ORYX COMMODITY NEWS

Stainless steel: hedging against volatile nickel markets instead of speculation

14.09.2011

Stainless steel: hedging against volatile nickel markets instead of speculation

A study by the Institute of Finance at the University of Ulm on behalf of Oryx Stainless Group.

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Team of experts pleads for greater use of hedging instruments.

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Blind spot stainless steel scrap impairs forecasting reliability for nickel.

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Greater transparency for less volatility.

“If volatility on the nickel markets cannot be prevented but merely reduced by greater transparency, there is all the more reason for all market players to make active use of the instruments for minimising their own risks. Those who are attempting to compensate for the current structural weaknesses in the stainless steel industry through speculation in volatile nickel markets are pursuing a risky strategy”; it was this appeal by a participant that closed the first Oryx Stainless Research Summit in Dusseldorf on 13 September on the subject “Nickel market – playground for speculators or driven by fundamentals?”.

16 international commodity analysts and buyers, fund managers, representatives of associations, traders and other experts from the stainless steel industry were invited by the German-Dutch commodity trading group Oryx Stainless to discuss the results of the study under the same name by JProf. Dr. Peter N. Posch from the Institute of Finance at the University of Ulm, who carried out an extensive scientific and empirical study on speculation and other factors influencing the international price of nickel on behalf of the German-Dutch commodities trading group Oryx Stainless.

For more information:
Media Information (PDF)
Media Presentation (PDF)
Flyer (PDF)

A study by

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