Price Risk Assessment
How does your firm purchase metal raw materials?
How is metal priced in the product you sell?
How do you manage the gap between your purchase price and selling price?
Is your inventory valuation at risk?
We can determine your price risk exposure, and develop a plan to close the pricing gap.
If your metal purchases and sales are not ‘back to back’, your firm is facing market risk exposure.
If your borrowing is based on inventory valuations, you must have a strategy to mitigate market risk.
We can design, develop and implement hedging programs to offset price risk exposure.
You want to manage your price risk exposure, but are not familiar with futures markets, or how hedging works.
We can assist in developing a step by step program together with you, and work side by side until you are fully confident and comfortable in managing price risk exposure for your firm.
In House Educational Seminars
Do your employees understand how changing metal prices impact your business?
Do they have the experience to identify and respond to changing market conditions?
Are they familiar with important market terms such as contango or backwardation, and what this means to your business?
Are they knowledgeable about how markets operate, and how metal prices are determined?
We can assist your organization by providing on site training in these critically important areas of your business.
Are you receiving the maximum value for your scrap metal?
Do you know that mixing different grades of scrap can significantly reduce the value of your metal?
Will toll converting your scrap to new metal improve the value you receive?
We can assess how well your scrap metal is managed within your facilities, and make recommendations if changes are necessary to improve the value you receive for metal. We can also survey market trends to confirm you are maximizing the price you are paid.
Auditing & Contract Compliance
You have long term supply agreements with escalation / de-escalation clauses for metals and other materials.
Are the contract terms being adhered to?
As an independent 3rd party, we can review and determine if your agreed terms and conditions have been met.
JE Gross Market Monitor
The Market Monitor is the culmination and formalization of methods, and procedures used to buy, sell, and manage price risk exposure over more than 40 years.