The history of aluminium is relatively short since it was discovered only in the nineteenth century, yet it has become an essential part of everyday life. Therefore, aluminium is an attractive material for many applications, including transportation, electrical, packaging and food industries, architecture, renewable energy production and batteries and it is also included in the […]
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Understanding the mechanics of selling call options before building a strategy When we talk about hedging with options in the aluminium market, most traders and procurement professionals find buying options far more intuitive than selling them. That’s because buying options feels similar to buying insurance: simple, safe and straightforward. But when it comes to selling […]
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When you’re building an aluminium supply chain across countries, you’re not just moving products, you’re managing: Expectations, solving logistics PUZZLEs, connecting people who often speak different business “languages.” Here’s what I’ve learned from working in the middle of that process, between factory, forwarder and customer, every single day. Logistics is not just delivery; it’s a […]
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In today’s blog of Hedging with Jorge, we continue our journey into the world of aluminium market risk management by exploring a key financial instrument used by hedgers: the call option. While often associated with speculative trading, the use of call options for hedging follows a completely different logic, one that’s more aligned with buying […]
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In this blog of Hedging with Jorge, we take a fresh look at call options and explore why a hedger might choose to pay a premium on a call instead of using futures, even when the futures curve is flat. To simplify the concept, Jorge draws on an everyday analogy, car insurance and highlights how […]
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On February 24, 2022, Russia launched a full-scale military invasion of Ukraine, further escalating the war that first started back in 2014. Forces entered the country from Belarus, Russia, and Crimea in what is considered the biggest, fiercest, and most destructive unprovoked attack on a European country since World War II. A significant shock to […]
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The recently presented Union Budget for 2023 is said to be inclusive and development-oriented. Is that true for all sectors? The metal sector is overshadowed at a glance, for it was a lacklustre budget for the industry except for steel. Prior to the budget, the Federation of Indian Chambers of Commerce and Industry (FICCI) was […]
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The pressing need for decarbonizing the aluminium industry is loud and clear. While various techniques and alternative fuel sources are employed to reach net zero by 2050, carbon capture is one of the mature technologies that can be used. It is currently in use by other energy-intensive sectors too. The carbon capture process can be […]
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The threat of climate change, and the growing focus on a carbon-neutral world and the implementation of a circular economy has changed the way heavy industries operate now. The result was the Paris Agreement in 2016, which set up an aim of keeping global warming below 2 degrees Celsius over the 21st century. This transformation […]
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The COVID 19 pandemic swept across the world in 2020 and created challenges for the global aluminium industry in the short to medium-term. The decline in demand from the transportation and construction industries has significantly impacted the aluminium price on the London Metal Exchange. World aluminium usage in 2020 was estimated to have declined by […]
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