The US aluminium industry finds itself once again under the heavy cloud of uncertainty. For years, trade measures have been used as a tool to protect domestic production, yet instead of generating clarity, they have created an unstable environment that complicates decision-making from the boardroom of a primary smelter to the operations floor of a […]
When we began this journey together, the idea was simple: make hedging aluminium less intimidating and more practical for businesses exposed to market volatility. Seventy episodes later, here we are, closing a cycle that has stretched across almost seventy sessions, each dedicated to empowering decision-makers with strategies to manage risk more effectively. In this final […]
When it comes to aluminium hedging, the “zero-cost collar” remains one of the most effective tools to balance risk and cost. In this episode of Hedging with Jorge, we dive into the mechanics of how consumers not producers can apply this strategy to secure aluminium prices in uncertain markets. Recap: Calls and puts in aluminium […]
The thundering roar of Victoria Falls draws over a million tourists every year. But behind the awe-inspiring cascades lies a growing problem: the use of single-use plastics. Tourists wander viewpoints, cameras in hand. Empty plastic bottles litter bins and paths. Wildlife eats plastic; waterways clog. The natural beauty and ecological integrity of this UNESCO World […]
In this episode of Hedging with Jorge, we continue our journey through the world of aluminium risk management and explore the basics of call and put options. Whether you are a producer, trader, or consumer, understanding these instruments is essential for managing price volatility in the aluminium market. What does “At the Money” mean? Let’s […]
When we think about managing aluminium price risks, one of the most effective strategies available to consumers is the zero-cost collar. This strategy allows buyers to protect themselves from price volatility by combining two option positions: buying a call and selling a put. In today’s episode, let’s focus on the first leg of this strategy […]
In this new episode of Hedging with Jorge, we continue our journey through the world of hedging strategies, this time focusing on call options and how they form the foundation of a zero-cost collar strategy. On popular demand, Jorge’s second edition of Aluminium and Other Base Metals: Understanding Risk Management and Hedging starts August 26, […]
India became the second largest aluminium producing country in the world excluding China in 2018. With the strength of its integrated business model, excellent operational capabilities, stable operations and enriched product portfolio, Hindalco (plus Utkal Alumina) made significant profits in FY19. They are focusing on downstream segment for its domestic output. Primary aluminium productions from […]
Notwithstanding unfavorable economic conditions around, there is one company that is still projecting a positive picture in the metal market. The London Stock Exchange-listed, Anil Agarwal’s Vedanta Resources has given a sturdy outlook for commodity markets, despite low aluminium price, a weak Indian rupee and ever increasing cost of production. The company is working on […]
Aluminium majors in India like Nalco and Hindalco are under tremendous market pressure due to dropping aluminium price in the London Metal Exchange (LME) and higher production costs. Nalco is taking up a number of strategies to cope with the growing cost and declining price and profit margin. Nalco is the third-largest producer of aluminium […]