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

September energy market update
In this Premium analysis we examine North American oil and natural gas prices, drill rig activity, and crude oil stock levels through September. Trends in energy prices and rig counts serve as leading indicators for oil country tubular goods (OCTG) and line pipe demand.

Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.

U.S. Steel to halt slab conversion at Granite City Works
U.S. Steel said it plans to reduce slab consumption at its Granite City Works near St. Louis, a company spokesperson said on Monday. The Pittsburgh-based steelmaker will shift the production and processing of steel slabs to its Mon Valley Works near Pittsburgh and its Gary Works near Chicago. Citing a United Steelworkers (USW) union memo, […]

SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.

HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.