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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The year 2019 proved to be a robust one for mergers and acquisitions for the global aluminium industry. Mergers and acquisitions played a key role in expanding businesses of the industry players across aluminium value chain. The companies continued to invest in acquisitions to capitalize on the growing demand despite world aluminium price volatility and continuous market […]
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As a European industry association, our focus for 2020 is ensuring that new policymakers in the reconstituted European Commission and Parliament understand our industry. Our agenda features a comprehensive set of policy recommendations across four domains: circular economy, trade, energy & climate, and innovation. First, we must convince more politicians that aluminium is a strategic […]
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Today staying competitive means investing permanently in new technologies, helping to reducing operational costs. Not only the technology itself, also the way that you can purchase it will make a difference in the profitability of your operations. At the background of demographic and political changes and in a complex market which – above all – […]
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