Fastmarkets 2021 Ferrous Futures Trading Company of the Year
CORE TRANSACTIONS
CORE TRANSACTIONS: ONE SEAMLESS OFFERING
Since 2010, FGM has encouraged OEMs to seek protection from large metals price swings using risk management and hedging strategies. FGM was the first purpose-built company to combine consumer-facing, swap-based steel pricing structures with asset-light, sustainable steel distribution. Our Core Transactions, facilitated by our Risk Team as part of Flack Metal Bank (FMB), are who buyers rely on to hedge the metals they purchase from FGM. Together, FGM and FMB develop and execute the entire supply chain and risk management in one, seamless offering.
The FGM Process™ Simple. Seamless. Accountable.
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PRICE AND DURATION
Price and duration are agreed upon based on the HRC forward curve.
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ORDERS
Orders for the tonnages, prices and durations are placed.
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SUPPLY
Supply is arranged specific to your needs.
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POSITIONS
Long futures positions are placed by FMB to protect your pricing.
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DURATION OF AGREEMENT
FGM manages the agreed upon supply chain along with placing the position margin.
Start with Education
We know that hedging strategies are new to many steel-buyers, so we believe it is important to take a stepped approach. Throughout that process, the FGM and FMB teams proactively inform and educate customers so they understand not just the what but more importantly the why behind the actions we are taking.
- Start with a traditional pricing model for physical supply
- Learn each others’ business and processes
- Step into hedging with a portion of a buy or contract
- Add layers and products as our relationship deepens
