You can hedge the prices of industrial metals and precious metals as well as steel.
Copper, nickel, aluminium, zinc, tin and lead are metals traded on the LME that can be covered with price hedges.
Within precious metals, price hedging is possible with gold and silver. Within the steel industry, the two hedging options are the prices of LME steel billet and Nordic HRC.
Protects a metal buyer against a rise in metal prices and fixes the metal price to be paid. Metal price hedges are separated from physical deliveries, meaning that the supplier can be selected freely. You can start and cancel metal price hedging at the market price at any time.
Due to the basis risk*, the gains and losses of a hedging strategy cannot always be fully determined in advance.
Many commodities are priced in US dollars. Among other things, this means that the appreciation of the dollar will be directly reflected in Finnish prices.
*Basis = spot price of the hedged product – price of the derivative Purchasing the products requires a customer relationship and a general agreement on derivatives with Nordea. Please contact our specialists for further information. We will be happy to help.