Commodities (raw materials) are increasingly subject to significant price increases and rapid price fluctuations. This volatility means that companies dependent on one or more commodities are finding themselves under pressure and need to implement a strategy to manage commodity-specific risks.
Our goal is to enable you to regulate the effects that volatile commodity prices have on your net result.
Nordea Markets' team of commodities experts can help you identify and control your company's commodity risk exposure and assist you in formulating an active approach to monitoring and managing risk.
There are strategic differences in how you can hedge the underlying physical commodities and Nordea Global Commodities has the experience and competence to help you optimize your strategy for maximum value, no matter what commodity price exposure you are experiencing.
In addition to risk identification, risk management and trade execution, Nordea Markets provides:
- A dedicated team of experts with specialist experience in a wide range of commodities
- A special focus on oil, metals and freight including specialist research
- Deep knowledge of derivative instruments from simple swaps and forwards to complex option structures
- Leading commodity analysts continuously providing insights and recommendations
- Risk Advisory experts to help you establish your finance and treasury risk management policies
- In-depth pricing information, analyst publications and news available through the Nordea e-Markets platform
Key risk mitigation areas
- Agriculture - If your company relies upon agricultural products like Rapeseed, Milling Wheat or Cocoa we can help manage your exposure.
- CO2 emissions - Climate quotas are central to local and international initiatives to reduce global carbon dioxide levels and consequently, emissions trading is increasingly a part of the manufacturing process. We can provide the tools to hedge your risks in buying and selling CER and EUA climate quotas.
- Freight derivatives - If your company relies on commercial shipping of goods and products, Forward Freight Agreements (FFAs) could be a useful tool for managing dry cargo and tanker (clean and dirty) needs.
- Industrial metals - We can help you manage your exposures to fluctuating costs in metals such Aluminium, Copper, Lead, Nickel, Steel, Tin and Zinc.
- Oil and energy - Crude oil is the world's most important commodity. If your company is exposed to oil or refined oil products such as Naphtha, Diesel, Jet Fuel, Gasoline, Gas Oil, Heavy & Light Fuel Oil or Coal we can help you hedge these exposures.
- Paper and pulp - We offer expert advice and effective options to mitigate risks in this resource that is used in most production scenarios.
- Precious metals - Expensive elements such as Gold, Silver, Platinum and Palladium carry a lot of risk to businesses dependent on their supply. We can provide the tools to manage your price exposure to these precious metals.