Smoother Surface

Anyone tracking the ferrous scrap market during the past several years likely has seen extreme volatility in pricing. For ferrous scrap consumers, especially electric arc furnace (EAF) operators dependent on ferrous scrap for a majority of their raw material intake, purchasing large blocks of raw material on a monthly basis when prices may swing significantly can play havoc with their balance sheets. To mitigate the negative effects of fluctuations, a number of companies are promoting the use of financial tools such as swaps and derivatives they claim can help smooth out ferrous scrap pricing.

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Smoother Surface