Managing Price Risk - Details Coming Soon!


Managing Price Risk

Steel Market Update and Andre Marshall, CEO of Crunch Risk LLC along with the CME Group, conduct a workshop for those who are actively involved in the buying or selling of steel. Our Managing Price Risk workshop is tailored for those looking to understand financial derivatives as an instrument to hedge price risk, protect margins, protect inventories, or offer long-term pricing to their customers. The Managing Price Risk workshop is held throughout the year at both the CME Chicago headquarters and in New York City at the NYMEX.

Our next workshop is still in the planning stage. It will be held in Chicago, IL at the CME building at 20 South Wacker Drive. For more details please explore the links below.

 

 

Objectives

Participants will understand:

  • What is "Hedging," and how is steel different from other metals?
  • What are the benefits to using financial instruments vs. taking a long inventory position?
  • What are the options for Hot Rolled Coil Futures?
  • How does "Liquidity" affect the market?
  • What are the costs involved, and how do I minimize costs and maximize returns?
  • What is the Forward Curve?
  • When does the market not work for you?
  • What is the difference between "Futures" and "Swaps"?
  • How does the CME Hot Rolled Contract Work?
  • How do I protect my inventory pricing and profits?
  • How do the new CME Scrap Futures work?
  • How do I handle price risk when I am taking physical delivery of steel?
  • Can I offer my steel customers long-term fixed pricing?
  • Can Cold Rolled, Galvanized or other flat rolled steels be hedged?
  • How does the steel hedge work with my physical purchase?
  • CME Trading Floor Tour!

Schedule

Begin Workshop: 8:00 AM

Welcome and Introduction by the CME Group, Steel Market Update & Crunch Risk, LLC.

Step One: Understanding the Products

8:15 AM – 9:30 AM: Introduction to Financial Swaps & Futures Markets

Andre Marshall, Crunch Risk, LLC.

  • Explain what they are and why they are used
  • Why hedge?
  • Explain the difference between Futures v. Swaps.
  • Define and explain financial market terms
  • Product Offerings:
    • - NYMEX/CME – Hot Rolled Coil Contract - basis CRU
    • - LME – Billet Contract - Deliverable
    • - SHFE Rebar, Hot Rolled Coil - Deliverable
    • - LCH Northern Europe HRC and Southern Europe HRC basis TSI

 

  • Recently rolled out futures products:
    • - U.S. Midwest #1 Busheling Ferrous Scrap Futures - Basis AMM
    • - Steel Billet FOB Black Sea Ferrous Scrap Futures - Basis Platts
    • • NYMEX/CME Hot Rolled Coil Contract
      • - Basis CRU Indices
      • - CRU Collection polling

Coffee Break: 9:30-9:45 AM

Step Two: How the Exchange Works: 9:45 AM – 11:00 AM

  • How does the exchange work?
  • Price reference Correlation
    • - Viable Index
    • • Examples of Futures transactions with cash flows.
    • • Description of Options.
      • - Explanation and discussion of option terminology

 

  • - Examples of Options with cash flows

CME Trading Floor Tour: 11:00-12:00 AM

Luncheon: 12:00-1:00 PM (Provided)

Step Three: The Art of the Trade: 1:00-3:00 PM

  • How does the exchange work?
  • Hot Dipped Coil Product description
  • Scrap Product description
  • The Swap Process: Completing First Trade
  • Accounting ABC's (FASB 133/149)

3:00-3:15 PM: Coffee Break

3:15-4:00 PM: Discussion, Examples from attendees and Q&A

Instructors

André Marshall, CEO

Crunch Risk, LLC

President and founder of Crunch Risk, LLC, a Risk Management and Brokerage firm specializing in Steel Futures. Mr. Marshall has over 20 years of commodity trading and financial risk management experience. Mr Marshall has worked as a physical metal/mineral trader for various European firms including Sogem running their New York trading operations. Recently, Mr Marshall has originated derivatives for Koch Supply & Trading and subsequently started his own firm in 2005.

Pricing

Registration Fees:

$995 per person. Includes full day conference, lunch, snack breaks, and CME trading floor tour

Discounts:

  • $100 Discount per person if their company is a Steel Market Update member
  • $100 Discount per person if their company sends 2 or more people.

Lodging

We have not blocked rooms at any particular hotel however, the following lodging options are conveniently located near the CME building:

La Quinta Inn & Suites Chicago Downtown 0.1 mi E
JW Marriott Chicago 0.3 mi SE
Hotel Allegro Chicago 0.3 mi NE
W Chicago City Center 0.3 mi SE
Hotel Burnham (a Kimpton Hotel) 0.5 miles E
Holiday Inn Chicago Mart Plaza River North 0.5 mi N
The Silversmith Hotel 0.6 mi E
Congress Plaza Hotel 0.8 mi SE

Register

Registration is currently closed. Registration will open in advance of the next scheduled workshop. Check back for updates.

Event Properties

Event date: 12-30-2017 12:00 am
Event End Date: 12-30-2017 12:00 am
Individual Price $995.00

Group Rate

Number registrants Rate/Person($)
Individual Price $995.00
2 $895.00
3 $895.00
4 $895.00
5 $895.00
6 $895.00
7 $895.00
8 $895.00
9 $895.00
10 $895.00
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