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, […]
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Hedging 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. […]
Continue readingAlumina prices hitting the roof! Should the aluminium industry be wary?
China’s primary aluminium production in August marginally grew month-on-month from the previous month’s high by 0.16 per cent, indicating a steady operational scenario. At the end of August, the domestic operating capacity was 43.49 million tonnes versus 43.42 million tonnes a month ago. China’s primary aluminium production volume stood at 3.689 million tonnes in August […]
Continue readingImpact of consumer awareness on the demand for sustainable aluminium packaging
Sustainability has become a pressing matter in the present times, and companies are working hard towards finding unique solutions to achieve their sustainability goals. Packaging is one such area that allows organisations to explore eco-friendly solutions and meet the expectations of environment-conscious customers. According to statistics, the demand for sustainable packaging is on the rise, […]
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