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The following is for information purposes only to help you decide whether or not it is appropriate for your business to hedge any potential commodity exposure.
This information does not contain any form of investment, tax or legal advice. It does not amount to investment advice or make any recommendation in particular financial instruments, investments or products.
It is not intended as an offer or solicitation. Before deciding whether or not to enter into a commodity risk management solution, we recommend that you take independent financial advice. |
For some businesses, the volatility of commodity prices are a major risk which needs to be managed. For example, some businesses have substantial energy costs, others may have to make large purchases of raw materials. If the price moves in your favour, substantial windfall profits may be realised. However, unfavourable price changes can have an immediate and serious impact on company profitability.
For larger businesses that meet the criteria of a Professional client in accordance with the Financial Services Authority ('FSA') Conduct of Business Sourcebook, Northern Bank Markets can offer commodity risk management solutions in respect of the following sectors.
- Energy – including oil, natural gas, coal, electricity and associated exposures, such as carbon emissions
- Industrial metals – steel, copper, lead, aluminium, tin, zinc, nickel
- 'Softs' – including soybeans, wheat, corn and sugar
Please phone our Markets Specialists on 028 9004 9611 for further information.
Contact us about commodities