Steel Products
Steel Hedging 201: Advanced Strategies & Execution (Feb 23-24)
Written by John Packard
February 11, 2021
Wild swings in steel prices have become the norm rather than the exception during the 21st Century. It is not unusual to see prices move $40 to $100 per ton over a matter of days, and to double (or halve) in just a few months. How does a company that buys and sells steel manage the price risk that exists within the steel market?
Steel Market Update has developed two workshops to deal with managing price risk. We recently conducted our virtual Steel Hedging 101: Introduction to Managing Price Risk with a record attendance for an SMU training workshop. The next virtual Steel Hedging 101 workshop will be held on March 30-31. Registration is open and more information can be found here.
Steel Hedging 201 Workshop Takes the Next Step
However, once you and your company have been introduced to hedging concepts, how do you utilize those concepts and manage the price risk that your company may have?
How do you:
- Manage inventories
- Lock in profits
- Quote firm price contracts
- Protect against wild price swings in the market
Steel Market Update, in conjunction with the CME Group, CRU and StoneX, have developed a workshop focused on the development of strategies on how to manage various risk scenarios and how to execute on those strategies. Spencer Johnson is our primary instructor for both the Steel Hedging 101 and the Steel Hedging 201 workshops. Joining Spencer for the Steel Hedging 201 workshop will be Tim Stevenson of Metal Edge Partners.
The objectives of the Steel Hedging 201 workshop are for participants to understand:
- 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
You can learn more about the Steel Hedging 201: Advanced Strategies & Execution Workshop by clicking here.
You can learn more regarding all of SMU training workshops currently being offered (Steel 101: Introduction to Steel Making & Market Fundamentals, Steel Hedging 101: Introduction to Managing Price Risk, Steel Hedging 201: Advanced Strategies & Execution and Galvanized Steel Hedging) by clicking here.
If you have any questions, please email: Events@SteelMarketUpdate.com
John Packard
Read more from John PackardLatest in Steel Products
Asian HR remains much cheaper than US, EU product
Domestic hot-rolled (HR) coil prices were flat this week after declining seven of the last nine weeks. Offshore prices have also eroded in recent weeks, though not nearly as significantly as in the US.
Galv buyers less optimistic about short-term market
“It was a little more of a seller's market as contractors seemed to be protecting themselves against a potential run up in prices," one buyer said.
SMU flat-rolled market survey results now available
SMU’s latest steel buyers market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the pricing and analysis tab and look under the “survey results” section for “latest survey results.” Past survey results are also available under that selection. If you need help accessing the survey results, or if […]
US, offshore CRC prices continue to fall
US cold-rolled (CR) coil prices were down again this week, slipping six weeks in a row and seeing the sharpest drop-off since last July.
Asian HR remains much cheaper than US, EU product
Domestic hot-rolled (HR) coil prices fell this week, now down seven of the last eight weeks.