Price Risk Management

Because the business of buying and selling zinc alloys is not without risk, Eastern Alloys manages a formal price-risk management facility available to every Eastern Alloys customer. The goals of a price-risk management strategy are to identify and manage exposure to risks associated with the variability and volatility of the underlying zinc price, over time. Corresponding objectives include protecting selling price and/or margin. In some cases, a price-risk management program can contribute toward long-range market share objectives.

In any event, the hallmark of any Eastern Alloys customer support program is information and innovation supported with experience and reach. Each business day the company is linked to the world's metals and financial market via a real-time terminal. Coupled to Eastern Alloys' expansive global supply network, there is an abundance of research and analysis available to support development of virtually any price-risk program. Importantly, Eastern Alloys is the only consumer member of the London Metal Exchange in North America.

Richard H. Bauer directs Eastern Alloys' price-risk management program. Mr. Bauer, is  Eastern Alloys' President. He joined Eastern in the early eighties after a career in metal trading that followed a B.S. Degree in Metallurgy from Michigan Tech.

He works in lock step with the Eastern Alloys Sales & Marketing group to create innovative solutions to satisfy individual customer needs, and often meets with customers presenting market data and reviewing alternative price-risk strategies.

Asissting Mr. Bauer is Marc Morgan, the company's VP of Price Risk Management. Marc Morgan joined Eastern Alloys in August 2006, bolstering the already strong trading and management team, reporting to Dick Bauer and Rick Young. Originally schooled in the U.K., Marc began his metals experience on the floor of the London Metals Exchange as a clerk, before gaining his ring dealing authorization in May of 1982. After trading in the ring for two years, Marc transferred to his New York office in 1983. In 1985 he began a new chapter, joining the Billiton group, where he learned and developed physical metal trading skills in both copper and aluminum, while continuing to enhance his hedging knowledge. He returned to his brokerage roots in April 2000, where he helped guide the New York commodities desk into the new electronic trading platform era, branching into several new commodity arenas.  

Remember, it's all about the money you keep. Eastern Alloys can help.

To learn more about the Eastern Alloys price-risk Management program, how it works and what it can do for your business, contact your Eastern Alloys salesperson or e-mail Richard H. Bauer at rhbauer@eazall.com.
 

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