The London Metal Exchange (LME) has launched its own online steel hedging simulator. The interactive hedging tool is designed to help anyone interested in managing steel price risks to better understand the process of hedging, the benefits and the financial outcomes of different sector-specific example scenarios.
The simulator enables those from all aspects of the steel supply chain, including producers, rerollers, the construction industry and steel merchants, to select their own requirements and to track the progress of a hedging program through to its financial conclusion. It incorporates interactive illustrations of different hedging strategies and an explanation of key LME trading terms.
The LME steel hedging simulator can be accessed online at the following link: www.lme.com/simulator
Commenting on the launch, Liz Milan, LME steel project director, said: “The steel hedging simulator has been developed in direct response to interest from the physical steel industry and from the LME’s member firms. I would encourage any organization looking to understand the process of hedging, and the potential benefits, to try out the LME steel hedging simulator.”