Hedging in the Steel Market: HedgeStar’s Perspective
HedgeStar’s Tim Potter and Merc Morse weigh in on the growing interest in hedging and hedge accounting in the metals sector in an interview with the American Metal Market.
NEW YORK — Interest in hedge accounting in the metals sector, particularly the steel industry, has steadily risen in recent months and will be amplified by accounting standards introduced in late 2017 that make it easier to hedge commodity and raw material price risks, according to two hedge accounting experts from HedgeStar. “People are showing more interest in hedging at conferences, especially folks in the steel market,” HedgeStar manager of valuation Merc Morse told American Metal Market. “We have seen a significant increase in the last six months.”