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 PackardRead more from John Packard
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