Steel Products
First Galvanized Hedging Workshop Scheduled for April 21
Written by John Packard
March 9, 2021
On April 21, Steel Market Update will conduct our first Galvanized Steel Hedging Workshop. This half-day workshop will be done through our virtual platform. The main instructor will be Spencer Johnson of StoneX, who will be accompanied by someone from the CME Group and from CRU, which generates the index used by the CME for galvanized (HDG).
The galvanized index is still a young product and we feel it wise to introduce it to those of you who have interest in hedging either galvanized or cold rolled products (HDG can be used for both).
The workshop will include:
What are Galvanized Premium Futures? Why Do they Exist?
- Product specs
- Premium contracts in theory and practice
- Do I need a premium/”basis” contract?
Basis Dilemmas and How to Approach Basis Risk
- What is basis risk?
- How can you quantify basis risk?
- What are the most common ways it is managed?
- Correlation studies and regression analysis
Basic Hedge Case Studies for Galvanized Hedgers
- Embedding a fixed premium with your supplier
- Hedging the base price with a fixed premium
- Hedging the base price and the premium together
CRU on How the HDG Number is Produced
You can learn more about this workshop, costs to attend ($500 per person before discounts) and how to register by clicking here.
If you have any questions about this workshop, please contact us at conferences@crugroup.com
John Packard
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