Metals Risk Management

Manage volatility across the industrial metals complex. This dashboard allows Miners, Processors, and OEMs to visualize hedging payoffs for Base Metals, Ferrous, and Battery Materials.

User Manual

How to Use the Tools Below

Select a product in the calculator to see these payoff profiles in action.

1. Unhedged

The Baseline. This represents your physical risk if you do nothing.

  • Miners: Lose revenue if prices fall below budget.
  • Consumers: Costs increase if prices rise above budget.

2. Futures

The Lock. Secure a fixed price using LME, CME, or SGX contracts.

  • Pros: Eliminates downside risk.
  • Cons: Eliminates upside potential (cannot benefit from favorable moves).

3. Options

The Insurance. Pay a premium for protection.

  • Miners: Buy Puts (Floor).
  • Consumers: Buy Calls (Ceiling).
  • Result: Protected against adverse moves, but participate if prices improve.

4. Collars

The Range. Cost-effective protection.

  • Buy an option for protection, sell another to fund it.
  • Result: Capped risk and capped gains within a specific price tunnel.

Calculator

Update the inputs below to visualize your risk

Center of Chart

Payoff Profile

P/L vs. Market Price