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Managing Price Risk

We have all seen unprecedented price volatility for commodities over the past few years, with copper in particular subject to violent swings. In just the past nine months, copper soared to record highs, only to fall precipitously to multi-year lows. Any number of factors may contribute to these sudden reversals, including fundamental considerations, changes in foreign exchange rates and speculative influences, as well as our overall perception of future economic conditions. Thus, it comes as no surprise that many organizations feel they are at the mercy of the markets, with little or no control over metal prices or ...

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