Galvanized Steel Hedging Workshop: Hedging against Basis Risk - Steel Premium Futures and Potential Applications for Hedgers
The CME Group has a new product which will allow those involved with coated products (specifically galvanized) to manage price risk. Steel Market Update's hedging trainer and expert, Spencer Johnson of StoneX along with the CME Group and CRU have produced a one half-day workshop to introduce the concept of hedging and futures to those who may have interest from the galvanized steel supply chain.
Continued steel price volatility has led to wider adoption of CME Group’s Hot-Rolled Coil (HRC) futures contract. Yet due to volatility in the price differences between specific sheet products, producers, processors and users of hot-dipped galvanized (HDG) coil products have been unable to fully manage their risks or take advantage of what the futures market has offered.
Due to the volatility in this premium, market participants have been unable to use the HRC futures contract to fully hedge their higher-value HDG coil product sales or purchases. With the introduction of a new hedging product, companies that are interested in hedging both cold rolled and galvanized steel can use the product to assist them to better manage their steel price risk.
See the schedule here
Join this half-day workshop to learn about this relatively new steel futures product and we will explain what it is, how it might be useful to your company, how to use it, and more. This workshop will be beneficial for producers, processors, and consumers of HDG coil.
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Watch this short video from the instructor