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Education - Commodity Markets are complex, but you can start learning today |
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As a corporate involved in day-to-day commodity processing and manufacturing, you would need to have some understanding of the complexities of commodity trading. While much of this can be outsourced to experts, some of it has to be perforce handled by your futures desk in-house. The market is new. There is little by way of exposure. So what do you do? Where do you go? Welcome to PJ commodities. We will show you how you can hedge your commodity-based price risks through our free seminars. These free seminars are designed to make it easy for you to understand the complementary nature of the commodity markets to your business. Get in touch with us. Give us details on your commodity requirement or production. We will educate you on the opportunities and how to leverage them. | Imagine this Scenario |  | A civil construction contractor bagged a deal to construct a bridge, which would require about 2000 tonnes of steel. The contract was bid with a decent margin of 20% profit. During the construction period, the price of steel went up by 60% erasing the total profit built in. Add to this, there was a price rise in cement and gravel; the result: the deal ended in a loss to the contractor. | | | A proper hedge would have managed the steel price risk there by enabling him to maintain a profit margin close to the projected one. | For more information contact us, today! |
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