Producer Benefits

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

1. Offer a long-term fixed sales price and lock in a profit margin
   
   
2. Use inventory financing and trade financing
   
   
3. Access lower financing cost (banks view companies that hedge as lower risk)
   
   
4. Protect the value of unsold inventory in a falling market
   
   
5. Hedge physical purchases in times of strong demand

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