| Can I hedge my rebar requirements on my
next project ? |
| (middle one) How do we hedge our HRC production
? |
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|
 Steel
Futures - Contract Design |
| In January 2003 Steel Derivatives
was retained by the London Metal Exchange on a full time basis
to drive and manage the development of the world's first steel
futures contracts.
The appointment follows 5 years of
investigation, research, and technical development of Steel
Futures contracts undertaken by John Short, the company's
founder. With an international steel trading career spanning
3 decades and extensive trade finance experience, in 2002
Short lead a team of finance MBAs at the University of Oxford
in two distinction graded and award winning theses on Steel
Futures. Continued contract refinement provided the platform
for the development of a suite of regional steel futures contracts,
the first of which are due to be launched by the LME in 2004.
|
| Steel
Trading |
| Steel
Derivatives embraces 3 decades of senior international steel
trading experience with the worlds largest independent steel
trading group, Stemcor. Steel Derivatives personnel are fully
conversant with the issues of physical steel trade - production,
shipping, documentation, contract negotiation, dispute resolution
- and have detailed technical background in steel's intrinsic
integrity. Moreover the company has an astute grasp on steel
price risk - its forms, nuances, and impacts - and the derivative
tools of futures, options and swaps that can be employed to
manage such risk. |
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| Structured
Trade & Commodity Finance |
With a
long background in steel trade finance, Steel Derivatives acts
in an advisory capacity to the steel industry and investments
banks in both pre- and post-mandate stages of:
| Trade Finance |
Offset commitments, Pre-export
finance, Tolling arrangements, Inventory finance,
Securitization programs, Transport finance,
|
| Project Finance |
Short term and medium term
structured finance for Capex programs |
| General |
Cash-flow management, Hedging
programs, Repo-structures, |
Jargon-free
Explanation
|
| Learning
a language is not just about a learning a list of vocabulary
- a list of definitions and terminology. Its necessary to see
the language in action, and have many of the more complex situations
explained to you in your own language - plain English in our
case.
But many financial websites and information
sources treat the language of finance in much the same way
- they provide definitions, not explanations. And should they
offer explanations, such are littered with yet more financial
jargon. And for those who believe they have a grasp of finance,
without being fully conversant with the language's nuances,
there can often be quite disastrous results. Is it any wonder
so many are put off by the world, and people who populate
the world, of high finance ?
It doesn't have to be that way. Financial
jargon can be extremely tedious, especially when it comes
to derivatives. And to the novice, financial jargon can be
a significant barrier to understanding. And lets not forget
that the steel industry has plenty of its own jargon too,
jargon that can delay or otherwise affect steel's relationship
with capital markets.
With our expertise in both camps -
Steel Industry and Financial Community - Steel Derivatives
is well equipped to strip out the jargon and provide you with
explanations and examples without referring to industry terminology.
Its one of the hallmarks of our company.
 |
In terms of financial language,
we pitch our response at your level, or more frequently
a couple of steps below it, reviewing all the points in
plain English so we ensure we have a mutual understanding
of the topics. And as the complexity rises, we gradually
introduce the financial language that is required to be
conversant with your derivatives broker, lending bank,
or Exchange.
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In terms of steel language,
we offer a full and detailed explanation of the steel
industry. The financial structure of the industry, and
the processes, inefficiencies, and business structures
that can so heavily influence financial performance, but
to the uninitiated have little material relevance. |
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| How will hedging benefit my HRC plant ? |
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