Metal&Metal* were in a fix as one of their major customers wanted market based pricing in order to process a deal and approached Metal Edge Partners with the concern.
The metals service center didn’t want to rely on the stock inventory data as they didn’t like the idea of not knowing what would be the revenue or profitability and wanted a full analysis of the market for accurate pricing.
Our deep knowledge, in-depth understanding of the metals market and risk management expertise came handy in providing the client with revenue predictability and margin certainty. To eradicate the exposure of market fluctuation and gain revenue predictability for Metal&Metal*, we utilized the futures and swaps market to help structure a solution for the client.
The client benefited from being able to grow their market share with accessing its customers business and not having to be at the whims of the market when trying to forecast revenue and margins.
*We take our client’s confidentiality seriously. Referrals are available on request.