In this insightful episode of Hedging with Jorge, we explore a real-world example from the aluminium trade, an example that highlights the subtle yet powerful role of premiums and hedging strategies when prices rise. Jorge walks us through a familiar trading scenario: you’ve already purchased aluminium at $2,500 per tonne, inclusive of a physical market […]
I had an idea: Assemble a team of AI/ML interns—mentored by an industry veteran—to address the operational headaches of extrusion plants. To validate the concept, I discussed it with the owner of a regional facility. He didn’t lead with the usual grievances—volatile metal prices, rising energy bills, tariff wars, heavy subsidies for low-cost competitors or […]
This week the Indian aluminium industry has been under the spotlight for various reasons. To begin with Indian conglomerate Vedanta Aluminium has embarked on a new project worth INR 1,28 lakh crore (US$ 15.42 billion) to boost Odisha’s economy. The company is planning to set up a 3 million tonnes per annum (MTPA) aluminium smelter […]
Updated on 21 June 2025 Aluminium is everywhere, from the bauxite mines to the sleek products we use daily. But how well do we understand the journey of this versatile metal? That’s where AL Pedia, a knowledge hub under AL Learn, comes in. Through AL Pedia, we’re building an easy-to-follow A-Z encyclopedia of aluminium, covering […]
Since the 1980s, the United States has experienced a staggering collapse in its primary aluminium production. From nearly 4.6 million tonnes at its peak, output has dropped by more than 80%, with just under 900,000 tonnes produced in recent years. Once a powerhouse of aluminium smelting, the US now relies heavily on imports, primarily from […]
The US has doubled tariffs on aluminium imports to 50 per cent, aiming to protect domestic industry. But this decision has been accepted by the industry in different manners. Like, for Century Aluminium, the move has been welcomed in a positive manner and may help in the company’s profit. However on the other hand, the […]
In this blog of Hedging with Jorge, we move from exercises into action. Jorge walks us through a practical scenario faced by aluminium traders when they are holding physical inventory but want to manage price risks. No numbers this time, just pure conceptual clarity. Let’s assume you’re a trader who has purchased aluminium, paid for […]
The global aluminium and steel industry faced another renewed set of disruptions when the US trade policy took another unexpected turn. Just a day after a Federal Court temporarily blocked the implementation of tariffs, sparking global optimism, President Donald Trump swiftly countered the decision by doubling the tariff from 25 per cent to 50 per […]
In the 57th blog of Hedging with Jorge, we delve into a practical scenario that illustrates the complexities of aluminium trading, particularly focusing on premium arbitrage and the strategic use of futures hedging. Scenario overview: A trading company purchases 5,000 tonnes of aluminium at a fixed price of $2,500 per tonne, with an additional premium […]
Guinea, a mineral-rich nation in West Africa, holds the world’s largest bauxite reserves, an estimated 24.7% of global deposits. This natural abundance has made Guinea a central figure in the global aluminium value chain, supplying key raw materials to smelters and refineries worldwide. Early beginnings Bauxite mining in Guinea began during the colonial era, with […]