Aluminium price risk management Why recyclers need to know about hedging now

For aluminium recyclers, managing profitability is no longer only about securing scrap, improving recovery rates or controlling operating costs. The timing of purchases, inventory holding, price fixation and customer sales can also influence the final margin that must be achieved. When aluminium prices move during these stages, even a commercially sound transaction can become less profitable. With the evolving market, evolving one's skills is also vital, which includes understanding the concept and effective application of hedging strategies. 

Why price exposure matters across the recycling cycle

An aluminium recycler may purchase scrap at one price, process and hold the material for a period and sell the recovered metal at a later date. Between these transactions, aluminium prices can move significantly, especially because of currency fluctuations, changing scrap values and differences between purchase and selling timelines, which can add further uncertainty. 

For businesses operating on tight margins, understanding these exposure points is essential. Aluminium price risk management allows recyclers to assess where market movements could affect their commercial position instead of relying entirely on favourable price movements. 

However, hedging is not about predicting whether aluminium prices will rise or fall. Its purpose is to manage uncertainty and provide businesses with tools to respond when the market moves against their position.

From price exposure to practical risk management

A structured approach begins with identifying where risk enters the business. For aluminium recyclers, this can include procurement decisions, inventory valuation, price fixation, customer contracts and sales commitments. Once these exposure points are understood, businesses can evaluate appropriate risk-management strategies.

This is where knowledge of futures and options hedging becomes particularly valuable. Futures can provide a mechanism to manage exposure to price movements, while options can offer greater flexibility by helping businesses protect margins while retaining opportunities when prices move favourably.

The objective is not to eliminate every market risk. It is to understand the risk, measure its potential impact and make more informed commercial decisions.

Bring back the fourth edition of hedging for recyclers 

Effective hedging for recyclers also requires more than understanding individual financial instruments. Businesses need a framework that connects risk management with everyday commercial decision-making. This includes establishing internal controls, understanding price-fixation risks and developing a practical risk-management policy that can be followed across commercial, finance and management teams.

Recognising this need, AL Circle is bringing back the fourth edition of “Hedging for Recyclers: Become an Expert in 6 Hours”, led by Jorge Eduardo Dyszel, an LME-certified Risk Management Consultant with more than four decades of experience in commodity risk management.

Details of the course 

The six-hour online course covers commodity price formation, recycler exposure, futures, practical hedging exercises, options and integrated risk-management policies, with scenarios involving aluminium, copper and lead. No prior hedging experience is required to take part in the course.

Date: 16 November 2026

Mode: Online

Time: 7:30 PM to 8:30 PM IST | 4:00 PM to 5:00 PM CEST

Duration: 6 hours

Instructor: Jorge Eduardo Dyszel, LME-certified Risk Management Consultant

Early-bird offer: 20% discount for individual registrations and 25% discount for group registrations of 3 or more people. 

The course is designed to help recyclers, scrap traders, procurement professionals, commercial managers and finance teams build a practical understanding of hedging and apply risk-management strategies to real-world commodity price exposure. Register for the fourth edition of “Hedging for Recyclers: Become an Expert in 6 Hours” and avail the discounts before they end.