase
Spread Trading
Arbitrage
10:45 AM – Questions & Answers
11:00 AM – Break
11:15 AM – Next Steps
Examples
Opening an Account
Costs to Trade
Selecting a Broker, Bank, etc.
11:30 AM – Questions & Answers/Recap of Course
12:00 PM – Adjourn Day 2 – End of Workshop
To register for Steel Hedging 101: Introduction to Managing Price Risk Workshop on Jan. 26-27, 2021 click here.
32nd Tampa Steel Conference: Feb. 2, 2021
Steel Market Update has partnered with Port Tampa Bay to conduct the 32nd Tampa Steel Conference. This will be a virtual conference for the first time in the history of the event, and it will be run on the platform SMU used to produce the 2020 SMU Steel Summit Conference. We have a strong agenda of speakers and subjects. Here are some (not all) of the speakers:
Leon Topalian, President & CEO, Nucor Steel
Dr. Walter Kemmsies, Chief Economist, The Kemmsies Group
Timna Tanners, Metals & Mining Analyst, Bank of America
Josh Spoores, Principal Analyst, CRU
Lewis Leibowitz, The Law Offices of Lewis E. Leibowitz
Phil Bell, President, Steel Manufacturers Association
Rebecca Brewster: President & CEO, American Trucking Research Institute
Paul Anderson, President, Port Tampa Bay
John Packard, President & CEO, Steel Market Update
You can find more information about the conference and how to register by clicking here.
Steel Hedging 201: Advanced Strategies and Execution Workshop – Feb. 23-24, 2021
Spencer Johnson of StoneX along with the CME Group, CRU and guest speakers will discuss how to execute on various strategies to manage price risk, sell products at fixed prices, etc. This will be held over two half-days. Here are a few of the goals for this workshop:
• How to develop a strategy based on your risk profile
• How to use futures and options to advance your marketing efforts without taking on more risk
• Real world examples of actual hedging scenarios
• How to make more effective linkage between financial and physical steel products
Agenda – Day 1:
8:00 AM – Introduction of Course, Instructors, Guests, and Attendees
8:30 AM – Short Recap of Steel 101 Main Points
9:00 AM – Q&A
9:15 AM – Hedge Scenarios
Vanilla Inventory Hedge
Arranging a Fixed Price Sale
10:00 AM – Questions & Answers
10:15 AM – Break
10:30 AM – Hedge Scenarios (part 2)
Hedging a Forward Purchase
Spreads: Cash/Carry Trade for HRC
11:00 AM – Questions & Answers
11:15 AM – Hedging Scenarios (Part 3)
Margin Security: steel producer margin hedge (EAF and BOF)
11:30 AM Questions and Answers & Discussion
12:00 PM – Adjourn Day 1
Day 2:
8:00 AM – CRU Speaks on Role of Index
8:15 AM – Questions & Answers
8:30 AM – Spread trading
Value discovery in calendar spreads
9:00 AM – Questions and Answers
9:15 AM – Break
9:30 AM – Spread Trading (2)
Value discovery in inter-commodity spreads
10:00 AM – Questions and Answers
10:15 AM – Options Essentials
Producer PUT protection
Consumer CALL protection
Costless collars
11:00 AM – Questions and Answers
11:15 AM – Break
11:30 AM – Real World Example(s)
Introduce OEM or Service Center who is active trader
12:00 PM – Question & Answers/Discussion
12:30 PM – Adjourn Day 2 and End of Workshop
To register for Steel Hedging 201: Advanced Strategies & Execution on Feb. 23-24, please click here.
Steel 201: Advanced Strategies & Execution Workshop – March 9-10, 2021
Steel Market Update is working on an advanced steel training workshop to complement our Steel 101 and to provide more detailed information about the steel making, qualities, production and selling of advanced steels and other subjects. This workshop is currently under construction and we will have more details soon.
Galvanized Steel Hedging – March 16, 2021
The CME Group has a new product that will allow those involved with coated products (specifically galvanized) to manage price risk. Spencer Johnson of StoneX along with the CME Group and CRU are working on one half-day workshop to introduce the concept of galvanized steel hedging to those who may have interest. We will have more about the agenda in the coming weeks.
SMU Steel Summit Conference – Aug. 23-25, 2021
We are looking forward to bringing life back to the SMU Steel Summit Conference as we return, in person, to the Georgia International Convention Center in Atlanta. Michael Smerconish of CNN and Alan Beaulieu of ITR Economics will be just some of the keynote speakers at the 2021 conference. We anticipate an event with no rivals as we discuss the trends impacting demand, supply, prices and the economy. We will produce more information and begin taking registrations right after the first of the New Year.
