Steel Products

Managing Price Risk Workshop on Cold Rolled & Coated Steel
Written by John Packard
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.

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.