Producer Benefits

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. Lower financing cost (banks view compaies that hedge as lower risk)
   
   
3. Protect the value of unsold inventory in a falling market
   
   
4. Hedge physical purchases in times of strong demand

   
   

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