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Producer Benefits

Steel billet futures offer a number of benefits for producers including, including the ability to:

1.   Offer a long-term fixed sales price and lock-in a
      margin

2.   Lower financing costs (banks prefer hedged positions)

3.   Hedge unsold inventory in a declining market

4.   Hedge physical purchases in times of production
      difficulty

The entire supply chain benefits from a transparent and accurate pricing mechanism.

 
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