After last year's price excesses in aluminum premiums (reaching USD 500 / ton) the situation has now turned around. Both the premium (currently around USD 100) and aluminum price have strongly declined. The aluminum market has not been this favorable for years.
A key characteristic of the plastics processing industry is its lack of material pricing transparency. In addition, and in terms of earnings performance for processors and producers, its high price volatility is an additional risk . That is why corporate leaders want a toolbox through which such uncertainties can be minimized and results can be better planned. Based on its extensive and relevant experience in the industry MERIT has developed a service package that allows plastic processors to reduce uncertainties…
As an integrative partner in the entire commodity value chain MERIT has become highly specialized in utilizing market opportunities and in controlling market risks. Many years of experience allow us to efficiently optimize the purchase and sale of commodities, create and set up commodity profiles, develop and implement hedging strategies and offer alternative sourcing and stock financing models.
As an integrated partner we take responsibility for all your commodity risks. Consultation begins with risk analysis and quantification after which a tailored catalog of hedging instruments is developed. We don’t leave you until adequate hedging strategies have been fully designed. Trading is carried out through hedging transactions with suitable counterparties, including evaluation and documentation. For your exposure management we act upon a jointly developed policy.
The MERIT trading and analysis team deals exclusively and around the clock with the commodity markets and is networked with all major commodity exchanges real-time. With our expertise we support the optimization of purchasing and sales activities of our customers. Our trading logic and trend analyzes come to you as a signal transmitter at the right time. Finally, our contracting services focus primarily on the optimization of contracts and conditions.
Funding issues are a central theme in commodity management and currently represent a particular challenge. Appropriate hedging is a prerequisite for efficient logistics and inventory hedging allows for additional returns in contango markets. In short, optimization of liquidity is essential for all hedging activities. MERIT is your perfect partner in stock financing and procurement.
By metals management we mean all measures that help to capture, analyze, manage and control the risks in trading, in processing and in the production of metals. Metals management is ideally an integral part of strategic management through which operating or communication managers are permanently updated with an overview of all key risk positions and their impact on the company's results and potential hedging strategies.
The inefficient use of energy is not only bad for the ecological balance but it also drives up running costs. For many consumers the enormous price increases in the oil and gas markets have been for years anywhere from a nuisance to a life threat. Only a small portion of energy consumers already use hedging instruments thus fractionalizing prices and costs. Strategic commodity management is not only relevant to large corporations.