Hedging

Copper hedging involves managing the risk of price changes for physical material by carrying out transactions on the London Metal Exhange (LME) to offset that risk. Indeed, in a highly volatile environment such as the copper market, hedging against price variations is not a luxury. With Aurubis, you can benefit from our hedging know-how and solutions for all your copper transactions.

In recent years, copper prices have fluctuated strongly and uncertainty on the market has been rising. The copper price depends on so many variables that even expert predictions often show large deviations. For all but specialized brokers, speculating on the copper price has become too high of a risk. For industrial copper users, hedging against copper price volatility has become a necessity to regulate cash flow and avoid unexpected losses.

As a smelter, refiner and manufacturer of industrial copper, we at Aurubis are also confronted with price variations while the copper is processed at our plants. Our policy is to always fully hedge our copper transactions and we never take a speculative position.

As a global leader in the copper industry with manufacturing plants and copper stocks in many countries, we have privileged contact to the London Metal Exchange and we offer this specialized hedging knowledge as a service to our customers.

 

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