Discover what ION can do for you
The largest businesses across the global metal value chain rely on ION Commodities solutions
With the energy transition comes increased demand for metals. Wind and solar are 37 times more copper-intensive than conventional energy, and electric vehicle batteries drive the increased need for nickel and cobalt. Regulatory and macro-economic changes have introduced considerable volatility into metals markets, bringing metals trading software and logistics management back to the forefront for metals producers, traders, and end users.
Accurate material information
Firms today need to integrate physical trading with scheduling. Because no two metal units are precisely the same in terms of exact weight and quality, delivered metals may vary from what was originally contracted. With volatility picking up and prices rising, tools for accurate, dynamic, and real-time risk reporting are a necessity.Solution
Improve visibility of your physical positions
Manage and view the full physical delivery details for metals with ION’s commodity management solutions. Comparing fineness, quality, adjustments, and matching actual physical delivery against the value of trades can expose any differences between expected and actual positions.
Optimizing the pricing and use of contract optionality for complex transactions
Producers face many operational burdens across their business, especially when dealing with multiple pricing components and quotation periods. The trading systems currently in use by many companies don’t give producers insights into how to provide guidance to traders and end users on how to work together optimally.Solution
ION’s commodity management solutions provide extensive functionality for capturing and evaluating optionality in contracts. Our solutions use projected market data to provide a present value for each option, allowing producers to price it correctly. For end users, the systems automatically recommend the best use of the optionality available (how and when to exercise it) based on forward-looking prices.
Accurately capturing concentrates contracts
Capturing and modeling complex contracts associated with concentrates is often managed with spreadsheets.Solution
Reduce the time and effort required to manage concentrates contracts
Our solutions cover both physical contracts and financial derivatives, including swaps and exotic options like concentrates. You see an aggregated view of positions, risk, and P&L in a single solution, with the ability to drill down to transaction level in a single click. You can also decompose the exposure from more complex physical products such as concentrates, scrap, and alloys into their constituent products, and compare against the relevant derivatives.
Understand the impact of changes in the macro environment on carry trades
Low interest rates and quantitative easing (QE) policies have made the metals carry trade highly attractive for banks and trading firms. But profit from carry trades in base metals depends on the fairly thin margin achieved between the cost of capital and metals storage charges, and the gradually appreciating price of the metal concerned.Solution
Reduce the impact of price volatility and preserve margins
ION’s commodity management solutions provide comprehensive stress testing of scenario impacts, such as a quarter-point change in overnight lending rates or the profitability of the portfolio over time. Our solutions also help manage the instruments required to hedge likely exposures—such as interest rate swaps, interest rate futures, and FRAs.
Complex value chains
Several market participants now have global operations with large inventories and logistics operations, creating an added layer of complexity in managing risk. Large volumes of on and off exchange warrants can create operational nightmares.Solution
Gain a global view of your physical materials
ION’s commodity management solutions deliver fast storage and retrieval of massive data quantities. They can scale as transaction volumes grow, and they provide aggregated real-time position reporting to keep pace with even the largest trading operations.