Global electric vehicle sales reached 14 million in 2023*, showing an increased market share of 18 per cent in total sales from 4 per cent in 2020. Current trends and environmental policies may avoid 6 million barrels of fossil fuels by 2030! But is it really possible to achieve such a remarkable feat? – Well, […]
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Hedging with Jorge #Episode7: A step-by-step guide to short selling in the aluminium futures market
Going “short” in the aluminium futures market is a common strategy for speculators anticipating a market decline. Here’s a breakdown of how a short trade works in this scenario. In futures trading, “going short” means selling contracts based on the belief that prices will drop, allowing the trader to buy back the contracts at a […]
Continue readingHedging with Jorge #Episode6: Understanding the recent commodity market drop
Today, I planned to talk about short positions, but Wednesday’s sharp commodity price drop, some down by 3-5%, deserves immediate attention. Was it a disaster? No, it was largely anticipated. This decline coincides with the U.S. election outcome, as markets react to expectations of lower interest rates under the new administration starting in January. Interestingly, […]
Continue readingHedging with Jorge #Episode5: Understanding the basics of going short in futures trading
Today, let’s talk about the concept of “going short” in the futures market. Unlike a typical sale where you sell something you already own, going short allows you to sell something you don’t yet possess. This approach is popular among speculators who anticipate a price drop in commodities like aluminium or copper. Here’s the secret […]
Continue readingHedging with Jorge #Episode4: A Speculator’s Guide to Success
Hello traders and market enthusiasts! Last time, we covered the basics of establishing a position in a futures market, specifically through the London Metal Exchange (LME). Today, let’s dive deeper into how speculators can position themselves to capitalise on price movements in this dynamic market. The Fundamentals: Getting Started with Futures Trading To start trading […]
Continue readingWhat are the current challenges facing the adoption of fire-safe ACP sheets in the construction industry?
A considerable paradigm change in customer preference in the construction industry has been witnessed in recent decades. This shift has been driven by a special emphasis on safety, particularly from fire-related incidents. As fire safety has taken centre stage, cladding solutions have been the subject of enhanced scrutiny by stakeholders, resulting in increased research & […]
Continue readingHedging with Jorge #Episode3: Exploring Futures Markets
Welcome back to our journey through the world of futures markets! So far, we’ve explored two fundamental players, the hedger and the speculator. These two have unique roles and motivations in the market, yet there’s so much more to uncover. As we progress, we’ll dive deeper into each participant, concept, and variable that shapes futures […]
Continue readingHedging with Jorge #Episode2: Hedging vs. Speculation
Last time, we talked about hedging as a way to protect yourself from risk. Let’s revisit that concept through a simple example. Imagine you’re planning a trip to Europe. You need euros, but your local currency isn’t the euro. Here’s the risk: If your currency weakens before you exchange it, you’ll need more of it […]
Continue readingHedging with Jorge Episode 1: Protecting your aluminium investments
Today, we’re diving into the basics of hedging. You might ask, what is hedging? Well, let me break it down for you. Every day when we wake up, we speculate a little, will it rain, or will it be cold? We check the weather, and based on our analysis (think of this as studying the […]
Continue readingCommon Data Problems in Aluminium Manufacturing
Over the years, working with data as an engineer in the aluminium industry, I encountered my share of problems. The impact of these problems ranged from missed deadlines to failed projects. Five common data problems stood out in particular. 1. Data silos The different departments of any aluminium manufacturing plant have their own data systems. […]
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