Upcoming SMU Conferences & Workshops

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.