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 […]
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Guinea’s bauxite journey: From discovery to global dominance
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 […]
Continue readingData science-based AI-driven predictive model: An effective solution for primary aluminium industry
The primary aluminium industry will require data science-based, innovative artificial intelligence solutions that are integrated with conventional techniques and non-contact evaluation methods. Reading data to interpret a trend is of huge significance for any process industry, where even a small deviation may result in significant losses for the organisation. Decades ago, statistical process control by […]
Continue readingRecycled aluminium, revealed: The strategic data and global shifts no one’s talking about—until now
In a world racing against climate change and supply chain disruptions, recycled aluminium has emerged as a silent game-changer. As manufacturers, policymakers, and sustainability leaders seek cleaner alternatives, aluminium made from scrap—requiring just 5% of the energy used for primary aluminium—has become the low-carbon material of choice. But are you truly prepared for what comes […]
Continue readingDoes ONE strategy fit all regions in the aluminium trade?
Not really. At first look, aluminium profiles might seem universal. A box profile is the same in the Balkan area, Germany, or Canada, right? The same product can be welcomed in one country, questioned in another, or completely ignored somewhere else. The difference isn’t in the material. It’s in the strategy. Why does one way […]
Continue readingUpstream weekly: Trump’s tariff reversal, China’s maintenance shutdown put the global aluminium market in flux
In recent developments across the global aluminium market, a wave of volatility is shaking confidence in trade flows, regional pricing, and long-term investment decisions. From sudden legal reversals in the United States to softening premiums in Asia and ripple effects from routine maintenance in China, the aluminium value chain is caught in a tangle of […]
Continue readingHedging with Jorge #Episode 56: Navigating short hedging in the futures market
In this episode of Hedging with Jorge, we dive into the practical application of short hedging in the futures market using a real-world aluminum scenario. Jorge walks us through how a physical sale, when paired with a futures market hedge, can protect against falling prices and secure a positive financial outcome. The Scenario: Physical purchase […]
Continue readingHedging with Jorge #Episode 55: Understanding hedging, why and how it works
Let’s break down the concept of hedging, especially in the context of aluminium trading, in a clear and simple way. Stepping into the shoes of a hedger: Imagine you’re someone who uses aluminium in your business. Naturally, you’d buy aluminium from your regular supplier. But what if your supplier can’t give you a fixed price […]
Continue readingUpstream weekly: Anil Agarwal urges 12% safeguard duty on aluminium imports amid global trade shifts
The aluminium industry has witnessed a lot of significant events throughout the week, with achievements on one end and unexpected setbacks on the other. The dynamic contrast makes it one of the most captivating sectors to follow today. Let’s unlock what kept the week on its toes. To begin with, Vedanta Chairperson Anil Agarwal has […]
Continue readingAluminium diplomacy: Why the U.S. has hugged the UK and punched Canada
Let’s get this straight: in the same week that President Trump gave the UK a velvet handshake—zero tariffs on aluminium, a fast-tracked trade agreement, and warm words about transatlantic unity—he doubled down on a trade brawl with Canada. Yes, Canada. The country that literally shares our border, energy grids, NORAD, and arguably, Netflix tastes. So…why […]
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