In the previous blog, we explored the LME’s primary function, i.e., price discovery. Today, we shift our focus to its second essential role, hedging. The LME isn’t merely a platform for observing metal prices, it empowers participants to actively manage price risks through strategic trading. Hedging involves establishing long or short positions using futures and […]
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The London Metal Exchange (LME), established 147 years ago, stands as a cornerstone in the global metals market. Its longevity and reputation have cemented its status as a trusted institution for price discovery and risk management. Price discovery is the process through which market prices are determined by the interactions of supply and demand. At […]
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Trump tariffs have taken the aluminium industry under a complete shock. From the imposition of new tariffs to counter-tariffs to the latest news of South Africa’s aluminium industry breathing a sigh of relief, a lot has happened throughout the week. On the other hand, slightly shifting from the tariff tension, India is continuing to dominate […]
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Aluminium has swiftly become a material of choice in the consumer electronics industry. From smartphones and laptops to tablets and wearables, manufacturers increasingly turn to aluminium to enhance function and form. Its unique properties are redefining modern tech’s design, durability and sustainability standards. Why aluminium? Aluminium’s growing popularity in electronics stems from its lightweight nature […]
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In the world of aluminium trading, understanding your strategic choices as a speculator is crucial. One of the key tools available to traders is the put option, a financial instrument that offers the right to sell, but not the obligation. In this blog of “Hedging with Jorge,” we delve into the fundamental dynamics of a […]
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In previous blogs of Hedging with Jorge, we explored how put options function for investors and speculators. Now, it’s time to look at how these same tools can support hedgers, those who aim to protect value rather than speculate on market movement. Let’s start with the basics, like why would a hedger buy a put? […]
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For the past few weeks, the global aluminium industry has been facing major challenges due to the US tariffs on aluminium and steel. Although the entire supply chain was hugely impacted, the primary aluminium sector faced the hardest blow. To begin with, Japan’s Q2 premium dropped to a five-quarter low owing to the US tariff […]
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Introduction When navigating the aluminium market, hedging strategies play a crucial role in risk management. Two common methods used by traders and speculators are selling futures and buying put options. While both techniques are employed to benefit from a declining market, they function differently and carry distinct risk profiles. Let’s break it down. Selling futures […]
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Introduction In the world of metals trading, particularly in aluminium, hedging strategies play a crucial role in risk management. One such approach involves using put options. But what exactly is a put option, and how does it compare to selling futures? In this episode of Hedging with Jorge, we dive deep into the mechanics of […]
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Introduction As industries shift towards sustainability, environmental, social and governance (ESG) factors have become central to investment decisions. In the aluminium sector, where resource efficiency and ethical sourcing play crucial roles, ESG compliance shapes investor confidence and corporate responsibility. This blog explores how ESG influences aluminium investments and highlights real-world examples from industry leaders embracing […]
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