United Kingdom · International non-ferrous metals tradingsales@moorgatemetals.com
Commercial risk management

Metals price & FX risk management

Physical metal trades can carry benchmark, basis, currency, timing and liquidity exposures long before final settlement. Moorgate helps make those exposures visible and commercially manageable.

Physical trade first

Control the transaction before adding complexity.

Our approach starts with the underlying physical trade: material, quantity, benchmark, quotation period, currency and settlement structure. Where commercial terms can be aligned, unnecessary price risk can often be reduced before any financial hedge is considered.

Where a documented residual exposure remains, Moorgate can support quantitative exposure analysis, hedge-structure evaluation and coordination with appropriately authorised financial counterparties.

Our framework

Three layers of commercial risk control.

1 · Structure

Align the physical pricing framework where commercially possible, including benchmark, quotation period, currency, quantity and pricing events.

2 · Quantify

Separate the residual exposure into benchmark price, physical basis, FX, timing, volume and liquidity components.

3 · Coordinate

Evaluate an appropriate risk-management approach and coordinate regulated execution through authorised banking, brokerage or exchange counterparties where required.

Exposure map

The risks are connected—but they are not the same.

Metal price risk

Exposure to movements in an LME-linked or other agreed benchmark between commercial agreement and final pricing.

Basis risk

The difference between the benchmark and the physical material economics, including grade, recovery, location and premium or discount.

Foreign-exchange risk

Currency mismatches between commodity pricing, operating costs and settlement cash flows.

Timing & volume risk

Shipment dates, quotation periods, assay outcomes and quantity tolerances can change the size or timing of an exposure.

Liquidity risk

A hedge may improve price certainty while creating funding, collateral or margin requirements before the physical trade settles.

Counterparty risk

Physical, banking and financial counterparties create separate credit, documentation and settlement dependencies.

Commercial hedging support

Designed around real physical exposure.

For qualifying copper, aluminium, zinc and related non-ferrous metal transactions, Moorgate supports commercial clients in evaluating price and currency risk arising from genuine physical trading activity.

Depending on the underlying exposure, the risk-management approach may involve benchmark-price hedges, average-price structures, options-based protection or foreign-exchange hedging. The appropriate structure depends on the physical contract, timing, volume, liquidity requirements and client risk policy.

Hedge the commercial exposure—not the market view. The objective is not to predict prices; it is to make the economics of the physical transaction more controllable.

Who we support

Built for commercial metal market participants.

Industrial buyers

Evaluate future metal-cost exposure, quotation-period risk and associated currency requirements.

Recyclers & suppliers

Assess price exposure between material acquisition, shipment and final commercial pricing.

Physical traders

Identify matched and unmatched exposures across purchase and sale legs, including basis, timing and FX mismatches.

Discuss your hedging requirements

Commercial hedging support for physical metal transactions.

Share the underlying metal, quantity, pricing basis, quotation period, currencies and expected settlement timeline. We can discuss the commercial exposure at a high level and determine whether a structured risk-management review is appropriate.

sales@moorgatemetals.com

Important: Moorgate Metals provides physical trade structuring, exposure analysis and risk-management coordination. Where regulated financial instruments are involved, execution is undertaken through appropriately authorised counterparties. Information on this page is general and does not constitute investment advice, a personal recommendation or an offer of any financial instrument.