Steel Products

Managing Price Risk Workshop on Cold Rolled & Coated Steel

April 15, 2021

Many of our readers are associated with the cold rolled or coated steel markets. Steel Market Update is offering a new workshop for those of you who want to manage price risk on cold rolled, galvanized or other value-added flat rolled products. This is an introductory level workshop, which will be conducted on April 21 by Spencer Johnson of StoneX with an assist from the CME Group and CRU.

Here is an outline of the agenda:

Galvanized Steel Hedging: Hedging against Basis Risk – Steel Premium Futures and Potential Applications for Hedgers

12:30 PM – Introduction to Course, Instructors and Attendees

12:50 PM – CME Workshop

1:05 PM – Live Q&A

1:15 PM – Break

1:25 PM – Session 1: What are Galvanized Premium futures and why do they exist?

Product specifications.
Premium contracts in theory and practice.
Do I need a premium/basis contract?

2:00 PM – Live Q&A

2:20 PM – Break

2:30 PM – Session 2: 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.

2:52 PM – Live Q&A

3:10 PM – Break

3:20 PM – Session 3: 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.

4:05 PM – Live Q&A

4:20 PM – Break

4:30 PM – Session 4: CRU’s U.S. Midwest HRC and HDG indices

4:45 PM – Live Q&A and Recap of Course

If you would like to learn more about managing price risk on cold rolled and galvanized, we highly recommend this workshop. The workshop will be held on April 21 (half day) and will be conducted virtually on our workshop platform. The cost is $500 per person for non-SMU/CRU customers. There is a $35 per person discount for SMU/CRU members and an additional $35 per person for companies sending more than one person. Please Click Here to learn more and to register.