Frequently Asked Questions

Does a financial transaction with Koch Steel Trading change the way I buy (or sell) my physical steel?
No. The existing supplier/customer relationships for physical steel does not change. The services and special qualities that each relationship provides do not change. The transaction with Koch Steel Trading only changes the cash flow around steel price movements. You still pay your supplier (or receive from your customer) for the physical in the same manner as before. However, the additional transaction with Koch Steel Trading changes your net cash flow.

What is Koch Steel Trading’s view of the London Metals Exchange (LME)* steel futures initiative?
Koch Steel Trading applauds the LME initiative and believes that its success will be beneficial for the entire steel producing/consuming community. However, our product offerings and risk management solutions are not contingent on the success of the LME steel futures. We offer over-the-counter (OTC) instruments directly to our clients. These counterpart-to-counterpart deals allow us to tailor specific contracts to meet client needs.

Who are Koch Steel Trading’s targeted clients?
Koch Supply & Trading, LP and Koch Metals Trading Limited have the financial strength to transact with a wide array of companies that have exposure to steel price volatility. These entities include producers, consumers, processors, service centers, converters and vested financial institutions. Since our initial focus is on flat-rolled products, the producers and consumers of flat-rolled products benefit the most from our products. However, producers and consumers of steel products whose prices move closely with the prices of flat-rolled products can also use our products to mitigate their price risk.

Where can I find definitions for financial terms?
Koch Supply & Trading, LP has compiled a list of definitions of common financial terms. > Get List of Definitions (PDF)

*Koch Metals Trading Limited, part of Koch Supply & Trading, LP, provides extensive risk control and liquidity to the global metals market by offering physical, financial, traded and OTC products. Koch Metals is a member of the London Metals Exchange and offers liquidity in a variety of OTC products, as well as metal warehousing and financing.