Products & Services
Addressing Client Challenges  |  Swaps
Other Exotic Financial Instruments  |  Structured Products

Addressing Client Challenges

Participation by Koch Steel Trading primarily and initially involves developing and offering flat-rolled (Hot-Rolled and Cold-Rolled Coils) over-the-counter (OTC)* financial price risk management services to producers, service centers, converters, end-users and vested financial institutions. Koch Steel Trading may couple these services with physical positions in the contributing steel-making process materials and resultant finished products.

The Goal of Price Risk Management Tools is Three-fold and Clearly Observed in Developed Commodity Markets:

• Manage price/cost volatility – can help stabilize earnings and cost of capital
• Create a more fungible base commodity product –hot rolled coil enjoys a large share of the spot and contracted flat products market and the correlation is strong with downstream products
• Create financial liquidity in pricing indices – i.e. use an index that represents non-biased market transaction prices

Steel producers and consumers are facing increasing challenges in managing profit margins and cash flows; however, investors and lenders are demanding greater stability. Koch Steel Trading can help by offering financial products to hedge the risks associated with steel pricing. The links below provide examples of typical risk management products:

• Swaps
• Other Exotic Financial Instruments
  (Under Construction)
• Structured Products
  (Under Construction)

Not all of these products or services may be available to all persons.

*OTC products are regulated business in the UK. Koch Steel Trading uses the agency services of Koch Metals Trading Limited in the provision of regulated OTC products in the UK. Koch Metals Trading Ltd is regulated in the UK by the Financial Services Authority (FSA registration number 184882; Value Added Tax GB 341 4539 69). It can be contacted at 2 George Yard, 54 Lombard Street, London EC3V 9DH.

Any research and/or analysis contained on this website has been procured by us and may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers.